Zestimate Shmestimate

Zestimates are a very popular source for both buyers and sellers alike these days.  I can't tell you how many people quote to me the "Zestimate" of a property they are interested in buying, or their own property that they are selling when trying to determine the price.  And now matter how many ways from Friday I try to explain that these Zestimates are as accurate as my NCAA tournament bracket I put together (by the way, I don't watch football...or basketball;) it seems people still fall back on these for price gauging.  But what is the real scoop about Zestimates and are they really applicable to the real world of real estate here in LA? Well LA Times did an article on this topic and in this article they pointed out that "...in New York County — Manhattan — the median valuation error rate is 19.9%. In Brooklyn, it's 12.9%. In Somerset County, Md., the rate is an astounding 42%. In some rural counties in California, error rates range as high as 26%. In San Francisco it's 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093."  Read the complete article here http://www.latimes.com/business/realestate/la-fi-harney-20150208-story.html
There are just too many factors that can influence the price of a home. If two similar sized homes are on the same street both built around the same time would you assume they are worth the same?  Now lets say home "A" has a lovely golf course outside it's back yard. This home also has a new roof, is completely remodeled with things like wood floors, stone counter tops, top-of-the-line appliances and all new windows, and also has a professional landscape.  Home "B" on the same street, just a little ways down from home "A", is across from a middle school, hasn't ever been remodeled and is complete with older carpeting, older appliances and needs a new roof.  Would you pay the same for both homes? So while Zestimates may be in the ballpark of where prices are, even Zillow clarifies Zestimates by saying "It is not an appraisal. Use it as a starting point to determine a home's value" Not to say that Zillow is not a good site to use...quite the opposite.  It has a ton of helpful information that consumers can use about the real estate market and communities.  It's just not a great place to get the value of a home from.