Zillow is an online tool that allows consumers to estimate home values. The tool was quickly heralded as a valuable resource for prospective home buyers and sellers. However, it was also the subject of considerable criticism due to a lack of accuracy. Home estimates were found to be off by as much as a couple hundred thousand dollars in some communities. While Zillow has improved its accuracy in a number of locations, the accuracy issues persist for Zillow in Maui County. A good example is a home on Makawao that recently went on the market for $625,000. It was less than two weeks before the home went into escrow. Based on market feedback and what I have seen of comparable properties, it seems like a safe assumption that the sales price will be close to list price. If you look at the “Zestimate” or Zillow estimate for this property, the home is valued at $504,626. The difference between list price and Zestimate is almost 20%. I would be hard pressed to imagine that the difference between Zestimate and final sales price is anything less than 15%. These type of discrepancies are common place for Maui. While I would not discourage any one from using Zillow, it appears that users should treat the estimates with a healthy amount of skepticism. You can also contact us for market analysis or for information on comparable sales in Maui.
