Fortune Magazine and–Zillow Debunked

The Fortune Magazine aricle  on published in the February 7, 2007 issue, completely ignores the fact that you simply can not estimate a property’s market value given the limited public information available, such as the age of the home, location, number of bedrooms or bathrooms, or square footage. Many factors such as whether it has been remodeled, the desirability of the floor plan, proximity to schools, street appeal, etc. have a huge impact on market value. Only an experienced real estate agent or appraiser, taking all factors into consideration, can provide a property owner with an accurate estimate of a property’s value. I have seen many instances where’s valuations are 50% or more inaccurate, with many of their valuations appearing to be almost random.For instance, values the home across the street from me at a price approx. 40% less than my home, although it has approx. 22% less square footage, one less bedroom, a less desirable floor plan, a smaller yard, and no ocean view, which my home has, and although recently remodeled, my home has also been remodeled with a much larger new kitchen. also has another home across the street from mine at a valuation at least 40% lower than its true market value, because completely ignores the fact that it was recently completely remodeled inside and enlarged.

The business model of simply can not provide accurate market value information, as the public information which it uses tends to lag the market, and most importantly, they are completely ignorant as to the unique qualities and details of each home that it appraises. Has it been remodeled?  Does the floorplan work well? Are the bedrooms too small? Are the bathrooms and kitchen well designed?  How large is the backyard and is it nicely landscaped?  Does the house enjoy good curb appeal and attractive and well maintained landscaping? How well maintained is the home, and does it have any issues such as mold, old roof, or other deferred maintenance?  All of these factors are important to evaluate in determining a property’s market value, and simply can not do so.  Only an experienced real estate agent or appraiser, taking into consideration all of a property’s unique characteristics can help a client estimate a property’s true market value. Anyone using as fact, may as well be using a Ouija board. Another good web blog that discusses this issue about how is a fraud is

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s