Does the Zillow price represent the true market value? I was asked this question yesterday by a client and my answer is that it all depends upon how you're using the information.
Most people use Zillow pricing or "zestimate" to get a quick "price" of how much a home should sell for. They want the quick answer. They seem to think that Zillow is an authority on home pricing and if Zillow says the home should sell for XXX then that's the price they're willing to pay. Unfortunately, they fail to realize it is an estimate that is sometimes not based on a whole lot.
If you dig into Zillow's website you can learn more about their valuation process. Zillow states that it is an estimated market value, not a professional valuation. It is merely a "starting…