Hat tip to swm for sending in this article about sellers blaming zestimates for why they can’t fetch their higher price:
The owner of one New York home writes that a low zestimate is “hindering the marketability” of her home.
Zillow said its zestimates are just that, estimates, “not an appraisal” and are within 5% of the sale price just over a third of the time.
Zestimates are calculated using a formula that considers attributes like a home’s size, tax records and recent nearby sales.
Zillow argues a zestimate is also as likely to be high as it is to be low.
“So, that has become a problem because I understand that Zillow has a price, but in reality it’s not that. It’s what the market will bear,” Sievers said. “We will have to bring them back into reality and say, ‘hey, you know, there is a lot of different variations to a house and why a house would be higher or lower.'”