Now, first let me say, I’m not a huge fan of all these different website that provide a list of homes for sale. Often, I find completely out of date information (homes currently for sale than in fact were sold months ago), wrong pricing, etc….

A few days ag I was surfing all the different websites that provide a list of homes for sale: realtor.com, zillow.com, trulia.com, etc…. I was shocked what I discovered on zillow.com! Before I get to why I wasn’t pleased (for my client), I will say that in the past I’ve had to deal with trying to convince buyers about wrong information obtained from these type of “listing sites” (listing farms). For instance, I had a buyer who was moving to Waco from out of state. He was a very nice guy, but sadly, was fed wrong information. The first day I met with him, he had this HUGE smile on his face! He thought he would be able to buy a $350K house for $250K. I asked why he thought homes that were on the market at one price sold for a substantially lower price. He then pulled out these sheets of paper he had printed off from some website of “recently sold properties” (in our area). Wow! It showed that a $500,000 house sold for $300K and a $350K house that sold for $230K!

WRONG, WRONG, WRONG!!!

I forget the name of the site now, but wow! How on Earth did this website come up with these sold figures? You see, Texas is a “non-disclosure” state. Meaning that when a property is sold, the actual sold price is not made available for public record. I’ve heard that some states have this information publicly available, but Texas is not one of those states. If you want to know what a house sold for, you need to call a Realtor, who then can look up that information for you in our MLS system. When we input a home into the MLS and that house sells and closes, we’re REQUIRED to report accurate sold information.

Anyway, back to my happy buyer (who wasn’t so happy by now). I asked him to give me the printouts so we could actually look and see what those houses sold for. Case number 1) The $350K house they said sold for $230K, actually sold for $335K. Case number 2) The $500K house sold for full asking price (it was only the market for a week before going under contract). Actually, that $500K was a great price for that particular home. Fortunately, by buyer was a smart guy and he immediately “got it”. I didn’t have to spend to much time convincing him that a lot of the “home listing farm” sites don’t have accurate information.

Now back to zillow.com. I pulled a list of homes for sale in a zip code and when I looked at the search results, I was surprised (and disappointed) by what I saw! Here’s a screenshot:

You’ll notice that RIGHT Below the asking price, Zillow.com has something they call “Zestimate”. In most of these cases, the Zestimate appears to be considerably lower than the asking price! When I saw this, I immediately looked at comps for those areas and noted that the “Zestimate” was considerably lower than what actual comps showed. With Texas being a non-disclosure state, I don’t know how they come up with these numbers. I don’t know the algorithms they use to arrive at an estimated property value, but I can tell you those values they have “estimated” are on the (very) low side.

So I went to one of my listings that I had supplied to zillow.com (via syndication) and found this:

Once again, there’s the “Zestimate” with a far lower estimate of property value with respect to the asking price. Is this property that much over-priced? NO! When I met with the seller to list his home, we went over the comps to arrive at an asking price. I pulled up all the sold homes in the past year (for his area), current active properties, houses that were under contract, etc… I ran statistics for the school district, current market conditions ( I tend to be a numbers freak), and more. Also, I need to mention that this house has other amenities not found in homes like it in the neighborhood. HUGE yard, being one of those.

I feel that the “Zestimate” gives the wrong impression of my listing. The impression of being over-priced. I know from experience that buyers tend to not look at properties that are grossly over-priced. Why would I want to give a potential buyer the impression that my seller is asking WAY too much for his house? I wouldn’t want to do that! That’s why I’ve decided NOT to provide Zillow with any of my listings.

Do I feel that I’m losing that much extra exposure for my listings? Not really. My experience tells me that when buyers (especially first time home buyers) are in the market to buy a home, they just don’t go to one website to see what’s for sale. A typical home buyer will surf many websites looking for properties that are for sale. They want to see EVERYTHING. Heck, before I got into real estate almost 9 years ago, I surfed EVERY available website that had home listings. I wanted to see pictures, listings, prices… When I ran out of websites, I got in my car and drove around neighborhoods looking for houses! Buying a house can be exciting, it’s hard not to surf every website on the internet looking at house to call home! If they go to zillow.com, I bet those home buyers also going to realtor.com, trulia.com, etc…

Heck, I don’t want to run the risk of a buyer seeing this listing on zillow.com and then seeing it on realtor.com and think… “Oh yeah, this is only worth $253,200. They’re over-priced,” then bother not to look at the house. Part of my job, as a Realtor, is to market my client’s home in an honest and positive way. I just don’t see how potentially giving a buyer the wrong impression that this home is worth a lot less, is a plus for my client.

Now, in Zillow’s defense, they don’t claim that this is the actual property value (based on recently sold properties). They do say it’s an ESTIMATED value, but I just tend to think if someone saw this “low value” they would have a hard time getting it out of their head.

