Profile picture for vinodp78

My home zestimate dropped 75k after i purchased the home. what is the reason for this decrease?

The home had a zestimate of 680k before purchase , I purchased for 595k which is 100k below market value. But why would zillow decrease the zestimate of my home in relation to other homes in the same area?
  • July 27 2010 - Palatine
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Answers (4)

Profile picture for sunnyview
If you paid less than the Zestimate, then Zillow will adjust the price to be less and more in line with other houses in the area. If your new house is worth more, the Zestimate will track up over time as they collect information on more sales in your area.
  • July 27 2010
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Profile picture for Mr Caveat
if you do believe that you purchased the home for 100k below market, you should sell the home now and buy another one. unless 3 months of your time isnt worth that...
  • July 27 2010
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Profile picture for Mr Caveat
if the best offer that the sellers/bank could get was 595k, then the market value of your home is 595k. that is the definition of the fair market value. you cannot purchase a home "below market" unless you purchase the home without participating in the market (ie relative to relative, etc.)

if you paid 595k for the home, i would expect the zestimate to move to reflect that fact
  • July 27 2010
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The zillow estimate often has no real relation to the real values in a neighborhood or suburb and the real values are very hard to quantify in this market because of all the short sales and foreclosures.
If you got a loan then the bank did an appraisal to justify the price. That would have been a million times more accurate than any zillow estimate.
It is also true that values have continued to come down and will probably contnue to come down in various neighborhoods/suburbs for a while to come as we are in the worst real estate/economic market since the Great Depression.

philip
  • July 27 2010
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