Attention Premier Agents – wondering where your money is going?
http://nypost.com/2016/07/12/real-estate-ceo-ironically-overpays-for-his-own-18m-home/
The next time you’re surfing popular real estate listings site Zillow for a new home and stumble across a “Zestimate” — the company’s estimate for a property’s value — you might want to take it with a grain of salt.
In April, Zillow CEO Spencer Rascoff nabbed a 12,732-square-foot manse in LA’s affluent Brentwood neighborhood for nearly $20 million.
Not only was it one of the priciest homes to sell in the City of Angels at that time, but it was also over $1 million above its Zestimate, according to The Real Deal.
Renovated by architect Ken Ungar, this gated six-bedroom property packs quite a punch, with features including a motor court with a fountain, a study with coffered ceilings, a master suite with a marble fireplace and a theater with stadium seating.
It’s not the only Zestimate snafu linked to a Rascoff deal. In Seattle, where Zillow is based, Rascoff sold his home in February for $1.1 million. That sale price is more than the $331,500 he paid for the property — but roughly 40 percent less than his company’s $1.75 million Zestimate.
A Zillow spokesperson declined comment.
Even before Rascoff’s own numerical disparities, others have challenged the accuracy of Zillow’s Zestimates, which folks can use as bargaining points for striking deals. Rascoff has said they’re a “good starting point,” but that, nationwide, Zestimates can have a 6 percent error rate.
Photos:
http://www.theagencyre.com/for-sale/12835-parkyns-street-brentwood/
Zestimate:
http://www.zillow.com/homedetails/12835-Parkyns-St-Los-Angeles-CA-90049/20538353_zpid/
Zestimates! I had seven offers on my previous home. Among them were some real low balls, and in frustration had my agent include a note in my listing regarding the inaccuracy of the zestimate. On a whim, I emailed Zillow regarding the problem. To my surprise, I actually received a reply. The He admitted that the accuracy of the zestimate on my home had a 10% chance of being right.
Soon after, I had the 7th offer from a couple moving from WI. It was only about 1.5% less than list. The stars aligned at that moment as another (new construction) home I loved had been put on the market in the next subdivision over. I accepted this offer.
I checked the zestimate of my old house the other day. It’s still $7K less than I bought it for in late 2010 and even more inaccurate than last February when I had emailed Zillow.