using zillow for market values?

Question

ive been using zillow.com for awhile to view estimates on properties...anyone else using this site?...

whats your take on the estimates provided?...it varies from market to market but on a whole how accurate do you think it is?

for example, i have a few properties that zillow estimates at $380K...these are bank owned multi families that need minor work, and can be picked up for around $200-$220K...there are a few of these out there in this mkt

can zillow be off that much?...what do you think...also im not looking to flip...im looking to buy and hold and rent for cash flow...

John M. · Answer

What about the option to see "sold" properties within the past ___ ? Are these numbers as reliable as the home zestimates?

G. NA · Answer

Don't trust Zillow if you are using it to make a decision on a purchase. You're better off checking comps through a local realtor.

Harrison Painter · Answer

What I noticed about Zillow, for the Indianapolis market, is that the values are lower.

Zillow appears to us the tax assessed values in the Indianapolis market, and these values have been about 30% under market value in many cases.

However, I see in other markets like CA, AZ and FL where Zillow values are much greater than market value.

So it can be very confusing!

I love the Zillow concept, but it has a long way to go before it will be a useful and reliable tool.

Brad Wiley · Answer

I have used zillow in the past and it is a great way to see what house are listed for and sold for in the area. The infomation on the houses in not always correct, but good enough to get the job done. The zillow estimate is not accurate and I would suggest running your own comp's

Eric Wang · Answer

I agree with others, it's inconsistant.  I use it for there area view, I like the fact you can look at property at different angles, North, South, East, West.  Also, the recent sold price is useful.

Jason Cummins · Answer

Zillow is good for one thing. To give you a quick estimate, and map of where the property is located.  Nothing else.  If you base any kind of value on zillow you are in trouble.

Timothy W. · Answer

If you have a subdivision of 3 bed, 2 bath 1/2 brick, 1/2 siding townhomes and you are buying one of them, Zillow will work.   :lol:

Jim Gordon · Answer

Zillow is good for entertainment value. I am listing a home Friday that Zillow says is woth 208k. We are going on at 194,900 any takers? 14k instant equity according to zillow.

Jon Holdman · Answer

Zillow's estimates are pretty useless.  Sometimes they're very close, sometimes they're way off. Since you can't tell, you can't trust any of them.

There are some old threads on ways to figure out ARV.  Bottom line, look at a lot of properties and develop your own sense for prices in your farm area.

Jon