Based on the dismal lack of accuracy of Zillow’s zestimates when comparing it’s valuations of foothills homes to real world prices the other day, I thought it would be worthwhile to drop down a notch in price, to $500,000 to $749,999, and see if Zillow does any better at this lower price point.
Presumably, lower priced homes are more similar to each other and have fewer custom amenities and variations, than higher priced homes, and should therefore be a slower moving and easier target for Zillow to hit. So, except for the price, I used the same simple criteria as I did the other day > it’s been awhile, (and things are slow) so let’s check in with Zillow
The criteria;
I ran a search in the Tucson MLS for single family homes in the foothills that sold from July 1, 2010 thru August 12, 2010, listed from $500,000 to $749,999 and sold at whatever price they sold at.
A grand total of 18 homes matched the criteria. But rather than going through all 18, which didn’t seem necessary, I used every other home on the list starting with the first one. So Away we go,
1. 4971 E Avenida Del Cazador Tucson, AZ 85718
Zillow says - $429,000
Actual Sold Price - $480,000
3. 2300 E Corte Ingles Tucson, AZ 85718
Zillow says - $622,000
Actual Sold Price - $550,000
5. 3900 N Pontatoc Road Tucson, AZ 85718
Zillow says - $452,000
Actual Sold Price - $550,000
7. 2430 E Placita Sin Lujuria Tucson, AZ 85718
Zillow says - $499,500
Actual Sold Price - $520,000 (BINGO!)
9. 5444 N Maguey Place Tucson, AZ 85750
Zillow says - $393,500
Actual Sold Price - $547,500
11. 6500 N Campbell Avenue Tucson, AZ 85718
Zillow says - $746,000
Actual Sold Price - $560,000
13. 4735 N Camino Antonio Tucson, AZ 85718
Zillow says - $783,500
Actual Sold Price - $575,000
15. 4210 E Pontatoc Drive Tucson, AZ 85718
Zillow says - $743,000
Actual Sold Price - $645,000
17. 5700 N Williams Drive Tucson Tucson, AZ 85704
Zillow says - $527,500
Actual Sold Price - $680,000
Judge for yourself, but I don’t see much improvement, if any, in the accuracy of these zestimates, at this lower price range, vs the results from the other day.
And granted, if we get down to real cookie-cutter homes, I have no doubt that Zillow’s accuracy will zoom into the stratosphere.
But big deal, at that point, it’s like hitting the side of a barn, and who needs zillow for that.
The other reason I ran this comparison again is because I was surprised, amazed really, to find that no one seems very concerned that zillow’s valuations are so far off the mark.
And I understand, and have no issue with, the other cutting edge and very useful tools and features that zillow does provide. Only the valuations, and only in the Foothills, which I know are very important, and I wanted to run this up the flagpole again and double check.
And maybe it’s just that I’m way behind the crowd on this one.
Whereas everyone else has long ago accepted that zillow just doesn’t do accurate valuations in the foothills, and they’ve gotten over it and moved on. Is that it?
Maybe. But there are also many other buyers and sellers out there who are not quite as savvy about zillow’s valuations, and are using them to help determine value. And I wonder, to what degree are those ‘off the mark’ valuations (off the mark is, I think, a very kind way of putting it) contributing to the confusion about prices in the foothills and adding to the inability of buyers and sellers to see eye to eye.
We can probably debate that all day long, but one thing I hope we can all agree on is that Zillow’s ‘off the mark’ valuations are certainly not helping things one bit. Nor do I see how incorrect and misleading information can possibly contribute, even one teensy bit, to the empowerment of consumers and greater transparency in real estate transactions. Do you.
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