Trulia jumped on the Zillow bandwagon this week by offering a real estate valuation tool. “Trulia Estimates” use an automated valuation model (AVM) that takes into account recent sales information for other homes in the area, and property characteristics taken from public records including the number of bedrooms and square footage.
Similar to when Zillow appeared, Trulia spokespeople quickly pointed out that these“estimates” only mark a starting point to gauge a value and that more precise values can be obtained by local real estate professionals.
We gave the new Trulia system a spin with a San Francisco property that we have a lot of knowledge of. The Trulia valuation for this SoMa condo came in a $581,000 as of Mar 7, 2012 compared to our value in the $525,000 range. Perhaps the Trulia system does not take into account short sales and REOs in the area.
Let us know any valuation examples that you would like to share.