Zillow’s ‘fuzzy math’ used in home valuations
Puget Sound Business Journal
Date: Thursday, November 17, 2011, 6:45am PST
Just how do online real estate companies like Seattle’s Zillow.com determine how much your home is worth? "Fuzzy math" might enter the equation.
The Wall Street Journal’s Smart Money reports that online home estimates from companies like Zillow (NASDAQ: Z) "can be far rougher than most consumers realize," and valuations could be off by as much as 50 percent. "Indeed, if the websites were dart throwers, they’d seldom hit the bull’s-eye, and they’d sometimes miss the board entirely."