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Real estate website values US properties, free
(AP)
Updated: 2006-02-10 10:27
A real estate valuation website that could alter US home-buying terrain
launched on the Internet.
Construction workers build a new home. A real
estate valuation website that could alter US home-buying terrain launched
on the Internet Wednesday. [AFP] | Zillow.com was
crammed with more traffic than it could handle shortly after the beta service
went online Wednesday providing estimated home prices, tax records and sales
histories.
More than 300,000 pages were viewed at the Seattle-based website between its
midnight launch and 7:00 am, causing intermittent shut-downs of the site, said
chief financial officer Spencer Rascoff.
"We've had a busy morning, but it looks like we're out of the woods,"
developer Bill Nordwall wrote in a company blog. "Feel free to kick the tires
and let us know if you run into any problems."
The website made its debut backed by 32 million dollars in venture capital
funding and headed by chief executive Rich Barton, creator of online travel
service Expedia.
"Until now, finding out a current market value of any home -- whether it's
yours or one you want to bid on -- has been quite difficult," Barton said in a
statement.
"We believe you shouldn't need a computer science degree or a real estate
license to find out what a home is worth."
Among the Zillow features are free "Zestimate" values of most US homes,
according to Barton.
A random request for a Zestimate on a condominium in the long-sizzling San
Francisco-area housing market resulted in a value 10 percent lower than the
purchase price two years ago.
Home prices in the neighborhood rose 35 percent during that time period,
according to appraiser William Brinkman.
"How good can the service be if it shows values have declined when they've
gone up in the real world?" Brinkman asked.
The website charts how specific home values have changed over time and
compared to others in chosen neighborhoods. Satellite and aerial views of some
homes were available, along with details about properties and tax rates.
Zillow is aimed at generating profit from advertising and is not intended to
put real estate agents out of work by letting home shoppers and sellers do their
own research, according to Barton.
Industry experts expected Zillow to pressure US real estate agents to do more
for their money. Agents for buyers and sellers typically split commissions
equalling six percent of sales prices.
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