Profile picture for Tamar2

How come my home looses value while the neighbors gain?

I understand that the value of a house is based on many factors. My home price had the second highest value on the street 5 years ago, now Zillow's estimate shows mine the lowest after all new HVUC systems and many other major renovation. In 2005, one of my neighbor homes was sold $265 while mine was $255. Currently Zillow shows that house as $315 mine $231. There is discrepancy in these numbers yet the lending authorities taking Zillow's number seriously. On the same street, the house values fluctuates similarly, if one increased 5% the other should be around that ratio. Zillow is one of the most popular housing search site by showing my home value lower than its real value it is damaging my finance severely. My house got an offer of $285 last week, but Zillow shows it $231. My application for home equity loan was turned down based on Zillow's number!!

  • December 13 2013 - Little Rock
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Answers (2)

Profile picture for wetdawgs
"My application for home equity loan was turned down based on Zillow's number!!"  This is not good news for you are your lender.   Your lender is violating Zillow's terms of use to make lending decisions based on Zillow's numbers.   (Find this sentence in section 1 of ToU.  "Without limitation, lending professionals and institutions are prohibited from using information provided by Zillow through the Services in making any loan-related decisions.")

Congratulations on getting a good home offer.   Zillow describes why the Zestimate is a starting point and only uses public data.  They don't know about your new HVAC and other renovations unless your tax assessor included those in the tax assessment.



  • December 13 2013
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I wouldn't put too much weight in the Zestimate on Zillow when trying to determine your homes value.  On their own site they even say that a Zestimate is just a starting point in determining your homes value.

http://www.zillow.com/wikipages/What-is-a-Zestimate/  

If you want a good idea of what your homes true value is you need to have a realtor do a CMA, Comparative Market Analysis, or have an appraisal done.  

Here is a link on their site where they actually say how accurate, or inaccurate they are

http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm
  • December 13 2013
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