[SKB]

"We are in the process of purchasing a vacation home in Estero, FL and are we making a mistake? We think we are getting a good price but Zillow.com has listed the property for $20,000 less. We are purchasing it for over $100,000 less than the previous buyer. Please respond."


Funny, I have always found zillow to overprice homes by a long shot.
Scary thought but, it appears as if you have over paid, even with the 100k reduction considering how far values went up a 100K is a spit in the bucket..

If it were me, I would not even consider buying in this declining market a first house, never mind a second one.
I think you will have huge regrets.
Thats just me and a few thousand others opinion from thehousingbubbleblog

Best of luck with that.

[hiknapster]

Originally Posted by midwest shopper

We are purchasing it for over $100,000 less than the previous buyer.

So? That's Lee County. You have heard about Lee County, right?

http://www.nytimes.com/2007/12/23/bu...yt&oref=slogin

[CJFlorida]

Originally Posted by midwest shopper

We are in the process of purchasing a vacation home in Estero, FL and are we making a mistake? We think we are getting a good price but Zillow.com has listed the property for $20,000 less. We are purchasing it for over $100,000 less than the previous buyer. Please respond.

Give us some more info. please. What are similar houses renting for in that area? What methods did you use to price your offer? When and at what price did the last house similar to the one you are buying sell for?

Zillow is simply a computer model that could be way, way off.

[Hero]

Zillow is great if you want to research the history of the neighborhood/house. You can find out when the house was sold and for what price. You can track how much it was in 1999, 2001, 2003, and etc. So if you are waiting for prices to fall to 2001 levels, you can find the number to work with. I found another use for zillow when the realtor told me, "You got to buy now! Homes 1, 2, and 3 have all sold recently. This home is going to go soon!" A quick check on zillow showed home #1 sold 10 months ago, different market. Home #2 was taken off the market. Home #3 "sold" because the title changed from prior owner to the bank.


In terms of the usefulness of the zEstimates, zillow has a long way to go IMO. I see sold houses that are off by +/- 100K from the zestimate all the time. The current listing price of many houses that I track is 100K - 300K below zestimates. Keep in mind that these houses have been on the market for over 6 months. If a house on zillow is 500k, listed at 350K, and doesn't sell for 12 months, shouldn't the model lower the zestimate?

[Wild Style]

not necessarily about Florida but does give you a glimpse into the current housing market and its problems

link

Also for those who wondered what Mr. Greenspan had to do with all of this check this link out. Personally I think this and every other bubble is orchestrated, for the express purpose of fueling the economy along. I believe they hope for short recessions and then even greater boom times.

[CJFlorida]

Originally Posted by Wild Style

not necessarily about Florida but does give you a glimpse into the current housing market and its problems

link

Also for those who wondered what Mr. Greenspan had to do with all of this check this link out. Personally I think this and every other bubble is orchestrated, for the express purpose of fueling the economy along. I believe they hope for short recessions and then even greater boom times.

Greenspan is the classic example of a little guy who fashioned himself a rock star. He got caught up in the fame, well known wife, the nickname maestro, the markets hanging on his every word. He was power hungry and believed his own hype, handing out rate cuts like candy. There would be no natural recessions with the maestro in charge! He lost focus on what his job really was.

He even enjoyed making comments and watching the market react after he left the FED.

His policy will go down in history as a huge disaster.

[hiknapster]

Originally Posted by Wild Style

Personally I think this and every other bubble is orchestrated, for the express purpose of fueling the economy along. I believe they hope for short recessions and then even greater boom times.

BINGO!

They probably have bitten off more than they can chew, this time.

Financial news was horrendous, today.

[CJFlorida]

Originally Posted by hiknapster

BINGO!

They probably have bitten off more than they can chew, this time.

Financial news was horrendous, today.

The wealth transfer to the top 1/10th percent has been epic the last few years. They have the middle class right where they wanted them, in debt up to their ears and worried about their jobs enough to be very 'productive'.

Now the folks with money will swoop in once prices bottom out, buy the houses cheap, and rent them back to the people.

The past 7 years have been a great example of how big money works. The thought that Joe Q. Public could get rich off their houses, take out equity to buy expensive things, and live happily ever after was a mirage.

In the end, the super rich know how to play the rest of us like fiddles.

[ceaser]

I Dont Know What Is Going On But Here In Citrus Springs, Citrus County There Is New Construction All Over From The North To The South Of Citrus Springs. New School And All. More New Models Going Up All Over. Us 41 At Citrus Springs Blvd. Is Starting To Look Like A New Model Strip. Maybe We Need Some Supermarkets Or Eaterys. Also 2 New Model Homes Going Up On Deltona At No. Citrus Springs Blvd. Anybody Know Whats Going On In Citrus Springs?

[midwest shopper]

Well, we are not supper wealthy but we have dived into the Florida market and purchased a condo there. We feel we got it at a good price, steal no, just good price, maybe we even paid a bit on the high side for this market but we are not flippers and are buying it to enjoy over the years and leave it to our children someday to enjoy. So there are some of us out there who truly are looking for real estate and yes some sort of good deal for the long haul.