Property Valuation Fails

"Discover the 3 reasons online home value estimates fail"

Mon, 13 Apr 2026 00:43:06 GMT

Why Your Zillow Estimate is Wrong | What Your Home is Actually Worth | Pauly Campanaro

Discover the 3 reasons online home value estimates fail: they can't account for condition (your $40K kitchen remodel), they lag behind the market (using 60-90 day old data), and they don't know your competition (what's hitting the market this week). Learn why pricing right matters: homes priced correctly sell 19 days faster and for 3.8% more ($15K+ on a $400K home).

Excerpted from this video posted by Pauly Campanaro:

"Zestimate at $349K despite comps being above $600K"

Fri, 15 Sep 2023 22:34:20 GMT

@SacAppraiser | Ryan Lundquist

Zestimate history. This property in Roseville listed at $349K, and the Zestimate matched the list price at $349K despite comps being above $600K. After 11 days the price went to $699K (sold $638K). Today's Zestimate shows no history of $349K. Maybe a brief Zestimate gets erased?

"The Zestimate Was Actually 25% Lower"

Wed, 16 Aug 2023 00:22:16 GMT

How Accurate Is My Zestimate Home Valuation? | The Jill Biggs Group

Have you ever wondered just how accurate Zillow's Zestimate really is when it comes to estimating the value of your home? �� In this video, we delve into the world of Zestimates and break down the factors that influence their accuracy.

�� What is a Zestimate?

The Zestimate is Zillow's proprietary home valuation model that provides an estimate of a property's market value. By utilizing a mix of public records, Multiple Listing Service (MLS) data, and user-contributed information, Zillow's formula calculates an estimated value. The model also takes into consideration various factors such as property details, location, and current market trends.

�� How is a Zestimate Calculated?

Discover the intricate details behind the algorithm that powers Zestimates. We'll explain the data sources used, including publicly available records and user-generated data, and how these inputs are processed to generate an estimate. Uncover the role of MLS data and how it contributes to refining the accuracy of the Zestimate...

See the complete video on YouTube >

4 Reasons Why You Shouldn’t Believe Online Home Value Estimates

Sat, 24 Jun 2023 21:18:06 GMT

"Those online estimates are simply that: estimates" | Barbara Bellesi Zito

My husband and I browse real estate listings occasionally, but we’re perfectly content to stay where we are until both the market and mortgage rates behave themselves again.

For kicks, we recently checked out the estimated value of one very interesting listing: our own home. The number surprised us both. “Should we call a real estate agent and start packing?” my husband asked.

We came to our senses, of course, fully aware that those online estimates are simply that: estimates. But if this particular site were indeed to be believed, our house was worth $122,000 more than what we bought it for seven years ago. Another listing site pulled up the same figure, while a third offered a more conservative estimate, which was still $68,000 more than what we paid.

I did reach out to a few real estate agents, not to list our home, but to get their advice on whether anyone should believe those online home value estimates. Here’s why they think you should take what you see with a proverbial grain of salt...

Read the complete article on ApartmentTherapy.com

One bot's estimate misses by $100,000 for this Loch Lomond home at 13545 Casale Dr

Thu, 22 Jun 2023 22:50:05 GMT

The property at 13545 Casale Dr is a 1,658 square foot, 2-bedroom, 2-bathroom home on a 1.19-acre lot in the Loch Lomond neighborhood of Middletown . The home was built in 1988 and features a living room with fireplace, dining room, kitchen, two bedrooms, two bathrooms, and a two-car garage. The lot also includes a large backyard with patio, deck, and hot tub.

What do the bots think about this property's value? Here are screenshots of what we found:

For some reason Rocket couldn't figure out where this home was, and did not give an estimate.

What was the expert's list price? Damon Schoeffler of Timothy Toye and Associates listed this property for $399,000 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

Redfin came in as the highest estimate at $405,589. The lowest was from Remax, at $285,931, which is the average of the estimate range they provided.

While 5 of the bots were within about $10,000 of the actual list price of the property, the difference between the highest and lowest bot estimates was $119,658 !

One bot missed the mark by over $100,000!

Some bots are more consistent than others, but they all make mistakes . They are bots.

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

"Zestimate Can Be Off By As Much As 20%"

Wed, 21 Jun 2023 23:28:48 GMT

Is Zillow Accurate or Even Relevant? | Margaret Jackson, Keller Williams

How accurate is a Zillow Zestimate for my home value?

