No. of Recommendations: 3
We own 3 rent houses and our own house. The Zillow estimates are completely wrong where we are. Our city has a lot of water front homes - small lakes and a lot of canals. We think Zillow does not take into consideration which homes are waterfront and which are not. We are also in Florida, so lots of swimming pools. Zillow doesn't seem to look at the existence of a pool and only looks at square footage and zip codes. I would definitely not trust Zillow's estimates.

When we price out homes for sale, we look at nearby homes (not on a canal, not with a pool, etc.)
and what they sold for in the past 3 months. Then, we look at the photos - are those houses nicer than ours? Then we take into consideration the price per square foot they sold for, and multiply it out.

Also, I think Zillow promotes your house to all people who have saved the house to their "saved homes" list. (Zillow sends them e-mails, etc.) I have seen homes where they list the property and it appears on Zillow. Then they drop the price in maybe a week, so Zillow re-sends out an email to those who have saved your home. So, I believe dropping the price is used as a tactic to get another bump of interest.

Keep in mind a realtor just wants to sell your home. They will encourage you to drop the price to get the sale.
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