Boulder real estate prices and Zillow: The dance continues
Here’s my latest analysis of Zestimate accuracy for the 80303 zip code during the month of March, 2007.
I’ve got a complete post on my Active Rain blog if you’d like some really exciting nighttime reading.
Otherwise, here’s the latest spreadshet with my numbers.
The basic gist is:
Zestimates were within 5% of the sales price 60% of the time, and were within 10% of the sales price 70% of the time. Realtors scored within 5% of the sales price 90% of the time and within 10% of the sales price 90% of the time.
I believe that the trend continues for Boulder real estate prices and Zillow. Zillow continues to offer a good starting point for valuation, but consumers must simply remember that Zillow’s Zestimates are based on a formula that uses public records. If any of that information is incomplete or inaccurate, then the Zestimates will likely be way off.
Things like:
- Recent upgrades
- Lot size inaccuracies
- Multiple lots that are buildable
- Total remodels
- Fixing and flipping within a few months
You get the picture. I think that Zillow remains a good place for Boulder residents to go to get a general idea of what prices are in their area, but you still need a professional opinion when it comes to pricing your home for sale, especially if any of the above is true.
And remember: Zillow doesn’t claim to be the place to come to find out how much you need to sell your house for. They claim that they are a good starting place for pricing. They also happen to keep very accurate internal statistics on how well their Zestimates are performing in every region of the country.
May 1st, 2007 at 6:44 pm
Another source of Zillow error is the sales price for purchases made via foreclosure. I came across a few properties that sold for an unrealistically low price — and later found that the property “sold” at auction sometimes against the 2nd mortgage (so the actual cost to the new owner is the purchase price plus assumption of the 1st mortgage).