We are constantly dealing with questions about Zillow and how they value homes. Today I have a perfect example. First the background then the facts..

As I started through my email and ran across one from Zillow. "Your Zestimate has increased 9%" The Real Estate nerd kicked in so I started digging. We do have two homes that were listed  for sale last week in our neighborhood. So far so good.

However there a  few problems. To begin with the list price was used to increase our Zestimate. The list price  has nothing to do with market value and a home cannot be used as a comparable sale until the home has sold and closed. The bigger problem is the two homes listed would not be used as comparable sales by a listing agent or an appraiser. They are a completely different style.  A one level twin home would never be compared to a two story home.  Our neighborhood has a wide variety of housing. Just because a house for sale is in close proximity it does not mean it is a comparable home or remotely close to having the same value.

A few other cautionary tales from Zillow. The information coming out on Zillow is only as good as what is going in. We constantly see errors in the MLS that transfers to Zillow. Errors on the tax records also transfer to Zillow.

Another example from my own neighborhood. A listing agent completed the input form incorrectly and the house was listed for $3,000,000 VS $300,000. My Zestimate went up 25% that week.

If you would like to know what your home is worth just let us know. We can get you the accurate information so you can make an educated decision. Every Monday night we post the market update on the Facebook page and the our web site. http://bit.ly/barkleymarketupdate

The Barkleys

Direct (952) 947-0334
Cell (612) 805-5056

Email: jasonbarkley@edinarealty.com
www.jasonbarkley.com