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2016-02-20 08.40.22

Hat tip to swm for sending in this article about sellers blaming zestimates for why they can’t fetch their higher price:

http://www.king5.com/story/news/local/2014/11/15/zillowcomplaints/19054089/

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.'”

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