Sellers Could Get Hurt Severely If They Use Zillow
There has been a tremendous amount of hype about a new website called Zillow.com. It supposedly has valuation information about 60 million properties, and is designed to get sellers to sell their homes themselves to "save money."
I have tested the site twice with different property information that I know the true market of, and in both cases, the valuation from Zillow came back 20% below market! If the seller of a property really worth $500,000 used the Zillow valuation to list their home, the listing price would be $400,000! I am having trouble understanding how that saves the seller money.
Using (and paying) a professional real estate executive would actually save the seller a lot more money!
Your thoughts about, and experiences with Zillow?
I have tested the site twice with different property information that I know the true market of, and in both cases, the valuation from Zillow came back 20% below market! If the seller of a property really worth $500,000 used the Zillow valuation to list their home, the listing price would be $400,000! I am having trouble understanding how that saves the seller money.
Using (and paying) a professional real estate executive would actually save the seller a lot more money!
Your thoughts about, and experiences with Zillow?
posted by Realty Executives Int'l at 9:13 AM
3 Comments:
I had the reverse--properties being over valued… it might just be a region by region thing. it seems they use statistical data and previous trends to determine value...they take the last 5-10 years and see growth trends so if an area is just experience growth then the values will be lower then true market value…in our case where things have slowed down a bit the property values are much higher the true market value
"Z" is using tax data in some areas; MLS information in other areas. They have signed up as Brokers in some states and this permits them to receive sold data. As they are now in beta format, I think that we will see their Z-estimates become closer to the market. In fact, I also think that agents should probably check with Z first and be prepared when sellers tell them that their property is worth X amount, because Z said so.
The facts is it is only good in areas with new tract type building with cookie cutter housing or neighborhoods with all the same style housing. The Square foot pricing doesn't take into effect , condition,style of home orother factors topography what about a house down in a pit or up a steep hill? The margin of error is huge.Also is a relative or estate sells a house for $1.00 this can effect the value,Something a human will throw out they average it in.
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