You have heard the expression "Buyer Be Ware"! Well when it comes to Zillow it is "Buyer & Seller Be Ware". Despite warnings, many people are still getting burned using Zillow as a guide to property values. Buyers are backing out of their purchases because of wrong values that were determined by Zillow. Sellers are asking over inflated values because of wrong values that were determined by Zillow. Yes, sometimes Zillow is right on.
Here are a few examples:
- My own home appraised in the last 30 days had a value of $1,3 million vs Zillow at $717,000
- I just closed on a condo in Anaheim at $435,000 which was the clear market value but Zillow told my seller that it had a value of $460,000
- I have a listing in Irvine listed at $585,000 ( sales range at $575,000 to $615,000) Zillow says that the value is $513,000.
- How about a $1.5 million dollar condo that Zillow says is worth $400,000
- Newport Beach condo valued at $1. 1million, Zillow shows that it is 550 sq ft (actual 1,900 sq ft) and has a value of $1.435,000.
These are example of the erroneous values that Zillow comes up with that could effect a buyer or sellers decision. The problem is Zillow, the laughingstock of the real estate business, is just grossly inaccurate. And it cuts both ways, often coming in outrageously high or low, depending on the property. So use Zillow at your own risk if at all.
Now a word from my attorney: This is just the opinion of Sherman Smith and is not to be relied on as to the accuracy of Zillow.
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