Home Evaluations on Line: How Accurate Are They?

The Sacramento Bee recently published an article about on-line home evaluation, or home appraisal, companies, such as Zillow.com, Cyberhomes.com or Eppraisal.com and raised the question, "How accurate are these sites, really?"

Good question!

The article goes on to quote an appraiser, by writing:

"All these data sources are OK for basic tract homes that have no upgrades or are in average condition," said Colleen Tiner, who owns Tiner Appraisals in Fair Oaks.

"But when you get anything that's off average Zillow doesn't apply at all."

These online sites, powered by what's called automated valuation models, have the hardest time in irregular neighborhoods.

If you live on the nicest street of an average neighborhood that's bordered by a declining neighborhood, the free sites can appear to toss darts at the wall.

The entire article can be read HERE.

I've personally experienced this problem with a homeowner in the Newhall area.  His home was built in the 1960's, but the street right next to him had homes built in the 1980's ... and newer homes usually sell for more money.  But this home owner was convinced that Zillow had to be correct, and that the neighboring property values must mean that his property was worth the same! 

He priced his home, against my advice, at the higher price just as the market was starting to slow and ended up chasing falling home prices for one complete year before giving up.  By that time, he was "upside down" in what he owed, could not re-finance and ended up being "forced" to keep a home he didn't want any longer ... he was newly married and they didn't need the two homes that the new marriage gave them, but he was stuck with both homes because he believed Zillow versus the more accurate comps I held in my hands, which took into consideration the age of surrounding homes currently sold.

For the most accurate, current information regarding home prices in your neighborhood, give me a call if you live in the Santa Clarita area ... or contact a local REALTOR(R) if you live outside of Santa Clarita.   A REALTOR(R) will be able to give you more accurate information regarding what your home could sell for than Zillow or the other on-line evaluation sites, since your REALTOR(R) has the opportunity to view each home for sale in the area, to take into consideration the age and any upgrades, etc.

And if you would like a no-obligation consultation with me regarding the purchase or sale of any property in Santa Clarita, call me at 661-309-2364 or email me at LeeAnnRealtor@yahoo.com.  It would be my pleasure to make your Real Estate purchase or sale as easy and understandable as possible for you!

Thank you for visiting my site.

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LeeAnn Bell, REALTOR(R)
DRE License #01260650

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