Why are some properties selling for so much more than their zestimates?

Question

I know Zestimates are just guidelines but this one property is being sold for $362k but its zestimate is 278k.

I know upgrades aren't included but what else do you think could be going on

Answer 1

my home appraised at 85k. ( homes are cheap here in new mexico outside the major city ) but zillow has it as 275k. Wonder if i could find a good lawyer to sue for the difference after i sell.

Answer 2

(1) Zestimates are laughably inaccurate (if you want a good chuckle sometime, read the summary of their zestimate calculation methodology...awesome)
(2) It may be some sort of private or contract sale, OR there is a money-back mortgage fraud taking place. Those kinds of deals helped inflate the bubble we now see bursting...

Answer 3

First off, Zillow is the biggest joke out there when it comes to valuing properties.

That being said, don't forget, you can list your home for any price you want - doesn't mean tha tyou'll be able to sell for that price. I wouldn't worry about what a house is listed at, I'd worry about what it sells for.

If you want a true value, contact a Realtor and ask him/her what they think of the value.

Answer 4

That's easy. Zillow is grossly inaccurate. I've checked it against my MLS and also local tax records, and I would not trust what I find on Zillow one bit. The accuracy rate is downright horrid.

Answer 5

I found that they were utilizing old data. For instance, tax data from 2 years back instead of current property assesment from tax assessor.