Trulia, Zillow and Realtor.com and Non-Disclosure States

Online Real Estate Searching: Trulia, Zillow and Realtor.com and Non-Disclosure States

Consumers start their searches online. That is a well-known constant in the real estate marketplace. The megaliths of the industry spice up their online information by adding the sold price or estimated value into their searches. For many who are searching online, this is added valuable information—there are a few exceptions.

Non-Disclosure states do not have the information available for these megalith websites to pull public records from. In fact, in the few non-disclosure states, attempting to pull recent sales data from a public information source will severely skew many online consumers’ expectations.

 Trulia Estimates Home Values 

Why are Trulia Estimates not available in all locations?

There are many areas across the country where home facts and recent sales data are limited or not available at all. For example, there are certain “non-disclosure” states, like Texas, that do not disclose sale prices for homes in public records http://www.trulia.com/trulia_estimates/.”

 Zillow Estimates Home Values 

Since we rely on public county records as our primary data source driving our Zestimate algorithms (which take comparable sales prices into account), it poses a challenge to calculate accurate Zestimates when sale prices are not available.(http://www.zillow.com/blog/chronicles-of-data-collection-ii-non-disclosure-states-3783/)

Those are the danger words: estimated sales price, poses a challenge to calculate accuracy. Free comps are provided by an online algorithmic code based on data that 'yields a wider margin of error'.

 Realtor Estimates Home Values 

It is a standard industry practice to estimate sale prices based on one of two methods:

1) transfer tax paid in a home sales transaction (most reliable estimate) and

2) first mortgage amount (yields a wider margin of error) in states without a transfer tax or where than information is unavailable.

That means the consumer will still see “free comps” of estimated sale prices instead of public record actual sales data. (http://www.realtor.com/home-values/HomeValuesFaq.aspx#Whichstatesarenondisclosurestates)

Takeaway: In non-disclosure states, online consumers are getting erroneous information.

Non-Disclosure States:

Some states do not disclose the actual value of property sales to the public. Non-disclosure states include: Idaho, Indiana, Kansas, Mississippi, Missouri, Montana, New Mexico, North Dakota, South Dakota, Texas, Utah, and Wyoming.

An Agent Estimates Home Values

In the non-disclosure states, the ONLY WAY to get accurate sold comps will be reaching out and breaking that online wall of perceived privacy and asking a real estate agent with access to MLS. Getting comps specifically for your home goes even further. 

 

Comment balloon 3 commentsJenifer Lower • April 14 2014 07:44AM

Comments

Hi Jenifer

You are correct the estimates are based on algorithms.  They are not accurate and the big companies sell us back our listing leads and make money on our work

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) over 4 years ago

Great info Jenifer! Well presented blog. Thanks for sharing, have a great Monday!

Posted by Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR, Top Listing Broker (BROKER of Green Realty Properties® - 954-667-7253) over 4 years ago

If zillow is crapping on your house value, return the favor - box up and anonymously send them some dog poop.  we shouldn't have to tell them everything about our homes to improve our value on their site.  Instead, if they get enough dog poop from a certain area code, they'll get the picture that their is something wrong with their model there...3

Posted by Dis En Franchised over 4 years ago

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