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Online Home Valuation Fun

By
Real Estate Agent with Keller Williams

With the abundance of information out there for sellers and buyers, I'm finding that a good Realtor is more important than ever.  With companies such as Yahoo! and Zillow offering their online instant estimates of a home's value -- buyers and sellers are filing this away as solid data.

Consider this -- while these companies' valuation software offer some estimates -- they're not factoring in such items as proximity to a busy street, a dump, the neighbor's pre-foreclosure property next door with 10 years of deferred maintenance...  These factors make a big difference in a home's value when presented to the market.  So, armed with online valuation information sellers may have a preconceived notion that their home is worth more...and an unrepresented buyer may pay too much.

How much weight should the public put on this data?  When I ran a on Yahoo a valuation estimate on a property I'm currently marketing I received estimates in a $40,000 range.  Now, if we're talking about a home that's in the millions, $40,000 is not necessarily a huge range.  However, when we're talking about properties in the $250,000 - $300,000 range -- that's significant.

Curious if my colleagues out there have run into any issues with buyers or sellers who have felt firm about the online data they've received?

 

Comments (4)

AZ Mortgage Broker: Michael George
Arizona Wholesale Mortgage Inc. - Phoenix, AZ
AZ Mortgage Rates

Are you kidding?  Yes!  I've had problems with this!  As a mortgage broker, the appraised value of the home is crucial.  People often call to refinance their homes and when they can't get as much cash as they want-- which means my appraisers couldn't get the value that they needed-- they often throw these wacky numbers in my face.

I think those online home value things are just plain harmful.  At best, it's lead-generation tool for the sites that provide it.

Jun 18, 2007 09:56 AM
Lance Sonka
281-818-2727 - Houston, TX
These new online valuation models are "fun" as you mentioned in the title of your post. Currently there can be great discrepancies in property evaluation numbers, but assuredly they will grow in accuracy as the systems continue to develop and they gather more information. Real Estate Pros are still the best way to go...
Jun 18, 2007 09:59 AM
MAUREEN STACCATO
Springfield, MA
Zillow is the worse thing that could have happened to Real Estate. I have seen so many un-needed issues arise because of their zestimates. My understanding is that there has been action taken against zillow because of the site's appraisal information.
Jun 18, 2007 10:03 AM
Kiersty Lombar
Keller Williams - Georgetown, TX

It will be interesting to see what the fallout is from legal action -- and the honing of systems over time.  While data is good, there is always a high level of subjectivity related to any property that increases/decreases value.

Appreciated the comments!

Jun 19, 2007 08:13 AM