A recent search on Zillow.com of properties in the East Hampton estate section off Further Lane – actually between Further Lane and the Ocean – shows their (under)zestimates averaging about 100%-300% below actual values. I believe that actual values in the area average between 100% and 300% of their (z)estimates.
This continues to amaze us how they can actually allow this ridiculous information to be available.
Also, see our buddies post at Sellsius below
3 comments
April 11, 2007 at 2:51 pm
Herb
First, I think you meant to say that in your mind actual values are 100-300% above zestimated values. Clearly, the zestimate cannot be 100-300% below actual values. A computer wouldn’t make that mistake!
I think what would be more interesting and educational for all of us would be to pick a variety of houses and analyze the zestimate in some detail. If you analyzed one house a day, in three months’ time you will have a very good sense of the strengths and weaknesses of the Zillow algorithm. For control purposes, you should engage a fellow realtor to give a human appraisal.
1.) Is the data correct?
2.) How close is the zestimate to your estimate?
3.) How close is the zestimate to your control broker’s estimate?
4.) Is there any pattern to the variation?
It would be a fascinating exercise.
April 11, 2007 at 3:02 pm
Michael Daly
Point noted and articulation corrected above! Great idea (and challenge), Herb. Let’s see…
April 12, 2007 at 6:33 am
The Editor
I’ve used Zillow in Baltimore with much success, I have a feeling you have a disconnect between the house features as well as the # of transactions in the area for their methodology.