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Answers (7)
- Danny Margagliano, "Danny Margagliano"
- Contributions:1
Congrats on your house. I hope it all goes smoothly. I am a realtor in Destin and am familiar with Regatta Bay and even Ketch Ct. I did a CMA (comparative market analysis) From the properties that have sold and are for sale in that neighborhood, the comparative price makes your home value approximately 438K-453K. According to that Zillow is obviously way high but looks like you are getting a very good price. The last home to sell on Ketch Ct was 9/30/10 and was very similar to yours. It sold for 446K.
I think that the problem that Zillow has here is there is not enough to compare for a computer to do this automated. In cities with more density it should work better. You need to have a person to evaluate which homes should be compared. The prices vary from even Regatta Bay to Emerald Bay and they are right next to each other. But Zillow will take comps from both.
We are hoping prices have leveled out but time will tell. 6 month inventory is much lower now compared to last year which is a good indicator that prices should level and the market is becoming stronger.
I think that the problem that Zillow has here is there is not enough to compare for a computer to do this automated. In cities with more density it should work better. You need to have a person to evaluate which homes should be compared. The prices vary from even Regatta Bay to Emerald Bay and they are right next to each other. But Zillow will take comps from both.
We are hoping prices have leveled out but time will tell. 6 month inventory is much lower now compared to last year which is a good indicator that prices should level and the market is becoming stronger.
- Leslie Newman, "Leslie Newman1"
- Contributions:60
Congratulations on your FL purchase! Zillow is a wonderful site with many great tools for buyers, but their Zestimates are, by their own admission, simply designed to give you a feel for prices in any given area. In a declining market, such as our current one, recent solds, per the MLS and the local tax records, along with pending sales gives a much more accurate opinion of value.
- Larry Tollen, "Larry Tollen"
- Contributions:384
Congratulations on your new home.
In regards to Zestimates -
In regards to Zestimates -
You are better off without a Zestimate. Have you ever read Zillow's own review of their accuracy? In our area they claim to be within 20% of value 80% of the time. These are numbers not worth considering. If you don't believe me lets say you own a $200,000 home, while you would undoubtedly would be thrilled to have someone offer you $240,000 how would your feel about $160,000. And this is only 4 out of 5 times; the other time they admit they could be off by more than 20%.
If you read the comments Zillow gets more complaints about their Zestimates than any other single thing. I have been long advocating that if Zillow were smart they would drop their Zestimate completely. It was useful in getting peoples attention and building up their web presence, but honestly as useful data it's anything but. Remember, Zillow has no feet on the ground, looking at homes, they no nothing about 99%+ of the country. their Zestimates are simply computer based projections based on tax records. They don't know if a house is in a floodplain or overlooking a magnificent lake. They don't know if a house has exotic hardwood throughout or cheap old carpeting. In short they know next to nothing about any property other than it's size, number of bedrooms, bathrooms and the size of the lot.
Home buyers would be much better off working with a local broker. (Preferably a Buyer Broker who was there solely to assist you) who could give you the real market value of the property. Zillow as a site has lots of good information for both buyrs and Sellers, but their Zestimate is as useful as a newspaper horoscope, fun to read and talk about, but worth nothing.
- Mark McDonald, "Asbury Park Mark"
- Contributions:104
Congratulations on the purchase of your new home.
Zillow does not consistently overvalue - but their "Zestimates" can indeed be WAY off. In my area, it's just the reverse - they undervalue the true value by several hundred thousand dollars. They have a section explaining their values - but you have to be extremely careful, if indeed you look at them at all.
I typically advise clients to use Zestimates with extreme caution. Rely on the advise and guidance of a professional Realtor within the area to give you the real data on comps and value.
Zillow does not consistently overvalue - but their "Zestimates" can indeed be WAY off. In my area, it's just the reverse - they undervalue the true value by several hundred thousand dollars. They have a section explaining their values - but you have to be extremely careful, if indeed you look at them at all.
I typically advise clients to use Zestimates with extreme caution. Rely on the advise and guidance of a professional Realtor within the area to give you the real data on comps and value.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3916
Congratulations on buying in Florida, I think its coming back, areas like West Palm Beach,Naples. There is buying from Canada, South America and overseas. You wind up getting a great property in paradise, win win.
Use a Realtor and do the comps before you do your offer to purchase....anywhere, not just in Florida.
Again congratulations on your property, did you also get the furniture?
Use a Realtor and do the comps before you do your offer to purchase....anywhere, not just in Florida.
Again congratulations on your property, did you also get the furniture?
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
No, but understand Zillow uses DATED sales, meaning in a depreciating market, the sales numbers will usually seem HIGHER than the current values, simply because the data that Zillow uses, as well as appraisers and others use, is dated, and not completely current. Appraiser, and Realtors, will use active and pending listings to come up with more current - and accurate - values. But for the price - free- Zillow is a good value.
- Robert Walker, "So Cal Agent"
- Contributions:1425
"...it is a gorgeous bank-owned property which we are settling on February 28 for only $382,000.00 (Gotta love the equity)..."
What did it appraise for when it was appraised by a professional licensed appraiser? Tax records are posting again and again showing the bank buying the properties for more than what they have been reselling them for.
As for Zillow, they are more Consistent in Undervaluing "AND" Overvaluing Properties... Their Zestimates are for entertainment or to give you a feel for an area. They hold no weight in a transaction when a bank decides to lend or not. Read their disclaimer...
Good luck and congratulations on your purchase...
Does Zillow Consistently Overvalue Properties?
In 2005 it sold for $825,000, it appraised for $925,000 in 2006 and in October of 2010 the bank bought it back for $610,000. Is this typical for this area? My goodness, can we assume that the market is getting close to a bottom?
Thanks guys!!
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