Pete Roszell, Real Estate Broker / Licensed Contractor (Cherry Creek Properties)

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Rainmaker
831,918
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

A CMA to match a customer's Zestimate. 

Can't you feel someone tugging your chain?

If you match that Z, who needs you?

The Z is wrong. Period. When they are right, it is accidental.

What do I do? I allow the seller to do their own house evaluation.

That is why I created the CIS Score. It is their input, not some 'large data' algorithm, that creates the result the owner sees and the agent gets the line item report.

"Bill, based on the information you provided regarding the tangible assets of your house and my expertise in the local real estate market, YOU valued your house at  $580,000. There are things that can be done to improve that (details in agent report) value if you want to receive the greatest price for this house. What is your time line for getting this house sold?"

DON"T GIVE YOUR STUFF AWAY. BILL DOES NOT SEE THE AGENT REPORT UNTIL HE MAKES A COMMITMENT.

 

Mar 19, 2016 12:29 AM
Rainmaker
824,182
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Why on earth would you justify a flawed valuation model rarely based on reality via some goofy algorhithm?
Show the prospective evidence that similar homes in the area have sold within a range between x and y, and y is significantly exceeded by Z!
"We can list your house for that, Mr Seller, and we may even get a buyer, but it probably won't be with a cash buyer (they always want a break) . . . and how will you feel when the deal dies during appraisal?"
If he's married to Z, he can hire Z to invent artificial value . . . it's their specialty.

Mar 19, 2016 01:50 AM
Rainmaker
1,157,329
FN LN
Toronto, ON

Why are you trying to match Zestimates?

Mar 19, 2016 01:49 AM
Rainmaker
541,431
Jeffrey Jones
AZ Home Seekers - San Tan Valley, AZ
AZ Home Seekers, azhomeseekers.com

Zillow is the devil. A zestimate is mathamatical dogcrap. It just takes raw square footage data for an area and public record recorded sales and spits out a number. It doesn't take into account distress sales, it doesn't count upgrades, it would value a mobile across from a cemetary equally to golfcourse condo if the square footage were similar. Zillow is helpful for a buyer wanting to determine which zip code has a stronger market, since they mess up everyones zestimates equally, they are fairly accurate at tracking zip codes since its a broader pool of data.

Mar 19, 2016 01:13 AM
Rainmaker
796,957
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

The zestimates on Zillow are awful.

Mar 19, 2016 12:59 AM
Rainmaker
461,056
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Don't give him you CMA until after you give him a presentation and after he agrees to hire you. In that presentation spend quite a bit of time on the market and that homes sell for market value and what your marketing plan is. If necessary do the CMA in front of him - show him/her the raw data and after going over market conditions and the comps then ask them what they think there home will sell for.  You may need to point out the pros and cons of the comps.

Mar 19, 2016 12:23 AM
Ambassador
4,298,125
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think you have your answer. The Zestimate is waaay off, as they typically are. And the market does not support it. Any buyer agents worth their salt will be working with their buyers and checking these data and seeing the discrepancy. No, they are not going to make offers based on the Zestimate but on the comps. Maybe hire an appraiser?

Mar 19, 2016 01:49 AM
Rainmaker
1,101,839
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Tell him the market drives the price. Everyone thinks his place is worth more. You list at his price and tell him after 30 days you will reduce to market price. 

If he does not believe it ask him to provide an appraisal to justify the steep price.

Mar 19, 2016 12:22 AM
Rainmaker
1,599,188
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

This guy is on crack cocaine. Unless he is willing to price to the market, graciously tell him that you are selective in the listings you choose to represent and listings cost you not just your time, but also valuable marketing dollars.  Therefore, you need to make sure you take on a listing that will have a moderate chance of selling. 

Mar 19, 2016 09:05 AM
Ambassador
3,716,408
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

That's the rule rather than the exception.  Zestimates are still lame because the algorithm can't get inside the house!

Mar 19, 2016 05:22 AM
Rainmaker
3,568,394
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

We all know Zesstimates are notoriously incorrect and even Zillow has admitted to this. I never use Zillow and I don't refer to Zillow... you need to be able to explain what is wrong with Zillow and their methodology in coming up with home values.

Mar 19, 2016 04:35 AM
Rainmaker
1,523,816
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

This is the reason I often say that Zillow is the bain of our existence as real estate agents.

Mar 19, 2016 04:15 AM
Ambassador
1,706,758
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Any AVM is a marketing tool not a CMA.

Mar 19, 2016 04:02 AM
Ambassador
1,208,334
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I simply tell folks that Zillow's zestimates suck and are completely inaccurate and misleading.  

Mar 19, 2016 03:36 AM
Rainmaker
4,798,978
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Point out to this person Zillow's accuracy estimate for your area (in their help section).  This will show your customer just how wrong they can be.

Mar 19, 2016 03:32 AM
Rainmaker
2,903,277
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

There is no strategy to compete with bad data. You lead the seller to the facts .... the truth about their home value. 