My duty is to my client. It’s not my duty to just generate leads for myself. Is it possible that I may lose buyer leads from zillow.com? Sure, but I’d rather look after my client’s interests than my just my own. If I do have a seller that insists on having their home displayed on zillow.com, then I’ll point them to this article. If after reading it they still want to be on zillow.com, then so be it. At least I’d feel better knowing I explained why I’m not such a fan.

If you’re looking for a home to buy and come across these listing farms, just beware that some of the information may be wrong, out of date, etc… If you want up to date and accurate info, your best bet is to call a Realtor!

Super cute home in Midway ISD! This move-in ready home has LARGE bedrooms and great floorplan. Extra large utility room with freezer space. Updated throughout. Nice tiled bathrooms, shutters, storage building, workbench in garage, and large backyard. Great location in Hewitt. Perfect starter home for first time home buyer. For more information or to schedule a visit, call Robin at (254) 366-8697

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Rare find!! Under $100,000 in Midway ISD – Super cute home that would be perfect for first time home buyers. Great use of the square footage with large bedrooms, living and breakfast area. This home has formal dining, cool 2 sided wood burning corner fireplace and very pretty yard with LOTS of trees. Added bonus – no neighbors behind you! Enjoy your morning coffee on the patio without looking into someone elses backyard! New wood privacy fence. Very convenient to restaurants, schools, and I35.

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Roomy 3 bed 2 bath home in Midway ISD. Custom built in 2006, you’ll find the extras here! Stainless steel appliances, security system, granite counter tops, large walk-in shower, and more. With a wonderful open floor plan, this home is great for entertaining guests. Raised ceilings and wood burning fireplace in family room provide nice cozy nights. Need space for pets? LARGE backyard with covered patio will make summer nights a great location to unwind from a busy day at work. For a private showing, call Gary (254) 498-4276

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Come home & enjoy the lifestyle of the Villages at Twin Rivers. Spend a relaxing weekend by the community pool, play a round a golf, or pass the time watching ducks play in the lake. This upscale community features walking/jogging paths, playground, tennis courts, club house, and more! Situated at the end of a quiet cul-de-sac, this large 4 bed 3 bath executive home features granite countertops, formal dining/office, water softner system, chef’s kitchen with large island, and more. Need a roomy backyard? you’ll find plenty! With one of the largest backyards in Twin Rivers, you’ll have plenty of space for pets to run and play, a private pool, playground, etc… Step out onto the covered patio and enjoy the extra space between you and the neighbors. Meticulously maintained and immaculate!

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Perfect Starter Home! With updates including new flooring and a metal roof, this home has so much to offer for the price! The master bedroom includes a spacious walk in closet and new paint has been added throughout.

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Situated on a quiet cul-de-sac and nestled among mature trees, this rare 5 bedroom, move-in ready home in West Woodway features 3 full baths, over 2,800 SQFT, wood floors, granite counter tops, LARGE lot (over 1/2 acre), and more! Wonderful covered patio and extended patio for a nice relaxing evening. Great floorplan that maximizes square footage; you have plenty room for an office, hobby room, and bedrooms for overnight guests. In Midway ISD (South Bosque Elementary), this home is in an excellent location, with quick access to shopping and dining. Property line does extend beyond fence in backyard. For a private showing call Gary (254) 498-4276

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This 3 bedroom 2 bath home in Midway ISD features raised ceilings, crown molding, isolated master suite, and SPACIOUS family room! Recent updates include newer stainless steel appliances, new slate flooring & counter tops, nice breakfast area and more. Formal dining with wood floors would also make great office! Located in Hewitt, TX (voted twice by CNN Money Magazine as one of America’s top 50 towns to live in), this home is situated on a less frequently traveled road and has mature trees/landscaping. Built in 1992 and well cared for, you’ll find the location do be ideal! Easy access to I-35 and just minutes away from hospital and shopping. Call Gary for a private showing (254) 498-4276

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Do you like to spend weekends playing golf? Call this home and you’ll just be a stone’s throw from the golf course! Built in 2001, this 4 bedroom 3 bath home in is situated on a large lot in China Spring ISD. Featuring a swimming pool, workshop and side entry garage, you’ll find that you still have enough room for boats, additional storage, and more. Large rooms with even bigger master suite! Heated and cooled sunroom will also make a great office or hobby room. Need additional privacy? There are NO neighbors behind you! Well cared for home with several updates and great floor plan to maximize square footage. To view this home located in Tree Lake Ranch, Call Gary for a private showing (254) 498-4276

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Want peaceful serene living and still be a hop, skip and a jump from the city? This well maintained and completly updated home sits on 1/3 acre and is located in the desirable Bluffs subdivision. Wonderful open floor plan with spacious master suite and bath with custom tile shower. Both baths have been completely updated. Other updates include carpet, paint, kitchen countertops and backsplash, stove, dishwasher, tankless water heater, ceiling fans, lighting fixtures, recessed lighting, surround sound, covered patio with ceiling fan, misting system and outdoor speakers, landscaping, A/C unit, attic fans. New 30 yr roof installed Sept 2011. Neighborhood has access to river! This home also qualifies for USDA financing – no money down!

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