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The Zestimate Debate Continues: Hear from Both Sides

June 11, 2014  |  by Ellen

HousesThe executive vice president and chief information officer at McEnearney Associates, David Howell, recently entered into the debate about how accurate and useful the automatic valuation models on Zillow are (“Zestimate”). In this Washington Post article, he lays out the case that McEnearney Associates’ own internal data analysis shows the Zestimates are not as accurate as the public perceives them to be. Zillow’s chief economist, Stan Humphries, has responded, saying Zestimates are useful if used “in the right way” and cites examples of how to use them.

We highly recommend taking the time to read both articles since they lay out many important considerations for this heavily-debated subject. Of course we want to hear your thoughts on what both these writers had to say. Please share your thoughts about each author’s position in the comments.

Posted in Blog, Industry News

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2 responses to “The Zestimate Debate Continues: Hear from Both Sides”

  1. David Charron says:

    This is a great read. I strongly encourage all of our readers to review and if appropriate "weigh in"! David Howell has effectively taken the rhetoric out of the debate and replaced it with facts. Thanks David Howell for such a reasoned argument!

  2. Value is ultimately determined by what the marketplace (i.e. Buyers/Sellers) is willing to pay and accept. That is, a price that both the Buyer and Seller agrees is a fair value. Zestimate and CMA’s are all really just estimates of value. There are so many other factors involved that contribute to value in the eyes of the Buyer. Personally, I like the use of value ranges instead of providing customers or clients with a fixed value or price.

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