I completely agree. The owners/operators of Zillow have stated many times over that Zillow and the Zestimate are still in beta phases of development. With time, their algorithims will become more precise as more data comes their way. I absolutely don’t bother with the Zestimate. Sales history is laid out right in front of you for free. There is a 5 Bd/3 ba house with a partial ocean view down the street from me. The house is up for sale TODAY in the range of 930 – 950k and the sales history goes something like this:
Sale History
12/15/2005: $930,000
08/29/2003: $690,000
09/26/1997: $303,500
See? The zestimate is somewhat irrelevant at this point because it doesn’t really matter what the comps are nearby because there is nothing to justify why this house gained 240K in “equity” in just 2 years (2003 sale to 2005 sale). did they install gold countertops in the bathroom!? by the way, do you think whoever tried to flip this million dollar pig is getting hosed or got hosed right now!? They paid 930k a few months ago and it is now on the market (AGAIN!!) at 930-950K.
I know home sales and property taxes are a matter of public record but i wouldn’t know where to begin to find out that kind of information but it is my suspicion that it involves the local municipalities and fees. but now, thanks to zillow, i get the sales history and property taxes (based on assessed value mind you) all with a couple of clicks for FREEEEEEE!!!!!
the realtor of this particular home i pointed out just had their legs cut out from under them because they would have a very, very difficult time justifying the price of this home based on the sales history that was made available to everyone for free.
oh and by the way, did you all know the guy who started zillow also started expedia? travel agents still exist but they had to totally reinvent their business model to compete.
