Colorado Springs Realtor - Cherise's Blog: Zillow Finally Got Zinged in Colorado

Zillow Finally Got Zinged in Colorado

Like fellow Colorado Springs Realtors of Selley Group Real Estate, LLC, we’ve all felt great frustration regarding the enormous inaccuracies about values and inventory supply that have been reported by Zillow.com. As the consumer becomes more educated about the real estate markets, his or her expectations about negotiations regarding purchase prices also increases.

Specifically related to Zillow.com, their information has caused a lot of confusion for my relocation buyers, investors and sellers regarding the true status of listing inventory, as well as the actual values of Colorado Springs homes. Personally, as a Colorado Springs Realtor, I typically see Zillow.com downgrading home values between 11-15% of what is the actual value. Apparently, I’m not the only one who has seen this type of discrepancy associated with their statistical data.

Recently, this scenario played out furiously for the Denver Metro area. According to Becky Hurley of the Colorado Springs Business Journal, “In a head-to-head comparison, the state’s real estate community pointed out that the Metrolist, a company that collects and measures Colorado data, showed a for-sale inventory of 20,073. That was less than half the 42,000 unsold properties reported as “unsold” by Zillow.com for the year ending January 2010.”

According to Forbes’ Francesca Levy, “Forbes.com will no longer use Zillow.com’s information.” For accurate information about the Colorado Springs Real Estate market, please don’t hesitate to contact me.

Feel free to contact our Colorado Springs Realtors at Selley Group Real Estate, LLC:

2139 Chuckwagon Rd, Ste 210 - Colorado Springs, Colorado 80919 - 719. 598. 5101

Comment balloon 16 commentsCherise Selley • April 21 2010 07:59PM

Comments

Cherise, I have had several clients ask me about Zillow as they were using that as their guide to make offers and evalutate list prices.  I looked up on Zillow a lot of the properties that I had been comping out and found major, major discrepancies in price. 

Any follow up posts would be appreciated.

 

Posted by Bruce Walter (Keller Williams Realty Lafayette/West Lafayette, Indiana) over 10 years ago

I am glad they got Zinged...Forbes made a terrible mistake in using data from Zillow. Around here neighborhoods turn on a dime.  Post office address often has nothing to do with municipality and its confusing enough for buyers (particularly those who are not local) without having Zillow lump listings from two municipalities together because of zip code or/and post office address.

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) over 10 years ago

Hi Cherise, I always get asked about Zillow and it is pretty consistent with the home values here as well. They always are about 11-15% on the downside.

Posted by Tiffany Torgan, Featured on HGTV's New Show! How Close Can I Beach (Harcourts Prestige Properties of La Jolla) over 10 years ago

Yeah, glad to hear that.  I tell my clients that if they want acurate information doesn't it make sense to go to a LOCAL source rather than an Internet program?  Very good post.  I am going to flag it for a feature.

Posted by Paula McDonald, Ph.D., Granbury, TX 936-203-0279 (Beam & Branch Realty) over 10 years ago

Bruce, if I here anything else, I'll let you know.  I'm not against Zillow and its company concept.  I'm against reporting serious inaccuracies that are emotionally injurious to those consumers who are trying to figure out this next step in their lives.  Cherise

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

Ruthmarie - Well said by you and seems to be common opinion among many in this profession.

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

Tiffany - wouldn't it be nice if they were to error on the upside?  

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

Paula - Local is the best way to go.  I agree with you.  Aren't we having enough struggles to close contracts with arguable differences of value from appraisers about our local markets?  Who needs false reporting from large internet companies?

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

We have the same issues here in Mass as well. It seems as though buyers and sellers here now understand that this is not the best indicator of value though. I remeember vividly what a nightmare it was when it 1st came out!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 10 years ago

Bill - Ditto.  I'm glad the mayor of Denver as well as some frustrated brokers took their issues straight to Forbes.  Cherise

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

This is worth a re-blog. Many think the data on a site like zillow is accurate and it can really mess up an area...

your friend in Charlottesville Virginia!

Posted by Charles McDonald, REALTOR®, Blogger, Principal Broker®, Owner (Charlottesville Real Estate Solutions) over 10 years ago

Thanks Charles...Cherise

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

I hope it is OK with you that I also reposted with credit to you on my main blog at:

Charlottesville Real Estate Blog

If there is a problem please let me know by email and I will certainly remove it.

Just a very timely post for our area too...

thanks, Charles

Posted by Charles McDonald, REALTOR®, Blogger, Principal Broker®, Owner (Charlottesville Real Estate Solutions) over 10 years ago

Hi Cherise - Is is possible that Metrolist and Zillow are simply defining "for-sale" and "unsold" differently? It looks to me like there could be 20,000 homes on the market, and another 22,000 in escrow. In that case, both numbers are still accurate, it's just a case of educating the consumer on what they mean.

Posted by John Novak, Henderson, Las Vegas and Summerlin Real Estate (Keller Williams Realty The Marketplace) over 10 years ago

John, there is the questions of definition about for sale and unsold.  Plus, Zillow can't keep up with the current record keeping about sales.  Overall, Zillow has been sorely inaccurate about the markets.  

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

Charles, I'm glad that you re-blogged this one.  

Posted by Cherise Selley, Colorado Springs Realtor (Selley Group Real Estate, LLC) over 10 years ago

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