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Redfin and Zillow are online valuation tools that many buyers sometimes place excessive trust in. The problem is that their operation has significant limitations that need to be understood.
Take Zillow, for example. The platform begins by connecting to the MLS, which constitutes its primary database. Then, to generate its valuations, it cross-references this information with official sources such as the Land Registry, Fannie Mae, Freddie Mac, and even some insurance websites. The goal is to generate an automated estimate.
But in trying to create a finished product without human intervention, these platforms often end up providing inaccurate information. It’s not uncommon for properties listed as available to have actually been sold for a long time. And even their valuations can be completely off the mark.
Imagine two apartments that are exactly the same: same size, same layout, same materials, same floor, same finishes. Two neighbors, in short. Yet, their estimated value can vary from $100,000 to $150,000.
Why? Because one overlooks the bay, while the other offers a city view. The city view can be very beautiful, but it’s not the bay. And when you buy in a building on the bayfront, you expect a view of the water, not of the buildings.
And neither Zillow nor Redfin can detect this. Their algorithm doesn’t know how to incorporate this essential nuance.
The difference in value therefore hinges on qualitative elements that only human analysis can appreciate. This is where the intervention of an agent becomes indispensable: they provide the variables that the algorithm doesn’t see, and which change everything.
