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Doesn't this create a big conflict of interest in their Zestimate algorithm that's core to their business? If they provide lowball Zestimates, that allows them
by kosei 9y ago
Doesn't this create a big conflict of interest in their Zestimate algorithm that's core to their business?
If they provide lowball Zestimates, that allows them to buy homes for cheap. Or if they own the home, they can increase the value prior to sale.
Hard to trust when they could easily use this estimation system to their other business model's advantage.
- jjeaff 9y agoI doubt zestimates are really a core of their business. Try to use a zestimate to negotiate the price on your next home. Watch how quick the experts laugh you out if the room. The zestimate is just a nice quick way to get a ballpark value of a home. But I don't think they are playing any significant role in affecting market prices.
- hshehehjdjdjd 9y agoI find zestimates are most accurate on the day a real estate transaction is recorded. It would be interesting to see an error histogram of zestimate-day-before-transaction.
- JshWright 9y agoAnecdotally, the zestimate on my home purchase (in 2016) was off by ~30% (the zestimate was too high).
- matt_wulfeck 9y agoIt is chronically low in the Bay Area.
- travmatt 9y agoAs someone who used to sell a very similar product, most people understand that those prices are estimates and a just a starting point in determining a fair price. Others would insist that I match whatever numbers they found online - our standard response was to explain that Zillow won’t actually buy your house from you at the number they’re quoting, so we value their prices accordingly.