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Study: Zillow Zestimates ‘overvalued’

Zillow responds that cited data was dated, narrow

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Zillow's "Zestimates" of home market value are often exaggerated and therefore may be no more accurate than homeowners' own overblown estimates of value, charges a study in The Appraisal Journal's Winter 2010 issue. Zillow countered that the study used data that is "out of date and limited in scope." The Appraisal Institute, a global association for real estate appraisers that publishes the quarterly journal, says any opinions and views in its articles are those of the authors and not necessarily those of the institute. The study, "Zillow's Estimates of Single-Family Housing Values," found that the property search and valuation site overvalued 40 percent of the 2,045 homes sold in Arlington, Texas, in the last half of 2006 by more than 10 percent. "This was a very stable market in Arlington during the last six months of 2006. If Zillow thinks that prices increased by 10 percent over this period, they definitely need to review their sour...