Profile picture for Flaviking

Is this feasable...

Two part question...
1) How accurate is Zillow's estimate in your opinion?
2) Is it possible to take the profit from a home I am living in now and use that as a down payment on a new home?  Would that have to be written into the contract?

  • July 31 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (5)

Zillow is not a tool to use when pricing a home. It is more entertainment than accuracy. For years, the industry was tryng to save money and phase out appraisers with automatic valuations (like Zillow uses). They failed. Lenders, after repossessing properties, or in evaluating short sale offers often hire agents to do Broker Price Opinions (BPOs) in order to arrive at a value. BPOs are much less expensive than Appraisals, but more expensive than Computer Generated Valuations.  Computer generated valuations aren't accurate.

When you sell your home and buy another one, it is 2 seperate transactions. You should speak to a Realtor to figure out what your sales proceeds will be. You should also consult a good lender to see what loan amount you qualify for with the amount you'll have from the sale and any other money you may want to add as down payment.

In California, we have escrows. Other states use attorneys and closing tables. In California, when you are selling your home and buying another home, both transactions can close concurrently and escrow will transfer the proceeds from the sale to the purchase if you have the same escrow company. If there are 2 escrow companies involved, it could happen on the same day or there may be a day or 2 between closings. Make sure that any offer you accept stipulates that you have up to 3 days (or whatever your local Realtor advises) after closing to move out.
The only problem that could arise is if you are in a hot market like we're experiencing in So Cal and nobody will consider a contingent offer (offer contingent on successfully selling your current home). In that case, you may need to sell your home and rent while looking for your next home. 
  • August 06 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for metrodcexpert
Zestimates are not accurate. Don't base the sale price of your home on the Zestimate unless you want to sell it way under market value. It would be the equivalent of selling your home for the tax assessed value--a big mistake.

Secondly, you can use the profit from your home for anything you want. It doesn't have to be written into the sale of the contract. Why would it?
  • August 06 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Dunes ..
1) How accurate is Zillow's estimate in your opinion?

LOL
  • July 31 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
How accurate are Zestimates?  It varies.   Here's the general section describing Data Coverage and Zestimate Accuracy.   Please also take into consideration, Zestimates are lagging.   From the date of offer to the date Zillow gets the number may be several months.  In addition, special properties (water front, incredible views etc) are only captured as per numbers shown for sales prices and tax assessments.

If you have a gain on sale of your current home, you can use it for a down payment.  However, if you make your offer contingent on sale of your home very few sellers will accept (at least without a knock out clause).



  • July 31 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Zillow's zestimates are usually miles out in my experience. You need a listing agent with good experience to put together a market analysis for you if you want a true valuation.

It is normal practice to use the equity from the sale of your home to buy another one. Your agent should make sure that the contracts are written appropriately.
  • July 31 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.