Computer Based Estimates of Property Values - Are They Accurate?

The Wall Street Journal recently published an article about the accuracy of property values determined by computer programs. In particular the article analyzes Zillow’s property estimates. See Article. While computer estimates can be reasonably accurate by averaging results over a wide range of properties, it is very difficult to rely on computer accuracy on any single property. As the article indicates, there are many factors affecting property values that are impossible to know without visiting the property and having a detailed understanding of the surrounding area.

The most important factor in determining property value is choosing comparison properties that recently sold and have similar location, size, style and condition. The inaccuracy of computer based assessments are often due to condition (have the kitchen and baths been updated?) or location (being near a funeral parlor or busy street).

Pinnacle would be interested in your comments about Zillow and their house estimates. To comment click “comments” below

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