Former Zillow CEO Lists Home for Eight Million Dollars Over His Company's Estimated Value
On Thursday Spencer Rascoff listed his Brentwood, CA home for $24 Million nearly $8 Million over the Zillow estimated value.
If you look hard enough you can find a disclaimer on the Zillow website they claim that their median error is less than 2% for "on market" homes and 7.5% for "off market" homes. Why is that?
Is it possible that Zillow is factoring in the pricing analysis generated by a professional Realtor into their model? What else would explain why Zillow is so much more accurate after a home goes on the market vs. before?
If your Daytona, Palm Coast, New Smyrna, Edgewater or Port Orange home is worth around $250,000 (the median home value in our communities) the 7.5% error rate that Zillow admits to means they could miss the value of your home an average of $18,750. That's a lot of money! We would call it sloppy pricing.
This is not the first time Rascoff has ignored his own valuation model. In 2016 Rascoff sold a Seattle home for $1.05 million, 40 percent less than the Zestimate of $1.75 shown on its property report a day later.
The best way to get an accurate estimate of value for your home is to consult with a full time career oriented real estate professional. Our team at Better Homes and Gardens Real Estate Synergy is here to do that for you. To schedule your personal consultation click here: