Thursday, February 15, 2007

How Good Are Zillow'sHome-Price Estimates?

How Good Are Zillow's Home-Price Estimates?

By James R. Hagerty
From The Wall Street Journal Online

In the year since its launch, Zillow Inc. has made millions of Americans familiar with computer-generated estimates of home values, created a new online addiction and become a staple of dinner-party chatter.

But just how accurate is it? A Wall Street Journal analysis of 1,000 recent home sales shows that Zillow's "Zestimates" often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible -- off the mark by more than 25% on one in 10 homes. In one case it was off by $2 million.

Zillow, based in Seattle, operates a Web site that offers free estimates and other online tools for real-estate buyers and sellers. It draws revenue from online advertising.

Read more.... click this link:
http://www.realestatejournal.com/buysell/tactics/20070215-hagerty.html

Richard's notes.... Using online home valuation services will give you an idea of what has sold in the neighborhood. A local real estate professional can determine what your home will most likely sell for based on recent home sales, current homes for sale, amenities, etc.... If your thinking of selling, DO NOT base your home selling price to what an online service thinks its worth. Ultimately, your homes value is what someone is willing to pay for it.

To search for available homes for sale in the San Fernando Valley & Santa Clarita Valley, visit: http://www.homes.la

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