Zillow’s Zestimate overvalued a Washington home by 700 percent in a case of algorithms gone wrong | The Seattle Times

When Seattle residents Sue and Roy Carlson bought a modest home on the Kitsap Peninsula in June, they paid $225,000 — a discount because the house was headed for foreclosure.

Redfin now estimates the home in Belfair, southwest of Bremerton, is worth $318,000. Realtor.com’s algorithm pegs the house at $268,000. And the county assessor has valued it at $283,000.

But like most homes, when you Google its address, the first thing that shows up is its Zillow page.

And according to that Zillow page, the home is now worth $1.8 million.There’s no waterfront access, redevelopment potential or anything else significant about the property — in fact, it needs serious work. So how could an unremarkable three-bedroom home, located in a city where Zillow says the median home costs $286,000, be worth that much?

“I don’t have a clue where they came up with this number,” said Sue Carlson, 70. “It’s not worth anywhere near $1 million. They’re nuts.”

 

Source: Zillow’s Zestimate overvalued a Washington home by 700 percent in a case of algorithms gone wrong | The Seattle Times

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