Kate defends Zillow’s Zestimates

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We are always happy when the weekly post from house-hunter Kate in the Valley shows up in our email inbox. We never know what to expect, and we’re never disappointed. This week Kate blogs in defense of Zillow. Enjoy:

‘I was reading Zillow’s discussion boards today, and I happened to click on the ‘Zestimates’ topic. (Zestimates are home value estimates prepared and presented by Zillow.com). Nearly every one of the over-200 post to this category this month was from an angry seller. These sellers were convinced that a low Zestimate is: (1) categorically wrong; and (2) the main factor preventing them from selling their home. A lot of sellers went so far as to demand that their home be completely deleted from Zillow’s database (something that Zillow does not do, by the way).

‘Personally, I don’t think a stray Zestimate ever kept anybody from buying a home. To the contrary, Zestimates, coupled with the other information available at Zillow, gave me the confidence to bid when I first started my house hunt (before y’all run to the comment section to tell me not to buy a house right now: I know! But try and focus on the topic for a minute. Focus…. Focus….). While Zestimates are automated, and not based on personal inspections and evaluations of individual properties, I find them to be a helpful yard stick. I don’t think Zestimates are infallible by any means; if I visit a house and I think it’s worth $600k, and it’s listed at $600k, I’m not going to walk away because Zillow says it is worth less. Indeed, a cursory review of the site reveals that an unusually low estimate sometimes happens when a home hasn’t changed hands for decades and, as a result, the tax basis is a bit lower than the neighbors. But I do think Zestimates are helpful especially when combined with the four-direction aerial views of the home and lot.

‘Looking at the aerial maps, you can see (without ever leaving your desk!) how close a home really is to the freeway, whether it’s on an alley, close to commercial developments, or on a tree-lined street. You can see how the home is situated on the lot and whether the pool takes up the whole back yard or just a small corner. I will mentally adjust the Zestimate based on these facts. And, after I’ve visited a home, I might come back and enter additional information I have gained about the home to create a personalized estimate for the property. This information, combined with my own market research, gave me a little more peace of mind. The bidding process is so stressful, a little peace of mind can do a lot cure cold feet. With that in mind, I find it really hard to believe that anybody was about to bid on a house, glanced at a single Zestimate, and just changed their mind and walked away. Indeed, I can guarantee that at least one house hunter was eased into bidding by Zillow.’

Thanks, Kate.
Comments? Insights? Other -- informed -- opinions of Zillow?