I realize I have written a lot about the Towson Zestimates and how much they have been off in my area.
It is not that I mean to harp, but as most of my family & friends know, I am an expert when it comes to house values in Towson.
Enter this weekend, with cookouts and family time galore. As usual, the discussion goes to real estate.
"I was passing this on the way to your house - how much is it on for?"
Of course, I am ready with that information:
"$2,495,000."
"How about the small one near Charles Street?" "$615,000."
(I know my area!)
"So, Marney, what is this Zillow Zestimates thing you have blogged about?"
Well, here's the PERFECT example as to the difference between TRUE VALUE and ZESTIMATES.
List price: $2,495,000. Zestimate: $971,000. Off by over $1.5 MILLION!!!!
List price: $615,000. Zestimate: $489,000. (only off by about $126,000).
See the problem????
How can this be rectified? I realize there are disclaimers all over the Zillow site. But shouldn't a product designed to help the public determine a value be at least CLOSE to correct?!
 |
|
|
Licensed for over 10 years Past President, Real Estate Million Dollar Association, Ltd. (2008-9) Top Producing Agent in Baltimore County Graduate GBBR Leadership Academy
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
Marney...
I just tell them that these websites are data aggregators and don't really have a clue as to the real value of a property. Nobody EVER goes to the tax assessor and demands a higher value for their property!
Hi Marney... I agree. Zestimates are, at the very least, inaccurate!
Richard, you are absolutely correct! What I found, however, is that BANKS are using this for information! I had one client whose HELOC was reduced because of the site!!!! They can't produce a real AVB -- because that would have been RIGHT! Here's the story here.
Steve, I just can't comprehend how the site can use the PURCHASE PRICE however many years ago to determine CURRENT value?!?!
Thanks!