Zillow is a Fraud

For Utah Real Estate, Zillow is a fraud. A great big hoax! If you are one of the 2.8 Million Americans who logged onto Zillow within the first month of its launch, or one of the countless others who have used the service since April, beware.

I know what you’re thinking: Are you crazy, I use zillow all the time, it’s not that far off. Well, I’m not crazy, but you are if you put any credence to what you’re “zestimate” tells you about your home.

Case in point, I just had my own home appraised by a licensed and certified appraiser. I used an individual with whom I have worked for years, he has over 25 years experience as an appraiser and I can assure you he is one of the most conservative appraisers out there (no worries of appraisal fraud and inflated values with this guy). His appraisal came in nearly 10% higher than then my “zestimate.”

Here is another example: I have a rental property in a nice neighborhood on the south end of the Salt Lake Valley. I had another Appraiser, one who tends to be more aggressive with values, appraise the property. His value, which I will admit may be a bit higher then I could ask on the market, came in $31,513 below the Zillow Value.

Of the 62 Million homes researched by Zillow, only about 40 million property records are detailed enough to provide the company with information needed for its “zestimates.” However, in practice, Zillow values do not appear to be consistent with recent sales trends and in some cases are equal to the assessed value assigned years ago at the time of a home's last purchase.

Look folks, just because your founder is the former CEO of Expedia.com (can’t you just hear the little expedia jingle in your head), and just because you were bankrolled with over $32 Million in Venture Capital Funds doesn’t mean you are qualified to hand out property values.

So here’s the thing, I use Zillow. I keep track of trends in my neighborhood or in neighborhoods where I am considering investing. I compare data from Real Estate Agents and Appraisers with similar data on Zillow. I use it as a resource, but it is only 1 resource out there.

If you want to know the value of your home your first stop should be to a licensed appraiser. This may cost you a bit, but you can be confident in the accuracy of the report. If you want to save some money, or you are just slightly curious, contact a Realtor—just be ready for their efforts to “earn” your listing.

If you must use Zillow, go ahead. But use it at your own risk. Remember, just because a web site tells you something doesn’t mean it should be taken as gospel.