Cincinnati Real Estate

Greater Cincinnati's Real Estate Connection

Kathy S. Koops GRI

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“Zestimates” or “Zesguestimates”?

filed under: Real Estate posted on February 11th, 2015

What is your home worthBuzzing around the real estate sphere the recent LA Times article “Inaccurate Zillow ‘Zestimates’ a source of conflict over home prices.”  Or what I lovingly refer to as ‘Zestguestimates’ vs ‘Zestimates’.

For those of you unfamiliar with Zillow and their Zestimates- just check out home or condo by clicking here.  You either love the ‘Zestimate’ or you’re scratching your head trying to understand how Zillow estimated the value of your property.  Scroll down to the bottom of the page and click on Zestimates to find how the value estimates are calculated.  According to Zillow the error margin for the Cincinnati market is 6.9% and even Zillow suggests ‘Zestimates’ are a starting point.  And that’s what buyers, sellers and even real estate agents need to remember.

The data used by Zillow is gathered from multiple locations and depending on the timing and source- the information may be spot on or totally useless. A thorough review of accurate MLS data, county records and local sources is the way to verify realistic property values.

A snapshot of very recent closings versus ‘Zestimates’ provides a realistic picture of why nobody should use only one source of information for pricing.

Cincinnati Zestimates vs MLS

The ‘Zestimates’ covering the greater Cincinnati housing market varies from spot on to -51% variance between actual sale price and Zillow’s estimate.  So depending on which side of the deal you’re sitting on -you either love or hate the information.  Bottom line, the value of any property is what a buyer is willing to pay- irregardless of what the county tax accessor or ‘Zestimates’ has on their websites.

 

 

 

 

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