We have access to so much data today, thanks to the Internet. But those data vary a lot in quality. Just like you can find virtually any opinion on any subject somewhere on the World Wide Web, so too you can find a wide variety of opinions on what your house is worth. But which one is right? That can only be determined for sure through true price discovery – actually selling the house. Until then we’re just arguing over opinions. But some opinions really ARE better than others.

The Big Kahuna in Internet home valuations for consumers is Zillow with its Zestimate – a best guess at what your house is worth based on local comps and a proprietary algorithm to figure exactly where your house lies in the local price range.

The Big Kahuna in PROFESSIONAL home valuations is First American CoreLogic. Many mortgages even now are made without traditional appraisals, based solely on automated home valuations from CoreLogic. But CoreLogic costs money while Zillow is free.

Wait a minute! CoreLogic has a division called RealQuest started specifically to compete with Zillow and similar Internet startups. RealQuest tries to upsell you, but getting the true CoreLogic value for your house for free is still possible using the service.

So how do the two compare? Both supposedly rely on the same data, both apply proprietary algorithms. But since actual loans are supposedly made on the basis of CoreLogic (RealQuest) numbers you’d have to give those the benefit of the doubt.

Let’s do an experiment. Use both to look at any properties you own or like and report back with some answers.

From my own basic research, however, I have to tell you that RealQuest numbers are consistently lower than Zillow numbers – in some cases A LOT lower.

So what’s your house really worth? Probably less than you think.

44 Comments » Posted by cringely / Web Sites & Services