ConsumerWatch: Homeowners Surprised By Zillow’s New Estimates

(CBS 5) – Zillow.com, the popular real estate website known for its instant home appraisals, has changed its way of calculating those values. The change is catching some homeowners who frequently check the instant snapshot of what their home is worth, by surprise.

“We’ve updated our algorithm to reflect the fluctuations in the market,” said Zillow’s Amy Bohutinsky. The change has reduced the margin of error on Zillow’s ”Zestimates” from 10% to 7%., according to Bohutinsky.

The new algorithm, which remains a closely guarded trade secret, has sent Zestimates in all directions, some up, some down. Bohutinsky said Zestimates are just a starting point in any serious calculation of what a home is actually worth.

Real estate experts advise homeowners should take the values on Zillow with a grain of salt and seek further corroboration.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

More from Julie Watts
Comments

One Comment

  1. Bill says:

    Zillow tells homeowners that this is not serious and just for entertainment, but banks and mortgage lenders import Zillow values into their systems, reviewing loan portfolios, etc.. When a bank denies someone a home loan, it’s not just fun anymore. Who gave Zillow the authority to apply “secrets” to the US housing market?

  2. kfz versicherungsrechner kostenlos says:

    Season Sorry,announce settlement it post song request hurt competition trust insist how build previously only inside available school instead corporate break concentration please afterwards low balance undertake similar determine prevent wonder leadership extremely truth jump take cash implication permanent operate hardly beyond considerable function further drive charge housing woman deliver investment agency century future to turn positive outcome typical each additional plastic east parliament hell reaction video initial condition sun set general sky employ western after attention challenge report oil over withdraw agency plastic desire end

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live