Mar 19, 2016 03:13 AM
Rainmaker
2,570,523
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Zestimates are not the standard is where your first problem lies. Just another opinion and they play over and under very well. Then, the market will tell its own story if tested. Consider also what your seller is really saying. He/she wants to make a killing. Explain to him how you will help him/her do so

Mar 19, 2016 03:05 AM
Rainmaker
798,817
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Don't use Zestimates as a target. Show them the statements from Zillow where they disclose that their zestimates are just a ballpark, and need to be verified. Look at their tax assessments. Hire an appraiser. Ask them what improvements that have made to justify zestimate. use RPR., etc, etc

Mar 19, 2016 01:44 AM
Rainmaker
3,985,587
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Let your customer know that the zestimate comes from a NON prosfessional site.  It is not accurate and even the CEO says that they are off by 20% and more a good poirtion of the time.

 

Do yourself a favor and guide your people to only Professional sites.

Mar 19, 2016 01:41 AM
Rainmaker
1,418,277
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Pete Roszell The only strategy is to tell the postential seller the truth and stand by your comps. You would be doing the seller a disservice by trying to justify an unjustified Zestimate.

Mar 19, 2016 12:23 AM
Rainmaker
1,331,945
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

If you notice in Z or T they say estimate and to contact an agent for a professional estimate.

Mar 19, 2016 12:22 AM
Ambassador
888,288
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I have a long-time client that has bought and sold several houses with me. He called a few months ago and said it was time to sell his house. When I called back with his CMA, he said, "But Zillow says it's worth $75,000 more than that!" I gave him my 'Zillow spiel' and his response was, "I'm sorry, Mimi, I'm going to have to use a Realtor who uses Zillow." 

Mar 26, 2016 10:27 AM
Rainmaker
4,444,537
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I NEVER look at Zillow, and provide comps from actual sales to show the Seller the true value.  

Mar 21, 2016 12:24 AM
Rainmaker
634,116
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Educate clients on the facts about Z's estimates. There are plenty of sources you can find and share that show the buyer and seller frustration generated by those estimates which are often FAR from real market Valle.

Mar 19, 2016 06:59 PM
Rainmaker
3,733,998
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Give Annette Lawrence , Palm Harbor, FL 727-420-4041 a gold star for her answer.   

Mar 19, 2016 06:29 PM
Ambassador
2,759,162
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 And that seems to be the big problem with the Big Z. Inflated CMA's.

Mar 19, 2016 05:53 PM
Ambassador
3,372,618
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

 Since the Zillow estimate is a pie-in-the-sky number that they don't have to support; There is no way you will ever be able to come up with it 

Mar 19, 2016 04:16 PM
Ambassador
4,307,769
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Pete Roszell - You can share with your client Zestimate's limitation that they have it for every state and county.

Follow this link for your state/county: How accurate Zestimates Are?

Mar 19, 2016 04:08 PM
Rainmaker
1,507,472
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

What? Why would you ever want to match Zestimate? 

And my second question, even if you lucky and get outrageously overpriced listing, how you are going to sell it? 

Mar 19, 2016 03:51 PM
Rainmaker
221,305
LuxurySoCalRealty Compass San Diego
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

Just share with them the computer algorithm is wrong. We have condos here in La Jolla in the alley. Zillow doesn't understand an interior courtyard or alley with garbage trucks at 6am

Mar 19, 2016 02:47 PM
Ambassador
3,985,488
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I never try to match up to the Zestimate value. Why is that your benchmark? Use recent comps and let it be what it is.

Mar 19, 2016 01:56 PM
Ambassador
1,770,705
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I am not surprised, a computer did the CMA. Zillow is often inaccurate for pricing.

Mar 19, 2016 01:55 PM
Rainmaker
1,680,889
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

The word Zestimate tells me a lot.  they are never right!

Mar 19, 2016 01:52 PM
Rainmaker
1,316,492
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Zillow is inaccurate and does not get the MLS data feeds in many areas, including mine.  Therefore the information is unreliable.  Most people tend to understand that.

Mar 19, 2016 01:02 PM
Rainer
308,078
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

Explain to him Zesitmate is worthless.  Show him the facts. If he is difficult ..walk away.

Mar 19, 2016 12:47 PM
Rainmaker
1,854,525
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

that's  a problem - you might show him some of the homes that are determining the real price 

Mar 19, 2016 12:22 PM
Ambassador
2,216,058
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Are you new to the business? I'm not trying to be mean. But we all know the zestimates are way off. The market is what it is. Why are you trying to match a zestimate. Tell the seller the straight truth. 

Mar 19, 2016 11:41 AM
Ambassador
4,845,968
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

You cannot create data to match up with a fictional number like zillow produces, the facts  must be presented to your customer.

Mar 19, 2016 11:35 AM
Rainer
12,201
Jeannie Steele
Townsend, MT

Pete I live in Montana .... we are a NONE DISCLOSURE STATE where does Z come up with a Zestimate????????

Mar 19, 2016 10:40 AM
Rainmaker
3,534,220
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I use Cloud CMA, it is good

 

Mar 19, 2016 09:24 AM
Rainmaker
597,831
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

Explain to this person that a Zestimate is an online service that is not specific to their home, community or location and more related to the most recent sales.  Explain that your are a licensed professional paid for your expertise in evaluation of properties and that your analysis is based upon what a reasonable seller and buyer would agree to exchange the property at this time.

Mar 19, 2016 08:39 AM
Rainmaker
3,575,805
Richard Weeks
Dallas, TX
REALTOR®, Broker

Explain to them Zestimates are for the birds.

Mar 19, 2016 04:43 AM