Doug Francis | Realtor

  • Our Business
  • About Me
  • Sell Your Home
  • First Contact

Consumers appear to trust Zillow

August 19, 2015 By Doug Francis

When clients returned to California after considering relocating to Vienna, they sent me an email with a few questions. What caught my eye was an observation about pricing: “…but whose price tag is $990,000 – way out of step with the $801,000 estimate that Zillow puts on it.”

By coincidence, I recently listened to industry journalist Brad Inman address an audience in San Francisco #ICSF where he included an example about consumers trusting Zillow’s data over their own local agent’s first-hand knowledge. In his example, the home buyers insisted a home had hardwood floors because “Zillow says there are hardwood floors!” (but there weren’t hardwood floors in the house)

Zillow estimate accuracy table

Washington DC (click to enlarge)

If you are a home buyer or home seller, then it is important to know that Zillow isn’t always spot-on accurate. Luckily for the Washington D.C. region, the median error rate is only 5.3% which is the lowest on their table. In my opinion, since the Washington, D.C. area has a higher than average turnover rate, the quality of the regional data is richer than in other areas across the country where Zillow is relying only on tax records.

You can read all about Zillow ‘s proprietory formula for determining a homes value.

Garbage in, garbage out.

Back in the early days of the computer age, skeptics who distrusted computers relied on handy slide-rules and would dismiss computer tabulations with an offhand comment like garbage in, garbage out!

There is a great scene in Apollo 13 where the engineers in Mission Control use their slide rules to determine the burn and slope needed to get the astronauts safely home.

Okay, so the team at Zillow isn’t exactly like the team at Mission Control (although they may dream about it) but they are relying on public county tax records from around the country.

These days people would never consider using a slide rule to verify a calculation. But in fact, some of the data that generates automatic valuations may be underestimating square footage or recent additions. And you may miss the target.

How to approach these valuations:

  • Sellers must understand that home buyers are trusting this information
  • Buyers must understand that some data may be missing like a new kitchen, bathrooms or an addition
  • Inaccurate data can be updated by contacting Zillow

When I responded to the client’s email who asked about the “weird pricing in Vienna”, I responded:

Values in the Vienna real estate market can appear bizarre, and I feel that each property requires interpretation. That may sound vague but there are nuances that I have learned to factor in when determining the potential market value of homes. Too many factors are involved, in my opinion, that Zillow algorithms cannot accurately factor in.

And that is why I consider part of my job is conducting market research ~ physically getting into homes to inspect updates that may not of been included in the marketing material. Floors, appliances, physical condition, siting and light, and another two handfuls of things factor into my valuations.

Real estate values can also vary depending on current demand for a location, and change from one month to another.

So, it is especially important to consider Zillow’s estimates, but understand that it may over or under value a home. Virginia is a caveat emptor state, meaning that home buyers are responsible for researching and verifying information that they may rely on to make a buying decision.

Although there are required seller disclosure forms and most buyer’s use a local real estate agent, Zillow data does not provide protection for misstating a material fact.

Share this with a friend...Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestEmail this to someone

Filed Under: Blog, Home Buyer Tips, Home Seller Tips Tagged With: Home Buyer Tips, Home Seller Tips, Vienna Virginia

About Doug Francis

A Realtor specializing in unique and new homes around Vienna, Virginia, Doug started writing a first-hand blog about his everyday real estate experiences a decade ago. In depth, helpful and fun has always been the objective. Outside real estate, he was profiled in a commercial for Verisign's "Where the World Clicks" campaign, and was quoted in Money Magazine's Best Places to Live article on Vienna. He's a Boston University graduate who feels morning coffee is non-negotiable.

Helping my clients add value to their home has always been important to me. My step-by-step recommendations are intended to increase market appeal, return more then invested, and help net more when selling.

Beyond just sellers, I have helped many new homeowners make smart design decisions when remodeling. We gutted our house and totally remodeled it, and I pass that experience along because living in a nice house is simply better.

My background… I’ve been an active licensed agent in Virginia for 25 years, work at TTR Sotheby’s International Realty in McLean, and sell homes in all price ranges. I donate to the Town of Vienna tree replacement fund, participate in a neighborhood citizens association, and try my best to stay in shape.

Questions? Email doug@dougfrancis.com or call me at (703) 304-6827 to discuss your plans. Cheers!

Filmed in Vienna and McLean

https://youtu.be/ClqEIV1zoQg
Viva Vienna Vienna Idol event on the Town Green sponsored by Caffe Amouri

The Vienna Town Green

The Town Green in Vienna, Virginia is located where Maple Avenue intersects the W&OD Bike Trail and Mill Street. The Town

Thinking of Moving?

If you want to talk about your house and getting it ready for the market then let's set up a time to talk. Even if it's a second opinion, it's okay. Start here.
  • This field is for validation purposes and should be left unchanged.

Have a question?

Homeowners: Add a level of privacy

name withheld by request

Privacy: Remove your name

Looking for testimonials?

Read through a collection of client comments originally posted on Zillow, Google and Trulia. See what my clients say...

Looking for a Custom Home?

Insights into New Homes in Vienna VA
Time to Down size to a retirement home

Transitioning Into Retirement | Your Real Estate Plan

Maybe it was the gray hair, the years of experience, or just being in my late 50’s that helped introduce me to clients who are transitioning into retirement and are downsizing. The baby-boomer retirement plan was accelerated by “Covid-19” as long time owners found the old house was just too big. The retirement dream became […]

“Doug nailed it! Within days, we had three offers, one of which not only met, but far exceeded all of our goals.”
– R. Pollard

“He truly was a partner integrating us unto the community and made it easy for us to take advantage of all Vienna has to offer.”
– A. D’Eredita

“We are so thankful we found Doug to guide us through the complex home selling and buying processes!”
– Scott and Jennie

About Doug Francis

I am a Realtor with TTR Sotheby's International Realty® just outside Washington D.C. in Northern Virginia. I have been a full-time Realtor licensed in Virginia since 1991, and cover a big territory specializing in the Vienna real estate market and custom homes for sale.

I have unique knowledge of digital real estate marketing, and my marketing starts here. My clients have been attracted to my results-oriented strategy for years, and I am accepting new clients for Fall 2022 right now.

Thanks for reading, and feel free to contact me at 703-304-6827 or email me at doug@dougfrancis.com anytime!

Search for a subject

Contact

Doug: (703) 304-6827

TTR Sotheby's International Realty
6723 Whittier Avenue McLean, VA 22101

Office: 703-319-3344
Why do people hire me?

Search for homes in Vienna

Vienna Real Estate Guide

Doug Francis Vienna Real Estate 2021
This material can only be used with written permission.

Equal Housing Opportunity

 

Copyright © 2022 · Minimum Pro Theme on Genesis Framework · WordPress · Log in