Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-24-2019, 08:01 AM
 
3,882 posts, read 2,354,855 times
Reputation: 7440

Advertisements

Quote:
Originally Posted by MikeJaquish View Post
The fact that the question just keeps coming up supports the fact that online appraisals beg for regulation.
Mortgage companies use online resources to get the fair market value of a property for HELOCs. It isn't that difficult to comprehend, it's based on statistics and property taxes. I've seen homes in our area get listed and sold, and Zillow's estimate of the market value was only within a few thousand dollars. If you asked five realtors to give you the fair market value, you are going to get five different answers.
Reply With Quote Quick reply to this message

 
Old 01-24-2019, 08:03 AM
 
3,882 posts, read 2,354,855 times
Reputation: 7440
Quote:
Originally Posted by Okey Dokie View Post
In the last year or so, there was a thread here where posters looked up an address on all four sites. There was no consensus on prices and no one site was consistently always high or always low. In other words, there is no rhyme or reason.
If you understood statistics and read how they determine value of a property, you'd clearly see they all have a method. Five realtors will give you five different answers, so it stands to reason that each website will have their own algorithm and data sources to use.
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 08:14 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 22 days ago)
 
Location: Cary, NC
43,176 posts, read 76,826,386 times
Reputation: 45533
Quote:
Originally Posted by rummage View Post
Mortgage companies use online resources to get the fair market value of a property for HELOCs. It isn't that difficult to comprehend, it's based on statistics and property taxes. I've seen homes in our area get listed and sold, and Zillow's estimate of the market value was only within a few thousand dollars. If you asked five realtors to give you the fair market value, you are going to get five different answers.

If you ask 5 agents to give you "fair market value," you have asked the wrong question and should get NO numbers.

Now, if you ask 5 agents to give you a "likely sales price," you have asked the right question and should get answers.
Sales prices include strategies.
Valuation is licensed appraiser territory, and, well golly, they are regulated!
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 08:22 AM
 
758 posts, read 852,445 times
Reputation: 2771
As with anything else of value in life, if you want a true, unbiased opinion of value....ie, Appraisal, of your property, then you have to pay for it by contacting an MAI appraiser. "Master of the Appraisal Institute". They will have no allegiance to a bank, or a mortgage company or a municipality. They will give you a determination of the value of your property …"that day". But this can cost you $450 to $550 depending upon your property, etc. No one seems to want to pay that so you get a "free market analysis" from a realtor who wants your listing or from a valuation service online. Or from a bank appraiser who wants to keep his/her job and knows the bank has lending limits on your property. As has been said before, 5 realtors, 5 different valuations...also 5 bank appraisers, 5 different valuations. You be the judge.
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 09:25 AM
 
Location: Raleigh NC
25,119 posts, read 16,149,377 times
Reputation: 14408
Quote:
Originally Posted by rummage View Post
Mortgage companies use online resources to get the fair market value of a property for HELOCs. It isn't that difficult to comprehend, it's based on statistics and property taxes. I've seen homes in our area get listed and sold, and Zillow's estimate of the market value was only within a few thousand dollars. If you asked five realtors to give you the fair market value, you are going to get five different answers.
1. what % of HELOC's are opened without obtaining an appraisal

2. was the Zestimate within a few thousand the month before the house was put on the market? Or you're just saying that after they sold, you looked them up, and the Zestimate was within a few thousand of sales price?

3. what % of the homes did you look at, and compare the Zestimate a month before it was put onto the market to the sales price?
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 09:30 AM
 
576 posts, read 658,526 times
Reputation: 1605
Quote:
Originally Posted by LynnKrause1 View Post
As with anything else of value in life, if you want a true, unbiased opinion of value....ie, Appraisal, of your property, then you have to pay for it by contacting an MAI appraiser. "Master of the Appraisal Institute". They will have no allegiance to a bank, or a mortgage company or a municipality. They will give you a determination of the value of your property …"that day". But this can cost you $450 to $550 depending upon your property, etc. No one seems to want to pay that so you get a "free market analysis" from a realtor who wants your listing or from a valuation service online. Or from a bank appraiser who wants to keep his/her job and knows the bank has lending limits on your property. As has been said before, 5 realtors, 5 different valuations...also 5 bank appraisers, 5 different valuations. You be the judge.
Just a few corrections:

MAI is a 3 letter designation given to appraisers who have passed the requirements. The letters haven't stood for anything in ages.

Appraisers that do work for lenders (including MAIs) have to be unbiased. Appraising to keep a client is illegal on both sides. And appraisers don't know about lending limits on the property.

5 good realtors and/or 5 good appraisers will give you very similar values. Unless it's a truly unique property where there is not good market data available.
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 09:38 AM
 
Location: Rochester, WA
14,416 posts, read 11,954,182 times
Reputation: 38811
Quote:
Originally Posted by thebigW View Post
Appraisers that do work for lenders (including MAIs) have to be unbiased. Appraising to keep a client is illegal on both sides. And appraisers don't know about lending limits on the property.

5 good realtors and/or 5 good appraisers will give you very similar values. Unless it's a truly unique property where there is not good market data available.

FWIW, I will accept the stipulation that appraisers try to be as accurate as they can. They do though, know the contract price for the property, and the amount of the loan. Those are, FWIW, the limits the banks care about.
Reply With Quote Quick reply to this message
 
Old 01-24-2019, 11:45 AM
 
Location: OK
2,825 posts, read 7,531,400 times
Reputation: 2056
Quote:
Originally Posted by Persian Prince View Post
Out of Zillow Redfin Realtor.com and others which one of these sites has the most accurate home estimate?
None

Last edited by Yac; 11-23-2020 at 05:06 AM..
Reply With Quote Quick reply to this message
 
Old 01-29-2019, 04:44 AM
 
Location: NC
1,873 posts, read 2,397,944 times
Reputation: 1825
Quote:
Originally Posted by Persian Prince View Post
Out of Zillow Redfin Realtor.com and others which one of these sites has the most accurate home estimate?
The specs on my house, and my Dad's house are wrong and have been as long as I've been looking at online RE sites - so I don't know how they could be accurate. I assume they're only accurate if there's been a recent transaction, and even then maybe not...

Last edited by Yac; 11-23-2020 at 05:06 AM..
Reply With Quote Quick reply to this message
 
Old 01-29-2019, 12:02 PM
 
Location: Denver CO
24,204 posts, read 19,122,698 times
Reputation: 38266
Out of curiosity, I just looked and there is about a 10% range in values on my home. Unfortunately, I know that the lower end is the more accurate amount, and if I were to sell right now, I wouldn't get another 10% on top of that although of course that would be nice!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6. The time now is 02:40 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top