We all know that the first thing home sellers do when they consider selling is go to Zillow and look up the value of their house. Then, when they call their realtor to discuss listing their home, the first thing they say is “Well….Zillow says my house is worth X” – and usually the Zillow value is significantly
higher different than what the recent comparables show it should be. So 99% of realtor/seller conversations start out with a argument discussion about why Zillow is wrong. Sure, Zillow gives the disclaimer that their “Zestimate” is just a guess starting point and they even say that in Miami they only come within 10% of the actual price 50% of the time. But there are many sellers that will hold on to that number as if god himself handed it down.
But……things have just changed. Over the weekend it was reported that Zillow CEO Spencer Rascoff’s home sold for 40% less than what his “Zestimate” had shown the day prior to closing. Yes you heard that right, Zillow couldn’t even guess the price on their own CEO’s home! I can’t tell you what a gift this is to Realtors. I want to shout it from the rooftops, print it out and give it to everyone I know, and certainly bring it up on every listing appointment I go on from here until eternity.
The fact that Zillow could be so wrong is not a news flash to most realtors. There are a million factors that go into properly valuing a home that even the best algorithm out there can’t compete with.
Needless to say this news will have me smiling from ear to ear for days to come.