“You always say that Zillow and other sites are so inaccurate. What do you think causes them to be so far off?”
There are many reasons sites like these are so inaccurate. Here are a few:
- They “pull” comps from within X miles of the subject. However those often include neighborhoods geographically close but very different in desirability and price.
- They have inaccurate or perhaps even no adjustment for market trends and price changes over time.
- They do not consider whether there’s a shortage, correct balance, or surplus of homes on the market.
- They only factor in house square footage and perhaps lot size. So they ignore condition, appeal, floorplan, views, curb appeal, neighbors’ homes, quiet vs. busy streets, garage, usable lot size, etc.
- Faulty or shortsighted programming
I know that computers and robotics have replaced many a worker or professional. But IMHO, it will be a very long time before a computer program will be more accurate than a skilled agent in determining home values.