Zillow, an online tool designed to help buyers and sellers estimate the value of their home, has been around since 2005. It's actually quite impressive even though the “zestimates” provided are not always perfect. I remember the day it launched and how it generated a lot of buzz as well as controversy. Some in the media felt Zillow estimates might replace the need for a comparable market analysis, typically a job for real estate agents.
Here’s how it works. You type in an address at Zillow.com and a zestimate quickly appears, as well as some details of the home including the date and purchase price of the last sale. You’ll also see data on comparable sales. I inputted some addresses in the Ledyard area and found many of the evaluations pretty close to market value. This is particularly true in large subdivisions. Where it seems to go astray is in the more rural parts of town or in areas just outside a subdivision where it tends to use the subdivision values due to the proximity even if the house is very different from those in the subdivision.
Here’s the important part for home owners. You can “claim” your home on Zillow and make corrections to any data that is not accurate. This is important if your home is on the market because missing information can effect the zestimate.
My opinion of Zillow hasn’t changed much in 5 years. I wouldn't rely on it for a home evaluation but it does provide some interesting information, good mapping, and a graph of a homes estimated value over time. And the best part is that the service is free. I think it is a very useful tool for buyers, sellers, homeowners and even real estate agents, but I don't think it will be replacing me anytime soon!
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