Zillow - Valuable Tool or Inaccurate Values?

When Zillow first hit the web last year, I wasthan 50%." There was an overall median
intrigued. Wells Fargo Bank had previously offereddifference between the actual sales price and the
a similar tool on their website but it was no longerZillow estimate of 7.8% which is very close to the
available. When I checked out Zillow, I wasn'tmargin of error Zillow estimates at 7.2%. Read
surprised to find that similar to the bank tool, thethe entire article at
numbers were only accurate in areas whereFor certain homes in certain areas, Zillow is a
homes were similar in age, design and lot size. Ifgreat tool. I recently visited the site and was
you live in an eclectic neighborhood with radicallysurprised at how their service had expanded
differing styles of homes, near a lake or in theduring the past year. Not only could someone find
country, the value could be off by thousands. Soan estimate of value for a home but there is a
when I checked it out, I took the information withlisting search as well. Buyers can search homes
a grain of salt. After all, the value of my ownthat are currently listed, both FSBO and with
home since it is located in the country was basedRealtors. There are color photos, aerial views,
on its sale price from 10 years ago and itsstreet maps as well as values. As an agent, I will
current tax value.only be listing homes on Zillow that fit the criteria
Evidently the Wall Street Journal Real Estatewhere an accurate "Zestimate" will come up. But
Journal had some of the same observations as Iit is a tool I will use. My clients were impressed as
had with Zillow. Recently they looked at 1000it was another avenue to bring in buyers.
recent home sales transactions in seven differentZillow will not replace the knowledge and expertise
states and compared them to their "Zillowof an experienced real estate agent. But for quick
Zestimates". According to the article, "Zillow camevalues for homes with similar styles built in many
within 5% of the price in a third of thecity developments, it is surprisingly accurate. With
transactions studied by The Journal. It was moreall of the added features and information, Zillow
than 25% off target on 11% of them. In 34 ofcan be a useful tool in the right hands.
the 1,000 transactions, Zillow was off by more