Zillow's CEO uses Realtors® why don't you?
Zillow CEO used a Seller's Agent
You’re listing your home on Zillow meanwhile the CEO listed his home with a seller’s agent, sold for less than Zestimate, and overpays a $1 Million.
Zillow CEO sells for 40% less!
- Agents can demonstrate the Zestimate’s shortcomings by showing the discrepancy between the sales price of a home formerly owned by Zilow CEO Spencer Rascoff and its Zestimates.
- Luxury home Zestimates are more likely to be off than others due to ‘non-quantifiable facts.’
- Irregular lot sizes or proximity to ‘arterial’ roads can sometimes throw off Zestimates.
How? By selling a property for much less than its Zestimate.
On February 29, Rascoff sold a Seattle home for $1.05 million, 40 percent less than the Zestimate of $1.75 million shown on its property page a day later.
The gap between the Zestimate of Rascoff’s former property and its sales price has decreased only modestly since then.
Zillow CEO overpays!
BUYS FROM REALTORS NOT A FSBO FROM HIS SITE
The next time you’re surfing popular real estate listings site Zillow for a new home and stumble across a “Zestimate” — the company’s estimate for a property’s value — you might want to take it with a grain of salt.
In April, Zillow CEO Spencer Rascoff nabbed a 12,732-square-foot manse in LA’s affluent Brentwood neighborhood for nearly $20 million. Not only was it one of the priciest homes to sell in the City of Angels at that time, but it was also over $1 million above its Zestimate, according to The Real Deal.
Renovated by architect Ken Ungar, this gated six-bedroom property packs quite a punch, with features including a motor court with a fountain, a study with coffered ceilings, a master suite with a marble fireplace and a theater with stadium seating.
It’s not the only Zestimate snafu linked to a Rascoff deal. In Seattle, where Zillow is based, Rascoff sold his home in February for $1.1 million. That sale price is more than the $331,500 he paid for the property — but roughly 40 percent less than his company’s $1.75 million Zestimate.
A Zillow spokesperson declined comment.
Even before Rascoff’s own numerical disparities, others have challenged the accuracy of Zillow’s Zestimates, which folks can use as bargaining points for striking deals. Rascoff has said they’re a “good starting point,” but that, nationwide, Zestimates can have a 6 percent error rate.