Selling your home in Los Angeles how would you feel about a margin…
If you are selling your home in Los Angeles how would you feel about a margin of error of $580,000?
If you are a seller in Los Angeles, would you be OK and call it a good evaluation of your home’s value by being off $580,000 about 86.6% of the time?
This post was inspired by a post I saw on Google + today. Evidently Zillow.com has decided to publish a tracking sheet of how their Zestimates are doing Nationwide.
By now the majority of home sellers and buyers are starting to get the message, which is: Zillow’s Zestimates are totally inaccurate. Never the less human nature in us wants to see “what our home is worth”. This has been around since the beginning of Real Estate. I still remember my father fourty years ago, bragging to his friends (pre Zillow days) that his home was worth X plus, because two or three similar homes near his home sold for more money than what he paid for.
Realtors, Real Estate Agents and Real Estate Brokers have been putting Zillow on the Spotlight, about their inaccurate “valuations” of homes. Clearly this new Tracking Tool tells me that Zillow is on the defensive about this subject.
I am familiar with my own market: The Los Angeles real estate market, therefore I will only address that part of the example stated above. First there are star ratings: Three Stars is considered Good by Zillow’s own standard.
Let me get this into simple numbers, in my market: in Los Angeles, Zillow takes credit for being 86.6% of the time within 20% of the Sales Price. They seem to be proud that this is “Good= 3 stars”. This I find amazing.
I am positive Los Angles Home Sellers would disagree with Zillow’s evaluation. They would not be pleased with a 20% margin of error on their homes evaluation. Using the example of $2,900,000.00 with a 20% margin of error, that is $580,000.00. Just to be clear this is their number not mine.
If Zillow thinks that is an acceptable margin, well let me get a second opinion and ask you: If you are a home seller in Los Angeles, would you be OK and call it a good evaluation of your home’s value by being off $580,000 about 86.6% of the time?
Not waiting to find out your answer I am thinking out loud, if I was off 86.6% of the time by 20% on all my listings do you think I would sell anything?
If you are interested in reading their post, please see the enclosed link http://www.zillow.com/zestimate/#acc
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