I currently have a house on the market. Doesn't land increase the value?

Aloha, Leisele... I cannot speak for Michigan as Hawaii is where I live and practice real estate but assuming your market is still trending down, this is actually a quite common scenario. When a market and prices are trending up, sellers, buyers and lenders will look at every last improvement, every last point of differentiation possible to assign more "value" to your home compared to others, to justify a higher price point. However, when prices and the market are trending down, things like additional land, a two-car garage with a workshop, granite countertops in the kitchen, all of these things don't add "value" or "price" to your house, they are simply considered to be a "bonus" such that your house will show better than the competition and will sell first. In a downward trending market, when your neighbor's house that is similar, but not as nice, sells for $300k, you'd better list your house for $295k because prices and value are dropping. In an upward trending market when your neighbor sells their house that is similar but not as nice for $300k, you put yours on the market for $325k. Does that make sense? I know, it's completely unfair, but this is the reality in my market, and I'm guessing is what's going on in yours as well. As for Zillow valuing your house? Not to dish the Zillow folks, but if you want to know the true value of your home in today's market, please consult a local professional appraiser or Realtor. Your local professionals will do a much better, more thorough valuation for you than a computer-generated website valuation. Do let me know if you need an introduction to someone in your area, I would be happy to assist you in that way. Good luck! Warm aloha, Katie Minkus, R(B). katie@katiminkus.com