Zillow. Accuracy takes a back seat.
If you could harness the "Hype" or bottle the "Buzz" around the launch of Zillow.com and sell it, an instant rich man it could make.
Much like selling snake skin oil in the 1800's to unsuspecting consumers convinced the product could cure cancer, blindness or remove tobacco stains from a tightly woven woolen overcoat.
When it comes to real estate valuation, it's not "good enough" to be in the ball park. It's imperative to hit home runs.
Although well intended, Zillow takes physically viewable and recognizable numbers, figures along with technologically advance mapping features with Ariel photos, recorded tax information and displays it IN YOUR FACE. You get the impression they must know what they're doing, right! All the "publicity" at launch time was as if they were making the first attempt to step foot on the Moon. How can they possibly be wrong?
Without a full interior and exterior analysis of your home with the comparable properties, a foul ball is the most likely outcome of your 'at bat'. An error of just half a percent for a $450,000 house can cost you $2250. With all due respect to a well intended project, I've seen errors up to 10 and 15 percent on Zillow. I don't know about you but I wouldn't leave that kind of money on any table. Comparable properties should only include like kind homes...Meaning, split level to split level, rambler to rambler and two story to two story, I think you get the picture, yet even with very similar homes adjustments must be made.
Ah ha. Adjustments...Here's where the rubber meets the road. Adjustments for style, square footage, year, lot size, lot location, features and anenities ect, cannot be done by a computer generated program. It takes a skilled market expert to evaluate, adjust and calculate your specific properties features so you get top dollar, but by that time a prospective buyer may have falsely determined your property value with data that's just "in the ball park" ultimately resulting in a low offer or no offer at all. By the same token, a buyer could think they are hitting a home run by making the deal of the century when it's only a "foul ball"...
7 Comments:
I came upon your blog via technorati search on zillow. Your post is very well written as are your earlier ones. On behalf of sellsius blog let me welcome you to the neighborhood. You obviously know that zillow is (and has been) a hot topic. Your analogy is well placed. Imagine the dollars left on the table with a multi-million dollar property? Come visit us anytime. Good luck with your blog.
Thank you I will.
Don't you guys just give estimates too. How far off are Realtors with pricing? Maybe the folks at Zillow.com aren't as far off as you think.
Like my piece states, they are in the ball park. A complete market analysis is preformed with adjustments made to specific features, something that cannot be done without a walkthrough. A computer is simply an extension or tool for a qualified pro not something that is the primary source of pricing.
This is version 1.0 of ZILLOW if you will. It will be refined and become accurate. I am in the software development industry for a smiliar product and I know what I am talking about. Please dont be araid and embrace the new technology. Or you will suffer the same fate as the travel agents of yesterday. Good luck.
I appreciate your hard work in that industry. All your hard work however will never replace a thourough CMA (Comparable Market Analysis) by a experienced licensed Realtor, or a certified appraisal by a licenced appraiser. Not that you fine folks out there in cyber space are trying to. Please don't get me wrong...The more information that's readily available to the general public the better off we all are, provided that information is accurate and as reliable as possible. Expecting so much from a piece of electronic equipment would be like performing your own by-pass after reading a medical brochure...Good luck to you with that new software.
If you want to read and interesting exchange of comments with David of zillow visit this link.
http://blog.sellsiusrealestate.com/?p=2000
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