Zestimating the future value of home value applications

I ran several value estimates of my home a couple mornings ago after reading yet another mind numbing story on the fallout of the credit crisis in the USA Today. I am not planning to sell but I am trying to determine the fate of online home value applications.

Just take a look at the results:

Zillow: $754,280
Cyberhomes: $624,910
Coldwell Banker: A range of $585,000 to $715,613

So here we have a $200,000+ spread.

Before composing this blog I contacted three respectable agents I know and asked them each for a Realstimate – you know, a well informed, thoughtful measure of my home’s value. Their ranges went between $850,000 and 1.1 million.

In total, I now have a $500,000 range of opinion.

Considering how all these applications use past home sales as part of their special estimating sauce, it is entirely possible that they are now worthless applications given the seesawing interest rates and dearth of qualified buyers creating significant homes price reductions all over the USA.

I welcome folks from of each of these firms to weigh in here and honestly address the precarious viability of their platforms and their inability to account for a volatile market where even seasoned Realtors can’t do any better than a $200,000 spread.

— Davison