How to use Zillow to research home value

With home prices sinking and mortgage rates dropping, home prices are of great interest both of those who own them and for those who are looking to buy. Zillow.com is a leading real estate valuation website, which allows for quick and easy researching of home values in many areas across the US.

Instructions

1. Go to www.zillow.com.

2. In the field they provide, enter the area code or city in which you are interested in looking at homes.

3. Use the map interface to look at individual home prices. Zillow lists homes for sale, the price of recently sold homes, and useful information about existing homes, as well as estimates for the value of many existing homes. You can drag the map around and use the mouse wheel to zoom in and out for quick navigation.

4. Pay special attention to recent home sales. Oftentimes the home price estimates Zillow gives are higher or lower than one would actually pay for a new home. In the recent real estate bust, many homes are selling for amounts far below the Zillow estimate for home value. By looking at several recent sales in the vicinity of a home you are looking at, you can make an estimate as to how much more or less than the Zillow estimate you might pay to purchase a new home.

Tips & Warnings

• Zillow is a powerful home value research tool, but shouldn't be used exclusively in a home search,

• The "zestimate" zillow gives should be taken with a grain of salt, and used as a basic guideline for home value.

Resources

• Link to Zillow.com