4realz Exclusive: Realtor.com unleashes the Zillow killer and you…

…didn’t even notice:

new home values tool on Realtor.com

Apparently, Realtor.com launched their answer to Zillow recently without much fanfare!

The first thing to note is that the new tool mixes estimates for home values along side listings from the Realtor.com database. This would have been unthinkable just a few years ago, but even with an announcement from NAR, the blog world has been silent. (And I’m told by someone-in-the-know that it has been live with a link from Realtor.com for a few weeks already!)

The part that seems to be missing is accuracy of the listings.

For example, the VERY first comparable I tried shows a home value estimate that is clearly way off base… The home at 26227 Adamor Road in Calabasas, CA which recently sold for $575K is listed on Realtor.com with an estimated value of $925,399 and Zillow with a zestimate of $564,000.

Recently sold home on Realtor.com

OUCH! If I was a REALTOR trying to sell a home on Adamor Road, I sure would be pissed if REALTOR.com was estimating homes were selling in the million dollar range, but actual sales were closer to the $600K range! A “beta” label only goes so far!

The second example I tried (by simply typing in Seattle, WA and then zooming in randomly until I could see a listing) was the home at 7352 26th Ave in Seattle, WA showed a recently sold price of $880K, the Realtor.com home value is $690,000, while the zestimate is $900,500.

For the third example, I decided to head further east to Chicago (no real reason other than NAR is located in that area). I randomly landed at 1729 N Melvina Ave in Chicago, IL which recently sold for $225K. the Realtor.com home value is $218,183, while the zestimate is $247K.

Results:

Two horrible estimates and one decent estimate out of three tries. It makes sense that the realtor.com team has not made a PR push around this feature yet! 🙂

On a related note: Things get even more interesting when you think that NAR took on a similar project (was called “Gateway”, now called “Real Estate Channel”) to aggregate home information across the country. These types of projects are not cheap… so why create duplicate efforts?

Trulia headed for success, while Zillow going to flop? The Industry Standard…

thinks so.

On Zillow’s failings:

“Zillow is so 2006. The business model is based on advertising CPMs, and now that the real estate bubble has burst, it’s much less fun to track the (sinking) value of your home. There’s more competition as well, including Trulia and Redfin.”

On Trulia’s success:

“If location, location and location are what real estate is all about, then business plan, business plan and business plan are why Trulia is rising to the top.”

(h/t Trulia blog)