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Zillow's price estimates are screwing up homebuying
MSN.com ^ | December 18, 2024 | James Rodriguez

Posted on 12/18/2024 9:03:32 AM PST by Angelino97

The Zestimate is arguably the most popular — and polarizing — number in real estate. An entire generation of homeowners doesn't know life without the algorithm; some obsessively track its output as they would a stock portfolio or the price of bitcoin...

Many industry insiders regard the number as a starting point at best and dangerously misguided at worst. Real-estate agents recount arguments with sellers who reject their pricing advice, choosing to take the Zestimate as the word of God. One meme likens its disciples to adults who still believe in Santa.

Zillow itself lost hundreds of millions of dollars during the pandemic when it relied on its algorithm to buy homes at inflated prices, part of an ill-fated attempt to flip homes at scale.

The Zestimate is one of a slew of automated valuation models that are increasingly used by banks, investors, and laypeople to estimate the value of homes. No other model, however, has wormed its way into our culture like the Zestimate. The model is prone to errors that render it more of an amusement than a serious pricing tool...

The Zestimate is both everywhere and an enigma. About 104 million homes, or 71% of the US housing stock, have a dollar figure hovering above them on Zillow's website...

Just how accurate are those numbers? Until the house trades hands, it's impossible to say. Zillow's own explanation of the methodology can be misleading. The model, the company says, is based on thousands of data points from public sources like county records, tax documents, and multiple listing services — local databases used by real-estate agents where most homes are advertised for sale.

Zillow's formula also incorporates user-submitted info: If you get a fancy new kitchen, your Zestimate might see a nice bump if you let the company know...

(Excerpt) Read more at msn.com ...


TOPICS:
KEYWORDS: estimatemeanswhat; guesstimate; justanestimate
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To: TexasGator

Not allowed.
two separate single family homes on the same piece of land.
The problem they have is I can’t sell the houses separately.
That would be an illegal subdivision.
You buy the whole place or it is a no go.
But Zillow won’t allow you to list it that way.


101 posted on 12/18/2024 8:03:53 PM PST by rellic (no such thing as a moderate Moslem or Democrat )
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To: rellic

“The problem they have is I can’t sell the houses separately.
That would be an illegal subdivision.
You buy the whole place or it is a no go.”

That is your problem, not Zillow’s.

“But Zillow won’t allow you to list it that way.”

You list it as Multi-family and sum the sq ft, rooms, etc.

Just as a realtor would list it.


102 posted on 12/18/2024 8:10:12 PM PST by TexasGator ('111I1/.1111'/1./')
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To: TexasGator

Houses are 200 feet apart.
Not exactly multi housing.
Thanks for the idea.


103 posted on 12/18/2024 8:41:02 PM PST by rellic (no such thing as a moderate Moslem or Democrat )
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To: rellic

“Houses are 200 feet apart.
Not exactly multi housing.
Thanks for the idea.”

Multi-family.


AI Overview
Learn more
When there are multiple houses on a single property, it’s typically referred to as a “multi-family” property, and depending on the configuration, could be called a duplex (two units), triplex (three units), or a compound (multiple houses on a larger plot) - but the exact terminology depends on local zoning laws and the arrangement of the houses on the land


104 posted on 12/19/2024 1:32:09 PM PST by TexasGator ('111I1/.1111'/1./')
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To: TexasGator

Thanks for the education.
I guess my misunderstanding was this,
where I grew up multi family homes were all physically connected.
Common sewer, water and what not.
My two (actually three homes her are totally independent.
you could burn one to the ground and the others will
function without skipping a beat.
Thanks
and Merry Christmas!


105 posted on 12/19/2024 2:52:16 PM PST by rellic (no such thing as a moderate Moslem or Democrat )
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To: rellic

“where I grew up multi family homes were all physically connected.”

Still true. But the listing is for the property.

Multi-family property. Deecription gives the specifics.


106 posted on 12/19/2024 3:15:44 PM PST by TexasGator (1.1.11I1/.1111'/1./')
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To: rellic

Here is a “multi-family” listing of four homes on acreage.

https://www.homes.com/property/unlisted-address/qthmecbcjrs5z/


107 posted on 12/19/2024 3:20:13 PM PST by TexasGator (1.1.11I1/.1111'/1./')
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To: TexasGator

They really glossed over the 3 rentals.
I spent 2+ years going to Sarasota every few weeks
as a Boeing contact management engineer so I’m
familiar with the area.
I could write a check for that property in a week or two
but no way in hell.
But thanks for the education!


108 posted on 12/19/2024 3:48:17 PM PST by rellic (no such thing as a moderate Moslem or Democrat )
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