Zillow Misses the Mark Completely in Utah2007-05-04 04:16:14
It’s no secret within the real estate industry that Zillow, and it’s Zestimates are not accurate, and really- they aren’t even supposed to be. Accuracy doesn’t even fit into Zillow’s core objectives. Their business model is not about being accurate at all- its about selling ads. But Zillow does create a real problem for many people who believe the ridiculous Zillow price estimates.
Zillow’s business model is simple;
1- Assign a price estimate for every home
2- Generate interest by showing how “fun” it is to see what it says other people’s homes are worth and satelite images of celebrity houses
3- Sell advertising on the website
Nowhere in that business model is accuracy. They want to be accurate enough that people will go to the site, but that’s about it. The state of Arizona’s lawsuit against Zillow only feeds them more exposure. And I’m a supporter of Zillow’s. I have been from the beginning and I a