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I feel like Zillow always wildly overestimates values. Not sure if they're just trying to scare people into buying for fear of constant price increases while simultaneously encouraging home owners to sell for hugely inflated values to try to cash in. Seems like an artificial pump machine. Our realtor's algorithm is no where near as bullish on prices as zillow's estimates often come in at. Zillow always seems to be high compared to all other websites, at least in our area.
Zillow appraisals cannot be reliably reasonably accurate in a wildly appreciating market.
Their appraisal on my house is lower than what it would sell for in about 2 hours with multiple offers.
I'm in a red hot market. There are actually bidding wars now, which is always something that happened b "somewhere else" because there is generally plenty of buildable land. Next month will be 2 years since we closed on new construction. The house across the street from me, which is about 2/3rd complete is the same size but sits on a lot that is 4000 sq ft smaller than mine and is listed for $175,000 more than we paid for ours. The Z-estimate for my house today is $120,000 more than we paid.
In 2019 we only put down 5%, which I wasn't happy with as I'm a bit of a traditionalist and wanted to keep saving and "do it right" but my wife really wanted the house, and I did too, so we took the leap. So glad we did, and I just had an appraisal done this week to get the PMI taken off our loan. We'll see where the appraisal comes in compared to the Z-estimate and I'll try and follow up on this thread.
Proving, yet again, that Zestimates are meaningless.
Not when nearby sales support them.
They certainly aren't meaningless in my area.
Quote:
Originally Posted by DrPibbs
Seems to me $238,000 for a house in Phoenix in 2019 is WAY undervalued. In LA you can't even get a 400 sqft studio for $500,000.
I know. But that's like comparing apples to elephants. People in CA are selling million dollar homes and buying similar style and quality for half that in AZ.
In 2019 $238,000 was the price of a modest, average, middle class home (I don't waste my money on pizazz) and nearby sales supported that price. Even then one could buy homes for $500,000 to a million in certain areas of Phoenix.
Quote:
Originally Posted by fibonacci
I feel like Zillow always wildly overestimates values. Not sure if they're just trying to scare people into buying for fear of constant price increases while simultaneously encouraging home owners to sell for hugely inflated values to try to cash in. Seems like an artificial pump machine. Our realtor's algorithm is no where near as bullish on prices as zillow's estimates often come in at. Zillow always seems to be high compared to all other websites, at least in our area.
I used to think the same but if nearby sales of comparable houses support the zestimates, there must be some validity to them.
Some local hoses are getting sold for ridiculously high prices. A small 1000 square foot house up the road from me recently sold for nearly $400k. Demand is high now and that is driving prices up.
I wouldn't set too much store on any estimate that Zillow gives.
But, there are many areas in this country where prices are going up steeply, so maybe your value has gone up a lot.
Good Old Zillow. I bought a beach house for $60,000 and Zillow had it valued for over $400,000. I hadn't paid a particularly bargain price and a couple of years later I sold it for $63,000 and the tax man had it appraised just under $60,000. Take Zillow with a grain of salt.
I purchased the house in late 2018 for $170,000. For early June of this year, the Zillow estimate was showing $208,000. Now today it's $230,000. I checked the other websites such as realtor and trulia and the estimates are the same. Any reason why this is happening?
Not sure how you have missed the many MANY news articles about the insane red-hot housing market. Do you not watch or read the news at all?
Seems to me $238,000 for a house in Phoenix in 2019 is WAY undervalued. In LA you can't even get a 400 sqft studio for $500,000.
LOL
You cannot compare the home prices of LA or SF with just about anywhere else in America. I know someone who bought a 3/2 with a leaky roof in LA for $1.2 million a couple of years ago. Prices have been insane for some time out there.
As to the OP point, Zillow always seemed 10-15% too high in the past. Not any more, with prices rising a whopping 19.2% in April alone.
As others have mentioned, a pandemic, urban crime and riots, lowest inventory on record and low interest rates, have combined to create a perfect storm of high RE prices. While it cannot remain like that, we will not be having a housing bubble burst like we did in 2008. Instead there will be stabilization and then a drop/correction, but nothing dramatic.
That is unless the Democrats crash the economy with all this giving away of money with trillions in budget allocations, then we will all be in a world of hurt.
Zillow says my house has nearly doubled; Realtor.com says it's up about 20%. Who's right?
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Proving, yet again, that Zestimates are meaningless.
