Are Consumers Putting Too Much Faith In Zillow?
Many people thinking about buying or selling a home in today's real estate market rely on online automated values to determine real estate prices. Websites like Zillow and Realtor.com have proprietary automated valuation models that use raw data such as location, size, square footage and property tax information along with previous sales data to arrive at a valuation. While online websites offering valuations have shown to be a valuable tool for consumers we continue to see that they are just that, a tool. Home buyers and sellers should realize that like any tool its only useful to a certain point. While most information such as tax data is reliable it's not always accurate. Previous home sale prices are an indication of value they don't always reveal the true circumstances of the sale (short sale or other matters affecting the home's value). In the past we have seen huge discrepancies in tax data which is heavily relied upon by many of the online valuation companies. These subtle discrepancies can turn the true value of neighborhoods upside down and I have seen thousands of dollars lost by homeowners because of their blind faith in these online valuations. I know many of you were thinking why is he telling us this. My point of this blog entry is to let you know that there's no service or automated tool that can replace the value of an active real estate professional when you're thinking about selling or buying a home. It appears to me that too many people are relying upon automated computers and algorithms to help them determine what the house is worth. I love technology as much as the next person but a computer can't tell you about the neighbors or the neighborhood. While I would like to think that you would call me I think it is more important for you to understand that you need to call a trusted real estate professional.
We offer a free automated valuation tool here at our website and we would like you to use it as a talking point and reference tool. We feel that in order to give you an accurate estimate of your homes value, nothing can replace a personal visit at your home. We can then suggest options to consider as we work with you to get the most money for you investment.
Give us a call or visit us at Fresnoclovishouses.com we love to talk real estate!