Like EPA Gas Mileage numbers are written in stone...............
Just because you have a number to 4 digits, doesnt mean it is a real number.
Lots of numbers throughout society that people believe.
Realtors get mad and love to list with a lower price. Speed of transaction is FAR more important to them than another 20k on the price. They may only get another 400, 500 on a higher price. But the additional 20k for the seller can mean much more.
As always, depends where and when.
But according to the Freakonmics book, when Realtors list their OWN house, they price higher and take several more weeks or months to get a higher price accepted.
I added an addition on my home in 1997. It put about 400 sq feet to my living space. The town knows about it. I certainly get taxed on it.
But Zillow still lists the home without it. I chuckle when i look it up every couple of months.
When I finally sell the house, it is going to screw up their algorithm.
And at least a Zestimate gives a homeowner a starting place. In the past you were largely at the mercy of what the broker’s estimates were.
My Zillow house value goes up or down by 20K some months in their estimate all the time. Some months my house is worth more than my neighbors and other months the neighbors are worth more. Very unreliable estimates.
If zillow tells ya a property is worth 500k, make it 450k or less.
I suspect the county is using Zillow’s estimate to raise the property taxes on my house.
It’s not a huge mystery how these algorithms work... they’re basically just using price-per-sq-ft sales data for your location and multiplying it by the size of the property and perhaps tweaking it a bit based on number of bathrooms, amenities like swimming pool etc,
It’s a starting point but some of their numbers are crazy high and some are crazy low. The crazy high number is often for the crappy house in the nice neighborhood. Zillow/Redfin etc have no predictive mechanism for how well the current owners have maintained/remodeled/improved/damaged the place, and they assume that the dumpiest house on the block as just as good as all the rest. The crazy low number is typically seen for the improved placed that, due to remodeling, upgrades etc, is actually way better than the information available in public records would suggest
“are” screwing up? HAVE screwed up is more accurate. I never saw such a line of misleading and inaccurate claptrap. Their values are just plain nucking futz. They have even screwed up realtors. There is a house down the road clinging to a zestimate and it has been on the market now for going on FIVE years. It isn’t selling because it just isn’t worth the price marked on it. Price to sell or don’t put the house on the market.
The Zillow number means nothing.
But I can see how uneducated home buyers or sellers could think it’s accurate
I’d rather hold on to a Redfin estimate. It’s usually way higher.
Zillow can’t even get my home description correct, but my county sure can. Thankfully by law they can only raise my taxes by 3% or so per year barring any major changes. So I have a home that will zip right out the door at close to a million dollars, but I’m taxed at about $300,000.
I’m in Hawaii on acreage with great ocean views.
I’m too old to move.
Zillow is a joke for anything beyond California Tract housing.(I grew up in CA tract housing).
Your house is worth what someone is willing to pay for it
and your efforts to find that person.
I have two aunts who did quite well in real estate sales,
so I had very good advice when selling and buying.
They did not pull their punches.
Well, I sometimes use Zillow’s “Sold” data to get a better view of the actual prices people are willing to pay.
I’ve added several enhancements to my home since purchased, I don’t expect Zillow to account for them - even though the tax assessments have been done (and I’m paying for them). I assume Zillow doesn’t get all those details.
It’s a guide - pricing ‘trends’ are probably useful, e.g. up or down over months is probably true of the market. Individual homes still need a proper evaluation.
Offer the seller a price to element the middle man/woman percentage a win win deal.
Option 2 look for a For Sale By Owner it’s worth the trouble.