Realtor Price Opinion vs Zillow Zestimate & Redfin Estimate | San Francisco Real Estate Podcast

Hey hey hey and welcome to the northern
San Francisco real estate podcast with your host Matt Morgus. That’s right
that’s me once again today Thursday, August 3rd, 2017, coming live, well live
right now, from my home office here in San Francisco California, overlooking the
bay. We’ve got a nice golden gate view bridge a view and a couple boats out in
the harbor today. Let’s get right to it. I’d like to just to jump right in and
get right to it I always I always put these things together very last minute
so I don’t have any notes this is just right off the top of my head so let’s
let’s jump in let’s do this. This week I want to talk about, this week, this
episode, I want to talk about how do you know your home’s true value with all the
information on the Internet today with sites like, Zillow and the
ever-growing popular there are a million different ways you can get
your estimate. Right? Zillow has their own estimates which have had some very
negative press lately most recently being I remember the CEO
or maybe one of the owners of his I think was a CEO of Zillow had his house
on one of his own zestimates, which is a Zillow estimate, right? And it came in I
think it was like $5 million dollars below what he was actually selling his
house for, which is just funny that’s that’s funny, funny, funny stuff. The other
one, very popular right now, that was just released maybe less than a year ago has has their own version of this. They don’t call it a zestimate,
obviously, but they just call it a redfin estimate, and the
redfin estimates and I I’m assuming the the Zillow’s zestimates, gosh that’s funny
to say… just Zillow’s Zestimate, Redfin estimate, I’m not a tech that crazy of a
tech person I, I don’t know how to design or build crazy algorithms, there are a
lot of people here in San Francisco that can do that, and can develop and do that,
but to me it looks like they’re taking the basic price per square foot for your
zip code or for your area maybe the last few blocks or radius of the house
that’s being shown on their estimators estimate and they’re they have an
algorithm that figures out what this house should sell for. Now these things
are off all the time. They’re off all the time. It’s really funny I gave you my my
Zillow zestimate story a few seconds ago and out of the the two main competitors
right now which I think are Zillow and Redfin,
I think that Redfin has it down a little bit better. If you’re gonna go off
one of these I think I would personally go off the Redfin one. What Redfin, just
from the outside looking in, and seeing how they take this into account, they
look at the time on market, so if an listing just came on the market and it’s
been on the market for three days the redfin estimate is going to be probably
higher than the same property that’s been on the market for sixty days. The last episode we discussed that golden window of opportunity for sellers
which is usually the first couple weeks well Redfin knows this Redfin sees
this as well in the market I wish I had the market data just to show what kind
of drop-off it in it’s it’s really the drop off is really neighborhood by
neighborhood price range by price range too so it’s it’s not just a general
thing so you may ask yourself though if these
zestimates and Redfin estimates are off by so much
then why do they even take the time to put them online and in my opinion the
the real answer is sites like Zillow and redfin are trying to take away leaves
from real estate agents right you and I know that the true value of a house
really comes from a human being given a price opinion on it because what
algorithms computer algorithms cannot do and cannot see is the location of a
property where it’s located on the block is it located next to a school is it
located next to a house that has four pitbulls or a house that has giant
parties maybe a frat house is it located next to an industrial area like a
recycling center I don’t know now the only way I would know is if I came over
to the house and saw it in person you know I parked my car I get out I look
around the block I I walk around the block I see what’s going on in the
neighborhood and I hear from the seller what’s actually going on in the
neighborhood that’s something that Zillow and Redfin just cannot do they
haven’t figured out an algorithm for that yet now maybe they will that would
be very very very impressive and it would probably put us real estate agents
out of a job but until that day happens it’s really going to be a human
interaction thing so the true way for you as a homeowner and you as a home
seller to get the true value of your house is to call someone like me a local
professional real estate agent and to say hey look I may or may not be looking
to sell but I’m just curious you know everyone has that curiosity all the
homes that I’ve owned I am obsessive about
it actually about real-estate values when things go up when things go down
I’m that that’s what I do for a living but I’m always constantly looking at
surrounding properties and other houses on the block or in the neighborhood just
to see what my house is worth so I would assume that other homeowners are the
same way some people are some people aren’t but if you are that way and you
live in San Francisco feel free to give me a call I’m more than happy this is
what I do every day I meet with sellers on a daily basis and sit down with them
when we walk through the whole entire house and we look at the neighborhood we
look at the comps in the neighborhood the sales that have happened in the last
three to six months in the same area the same zip code hopefully on the same
block if there are some and we put together a market analysis of what your
house is worth it’s as simple as that now people are sellers in general like
their privacy I get that everybody does and people
like things very quickly in today’s world right with Facebook with Instagram
with dating sites you can swipe left right up down very quickly you’re on to
the next thing so I get why people would not want to call a real estate agent or
real estate professional to bother them or to take up their own time especially
if they’re just inquiring about something like this but in all reality
eventually most people sell and it’s a good idea to form a relationship with a
local real estate professional that way you can just call on them on them
randomly whenever you really need to and just say
look we’re thinking about selling in six months and Zillow has hours estimate at
X redfin has our Redfin estimate at Y both of them seem really far off we
would actually like to sell for Z which is way higher what do you think it’s
worth so that’s what that’s what we’re job is
here that’s what service we provide and if I haven’t gotten my point across
crystal-clear I want to make it again that it really is not any sort of bother
or any sort of problem for you to call a real estate agent and ask for their
professional opinion it really isn’t it’s I I get why you would want to do
that you want a really true market value and you don’t want just estimates of
what you think it’s gonna sell for or an algorithm you know you want a real true
human experience with a professional opinion so I get it please feel free to
go ahead and call us as real estate professionals me or someone else that’s
that’s totally fine and use our services that’s what we’re here for so hopefully
that answered your questions about Zillow’s Zestimate s– red fin estimates
and the value of your home if you have any further questions as always reach
out to me my website is northern SF dot-com you can call me on my phone four
one five three six one nine nine five Oh sounds like an infomercial thank you and
until next time we will talk to you later
I should also mention you can find this podcast on iTunes that’s what I was
looking for iTunes so go to iTunes just type in San Francisco real estate you’ll
see my name, Matt Morgus, on there just hit the button subscribe listen to it on
your your phone and your car wherever you want okay
have a great weekend everyone and we’ll talk to you soon bye bye.

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