Typical pricing methods from homes include Replacement, Utility and Cost approaches that professional appraiser use to price homes. But none of public sites such as Zillow and Trulia disclose what methods they use to price homes or what they use for their source of property data. And that’s where the problems come for home owners who want to use these sites to price their home for sale.
So, we wanted to test these sites with some real world cases that we have come across ourselves in our own work in Los Gatos where we attempted price a home with both Zillow and Trulia. This home is under contract with us for Property Management Service and we know the home’s condition and amenities rather well. Table below shows the results of this pricing :
|16500 Marchmont Dr, Los Gatos||16500 Marchmont Dr, Los Gatos|
|2 bed/2 bath||3 bed/2 bath|
As you can see from the results of these two searches even the basic floor plan information from Zillow and Trulia don’t match let alone the pricing recommendations which are off by $137,572 which is a huge sum for a home owner to justify. Sure, the discrepancy in the floor plan data could explain this price difference, but why a home should have 2 different plans on these 2 internet site? We agree that this is a very small sample size to completely discredit the information consumers get from Zillow and Trulia.
But never the less it creates challenges to home owners who want to sell their own home using the information from these sites. Bottom line is that you will need to rely on a local real estate agent to help you sift through the noise that you find on internet and determine your home’s fair market value.
So, Contact Us to get a Free Home Value report that you can use to pre-market your home to perspective buyers and investors.