Paradise Valley Weekly 253rd Edition - February 14, 2015 I wrote about a major problem in home valuation 3 years ago, so some readers of this newsletter will be familiar with the issue. It's finally starting to get national recognition. The problem is Zillow, and people's reliance on their "Zestimates" -- home valuations based on automated assessments of national statistics. While I applaud Zillow for trying to bring transparency to the marketplace, the truth is that their numbers are quite frequently inaccurate.  As this article states, Zillow admits a median error rate of 8%. This is substantial, but if everyone knows it's 8% off it shouldn't cause problems. The actual challenge is that many people are using these numbers are the de facto valuation, and actually negotiating with them in mind. That's causing a lot of otherwise sound transactions to become unraveled. Far worse, though is that 8% error rate is the tip of the iceberg. In many areas, the error rates are astronomical -- 20% in Manhattan, 42% in Maryland, 12% in San Francisco, and the list goes on. It's terrific that this issue is starting to get the attention it deserves. One would expect that more accurate automated valuation is only a matter of time. However it's still not here yet, so please take those Zestimates with a grain of salt. In Paradise Valley, I've seen numerous Zestimates off 30%.  *** Would you like to see off MLS/unlisted homes? Do you have special requirements for your next home? If so, please take a moment and join the VIP Buyer Service. There's no fee or obligation, and you'll be given immediate notice of special situations that meet your criteria. Please click here to get started, it only takes a few minutes. *** Hollywood is getting in the real estate business! Leonardo DiCaprio and Deepak Chopra are among a few behind a movement to create healthier homes. Features include "Vitamin C-infused showers; proprietary circadian rhythm-based lighting that streams energy-inducing light in the morning and melatonin- (and thus sleep-) promoting rays in the evening; raised pebble floors that work as reflexology pathways; and posture-supporting floors." These features will be available in new construction at jaw-dropping prices. Perhaps we'll see some of these come to luxury homes in Paradise Valley? For the full story, please click here. *** Closings Another slow week as buyers continue to look at the plethora of new listings and make their decisions. Less than $4 million in closings last week, about as sleepy as it gets. The average price was just under $1.3 million with an average price per square foot of $340. The weighted average year of construction was 1982, continuing the trend of older homes being snapped up for remodel or teardown. Listings 14 new house listings ranging from just under $900k to $3.6 million. To be frank, we've been seeing a lot of ho-hum properties at questionable prices hit the market this year -- sellers hope the rising tide will lift all boats. However, there are a couple of standouts worth visiting sooner than later: Solid Value Near Doubletree This 5,600+ square foot home south of Doubletree is selling under the cost of construction, at an eminently reasonable $351 per square foot. Remodeled to a high standard, terrific yard and pool area, there's a lot to like here. A value at the asking price of $2 million.  --> Click here for details World Class Contemporary Home Dream home for lovers of contemporary design, art collectors, and those who want a pristine home ready for immediate move-in. Backing to the Mountain Preserve, there are no homes above and the views go for miles. Located in a guard gated community, for ideal privacy and security. From limestone floors with embedded fossils to exotic woods and textured granite countertops, one feels the care given to every inch of the home. Offered at just under $3 million. --> Click here for details To see all of this week's new listings please click here. To see everything on the MLS in Paradise Valley please click here. That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate. Thank you, Alex Goldstein SearchParadiseValleyProperties.com iParadiseValley.com (480) 442-7325 p.s. If you haven't received a copy of my book Home Inc. co-authored with Brian Tracy, I'd be happy to send you a signed copy. Alternatively you may read it on Kindle if you prefer, just click here.   (c) 2015 Alex Goldstein PLLC

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