Is redfin inflating prices?
I was looking at price estimates for the same home on redfin, zillow, trulia, see the redfin estimate consistently higher. Is this a known trend?
Redfin uses public data. It’s not inflating or deflating, it’s reporting the news and estimating a specific price based on the news. Comparable pricing is a standard in real estate. Redfin has automated what appraisers do.
how's that different from trulia/zillow?
I don’t think Redfin is doing estimates based on comparables for every single home they show an estimate for. That’s rather expensive. I suspect they just estimate based on last sale price + average value increase for nearby, recently sold homes over the same timespan - or something closer to that.
When a property goes on sell, the estimate price increases.
Redfins algo != other algos so estimates from different sites are going to be different like they used to be different From different appraisers
Redfin estimates are more accurate
Only because people use the estimates to make their offer.
I think redfin has a shitty data pipeline because the kinds of estimates I see that are way over what's realistic are most likely based on glitches in understanding of the property attributes.
Redfin, Zillow, Trulia etc are estimates. Results vary by market movement, locality specifics and the quality of economists & data scientists working at these companies.
Estimate has lots of variations. Better to study comp data yourself and conclude
IMO Zillow and Trulia tend to weight last sell price more and ignore renovations. Redfin does seem too high, though
Their estimator is garbage. The most important feature of that estimator is the listing price itself. They even readjust their historical curve every month.
All of the estimates are exactly that, ‘estimates.’ All of those companies generally mark lower than sales prices to grab attention/interest.