S/O -- the Zillow effect

[Anonymous]

So it appears that pretty much everyone agrees that Zillow isn't a good indicator of actual market value of a house.

And yet, we do see an increasing reliance on these online appraisal tools by potential buyers -- either in terms of browsing a neighborhood online or in actual written offers (as another thread outlined). This artificial and inaccurate benchmarking nonetheless appears to have a market effect, in a similar way that GreatSchools.net (an even more ridiculous Web site that doesn't accurately reflect school quality) is influencing school reputations. (And hold your protestations -- how many threads do we see that reference Zillow or GreatSchools when asking about houses/nieghborhoods/pyramids?).

To what degree will these artificial metrics eventually become embedded in perceptions? Have we become so conditioned to online "rankings" that they're unavoidable now? Will the skepticism that smart people bring eventually evaporate, or will there always be a check on them?

[Anonymous]

Stopped reading at "zillow"

[Anonymous]

Anonymous wrote:Stopped reading at "zillow"

Your studied antipathy is unconvincing, seeing as how you took the time to hit reply and type a response.

[Anonymous]

well some people are already using zillow to formulate offers. the stupids make up a huge portion of our population so I'm sure it will keep happening.

[Anonymous]

Zillow is a bad estimate that doesn't take into account improvements, neighboring values, etc. Because I bought a foreclosure, it has my house valued almost 100k less than others in the neighborhood even though I have one of the more upgraded ones.

If a buyer told me they used a zillow estimate, I would laugh at them.

[Anonymous]

When you go to buy a car do you check out some prices online? It's just another data point. In the case of zillow, search engines, etc., a lot of expensive analysis goes into their algorithms. Of course they are not perfect! But they are not made up of random numbers either. A smart person considers all sources of data and not just the ones he or she wants to believe.

[Anonymous]

A lot of savvy realtors block zillow.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Stopped reading at "zillow"

Your studied antipathy is unconvincing, seeing as how you took the time to hit reply and type a response.

I think her antipathy is actually pretty clear. Her apathy, on the other hand, not so much.

[Anonymous]

Zillow estimate an identical model in building 250K higher than mine. That model has basic upgrades because it's investor unit, mine have all top ends upgrades totaling 100K(friends with the other owner) more than the other model. I am confuse by their method.

[Anonymous]

I would like to know their formula. It seems like sq footage and what your home sold for in the past count the most.

[Anonymous]

Great schools test scores and is pretty much spot on

Zillow is accurate with in 5 percent, even more so if you claim the home and add in the refinements.

This is the future, get the fuck over it.

[Anonymous]

Anonymous wrote:Great schools test scores and is pretty much spot on

Zillow is accurate with in 5 percent, even more so if you claim the home and add in the refinements.

This is the future, get the fuck over it.

Neither statement is actually true. GS rates my children's school a 9, which is pretty funny. It also rates some good schools I know of lower. There's also a premise that test scores = school quality. That's simply untrue.

Zillow isn't accurate within 5%. Who says that (other than Zillow?). Claim the home and add in refinements simply means "embellish and exaggerate." You may think the windowless room in the basement counts as a bedroom, but no one else does.

[Anonymous]

I agree that Zillow is far from perfect. Does anyone have a better site to recommend?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Great schools test scores and is pretty much spot on

Zillow is accurate with in 5 percent, even more so if you claim the home and add in the refinements.

This is the future, get the fuck over it.

Neither statement is actually true. GS rates my children's school a 9, which is pretty funny. It also rates some good schools I know of lower. There's also a premise that test scores = school quality. That's simply untrue.

Zillow isn't accurate within 5%. Who says that (other than Zillow?). Claim the home and add in refinements simply means "embellish and exaggerate." You may think the windowless room in the basement counts as a bedroom, but no one else does.

Agree. Zillow had a house a block away from us estimated at $600k. It just sold for $780. That is a huge difference. At least in neighborhoods that are appreciating very quickly, Zillow lags waaay behind.

[Anonymous]

I think Zillow is most accurate within 2-3 years of a sale. If your house hasn't sold for 20 years, it's not accurate and has no idea what's inside your house. That's where the lag is the worst.