Online property valuation sites such as Trulia, Zillow and Chase’s tool are popular places for people to begin sizing up what it may take for them to purchase their next home, or to sell it. It’s always important to read the fine print, according to Chase
“DISCLAIMER: THE DATA AND VALUATIONS ARE PROVIDED AS IS WITHOUT WARRANTY OR GUARANTEE OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE EXISTENCE OF THE SUBJECT PROPERTY ANDTHE ACCURACY OF THE VALUATIONS ARE ESTIMATED BASED ON AVAILABLE DATA AND DO NOT CONSTITUTE AN APPRAISAL OF THE SUBJECT PROPERTY AND SHOULD NOT BE RELIED UPON IN LIEU OF UNDERWRITING OR AN APPRAISAL.”
HOME VALUE SITE’S ERRORS COST YOU
According to another online article“Zillow never claims to be 100 percent accurate all the time or even 80 percent accurate most of the time in all areas. If all the homes within a six-block radius are very similar to each other, in a suburban subdivision, filled with homes built around the same year, and about the same size and with identical amenities, a Zillow estimate will be much more accurate, perhaps within 10 percent, because there are not enough specific variances to throw it off. In other cases, such as for older neighborhoods with many homes that have been improved in different ways, it won’t be that close at all”.
90% Accuracy Means $10,000 Per 500K
If 10% is close enough on a purchase that easily reaches above $200,000 then you must not care that you may be over paying by $20,000!. If that is not accurate enough for you then you need to pursue a legitimate valuation.
Sellers, buyers and investors can still get a hassle free, yet reliable comparison report for their home value. The best of both worlds so to speak. Knowledge is power, having an accurate comps report shows the other party that you are serious, and it positions you better during negotiations.
You’ll notice the disclaimer at the very bottom of the image, we’ve added the white box with the same disclaimer larger, so you can consider how much you should trust this tool or any other online real state home value.
They’re disclaimer literally says, “it should not be relied upon,” it may as well say “for entertainment purposes only.” Luckily home buyers, investors and sellers all have an accurate online source. It allows you to use their online system to purchase a comp report provided by an agent in your area. Typically reports are delivered within days and reports start at about $5.
The value gained from spending five dollars is tremendous when we consider how far off the other online value estimate could be.