Zillow Zestimates have a new opponent, Rupert Murdoch
May 16, 2015 | Richard Sites
Many people, buyers and sellers, hang their hopes and plans on the home values they find on Zillow called Zestimates. Sellers find the prices comforting when higher than they thought and buyers see them as concrete evidence of what the home is worth.
In order to attach a Zillow estimate to the price of the millions of homes shown on their website, computer algorithms are used. These highly impersonal methods do not take into account the individual upgrades or features a home may have. In fact, they encourage home owners to edit their prices to include these features to make the estimate more accurate. In other words, they are guessing.
Guessing is OK on “The Price is Right” but not when buying or selling houses. You need the professional services of a good real estate agent. In particular, an agent that is good with numbers and doesn’t rely on automated CMAs.
When pricing a home to sell, all relevant data should be taken into account including other similar, or very similar, houses that are on the market. In fact, the larger the data set the more accurate the information.
Here is the link to an article on the latest fight over automated house prices by Rupert Murdoch. http://therealdeal.com/miami/blog/2015/05/13/rupert-murdoch-goes-after-zillows-zestimates/?utm_source=rss&utm_medium=rss&utm_campaign=rupert-murdoch-goes-after-zillows-zestimates
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