It was a popular online real estate marketplace that used an algorithm to "zestimate" home values and rental estimates for more homes across the United States. Zillow used a proprietary algorithm to analyze the data from public sources, such as property records and MLS listings, to determine an estimated value of a home.

However, it's important to note that these estimates can be inaccurate, and by their own data were as much as 20% off on accuracy either too high or too low

(So on a home that Zillow estimated a value of 400,000, the ACTUAL value would be 80,000 more or less than- that-that's a HUGE RANGE).

Watch this short video for things to consider with online auto valuation tools...

See the complete video on YouTube >

Half a million dollars for this Anderson Springs Rd parcel? Yep...

Wed, 21 Jun 2023 22:24:00 GMT

The property at 11231 Anderson Springs Rd is a 13.73-acre lot located in the Anderson Springs neighborhood of Middletown . The property is comprised of four parcels, two of which sit directly across from the community recreation center and two of which are 6+ acres each. The property has a water connection that is ready for a new build, as well as power at the street and sewer connection available. Anderson Springs is located five minutes north of Middletown, five minutes south of Cobb, and 10 minutes to Harbin Hot Springs.

What do the bots think about this property's value? Here are screenshots of what we found:

Most of the bots didn't even try to give an estimate!

We are thinking because this is four parcels selling as one, the bots were incapable of giving an estimate.

What was the expert's list price? Damon Schoeffler of Timothy Toye and Associates listed this property for $120,000 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

Wow! Redfin was very close.

But every other bot either didn't even try, or missed the mark by a huge amount.

Movoto for some reason thought it was worth approaching a half million dollars ! Yikes.

This is why you cannot trust bots. They are fun to play with, but when you get serious , talk with a local real estate expert.

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

Why did all the bots underestimate this Clearlake home's value?

Thu, 15 Jun 2023 23:44:45 GMT

This home at 3158 14th St in Clearlake is a 3 bedroom, 2 bathroom single-family home that was built in 2006. It has a total square footage of 1,200 square feet. The home was last sold in December 2022 for $122,000. Some of the features of the home include a large living room, a spacious kitchen, along with a large backyard that includes a deck and a pool. It also has a two-car garage.

What do the bots think about this property's value? Here are screenshots of what we found:

Every bot underestimated the value of this property.

Redfin was close, but on average the bots underestimated by over $21,000 .

What was the expert's list price? Timothy Toye and Associates listed this property for $275,000 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

Remax /Smartzip, Bank of America and Rocket were way off, as much as $55,000 under the expert's list price.

Why are all the bots underestimating this home's value?

We think it's a local phenomena. In general, property values have been challenged of late, from rising interest rates. The bots just indiscriminately assumed this pressure would apply here.

This is why you cannot trust bots. A local real estate expert knows what homes are selling for, and prices accordingly.

In this case, we believe the expert knew that while there is negative pressure from rising interest rates, it will not affect this property in this particular area . It will be really interesting to see what this home ends up selling for!

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

Two bots made big errors on this 27 K St duplex in Lakeport

Wed, 14 Jun 2023 23:50:36 GMT

27 K St is a 6-bed, 4-bath, 2620 sqft townhouse duplex located in Lakeport . The home was built in 1979 and sits on a 0.25 acre lot. It features a spacious living room with a fireplace, a large kitchen with stainless steel appliances, and a master bedroom with its own bathroom and walk-in closet. Hardwood floors throughout. The home also has a two-car garage and a backyard with a deck, a patio, and a fire pit. The property is within walking distance of Lakeport's marina and Lake County's largest park.

What do the bots think about this property's value? Here are screenshots of what we found:

The estimation bots had a hard time with this property!

Chase, Coldwell Banker and Zillow didn't even try to come up with an estimate, simply returning an answer of "Not Available".

As far as the rest, from a low of $263,000 from Rocket, to a high of $728,593 from Movoto, the bots differed in their estimates by as much as $465,593 .

Yes almost half a million difference. Something does not compute. That's a difference of 177% .

What was the expert's list price? Timothy Toye and Associates listed this property for $695,000 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

Leaving out Bank of America and Rocket, the bot estimates make a little more sense.

Even so, there's still significant differences between the more accurate bots and the expert's list price.

If the sale price ended up the same as the list price, the owner could have lost as much as $50k if they used the Realtor.com estimate. Not good.

On the other hand, one bot, Movoto, priced this property $34k above the expert.

