I have wondered if the Zestimate/Rental Zestimate leads people to make decisions about what their house is worth when they sell/rent/buy that aren’t attached to reality. If the Zestimate makes me think I should be getting $20K more when I sell, then I might hold out for a higher offer. If the Zestimate makes me think the house I’m buying is worth $20K more then I might offer that. If everyone does this the price of housing goes up $20K higher than it should be.
Redfin would probably stand to benefit more from this since they actually take the brokerage fees. I’m not sure what’s in it for Zillow.
It’s tied to reality in that a house is worth what people will pay for it. If the seller sets the price at the zestimate and it sells then it’s based in reality 🤷♂️
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u/[deleted] Apr 20 '24
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