Guess Which Direction “Zestimates” Err On?

The local MLS just shared this tidbit (via Inman) about Zillow and its notoriously unreliable “Zestimates”:

“If you’re an agent, you’ve probably worked with a Buyer or Seller that has found the “Zestimate” on Zillow of the property they’re selling or interested in buying. It can work as a good conversation starter with the client. But until they realize the Zestimate isn’t as accurate as they thought, it can quickly make a disgruntled client. 

Earlier this year, Zillow CEO Spencer Rascoff sold his Seattle home for $1.05 million, 40 percent less than the Zestimate of $1.75 million shown on its property detail page a day later. Zillow readily acknowledges that Zestimates can be inaccurate, but consumers can still take them at face value, causing headaches for agents.”

–Inman; “Zillow CEO Spencer Rascoff sold home for much less than Zestimate” (May 18, 2016).

I wonder if Rascoff showed his listing agent the Zestimate for his home when they were discussing what to list for.  🙂

See also, “Why Realtors Hate Zillow.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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