Twice in the last month, in the course of representing a buyer, the listing agent tried to use the property’s Zestimate (conveniently high in both cases!) to convince me and my client that the home was worth more than we thought it was. Hey, whatever works!
In neither case did it work, however. We had a pretty firm (and, we believed, accurate) idea of the homes’ true values, and since neither case involved multiple bids, we were able to stick to our guns and didn’t go any higher.What was interesting in both cases was just how much stock the listing agents put in the Zestimate — and it wasn’t just negotiating bluster. They honestly thought that quoting a Zestimate would be a compelling closing argument, that somehow we would fold in the face of such overwhelming evidence.
I often come up with a Zestimate of sorts of my own, using straightforward Statistics 101 regression. I find it quite helpful to get an initial estimate of a property’s value before seeing it. However, I and my clients (I make sure of that) understand that it’s simply an initial estimate, not a hard-and-fast number.
Lots of people, especially this guy, seem not to understand the “estimate” part of a Zestimate. Zillow’s help page is pretty explicit:
(Comments mine)
Next time I’m in negotiations with those two listing agents, maybe I’ll try to use the same strategy?
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Market Stats
Mini Market Updates (Beta)
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RE: Any thoughts on the feds (in)activity this morning? (via Frie...
?RE: Any thoughts on the feds (in)activity this morning??
August 5 at 9:46 pm
Good news, your equity line and business line of credit rates remain the
same as yesterday, as the Fed held short-term rates steady today. Why?
Because despite unemployment concerns, the economy is doing fine (1.4%
growth year to date-- thank you exports!), core inflation is under
control at this point, gas prices have dropped over 6% recently and it's
more prudent to maintain a steady helm when the economy appears
relatively balanced.
Eric T. Trailer, Principal
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Condi needs a home?
?Condi needs a home??
August 4 at 1:38 pm
As the term of Still President Bush and his administration is drawing to a
close, and Senator Obama has already completed his first victory tour of the
Middle East and Germany, fueled by an excess of coffee one afternoon, we at
3Oceans have started speculating about where former Stanford Provost,
Condolezza Rice will make her new home.
We are now soliciting housing suggestions for Ms. Rice should she return. We
will assume that she can earn enough on the speaking circuit and through
other "jobs" that price isn't really an object. Send in your answers, and
let us know why you think Condi would like your entry. Pictures are worth
double points.
My entry is for Squire House
http://www.zillow.com/HomeDeta...> at 900 University
Avenue in Palo Alto. 6300 square feet of living area on a 40,000 square foot
lot, its columns, large fence and historic status will remind Ms. Rice of
the White House, and it's on sale with a reduced price of only $12,500,000!
What's your entry and why?
Trundling into hillsdale
?Trundling into hillsdale?
July 23 at 7:19 am
Trundling into Hillsdale station en route to #Inman conference. "Trundling" -- one of my fav words. Also a good one to describe caltrain!
Gotta love it
?Gotta love it?
July 22 at 8:54 am
Redwood City's official head-scratching motto: "Climate best by government test."
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Train stations
?Train stations?
July 22 at 8:48 am
It's a shame Caltrain no longer stops at the Atherton train station during the week. But thank goodness that at least the parking voucher machine at the Menlo Park station are working.
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Schumer and IndyMac
?Schumer and IndyMac?
July 21 at 10:34 pm
There's a lot of talk going around about how Senator Chuck Schumer may
be responsible for IndyMac's recent failure, but the truth is that he
was only responsible for helping to hammer the final nail in Indymac's
coffin. IndyMac failed because they made a series of bad loans across
both their Alt-A and FHA channels. Wanna know which institution is next?
Stay tuned for WaMu's announcement tomorrow, and keep refreshing the
implode-o-meter at http://ml-implode.com/ daily for the latest...
Eric T. Trailer, Principal
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am I reading this right?
?am I reading this right??
July 21 at 2:01 pm
Seen at a chevron gas station in los altos ca.
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Sunnyvale Market Bifurcation
?Sunnyvale Market Bifurcation?
July 21 at 10:12 am
94085 and 94086 trending upwards.
94087 and 94089 trending downwards.
Difference? School district.
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More fun with inventory numbers
?More fun with inventory numbers?
July 20 at 11:10 pm
Belmont, San Carlos, and East Palo Alto all have roughly the same
population, around 30,000. Notice how closely the inventory numbers for
Belmont and San Carlos track each other; in East Palo Alto, however, the
pain continues, with inventory numbers running out of control.
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