Zillow and Trulia

[John Weir]

I'm new in the real estate sales business and keep having clients bring up the zestimate and the estimate you get on trulia for the value of a property. I know these numbers aren't always accurate, but what is a good explanation I can tell my clients. I keep showing them comps in the area but some just keep thinking that zestimate is what they should go off of. 

[Russell Brazil]

Zillow and Trulia are not creating their numbers from LIKE KINDED properties.   They are merely taking the prices of every property that has sold. That means part of the computation of the zestimate for a 3 bedroom 1950's split level home might be artificially inflated by the 3 bedroom new construction development a mile down the street.

On nicer properties, the zestimate is often under the actual price, and on run of the mill homes the zestimate is often overinflated.