Be Careful of On-line Home Valuations

A recent trend in the Real Estate industry is the use of Automated Valuation Models (AVMs). These re used to determine the value of a home.

There are several web sites that will provide an estimated value of your home through the use of an AVM and one of the more popular of these sites is Zillow.com.

Recently Zillow.com has landed in the hot seat over the accuracy of its home valuation tool.

The National Community Reinvestment Coalition, a Washington, D.C.-based non-profit that promotes equal access to credit and capital for underserved communities, filed a complaint against Zillow with the Federal Trade Commission. It says that Zillow's valuation "mechanism is highly inaccurate and misleading to consumers."

The NCRC also notes -- citing its own audit -- that "Zillow is off the mark with its home value estimates more than two-thirds of the time".

There are many reasons why an AVM may be off the mark on placing a value on your home. As with any calculation or formula, assumptions must be made and the accuracy of the result is only as good as those assumptions.

The primary assumption that is often made is that all houses in a community are essentially the same. That is, they are in the same condition, the same view, the same building materials, etc.

So, for example, say you have a very nice 2,500 square foot, 4 bedroom, 3 bath home with ceramic tile, hardwood floors, hard surface counter tops, new appliances, new roof and update bath rooms.

And now lets say that recent sales near you are also 2,500 square foot, 4 bedroom, 3 bath homes but have no upgrades. In other words, the home has the original carpet, roof, appliances, etc.

In this example, an AVM may substantially under value your home.

Call me!  I'm Free!

Home are best estimated on an individual basis where the uniqueness of the home can be considered in determining the it's optimal value.

I will be more than happy to provide you with a valuation of your home at your convenience. There is no cost or obligation to you.

If you are interested in this free service, give me a call at or send me an email. 

Chuck

(904) 923-5852

ChuckGuinn@WatsonRealtyCorp.com