We think the 'does not compute' arises because some bots cannot comprehend the difference between a regular single family home, and a townhome, especially one that is a duplex .

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

Bots are confused about this Hidden Valley Lake home

Wed, 14 Jun 2023 00:26:43 GMT

The property at 19085 Coyle Springs Rd in the gated community of Hidden Valley Lake is a 3 bedroom, 2 bathroom single-family home with 1692 square feet of living space. It was built in 1989 and last sold for $329,000 in 2018. It features a large backyard with a deck. The kitchen has been recently updated with new appliances and granite countertops.

What do the bots think about this home's value? Here are screenshots of what we found:

From a low of $337,000 from Chase, to a high of $415,846 from Remax, the bots differed in their estimates by as much as $78,846 .

That's a difference of 23% between the bots.

What was the expert's list price? Timothy Toye and Associates listed this property for $374,950 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

What is the potential impact on the homeowner? What do they stand to lose or gain, if the property sold for the list price?

On average, bots priced this home at $381,722, which is $6772 or 2% less than the expert's price. That's not too bad. It's still almost $7k.

Looking at the bots individually, Redfin and BofA were pretty close to the expert's price.

Chase priced the property $38,000 below the expert. Remax priced it $41,000 more! The bots are confused.

What did this property actually sell for? Stay tuned! As soon as we know, we'll update this post.

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

"Proven Only 65% Accurate"

Wed, 07 Jun 2023 23:16:18 GMT

"Is Zillow Lying?" Online Home Values | Jose Sepulveda, Remax

Are you curious just how accurate online home values are? Or maybe you got a Zillow Zestimate but you're curious about their accuracy? Or maybe you're asking, should I get my home value online? If you answered yes to any of these questions, then this video is a must watch.

In this video we break down how online home values calculate the value they give you and just how accurate they are.

See the complete video on YouTube >

Bot misses expert's price by $70,000 for this Kelseyville Home

Mon, 05 Jun 2023 03:38:10 GMT

This 1,800 square foot home, at 4685 Hawaina Way in Kelseyville , which was built in 1985, sits on a 0.26 acre lot. It has 5 bedrooms and 3 bathrooms. The home has panoramic lake and mountain views from its private ridgetop location. It also has a large, full length secluded deck with a hot tub. The home also has a set apart studio with its own bath, kitchenette, and deck for guests, or as a BnB rental.

What do the bots think about this home's value? Here are screenshots of what we found:

From a low of $352,724 to a high of $443,979, the bots differed in their estimates by as much as $91,255 .

That's a difference of over 25% between the bots.

What was the expert's list price? Timothy Toye and Associates listed this property for $425,000 in June of 2023.

Let's see how the expert's price compares with each of the bot estimates:

What is the potential impact on the homeowner? What do they stand to lose or gain, if the property sold for the list price?

On average, bots priced this home at $405,386, which is $19,968 or 5% less than the expert's price. That is a significant potential loss.

Looking at the bots individually, Redfin was only $56 different from the expert's price.

Bank of America was about $70,000 less that the expert's price for this home and represents a significant potential loss.

Movoto, on the other hand, would have priced the property at $18,979 or 5% above the expert's price.

Thinking about selling? Don't trust bots to estimate your home's value. Request a property value report from Damon Schoeffler, your Lake County expert. It's free and without obligation.

"Only 41% of Home Sold Within 5% of Zestimate"

Thu, 11 May 2023 23:01:16 GMT

Zillow Zestimates: How Accurate Are They? | Josh Finigan, The Finigan Group

Join Josh Finigan as he delves into the world of Zillow Zestimates. Zillow's popular tool for estimating property values is a starting point for many homeowners and potential buyers. Josh demonstrates how Zillow Zestimates are calculated, the factors that influence them, and their overall accuracy. Can you trust these numbers when buying or selling a home?

If there’s one thing that causes tension between buyers, sellers, and real estate agents it’s Zillow’s Zestimate. Josh takes a non-biased look into all aspects of Zillow’s Zestimates. We will discover if you can trust it for your home’s value in today's housing market! Remember, understanding the true value of your home is crucial. It not only informs your expectations, but can also guide your decisions on when to sell, renovate, or even refinance.

Whether you're a first-time homebuyer, a seasoned real estate investor, or simply curious about the value of your home, this video is for you! Here’s to unlocking the True Value of your Home! ��

See the complete video on YouTube >

"20% of properties are off by 20% or more"

Mon, 01 May 2023 22:10:06 GMT

How Accurate Is the Zillow Zestimate? The Truth Behind the Numbers | The Close

...when it comes to the Zestimate, there’s actually a fair amount of information out there to help us understand generally what it is and how it’s calculated. We’re going to demystify the Zestimate...

