What are the drawbacks of using an online valuation tool?

There are several reasons why online home valuation tools, such as Zillow or Ownerly, may not provide accurate values for homes. Some of these reasons include:

1. Limited information: online tools rely on publicly available data to estimate the value of a home, which means it may not have access to all of the information that a professional appraiser would consider. For example, it may not have information about the condition of the home, the quality of the finishes, or the features and amenities that are not visible from the street.

2. Outdated information: online tools rely on data that may be several months or even years old, which means the estimates may not reflect the current market conditions.

3. Inconsistencies in data: There may be inconsistencies in the data that these sites use to estimate home values, which can lead to inaccuracies in the estimates.

4. Automated valuation model: Sites like Ownerly or Zillow use an automated valuation model (AVM) to estimate home values, which relies on algorithms and statistical models to make predictions. These models are not always accurate, especially in markets where there is a lack of data or where the market is rapidly changing.

In conclusion, while Zillow and other online home valuation tools can be a useful starting point, they should not be relied upon for accurate home valuations. It is always a good idea to get a professional appraisal or consult with a real estate agent to get a more accurate estimate of a home's value.