House Value Sites

The big buzz Zillow. Consumers get pricing online instantly. How nice would that be? The reason no one hasn't done it before because it cannot be done nationally with accuracy. Some markets it can be done nicely and others not even close.

Utah is a non-disclosure state. Meaning the sales price is not a public record. Some states have a transfer tax and the tax may be public and simply figure out the price by the tax. However in Utah the transfer deed states for $10 and other considerations. Now the amount recorded against the property is public. However that does not tell how much the property sold for.

Zillow has been off by 40% according to Leslie Walker in her Feb Washington Post article.  That is way too much to consider useful.

The other problem with the system that Zillow is trying to implement is that it is a scientific approach. Appraising is an art and not a science. There are nuances that are not tabulated in the science approach. For example if ramblers are in style and there is a comparable split entry (the only difference is the stair case) one could sell for a lot more than one would pay for the other property. What about a property that is 10 doors away from the house that sold on the busy street? These are the obvious ones.

Now let's suppose we work through all the algorithms and come up with an accurate assessment and the market is shifting (always has and always will). It is now only worth what a buyer is willing to pay, regardless of what is owed, what the owner paid, what it cost to build, what the neighbors sold for. It is only worth what a buyer is willing to pay PERIOD.

Let's say there are 12 comparable sales that justify a price of $250,000 for a home. If there are 10 homes in the nearby area that are selling for $240,000 the house will not sell for $250,000

For real comparable sales in the Salt Lake Metro area. Salt Lake, Utah, Davis, Tooele, Weber counties go to http://www.morehousevalues/. There you will get real comps, not a formula that Zillow uses.