Here is my issue with zillow–real estate agents. My agent is great and I love him (somehow like senators I guess). Too often houses that have listings removed are listed as sold by the agent to juke their stats, or the home is listed as sold twice because the realtor and public records put the sale in. It has inflated the number of sales and sometimes the sales prices in my area. Price drops also seem to occur after a deal is made, making it seem the discrepancy between sales price and listing price is very little. I can see the order of the signs (up, down, up, down, up, sold) and what actually seems to happen on zillow (listed, sold, listed, sold, listed, price drop & sold). I’ve tried to flag properties when this happens, especially with a couple of agents in my area who do this every time, and zillow informed me I cannot correct inaccuracies unless I am the agent or owner.
However, I just wanted to add that I appreciate Zillow. I’m not an investor. If I miss something that was up a week ago and sold I was going to miss it anyway because I’m not buying in cash. Having the sales history of a home makes a huge difference to me. Seeing that a home has been on and off the market repeatedly over the last two years, with price drops and higher re-listings, makes a difference to my decision on buying. I bought at the wrong time last time, believing prices were at the bottom, even though the amount of time a house was on the market may have told me otherwise. According to zillow, sales prices have dropped almost 3% in the last year. Perhaps the zestimates are off (thanks for the link, in LA they are off by less than 10% over 80% of the time), but the ORIGINAL LISTING prices in my area are much further off from the SALES prices than the Zestimates are.
Though Zillow's stock had been trading near highs when the deal was brokered, Trulia's board was still happy to be paid in all Zillow stock, Rascoff said.