Further Proof that Zillow Is Not a Just Like Using REALTOR
While online search tools have revolutionized the way people shop for real estate and the way realtors can interact with prospective clients, it has also proven as a source of extreme misinformation for homeowners as to the value of their property.
A startling new example of just how "off" Zillow's "zestimates" are in establishing a reasonable market price is reflected in the home sale of Zillow CEO Spencer Rascoff - which sold last quarter for 40% less than it's advertised zestimate.
One day after the Madison Park home sold, Zillow estimated that it was worth $1.75 million dollars, when it in fact fetched $1.05 million. Presently, it is valued by the website at $1.575 million... still a major discrepancy.
The company concedes that zestimates are "a starting point in determining a home's value and not an official appraisal." A vague acknowledgement of the site's shortcomings, considering studies show about 20% of sales depicted on Zillow are miscalculated by over 20%.
GeekWire reports that the Zillow Group's chief analytics officer, Stan Humphries, claimed that an error like the one made in assessing the Rascoff home "is pretty atypical for us." Humphries went on to qualify his position by stating that "you can certainly find cases where humans priced a home whereit's a big miss for them as well, where maybe the home was listed for $7 million and it sold for 5."