Zillow and Trulia have had a major impact on the real estate industry. While Zillow and Trulia, which are actually owned by the same company, are masters of internet marketing, they aren’t quite as masterful when it comes to actually helping out potential buyers and sellers. In this article we will look at a few reasons why
#1. Home Value Estimates (aka Zestimates) are WAY off:
Zillow and Trulia estimates are made by computer algorithms that use a number of factors to try and give a estimate of what a home is worth. Unfortunately, the average zestimate is off by 8%, an error which could potentially cost you tens of thousands of dollars or result in months of wasted time because you overestimated the value of your home. In some areas Zillow admits that they are wrong by 20-40 percent! Now were talking potentially hundreds of thousands of dollars. Zillow’s marketing team has many users believe that their estimates are gospel and rather than them being wrong, real estate agents are simply trying to rip them off. Nothing could be further from the truth.
Why are these estimates so wrong? Let’s ask ourselves one simple question… How is a computer formula or algorithm supposed to accurately value your home if IT’S NEVER SEEN THE INSIDE? By relying on an algorithm to value your home you’re basically saying that the interior of a home is not important,well, the interior is more than just important… it’s EVERYTHING! I don’t really need to elaborate on why the interior of a home is important, do I? If you don’t realize there is a difference between A) a home with shag carpet, dated wallpaper, wood paneling, and brass hardware and B) a fully remodeled home with grantite counter-tops, subway tile back-splash, stainless appliances, huge master bathroom with steam shower, fresh two-tone paint, and brand new high-end carpet, then you need a lot more help than a real estate agent can provide.
The only place to find the TRUE MARKET VALUE of your home is from a top local Realtor or an Appraiser. You’d have to pay for an appraisal, whereas any top rated Realtor in your area will be more than willing to do this for free and I’m one of them.
#2. Not All Homes For Sale are Shown:
Fact of the matter is that in some parts of the United States, local MLS’s are pushing back against Zillow & Trulia and are refusing to provide them with a data feed of homes for sale. If Zillow and Trulia aren’t getting the data feed, then they flat out won’t show the homes that are for sale in that area. Many consumers don’t know this and they go to Zillow to start their house hunt, thinking they are seeing everything on the market when in reality, they are only seeing a fraction of the homes for sale. I have many examples of times where homes active on the market were not listed on Zillow or Trulia.
#3. Inaccurate Information:
Zillow & Trulia are notorious for having incorrect information. Sometimes homes that were sold weeks or months ago are still showing as For Sale by Zillow andTrulia. They somehow didn’t get the memo that the sale went through.
Still, the most common inaccuracy that I see on Zillow is price changes. It may take days, weeks, or months for Zillow to reflect a price change that was done immediately on the local MLS. This is not the norm, but why take the risk of looking at an incorrect asking price? For example, you may do a search for homes for sale in Sioux City, Iowa, up to $250,000. But a home that fits your wants/needs perfectly was listed for $259,900 until they dropped the price to $249,900 one week ago. If Zillow somehow fails to notice the price change, and you’re not using a Realtor or searching a local real estate home search website, you’ll miss out on this home. That sucks; it could’ve been your dream home.
This reason alone is reason enough to never use Zillow again. Why wouldn’t you want to search for home on a website that you KNOW has 100% up to date information? Only your local MLS can guarantee that, or a website that pulls the MLS data. You can access the MLS by visiting this page.
Zillow claims that they get everything updated every 15 min, directly from the local MLS, but somehow these goof ups still happen. I’m sure it’s unintentional, but some homes slip through the cracks. Why take the risk?