Zestimates-Wrong-Inaccurate

Zestimates – Why They are Not Helpful

Why a Home Buyer should never use them

What is a Zestimate?

Zestimate

(Pronounced ZEST-ti-met) – Information is straight from the Zillow Website

The Zestimate® home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide. It is a starting point in determining a home’s value and is not an official appraisal. The Zestimates are automatically computed daily based on millions of public and user-submitted data points.

Zestimates® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location, and market conditions. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:

  • Getting a comparative market analysis (CMA) from a real estate agent
  • Getting an appraisal from a professional appraiser
  • Visiting the house (whenever possible)

Zillow also produces a Zestimate forecast, which is Zillow’s prediction of a home’s Zestimate one year from now, based on current home and market information. Learn more about the Zestimate forecast.

*For more information on Zestimates directly from Zillow, Click HERE

From: the Los Angeles Times
By: Kenneth R. Harney
Date: February 2015

When “CBS This Morning” co-host Norah O’Donnell asked the chief executive of Zillow recently about the accuracy of the website’s automated property value estimates — known as Zestimates — she touched on one of the most sensitive perception gaps in American real estate.

Zillow is the most popular online real estate information site, with 73 million unique visitors in December. Along with active listings of properties for sale, it also provides information on houses that are not on the market. You can enter the address or general location in a database of millions of homes and probably pull up key information — square footage, lot size, number of bedrooms and baths, photos, taxes — plus a Zestimate.

Shoppers, Sellers and Home Buyers routinely quote Zestimates to realty agents — and to one another — as gauges of market value. If a house for sale has a Zestimate of $350,000, a buyer might challenge the sellers’ list price of $425,000. Or a seller might demand to know from potential listing brokers why they say a property should sell for just $595,000 when Zillow has it at $685,000.

Disparities like these are daily occurrences and, in the words of one realty agent who posted on the industry blog ActiveRain, they are “the bane of my existence.” Consumers often take Zestimates “as gospel,” said Tim Freund, an agent with Dilbeck Real Estate in Westlake Village. If either the buyer or the seller won’t budge off Zillow’s estimated value, he told me, “that will kill a deal.”

Back to the question posed by O’Donnell: Are Zestimates accurate? And if they’re off the mark, how far off? Zillow CEO Spencer Rascoff answered that they’re “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%.

Whoa. That sounds high. On a $500,000 house, that would be a $40,000 disparity — a lot of money on the table — and could create problems. But here’s something Rascoff was not asked about: Localized median error rates on Zestimates sometimes far exceed the national median, which raises the odds that sellers and buyers will have conflicts over pricing. Though it’s not prominently featured on the website, at the bottom of Zillow’s home page in small type is the word “Zestimates.” This section provides helpful background information along with valuation error rates by state and county — some of which are stunners.

For example, in New York County — Manhattan — the median valuation error rate is 19.9%. In Brooklyn, it’s 12.9%. In Somerset County, Md., the rate is an astounding 42%. In some rural counties in California, error rates range as high as 26%. In San Francisco it’s 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093.

Some real estate agents have done their own studies of accuracy levels of Zillow in their local markets.

Last July, Robert Earl, an agent with Choice Homes Team in the Charlottesville, Va., area, examined selling prices and Zestimates of all 21 homes sold that month in the nearby community of Lake Monticello. On 17 sales Zillow overestimated values, including two houses that sold for 61% below the Zestimate.

In Carlsbad, Calif., Jeff Dowler, an agent with Solutions Real Estate, did a similar analysis on sales in two ZIP Codes. He found that Zestimates came in below the selling price 70% of the time, with disparities ranging as high as $70,000. In 25% of the sales, Zestimates were higher than the contract price. In 95% of the cases, he said, “Zestimates were wrong. That does not inspire a lot of confidence, at least not for me.” In a second ZIP Code, Dowler found that 100% of Zestimates were inaccurate and that disparities were as large as $190,000.

So what do you do now that you’ve got the scoop on Zestimate accuracy? Most important, take Rascoff’s advice: Look at them as no more than starting points in pricing discussions with the real authorities on local real estate values — Experienced Agents and Appraisers.

