Zillow In Zrouble?

27 thoughts on “Zillow In Zrouble?”

  1. It’s a shakedown, pure and simple. Classic play in the real estate biz — find the deepest pockets, threaten to sue, get them to settle. Last time you bought or sold a home, remember all those disclosures you had to sign — like the California Red Legged Frog Habitat Disclosure and the Errant Golf Ball Disclosure? Those all came about because of a similar shakedown at one point. It’s simply, and unfortunately, the cost of doing business in real estate.

  2. How many of you have actually tried using the valuations on Zillow for something useful? I checked them out recently while buying a house in Southern California, and they were ridiculously off the real valuations of properties in the area. Furthermore, their “valuation charts” are entirely gimmicky and plain WRONG. I don’t know where they are getting their pseudo-metrics from, but I can see how a less savvy person might think they are actually based on real information, and attempt to use them in a negotiation setting …

    That being said, I love Zillow’s plot maps – very very useful for figuring out addresses for properties nearby, which can be checked against lists of recent sales (from sources that seem to have avoided Zillow’s robots thus far).

  3. I think that at this point, Zillow can only be a starting point to see how much homes are worth. It’s even a fun tool to estimate how much your friend’s house is worth. With the given variability of the results, it cannot provide anything too useful. Over time though, as they tweak their formula, I expect them to be very valuable for homeowners/homebuyers. Right now, I would hate to go to the bargaining table and have someone print off some Zillow information.

  4. Zillow may be fun but it has NO VIABLE business model that can make sustainable $$$.

    Stupid greedy VC’s looking for a quick flip…I hope you lose your asses on this one !

  5. I think that zillow is a great resource to gather som basic insights ito certain properties. Obviously you can’t take their zestimate as a 100% appraisal but they also state this all over the site.

    The NCRC is using this as a leverage tactic.

  6. Om,

    You will wake up in 3 months and find that Zillow is “investing” a couple of million dollars into and “educational campaign” with the NCRC that will be “managed by” this same organization.

    And then Zillow will an okay company to work with after that. This is what the NCRC always does, they make Jesse Jackson look like an amateur.

  7. I have to agree that Zillow’s numbers are way, way off. I put my home on the market recently, and the difference between Zillow’s estimate, which has varied wildly in the last 12 months, versus the price determine by our agent after a CMA was enormous. Zillow has been off as much as 160%. It is, at best, a fun toy, and at worst, an incredibly unreliable and misleading benchmark.

  8. I tried Zillow quite a while ago and found that the valuations were significantly flawed because it didn’t factor in information about school districts and neighborhoods. Even within a short distance, the house prices can vary by 100’s of thousands based on which school district, the age of the specific development, and being on the “right side of the tracks.” For Zillow to be better, it needed to doa better job of learning those differences and adding more levels of data mining. As a simple mash-up, it’s only a toy, not a tool.

  9. Altos Research is approaching this market from the bottom up, gathering very detailed information in local markets. Right now they have detailed info on the Bay Area Markets, Chicago and Seattle, and I assume more to come. I don’t know how Altos gets its info, but it seems accurate. When they scale, they will help solve this problem.

    http://www.altosresearch.com

  10. I like how it’s taken for granted that human appraisals are more impartial and ultimately more accurate. In Seattle it’s been (read past tense) common practice for buyers to get into bidding wars and houses going for 30-50% over asking price–how’s that for accuracy.

  11. i’ve been buying real eatate using zillow just as a reference, a rough idea, a ballpark. guess what? hud and accomplices are now selling foreclosures right at zillow’s zestimate numbers
    is this a coincidence or a guideline?
    it seems like, for a reference tool at least, zillow is great.

  12. Zillow is great. Nothing is perfect in real estate but how can consumers be harmed by having more rather than less information? The real problem is the real estate industry, which has so complicated the property selling process that no one can do anything without hiring “professionals.”

  13. I just happened on this website by accident and did a bit of quick research to support or debunk the claim that Zillow’s Zestimates were far off the mark. I looked at over a dozen properties in our neighborhood and surrounding areas in San Clemente, CA and Zestimates overall are certainly within a reasonably narrow range of what the properties are actually worth. I know this real estate market as well or better than any so-called real estate professional. They come and go and I have been tracking it for years.

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