How Accurate Is a Zestimate? If you ask Zillow, it’s very accurate. In fact, Zillow boasts a “nationwide median error rate” for on-market homes of 2.4%. However, for off-market homes, the error rate is more than three times that rate, coming in at 7.49%.

Some savvy agents (and clients) have noticed that the Zestimate often changes once a property is listed to become much closer to, if not exactly, the new listing price. This means an on-market Zestimate benefits from the local, on-the-ground expertise of real estate agents (the ones who are actually pricing the properties) and has a much better chance of being on-target.

Zestimate is generally pretty good at getting within 20% of the market price, gets it within 10% a little more than half the time, and only gets it within 5% a third of the time. Roughly 20% of properties are off by 20% or more . This is real money that clients might be leaving on the table...

Read the complete article on The Close >

Investopedia: What to Do About Inaccurate Redfin and Zillow Home Value Estimates

Wed, 06 Apr 2022 23:48:01 GMT

They may be using outdated data to put a price on your home

Many homebuyers rely on real estate apps like Zillow and Redfin to focus their searches based on price, location, and time on the market. Many sellers also rely on the apps’ home value estimators to help them set a price.

However, the Redfin Estimate and the Zillow Zestimate aren’t always accurate. Here is what you can do about it as a homeowner...

Read th e entire Investopedia article >

CNET: What happened at Zillow? How a prized real estate site lost at iBuying

Fri, 19 Nov 2021 00:53:24 GMT

The company says algorithms are to blame for its market missteps.

Zillow, the popular online real estate marketplace and daydream fuel throughout the pandemic, is having a tough time.

The company turned heads earlier this month when it announced it would be shutting down Zillow Offers, the algorithm-fueled home-flipping arm of its company. It also said it would try to offload more than 7,000 homes and exit the iBuying -- or "instant buying" -- business completely. That's $2.8 billion worth of homes.

The announcement came as a major surprise, especially given the scale of Zillow's massive investments in its iBuying efforts in recent years. Its exit was precipitated by a series of missteps, including an overbuying fiasco that resulted in a glut of overpriced inventory...

Read th e entire CNET article >

Market Watch: ‘It’s really a toy’

Wed, 10 Nov 2021 05:01:40 GMT

How reliable is Zestimate, Zillow's extremely popular home-valuation tool?

...some are asking about the reliability of the company’s so-called Zestimates, which provide an estimate of a home’s value based on a proprietary formula.

“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”

In light of the challenges Zillow faced with its home-buying efforts, some people took to social media to call into question the accuracy of the Zestimate tool. “It’s really a toy,” said Mike DelPrete, a real estate analyst who tracks the iBuying sector. “It’s meant to drive people’s interest in property.”

Read th e entire Market Watch article >

Money Magazine: Think Twice About Trusting 'Zestimate'

Thu, 04 Nov 2021 04:01:32 GMT

Americans love the Zestimate, but Zillow's latest business problems suggest you should think twice before using the popular home value algorithm to make any big real estate decisions...

Zillow has maintained that the figure is a place to start and does not replace a professional appraisal — while also claiming high accuracy rates and eventually using the Zestimate in its offers to buy homes. “We leveraged the Zestimate in our Zillow Offers operations the same way we encourage the public to use it: as a starting point,” said spokesperson Viet Shelton...

According to Ryan Lundquist, an appraiser in Sacramento, California, the Zestimate is “really hit and miss.” Sometimes it is spot on with value and others it’s off by hundreds of thousands of dollars.

y second hand, and the counters are just plywood for the most part.

Read the entire Money Magazine article >

Motley Fool: Why Online Home Valuations Are Often Wrong

Mon, 19 Jul 2021 22:48:27 GMT

You can't count on an online valuation tool alone to know how much your home is worth.

With all the talk about the red-hot housing market, you may be curious about the value of your property. You may even have checked out one of the most popular valuation estimators. Whether you turned to Zillow, Redfin, Realtor.com, or Trulia, the estimate you found there may or may not be accurate.

As Trulia says on its website, its estimate can give you a good idea of a home's value, but it is not an official appraisal. It is simply a starting point.

