Beware: The Online Estimate

When something sounds too good to be true, it usually is. The convenience of the online real estate estimate is obvious, but just how accurate are these estimates and do they provide the true market value of a property? The answer is a resounding, “No!”, as evidenced by a comparison between recent sales to their Zestimates (see below).

These automated systems provide broad, ambiguous figures which can be highly misleading for anyone trying to determine the true value of their home. Using pre-programmed computer algorithms and pattern-recognition software, these web search engines arrive at a predictive estimate without the benefit of human interaction. A computer cannot, however, detect the emotional value of a home; the unique, intangible features which evoke an emotional response (e.g., jaw-dropping views, custom features and amenities, costly renovations, an historic landmark designation, etc.). As such, these computer-generated estimates are hardly reliable; oftentimes over-estimating a property's worth as well, which can lead to great disappointment.

Note the vast differential between the Zestimate and the actual sale price  of ten (10) properties sold within the last thirty (30) days in San Francisco and Southern Marin:

2765 Filbert St. - $3,443,750      
Zestimate: $3,944,808  
Differential: $501K+
 
681 11 th  Ave. - $1,800,000        
Zestimate: $2,279,391 
Differential: $479K+
 
3621 Scott St. - $2,450,000            
Zestimate: $2,922,734 
Differential: $472K+
 
2153 Lake St. - $3,200,000        
Zestimate: $3,578,624 
Differential: $378K+
 
3903 Washington St. - $5,800,000  
Zestimate: $6,157,113 
Differential: $357K+
 
466 Hill St. - $3,150,000        
Zestimate: $3,470,139 
Differential: $320K+
 
205 Round Hill Rd./TIB - $2,080,000  
Zestimate: $2,817,405 
Differential: $737K+
 
122 Red Hill Cir./TIB - $1,200,000   
Zestimate: $1,582,105  
Differential: $382K+
 
20 Sheridan Ct./MV - $1,865,000 
Zestimate: $2,210,252 
Differential: $345K+
 
7 Saint Lucia Pl./TIB - $1,850,000    
Zestimate: $ 977,718 
Differential: <$872K>

Our limited inventory in San Francisco and Marin, coupled with high demand, portends that most listings, if priced right from the outset, will command multiple-offers and ultimately sell for over asking. For an educated and accurate valuation of your home, pick up the phone and call me and my team today. We are active in both markets and are exceptionally qualified to prepare a comparative market analysis (CMA) of your property, reflecting its true value.

I am delighted to connect with you and look forward to discussing any real estate related questions or concerns you may have. 
Coldwell Banker Global Luxury
Pacific Heights Office
1560 Van Ness Avenue, 2nd Fl.
San Francisco, CA 94109
F: 415.771.1264
Isabelle V. Laub, GRI, PSA
Office: 415.474.1750
Direct: 415.533.2332
isabelle.laub@cbnorcal.com