E-mail
del.icio.us
Technorati
Digg
Bidding for a new home before your existing one sells is risky. A sudden drop in the real estate market can cause you to lose twice the amount you would have from owning just one. The fictionalized result can be seen by watching Indecent Proposal. But, the scarcity of quality condominiums in San Francisco forced my hand before I could sell my home in Marin County.
Tired from the bidding and counter-bidding process, I sought solace from Zillow's home valuation algorithm. I typed in the address of the condo in the city into Zillow's search box and was shocked to see it valued at $228,000 less than what I had just counter-offered. I was concernced.
Now, I didn't just need solace from the bidding process, I needed solace from Zillow's algorithm. So, I quickly visited its rival, RealEstateABC. I found what I was looking for. It valued the condo as being worth $345,000 more than what I had just bid. I always knew RealEstateABC was the home valuation service for me. It just reinforced the view previously taken when trying to figure out how to list my house at last week.
Both services only launched a few months ago. They are still working out their valuation algorithms. However, I can't understand how Zillow could value the flat I bid on as being worth $250,000 less than the flat below it and $360,000 less than the flat above it in the same building. All three are about the same size with the same amenities. Strangely, RealEstateABC values the three flats in inverse order than Zillow.
Both Zillow and RealEstateABC provide home buyers and sellers with tools of empowerment. The information gleaned from their Web sites allowed me to make better decisions in the home purchasing process. I just wish the information was more accurate.
I will continue providing ongoing updates to the bursting of my Zillow bubble as my home selling process progresses. After all, I've still got to sell my house to pay for the condo. I'm hoping this experience will help venture capitalists get a better understanding of how new technology is affecting the $60 billion real estate market and whether current startups are addressing users' needs.
Technorati tags: zillow, realestate, internetbrands, realestateabc, vc, venture capital
Huh, I get no estimate for my house on RealEstateABC either.
Indeed, something is amiss with Zillow's algorithms. In my neighborhood out in New Jersey, there are two homes for sale that are asking more than the Zillow valuations. As a matter of fact, one of those homes is asking $100,000 more than Zillow's valuation. Unfortunately, RealEstateABC.com provides no valuations for my neighborhood, so it isn't possible to make comparisons. However, it is obvious that local realtors are ignoring Zillow if they are willing to attempt to sell homes for more than $100,000 over the site's suggested valuations. I'll keep you informed as to how long these homes sit.