Home Values and the Internet

October 6, 2011


Back in about 2003, Zillow started a site that would calculate the value of a property. The visitor to the site only had to enter the address and a "zestimate" of its market value would be posted. It was a real hit with the public. Real estate agents learned quickly that they also needed to check Zillow before they went on a listing presentation because many of their prospective clients had already checked out the "zestimate" on their home.


Since 2003 there have been a proliferation of home valuation sites including a button on Realtor.com that allows you to enter an address and receive an email of the valuation. Like many of the other sites, you must register and surprisingly an agent will contact you.


The real question with these sites that have developed algorithms that come up with a value is that they have not seen either the subject property nor the comparables. They simply use mathematical calculations. This can be a good starting place, but to understand your local market values, there is nothing better than an experienced real estate agent.


Establishing a market value for a unique piece of real estate is not a science, it is an opinion based on knowledge and experience. Ultimately, the buyers and sellers in a specific locale with establish the value when the negotiate a final selling price.