Tracking Zillow’s Zestimates – One Property at a Time – Part 2

Zillow has finally updated their database with the sales data on a property I’ve been tracking for months.  Here’s the original post and the new information is at the end.

I’ve written a few times about Zillow.com and the (in)accuracy of their zestimates.   I’ve been tracking one property in particular on a monthly basis and I thought I would share with you my findings.  Out of respect for my clients who purchased this house, I will not give you the address but it is a real place and these are real figures.

House Description: 4 bedroom, 2.5 bath, 2200 sf, 2 car garage, colonial on 1 acre, built in 1979, full walk-out basement in Shelton, CT.  House was only one of a few available in this highly desirable section of Shelton under $500,000.

List Price: $489,900

Comps:  $499,000 and $477,000 – comparable in size, age, location, style and both sold within 3 months of this home

Offer Price: $465,000

Final Sales Price: $470,000

Appraisal Value: $470,000

Sold Date: 1/26/07

According to Zillow’s Zestimate, house was valued as follows (figures are rounded):

November 06: $460,000

December 06: $455,000

January 07: $450,000

February 07: $430,000

Some interesting facts:

• Zillow does not yet have the sales data from this property (sold date 1/26/07) and it’s now 2/16/07 – data is out of date
• Zillow is using comps for condominiums – like comparing apples and oranges, to be cliche
• Zillow is using comps that are miles away from this property even though there are excellent comps within one mile

I’ll let you know what Zillow says the value is when the most recent sales data is figured into this equation. 

March 07: $449,000 – Sales data was updated on March 14th – 45 days after the actual sale. 

Despite the house actually selling for $470,000, Zillow only factors the actual sales price in to determine the value of the property – it does not use the sales price as the best determinant of value.  Real estate agents and appraisers obvioulsy use a different methodology.