On a regular basis, we see prospective and current owners form an opinion and sometimes take action based on property valuations they get from Trulia or Zillow. We caution against using the Trulia or Zillow number as a hard value for their property as we see these sites frequently over-value a home.
Sometimes the variance is close, but frequently the number misses significantly. We did a test of Zillow and Trulia's valuations on a few of the properties we manage. We took 5 properties so the sample size is small but we mixed up the properties as far as location, size and sales price.
The properties we analyzed were located in the following cities: North Scottsdale, Avondale, Peoria, Buckeye and Phoenix. The actual sales prices ranged from $102,000 to $662,829. We took a look at the MLS data and compared that data with Trulia's valuation and Zillow's property "Zestimate".
Here are the details and how the actual sales prices compared with the Trulia and Zillow valuations in the Greater Phoenix Housing Market.
Sometimes the variance is close, but frequently the number misses significantly. We did a test of Zillow and Trulia's valuations on a few of the properties we manage. We took 5 properties so the sample size is small but we mixed up the properties as far as location, size and sales price.
The properties we analyzed were located in the following cities: North Scottsdale, Avondale, Peoria, Buckeye and Phoenix. The actual sales prices ranged from $102,000 to $662,829. We took a look at the MLS data and compared that data with Trulia's valuation and Zillow's property "Zestimate".
Here are the details and how the actual sales prices compared with the Trulia and Zillow valuations in the Greater Phoenix Housing Market.
As you can see, there was a collective 22% over-valuation with this group of properties. This is pretty consistent with what we see with the situations we encounter with our client's properties.
At this point, it is best to look at these Trulia and Zillow property valuations in the Phoenix Housing Market with caution. A 22% variance is certainly relevant in making a long term decision to sell a property or keep renting it out.
It is always best to take a look at recent and relevant market comparables on MLS before making any decision with what to do with your property. This is something we do for our current owners in the Phoenix and is something we can do for you if you are looking for a property manager.
