As I do a Comparative Market Analysis (CMA) for my clients, I like to compare my results with what Zillow.com posts. I’ve found the prices Zillow estimates to vary widely. On occasion Zillow is close, but more commonly it is off. I’ve seen discrepancies as much as $80,000.00 over the fair market value.
Recently, in a 12 page complaint filed with the Federal Trade Commission, the National Community Reinvestment Coalition revealed that Zillow’s Zestimates (as they’re called) are wrong over 67 percent of the time. This shows a significant flaw in how Zillow calculates a homes value.
Zillow has an interesting idea, but to get an accurate assessment of the value of a home it is best to have a professional in the industry do a CMA in person. Most appraisers will do this for a fee, and most Realtors will do this free of charge.
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