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Zillow Estimates lower than asking prices?

EastSiderEastSider
edited March 2007 in Seattle Real Estate
In the recent few weeks, it seems to me that the Zillow values have been appreciating slower than the asking prices for eastside homes. For most active eastside listings, the Zillow value is quite a bit (5-10%) lower than the asking price.

Any thoughts on why this could be the case? Is the Zillow algorithm "anticipating" lower price-increases going forward & already adjusted the estimates accordingly?

Comments

  • JD@PreviewJD@Preview
    I'm not clear on the details but didn't Zillow get in trouble earlier for overinflating values. Sellers would call the agent Zillow referred and list at these outrageous prices only to wind up lowering their expectations drastically. It's just a digital version of what less competent and ethical agents do when they go on a listing presentation; they "buy" the listing by valuing the property higher than what the comps indicate. If they get the listing the agent counts on the seller's motivation to sell to inspire him to drop the price to where it *should* have been in the first place. These guys don't usually get a lot of referrals or repeat business.
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