After seeing a property my client turns to me and says, “That’s what they want, but this is the value of the property.” “According to who?”, I asked. “According to Zillow”, said my client. That is a bold and potentially presumptuous statement to make for an online company, so I decided to look into this “zestimate" a little further.
On the Zillow website there is a little question mark noting their disclaimer. Here is a part of the disclaimer but I encourage you to read it in its entirety, for yourself, on their site.
“The Zestimate (rhymes with estimate) home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value. The Zestimate is pulled from data. However, your real estate agent or appraiser should physically inspect the home and take special features, location, and market conditions into account.”
For the entire article go to: http://www.zillow.com/wikipages/What-is-a-Zestimate/
Zillow.com is a GREAT marketing tool that many Realtors and public use, but it is a also a feeder site and many of the “listed” properties are not updated and may no longer even be available.
The moral of this story……ALWAYS, ALWAYS check with your local agent when value is the question as “market conditions” play a critical role in your local market and prices are determined by YOUR local market, not the Real Estate market as a whole.