Profile picture for kmazing

How can a zestimate be 250k higher that market value?

I made the mistake of falling in love with a home - It's in a nice neighborhood, kind of a niche, of much older homes than is normal.  Thwe hosue was evidently a "project" as its been guttd and the rebuild has been started.  Based on the county website i can see that Foreclosure has begun on this home, and apparently the owner has this happening with more than one property.  My issue is that the Zestimate is almost 200k more than market value on county site, and is higher than any other home in that area. There have been sales of homes there that were in pristine restored condition, so it makes no sense that a home which would cost almost 100k to make liveable would be estimated so much hiher that completed homes. Any ideas on this?
  • July 11 2012 - Dunedin
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Answers (5)

Profile picture for blue screen exile
It is never too early to select your representation for a potential purchase.  And it may not be too early to make an offer either, but if it is substantially underwater, it is unlikely that you can get a sale to go through before a foreclosure, unless you want to over pay to get that loan paid off.

And if you already have a Realtor, they will be happy to run a CMA on it for you.  Don't forget, Zillow does not take into account "deferred maintenance", neighborhood nuisances, remodel-rehabilitation-renovation since purchase nor additions since purchase in their estimates, and only models to non-distressed arm's length transactions.  See the Zillow research brief and white paper on the pricing of distressed properties.
Price Differences Between Foreclosures and Non-Foreclosures
  • July 11 2012
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Profile picture for kmazing
Thank you all.  I have one last  question.  If the home is not for sale is there any point in talking to a realtor until the Bank completes foreclosure and lists it as an REO?
  • July 11 2012
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Zillow uses the last sale price and the tax assessment as ones of many facts to calculate the home value (estimate), Zillow also assumes that the subject property has the structure condition (average) as same as its surround houses in the area. Of course there are 100 million homes in US that Zillow can't go to see every one of them in person .
You may better hire a local realtor to do a Comparable Market Analysis to get better estimate.
Also take your time to read this.
http://www.zillow.com/wikipages/What-is-a-Zestimate/
  • July 11 2012
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Profile picture for craigfial
Zestimates are not the best place base values on.  The only true way to value a property is obtain an appraisal from a licensed appraiser.  Everything else is just an educated guess.
  • July 11 2012
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Very rarely are Zestimates correct. You have to remember that the Zestimate is only a guess as to what the value of the home is. If you would like more accurate estimate of value for the house in question you may want to contact a local real estate agent.
  • July 11 2012
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