Why Real Estate Applications May Not Be Right for You

By
Real Estate Agent with "The Pozy Team" Keller Williams Realty & Pozy Auctions

Traditionally, buying a home is a great investment, but due to the housing decline, it is important to stay educated about the housing market. Luckily there are several different ways homeowners can stay informed, but many real estate informants and applications, like Zillow.com, can be misleading.

 

 Zillow.com is a Great Tool… Right?

 

Zillow.com is a home and real estate marketplace designed to share vital information about homes, real estate, and mortgages. Making this information easily accessible was intended to help consumers make educated decisions about real estate, but the information provided can be very misleading. One way Zillow.com is misleading, is due to the “Zestimate”. Even though a “Zestimate” is calculated similarily to an appraisal, it is not an appraisal. The “Zestimate” is simply an estimated value, and should be treated as a starting off point to determine a home’s value. From the “Zestimate” branches a value range. The value range shows the low and high values of a home and can very inaccurate.The accuracy of the value range weighs heavily on Zillow.com’s historical ability to estimate homes. The gap in the Value Range will help indicate how accurate the ‘Zestimate’ is; a large gap indicates inaccuracy.

 

Real estate applications may seem a helpful tool, but unfortunately they are not very accurate. Zillow.com does have a disclaimer that warns that they may not have enough data to give customers accurate information, but this warning is not easily viewed and often ignored. So remember that Zillow.com may seem like a strong real estate tool, but it is highly probable that their data is flawed.

Comments (1)

David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Wrong.

Nov 17, 2011 09:30 AM