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The Trouble with Zillow - it prefers conformity!!!
October 1, 2009
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Zillow came on the market with lots of buzz. We realtors are fearful and fragile creatures that fear anything which could displace us. The thought was that Zillow would render obsolete the realtor's service of providing clients an accurate analysis of their home's value. However, nothing could be father from the truth. Zillow's estimates may work well in areas where homes are very similar in age, size, topography, views, lot size etc. Newer 'shake and bake' housing developments fit well into the Zillow estimating model.

 

But the Peninsula is a very different creature. Neighborhoods, architecture, topography, lot sizes can all vary greatly within a few blocks in areas like Redwood City, causing Zillow's estimating model to fall apart. At the time this was written, I looked a few homes in Edgewood Park and the Zillow estimated was off by as much as $1,000,000 which would be about 30% off target.

I've also seen Zilow error on the upside which makes it difficult to convince a home seller that they should list for less. However, in the end I still prefer a world with Zillow becuase it is a fun site to visit!
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Mark Martinho



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