Beware - Zillow.com
A Help or a Problem?
In a previous TIPS article we spoke about Zillow.com and advised you to take it lightly due to lack of accuracy. Zillow.com is an on-line web based program that allegedly gives you the market value of a desired property along with the market value of surrounding properties. We warned that the basic calculation process ie the tax appraised value, is not an accurate depiction of true market value.
In the real world, if you have 3 real estate professionals or 3 appraisers determine the market value of a property, the answers should be reasonably close. The calculation of market value involves many facets. In reality, Zillow.com uses a very limited source of information to calculate market value. The problem that Zillow.com now faces results from an accusation that too many people have begun relying on Zillow.com as an accurate source for determining market value. Zillow.com spokespersons told BusinessWeek back in February, 2006 when the site launched -- that "estimates are typically on target, falling within 10 percent of the actual home-sale prices 62 percent of the time." Seems though that Zillow.com left that 62% of the time off its website. That means incorrect by more than 10% at least 1/3 of the time. No disclaimers are used on the site.
To read a full story of details, in which National Community Reinvestment Coalition (NCRC) is requesting the Federal Trade Commission take action against Zillow.com and that it do so in the heals of Zillow.com announcing a major expansion to making its data available to partners such as Yahoo, read the article by Columnist Blanche Evans as sit appeared in Realty Times newsletter October 27, 2006.
http://realtytimes.com/rtapages/20061027_zillowftc.htm
Jim Lubinsky
Re/Max Affiliates
614-766-5330
jimlubinsky.com
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