Zestimates are hardly gospel — often far from it.

Call the Martin Real Estate Team of Lake Norman if you are interesting in Buying or Listing Your Home in the Cornelius, NC Real Estate area or other around Lake Norman…or even if you are looking for more information on Lake Norman Real Estate Values.

704-900-1619

Lake Norman Waterfront Homes for Sale

Lake Norman homes

Listings 1 - 20 of 256   next

14515 NC Hwy 73 Highway -- 4 BR, 4.1 BA
Price: $4,500,000 (5714 sqft)
Subdivision: Vista Lago
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Kathy Day | MLS # 4085004 | Active
211 Quaker Road -- 4 BR, 3.1 BA
Price: $3,799,000 (5428 sqft)
Subdivision: The Point
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Dom DeMatteo | MLS # 4115639 | Active
106 Lightship Drive -- 4 BR, 5.2 BA
Price: $2,490,000 (6328 sqft)
Subdivision: The Point
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Gale Howard | MLS # 4114545 | Active
9543 Island Point Road -- 3 BR, 3.1 BA
Price: $1,400,000 (3520 sqft)
Subdivision: Stutts Circle
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Beth Graichen | MLS # 4081044 | Active
9185 Grayson Green Lane -- 3 BR, 3 BA
Price: $791,000 (2771 sqft)
Subdivision: Lakepointe North
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Lynn Stallings | MLS # 4117620 | Active
139 Hollen Lane -- 10 BR, 11.7 BA
Price: $22,000,000 (9870 sqft)
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Hart Real Estate | MLS # 4096193 | Active
14051 Island Drive -- 5 BR, 6.2 BA
Price: $22,000,000 (12636 sqft)
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Premier Sotheby's | MLS # 4020713 | Active
18019 Harbor Light Boulevard -- 6 BR, 7.4 BA
Price: $16,000,000 (15048 sqft)
Subdivision: The Peninsula
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Premier Sotheby's | MLS # 3895525 | Active
154 Tennessee Circle -- 6 BR, 7.2 BA
Price: $12,500,000 (11112 sqft)
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The Agency - Charlotte | MLS # 4099910 | Active
173 Rehoboth Lane -- 5 BR, 5.3 BA
Price: $10,000,000 (8750 sqft)
Subdivision: The Point
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Keller Williams Lake | MLS # 4087619 | Active
18000 Whispering Oaks Drive -- 5 BR, 6.3 BA
Price: $8,000,000 (7308 sqft)
Subdivision: Point Largo
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Nestlewood Realty, LLC | MLS # 4002519 | Active
132 Lightship Drive -- 4 BR, 4.2 BA
Price: $7,995,000 (9794 sqft)
Subdivision: The Point
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Ideal Realty inc | MLS # 4097424 | Active
19419 Tresia Lane -- 7 BR, 6.2 BA
Price: $7,200,000 (6932 sqft)
Subdivision: Diane Shores
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Premier Sotheby's | MLS # 4064518 | Active
4516 Slanting Bridge Road -- 3 BR, 2 BA
Price: $6,885,000 (1494 sqft)
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RE/MAX Executive | MLS # 4073500 | Active
22350 Country Club Lane -- 6 BR, 6.1 BA
Price: $6,750,000 (6460 sqft)
Subdivision: Country Club Shores
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Helen Adams Realty | MLS # 4097389 | Active
8397 Ranger Island Marina Road -- 7 BR, 7.2 BA
Price: $6,500,000 (7071 sqft)
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Nestlewood Realty, LLC | MLS # 4007345 | Active
166 Iron Gate Circle -- 5 BR, 6.1 BA
Price: $6,500,000 (4879 sqft)
Subdivision: The Cove
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Trump International | MLS # 4111645 | Active
193 Attleboro Place -- 4 BR, 4.1 BA
Price: $5,495,000 (5488 sqft)
Subdivision: The Point
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Premier Sotheby's | MLS # 4113853 | Active
9057 Unity Church Road -- 5 BR, 4.3 BA
Price: $4,750,000 (5741 sqft)
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RE/MAX EXECUTIVE | MLS # 4110550 | Active
20114 Norman Colony Road -- 6 BR, 6.1 BA
Price: $4,499,000 (7003 sqft)
Subdivision: Norman Colony
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Carlyle Properties | MLS # 4073063 | Active

