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.

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.

Why are you trying to match Zestimates?

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.

The zestimates on Zillow are awful.

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.

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?

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.

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. 

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

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.

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

Any AVM is a marketing tool not a CMA.

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

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

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

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

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.

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.

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

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." 

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

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.

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

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

 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 

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?

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? 

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

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.

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

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

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.

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

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

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. 

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

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

I use Cloud CMA, it is good

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.

Explain to them Zestimates are for the birds.