Read th e entire Motley Fool article >

CNN: Selling your home? Here’s how accurate online estimates are

Wed, 21 Apr 2021 23:51:06 GMT

The housing market is booming and chances are your home is worth more than it was a year ago, making it a tempting time to sell.

But how much can you rely on online estimates, like Zillow’s Zestimate or the numbers offered by Redfin or Realtor.com?

While your home’s Zestimate may have you saucer-eyed, in fast-moving markets like this one it is harder to predict what your home will actually sell for.

“There is a kind of sticker shock that sellers may have right now,” said Krishna Rao, vice president of analytics at Zillow. “Even if they may have thought about selling a couple years ago, to look at where the market is now can be surprising.”

Read th e entire CNN Business article >

Homebay: Redfin vs. Zillow - Which Home Value Estimator Should You REALLY Trust?

Sun, 09 Feb 2020 00:45:15 GMT

Online home value estimators can be useful tools for estimating a home’s price, and both Zillow and Redfin offer very popular options. But just how accurate are they, and which one should you trust?

Zillow’s home value estimator (the Zestimate) relies on both public and user-submitted data for its own proprietary formula. So does the Redfin Estimate. As of 2022, Redfin is slightly more accurate — but both companies’ accuracy drops when estimating precise sale prices.

The big issue is that neither estimator is very accurate when it comes to pricing your home before it goes on the market — which is a vitally important part of selling your home...

Read th e entire Homebay article >

"I know Zillow isn’t perfect, but I believe my house is worth that amount"

Mon, 01 Apr 2019 22:49:34 GMT

Friend or Foe? Zillow and websites like it are valuable tools — but they don’t tell a full story

...What about the accuracy of value? These real estate websites are hit-and-miss. Sometimes, they’re spot-on, and other times they’re easily off by 10-20 percent or more. On a practical level, we can’t expect these sites to be accurate because they don’t know the condition of a home or whether it’s been remodeled or not. These sites don’t know if 57 cats live there (sorry, cat owners).

Regardless, sellers still tend to say, “I know Zillow isn’t perfect, but I believe my house is worth that amount.” In other words, sellers get emotionally tied to the estimate and give it real weight. It’s not just a ballpark figure: To them, it’s concrete and written in stone, and sellers may struggle to budge from the number. Likewise, buyers sometimes wrestle with offering more on a property if Zillow’s Zestimate is lower.

What does a site like Zillow say about its own accuracy? According to the company, in California its median error rate is 4 percent. That sounds pretty impressive, but this is the “median” error rate, which means Zillow is basically within 4 percent of the sales price only half the time. Does that reek of accuracy to you?

Read this article on Comstocksmag.com >

Forbes: How Accurate Are Zillow Estimates?

Sat, 28 Jul 2018 03:56:45 GMT

Be careful about falling in love with home value estimates you see online because many are far above market value.

Those home sellers who “anchor” on inaccurately high estimates will overprice their homes for sale and then it's emotionally hard for them to lower the price.

Home listings that start out way overpriced can languish unsold and end up selling for less than if they were priced more accurately when they first hit the market and buyer interest was by far the highest...

Home sellers can get a quick glimpse into the inaccuracy of online home value estimators by comparing the estimates different websites give for the same house.

Check out the value estimates for your home on Zillow, Realtor.com, Redfin and Trulia, and you’ll likely be shocked at how much they differ.

Read the entire Forbes article >

Realty Times: Zillow Estimates: Accurate or Inaccurate?

Thu, 21 Sep 2017 23:58:46 GMT

Are Zillow Estimates Reliable?

For various reasons, consumers often want to know the value of a home. Zillow is a popular site that consumers often use for that purpose. Zillow's estimates, termed "Zestimates," are steadily becoming a household term when discussing the value of a home.

As a homeowner, you may want to inquire about the change in your home value for many reasons, ranging from: refinancing considerations to just wanting to know how much your new neighbor paid for her house.

Although you may want to rely on Zillow as a one stop shop for accurate home value estimating, the question remains whether you should! Attemping to learn about a homes value through the use of Zillow could cause some serious miscalculation on your part.

In fact, real estate agents get asked all the time - are estimates from Zillow accurate? For many agents, Zillow has become the bane of their existence. Agents are constantly having to explain to consumers that you never want to rely on an algorithm to predict the value of a home...

Read th e entire Realty Times article >

Los Angeles Times: Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices

Thu, 19 Feb 2015 00:56:25 GMT

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.

hoppers, sellers and 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...

Read th e entire Los Angeles Times article >