Why Zillow may be a Roseville, CA or Rocklin, CA home sellers worst nightmare…
In Roseville, CA and Rocklin, CA homes are selling like hot cakes! Supply and demand are hard to calculate. So in that aspect, I will give Zillow a “pass.” However, it never fails that a buyer states… “Well, the Zestimate says….” NEWSFLASH-the Zestimate is Ze-WRONG! Well I guess I don’t have to be that harsh, but it sure is frustrating. So I thought I would explain where Zillow is getting their numbers and how to use Zillow to help in your home searches. I will also include some of the idiosyncrasies of Zillow and hopefully steer you away from using it as a reliable valuation tool in your home search.
Zillow defines Zestimate-
“The Zestimate® (pronounced ZEST-ti-met, rhymes with estimate) home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user submitted data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account.”
Here are some hard and fast examples of Zillow’s Zestimate compared to actual sales, so you can see the differences. I used recent sales so you can see these are not just listed at this price, but they have actually sold and we all know a home is only worth what someone is actually willing to pay!!!
Example #1- 5505 Cabrillo Way Rocklin, CA 95765
This home sold March 21,2013 for $305,000… let’s see what Zillow says….
Notice Zillow says home “Is not for sale.” The home was actually listed February 7, 2013, it’s been on the market for over 30 days. Not only that but the Zestimate, lists the homes value as
YIKES!!! Do you think this may have brought some BIG TIME objections for the sellers? Not too mention some doubts in the buyers minds about potential offers.
Let’s Look at another example, 6681 Silver Mill Way, Roseville, CA 95678
Let’s see what Zillow says…..
Again property is “not for sale.” It was actually listed February 27, 2013. Check out the Zestimate
And just to be thorough, we’ll do one more…. 1618 Abilene Cir, Rocklin, CA 95765
At least this one has the property actively for sale…. but what about the Zestimate???
This one is closer… but still $25,000 off!!! Who couldn’t use an extra $25,000!!! Ouch!!!
In these examples I’ve purposely chosen to use active sales, none are short sales or bank owned. As we progress away from the distressed market, traditional sales are becoming more the norm and are being hit hard with pricing objections… Here’s showing traditional equity sales are back!!! and are worth every penny paid… not what Zillow’s magical Zestimate algorithm states.
Zillow, Trulia and all of the home finder search engines can be resourceful tools in your home search, but should not be used in a evaluating either an offer or a list price. You must consult a professional to review the numbers!!!
Zillow has wonderful property information that you may not find elsewhere, i.e. school information, property history information, neighborhood details all in one easily accessible spot. For up to date accurate information about the real estate market in Roseville, CA or Rocklin, CA home sellers please contact Jennifer Klein (916)230-3880 or email JenKleinSells@gmail.com