I just discovered the new makeover of the Yahoo real estate home values page. I like the way they now show three, count ‘em 3, online home value estimates. The estimates come from Zillow.com, eppraisal.com and Reply.com. That’s a big improvement.
The biggest problem with Zillow is that people think it’s estimates are gospel. They’re not. Zillow.com has a large margin of error.
By putting the Zillow.com estimate next to the other two estimates, I think the average Joe will quickly realize that these online home value estimates are wacked.
I can tell people, for example, that “For Phoenix Arizona, 28% of their ” Zestimates” are off by 10 percent or MORE.” For most people, however, that’s hard to visualize. (The average reader of this blog, on the other hand, is a numbers person and understands the significance but, alas, most people are not like you.)
I think, however, its a lot more powerful for people to see the three estimates together and how variable they are. For example, I just checked three homes and one home is estimated to be worth $413,058 by Zillow.com, $453,906 by eppraisal.com and $547,052 by Reply.com. That’s a $134,000 swing on one home!
Most people will immediately see that these online home value estimates are just ballpark estimates. I hope they will give less credence to Zillow.com’s estimates or any of the online home value estimates.
The estimates are fun but don’t take them too seriously.
Phoenix Real Estate Market
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"I think the median Phoenix home price could quickly pop up to $144,000+ again. If not in the second half of this year, then certainly in the first half of 2012."Metro Phoenix median home price rose from $116,050 in August 2011 when the post was written to $153,500 in May 2012.
- John Wake, Arizona Real Estate Notebook, August 11, 2011
See full post - Phoenix foreclosures as percentage of homes sold continues to decline.