– What’s up, we’re here. What’s going on internet I’m Chris– – Mic check, one two. – Are we on? Is that it? Can you hear us? Here we go. All right we’re live. My name’s Chris Avery,
this is David Preseren, with the Trivisonno real estate team, and David, we’re here to talk about some Zestimates, we’re here to talk about some things–
– Z word. – The Z word, that’s right, and we’re here to talk about some things that I’ve been hearing in the market from some of my clients and things in that niche.
– What’s the feedback, what have you been hearing? – So big question is, what are Zestimates? Where do they come from? What do they mean? So let’s just start on number one, how does it work? Where does the zestimate come from? – Okay. So 2005, Zillow started, they’re doing their zestimates. What they ended up doing is they ended up taking
all the public data from the recorders’ offices
and stuff like that. So they’re putting a lot of faith in people being accurate. – Sure. – So what they did is the algorithms were a little bit off that they were doing, so then they tried to
get actual user data. – Right, so people that are trying to sell their house on Zillow, I wanna pump up my house a little bit, and I’m plugging in that info… – Which you can. – Which you can, you can definitely do. – And put whatever you want in there. – Put whatever you want in there, good, bad, right, or a
little wrong, whatever, who knows?
– Which skews that right off the rip right there. – Okay. – And some people aren’t doing it at all. – So what can be the difference right now? Because I know in bigger cities, where they sell a lot more homes, it could be a little bit more accurate. – Correct, big time. – In Cleveland, in our local area, what are we seeing? Are we seeing a difference? – Let’s set that up. So like in Denver. So their accuracy rate is about 3.5%. So very close. – So that’s pretty good. – But Denver’s a super hot market. It sells all the time. There’s a lot of data, a lot of houses going out there. – So the more homes, the more accurate?
– In bigger cities, they’re seeing a little bit closer zestimates in bigger cities. – All right, take that down kids. – But, here’s the question then is, what happens when you’re going to North Ridgeville, or you go to a city like Willowick, Wickliffe, Willoughby, or Mentor? They’re a little bit smaller. So, to be honest with you, I did some math on it, and–
– Okay, math. – Yeah, math, can you believe it? – Love it. – A $400,000 house, they were estimated between 384 or 416. – And that’s plus/minus right? – That’s $32,000 so… – That’s a big deal,
that’s a lot of money. – Big window. And they’re saying that that’s even a 50% chance that it’s lower, and it’s a 50% chance that it’s higher. – That’s crazy. So it’s literally a coin flip, and you’re kinda guessing. So what have they done to kind of improve that? Have they done anything? – They said that they’ve
updated the algorithm. So they’re trying to get
a little bit more updated, so what they’re asking is more people to put in the data for these estimates. I mean at the end of the day, you can go and put whatever you want in your zestimate, but somebody else is gonna do that too, so how can that be trustworthy data? – Right, gotta make sure you call probably a real estate agent in your area maybe. – Good suggestion, call the Triv team. Trivteam.com. – Trivteam.com. – And the cool thing is, if you were to go to Zillow, or Truly or Realtor.com. I’ll betcha all three of their estimates are gonna be different. – Typically they are, because it’s user input. – It’s user input, and it’s not 100% accurate. That’s the biggest problem. – Well that’s a big lesson for us kids, thanks for investing some time with us. – Invest! – Appreciate it, talk to you soon. David Preseren and Chris Avery, Trivisonno real estate team. – Give us a call let us know how we can–