This works for historical data analysis, but falls over flat for trying to ascertain asset prices in markets, due to how much more quickly the MLS data is updated compared to public records (although, to Redfin's credit, they provide both the MLS record and public record for property events for completeness). Some properties are only on the market for hours/days; you'd never have a chance as a market participant if y…
Redfin is indeed awesome, but they are only available in select markets where they have a brokerage.
I am quite disappointed in the research that went into this article. (1) Author discovers that Zillow has a specific claim about accuracy: "around 90% of the listing Zestimate is “Within 20% of Sale Price” of the home". Author then gripes that this is "a really large margin for error". Really? Because I was prepared to praise Zillow for such honest and clear reporting. It only costs a few hundred dollars per home (Zi…
A long time ago I got a real estate appraiser's license. Here is the procedure for appraising real estate, as taught by my state: 1) Pick three homes that you feel are comparable. 2) Pick out the material differences between those homes and your client's 3) Make up a value for each of those differences, and adjust accordingly (Unofficially speaking) If you don't like the number you come up with, just make different d…
It's kind of scary that million dollars' decisions (and in aggregate, probably billions) are made on the basis of solely "let's look what others are doing and then fudge it based on gut feeling until it looks kinda plausible" and that's supposed to be expert verdict. Not that I can offer any better idea :)
A friend of mine saved $15K on a house because the appraisal came in low. If the bank won't write a loan for the agreed price, the original contract is void, since it's contingent on loan approval. If the seller's heart is set on moving, he might well lower the price.
Really depends. In the Bay Area these days, sellers will usually only take offers with zero contingencies (because they can). Even if you do get a financing contingency in your offer and the deal falls through because of a low appraisal, there's almost always a back-up offer waiting in the wings that can cover the low appraisal with an additional downpayment (the bank doesn't really care about if the house appraises…
That's really playing with fire. Good RE agent would tell their client so. Even if you're rich and buying in cash, at least inspection contingency is a must, but otherwise unless you have tons of money and don't really care for nasty surprises inspection could uncover - zero contingency is the riskiest bet one can make in one's life. My opinion, if you're on the market where sellers won't accept a contingent offer, it's better to get out of that market. I've bought house in BA recently, and there were plenty of sellers willing to take contingent offers (backed by some solid bank paperwork, maybe, but not just requiring to commit blindly). Of course, BA has many different places and in some market could be so hot sellers can get away with anything. But it's usually not good to get in such place as a buyer.
It's worth it to create a login & enter in your upgrades, so your ZESTIMATE goes up. Very nice, thank you, my Zillow estimate is now $5965 higher. We have no intention to sell but if we do, at least I can start the negotiations at a higher price point by pointing to Zillow.
You just have been 'rewarded' for your interaction with the platform. Thank you.
Ooooor, Zillow has no way of knowing that you've renovated your kitchen unless you tell them you have...
But yeah, your conspiracy theory nonsense is probably just as legitimate.
Zillow's Zestimates are particularly obnoxious because they provide little detail regarding why the values change and they retroactively revise them. I bought a house this summer that had an inexplicable drop in estimated value of about 15% a month or two before the house was listed. I paid closer to the previous estimated value than the post-drop value. Now when I look at the house on Zillow, the drop is nowhere to…
The values change because estimated sales turn into real historic data over time.
Thats interesting, why would the seller have any control over the appraisal? The mortgage broker who requests the appraisal is typically working with the buyer.
I don't think this is "control", the appraiser [sp?] did not have to agree to do that.
True, but the appraiser has zero incentive to disagree (unless it's overtly fraudulent there's no such thing as wrong appraisal) and probably some incentive (repeat business) to keep the agent they are working with happy.
Yeah people dump on Zillow quite a bit. Probably because home values can be a very emotionally stirring event. Zillow's aggregate economic data is solid, often a better predictor than the Case Shiller Index. I expect that Zestimates will improve over time as the data trickles down and lessons are learned.
This is correct. I used to work at Redfin and estimates are a sore point for homeowners. It's one large pissing contest for their egos. Everyone has the same complaint, "Why isn't my home priced as high as that one?!?"
> "Why isn't my home priced as high as that one?!?"
Could Redfin not explain why?
I've never bought a home in an area Redfin is in, so I havent used the site before. If Redfin knows the formulas/parameters used for the estimates couldn't they break it down and do side by side comp of $ amounts?
Really depends. In the Bay Area these days, sellers will usually only take offers with zero contingencies (because they can). Even if you do get a financing contingency in your offer and the deal falls through because of a low appraisal, there's almost always a back-up offer waiting in the wings that can cover the low appraisal with an additional downpayment (the bank doesn't really care about if the house appraises…
That's really playing with fire. Good RE agent would tell their client so. Even if you're rich and buying in cash, at least inspection contingency is a must, but otherwise unless you have tons of money and don't really care for nasty surprises inspection could uncover - zero contingency is the riskiest bet one can make in one's life. My opinion, if you're on the market where sellers won't accept a contingent offer, i…
I looked my house up on Zillow and it is showing an estimate of about $80k. My homeowner's insurance has it covered up to $75k, the county tax assessor lists the FMV as about $50k, and I owe $37k on it. My own estimate is about the same as the tax assessor's, and I wouldn't ask more than $50k when it comes time to sell it, given the work it needs to get it up to the Zillow estimate in my eyes. Looking at other houses…
Offtopic, but I had to chuckle a little: Bay Area house prices have gotten my mind so clouded that I instantly thought you were missing an extra zero on each of those dollar values. I had to re-read it twice until it dawned on me that there are other places out there...
Same thing happened with me. Coastal housing prices skew your perception of reality so much, it's hard to imagine <$100K even existing.