Listings 1 - 20 of 256   next

Lake Norman Waterfront Condos for Sale

Lake Norman condos

Listings 1 - 20 of 67   next

19329 Watermark Drive -- 3 BR, 3.1 BA
Price: $1,595,000 (2864 sqft)
Complex: Watermark
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Premier Sotheby's | MLS # 4112266 | Active
18529 Harborside Drive -- 3 BR, 2 BA
Price: $849,000 (1375 sqft)
Subdivision: Harborside
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K.M.D. Realty Inc. | MLS # 4085672 | Active
18641 Harborside Drive -- 3 BR, 2 BA
Price: $849,000 (1375 sqft)
Complex: Villages at Harborside
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K.M.D. Realty Inc. | MLS # 4092221 | Active
17810 Half Moon Lane -- 3 BR, 2 BA
Price: $760,000 (1366 sqft)
Subdivision: Half Moon Bay
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Century 21 DiGioia | MLS # 4114169 | Active
8233 Houser Street -- 3 BR, 3.1 BA
Price: $634,869 (2654 sqft)
Complex: The Retreat At West Catawba
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David Weekley Homes | MLS # 4110750 | Active
8022 Houser Street -- 3 BR, 2.1 BA
Price: $599,900 (2373 sqft)
Subdivision: The Retreat at West Catawba
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TSG Residential | MLS # 4101458 | Active
1106 Torrence Circle -- 2 BR, 2 BA
Price: $535,000 (1109 sqft)
Complex: Captains Watch
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ERA Live Moore | MLS # 4082808 | Active
1333 Torrence Circle -- 2 BR, 2 BA
Price: $535,000 (1112 sqft)
Complex: Emerald Bay
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Blair Realty, LLC | MLS # 4119185 | Active
941 Southwest Drive -- 2 BR, 2 BA
Price: $520,000 (949 sqft)
Complex: Southpoint
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NextHome Choice Realty | MLS # 4116411 | Active
7124 Brookview Lane -- 4 BR, 3.1 BA
Price: $509,990 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4114983 | Active
7108 Brookview Lane -- 4 BR, 3.1 BA
Price: $489,990 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4115120 | Active
7112 Brookview Lane -- 4 BR, 3.1 BA
Price: $479,990 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4114987 | Active
20567 Harbor View Drive -- 4 BR, 3.1 BA
Price: $469,000 (2338 sqft)
Subdivision: Lake Norman Cove at Jetton
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Faulcon & Associates | MLS # 4064311 | Active
1044 Southwest Drive -- 2 BR, 2 BA
Price: $459,000 (1108 sqft)
Complex: South Harbortowne
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Lake Norman Realty, | MLS # 4074354 | Active
131 Berkeley Avenue -- 4 BR, 2.1 BA
Price: $456,000 (2023 sqft)
Subdivision: Forest Lake
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Prime Real Estate | MLS # 4112662 | Active
1262 Brawley School Road -- 3 BR, 2.1 BA
Price: $449,990 (1810 sqft)
Complex: Forest Lake
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TRI Pointe Homes INC | MLS # 4119427 | Active
18817 Vineyard Point Lane -- 2 BR, 2 BA
Price: $449,900 (847 sqft)
Complex: Dockside
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ERA Live Moore | MLS # 4118330 | Active
4347 Reed Creek Drive -- 4 BR, 3.1 BA
Price: $447,990 (2672 sqft)
Subdivision: Waterstone
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CCNC Realty Group LLC | MLS # 4114844 | Active
104 Burlingame Court -- 4 BR, 3.1 BA
Price: $444,000 (2470 sqft)
Subdivision: Morrison Plantation
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RE/MAX Select | MLS # 4116949 | Active
110 Lanyard Drive -- 3 BR, 2.1 BA
Price: $439,999 (2031 sqft)
Subdivision: Waterfront at Langtree
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EXP Realty | MLS # 4115638 | Active

Listings 1 - 20 of 67   next