Last night as I was about to turn off the 11:00 news and go to bed, they teased a story I had to stay up for. Spencer Rascoff, CEO of Zillow, sold his home well below the Zestimate.
The home was originally listed for $1,138,900 but the Zestimate at the time valued the home at $1,740,405 according to an article in Inman and Kiro 7 news. After 148 days on the market, Rascoff accepted an offer of $1,050,000 or 92% of list price and a whopping 40% below the Zestimate at the time of listing.
Why do I share this? Is it schadenfreude? No, I don’t know Spencer and truth be told, I’ve done okay with Zillow. The reason I’m making note of this is to have a reference to share with clients when they complain about my valuation versus their Zestimate or other Automated Valuation Model they may find.
Zillow likes to say, a Zestimate is a starting place. It may be a far off starting place, as far off as 40% in his case, but you have to start somewhere, right?
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