But while Zillow's track record is bad, it isn't the worst.

Why are these websites so inaccurate?  The MSN article explains some of this well- but an automated valuation site usually doesn't take "location", into account.  And what about upgrades?  Do you think an automated site will know that you just put granite counter tops in your kitchen?  The answer is no...and an upgrade like this would certainly raise the value of your property.

So you may be asking yourself....do I need to spend $350 (the basic rate for an appraisal) prior to listing my home?  My answer is probably not.  First off, there are hundreds of appraisers out there in the Orlando area and predicting what is in the mind of a particular appraiser that may be assigned to evaluate your home after executed contract is next to impossible. What you need is a Realtor who has a track record of pricing his homes competitively, accurately....and aggressively.  If you are listing, you should definitely ask your Realtor how he/she is determining the value of  your home.....a good Realtor will use a number of different methods.  Most importantly, you should ask your Realtor what he/she does when and if a buyer puts a contract in on your home, and it comes up short on appraisal.  How does he/she present the "case" to the appraiser?  Many Realtors simply do not do this at all unfortunately.


The bottom line- These online sites do have a purpose.  When I list a property, I want to know what these valuation sites say about the home.....because this is what many prospective buyers look at when they are evaluating a home purchase.  Hey when I am putting an offer in for a buyer I will use these sites to try to negotiate the best possible price for my buyer. But as a sellers agent, a good Realtor should be able to make a "case" for his listed property for future discussions with possibly buyers and appraisers who might look at some of these sites.

I do not dismiss online home evaluation sites because buyers (in many cases) are using them to their advantage to negotiate a lower price for homes I have listed.  Instead, I am very aware of how these sites have my listed homes valued.....because I believe it is better to "know thy enemy".