Back to Results
Please enter a valid email address.
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.
Please enter text in the "Enter the text to display" field.
Please enter text in the "Enter URL" field.
Please enter a valid URL.
Please insert a video embed only
It is my opinion that the banks appraisal to make a decision on whether to approve a loan or not is illegal. I have recently written a letter to President Obama, and still plan to write several other letters to consumer protection aagencies regarding this fact. In review of what is happening, the banks appraisals are black boxes bought by the banks, and therefore not independent of them. Too many people are being denied bank loans based on these black box bank loan appraisals. The bottom line is that in some instances the banks are superimposing their appraisals over those that the local government agencies do every year to collect property taxes. When a bank disaproves any bank loan below the tax appraisal value of a property, this should be view as a crime. A bank should never be empowered to disapprove any loan if there is a qualified buyer that can afford to repay it, and banks must not be allowed to conduct any property value appraisal as that is not within their authority. What is happening, is that with this practice, the banks are driving the housing market down, devaluing property based on what historically has sold at instead of the true taxable minimum value of a property. In turn this is lowering tax assessments over time and eventually shorting the local governments and the States of tax revenues. The impact is national, and no one is noticing. It is like a frog that is placed in a pot that will slowly boil. Unless you realtors do something about this and unless we property owners also object vehemently about what the banks are doing--- essentially devaluing our properties we will all end up in a total upside down market. Owners who will want to sell will all have to either short sell, REO the property, or lose all equity to these bastards we call banks.
Staci is right. The banks do not use Zestimates in determining value for underwriting loans or approving short sale offers (if only it were that simple!). The Zestimate is obviously the result of an algorithm dependent on raw market data. In my opinion based on observation, it seems that Zillow is relatively acurate in highly conforming subdivisions and neighborhoods - ones in which there is not too much difference in size, function, age, or appearance of the homes or the land - but not very good at assessing lot premiums associated with such things as views or beachfront or lot discounts for homes backing onto retail space or busy roads, much less for differences in remodeling, architecture, and other aesthetic and functional considerations between the average home and the subject home.The banks undoubtedly have internal software that approximate the results of the Zestimate. They use the value ranges that this algorithm produces to determine whether or not to move forward with loan mods or short sales (if offers are within acceptable range), but they refine their internal impression of value by hiring a local real estate broker to provide his/her expert local opinion (called a "Broker Price Opinion" or BPO) in the case of determining value for a short sale and they hire a local appraiser (with the borrower footing the bill) in the case of a new loan because they recognize the limitations of relying on uninterpreted data as well as the value of the knowledgeable, if subjective, opinion of the local real estate expert.This approach is exactly how consumers should use Zillow: as a first stab at approximating value, or as a logic check against other opinions or sources of information. Zillow is a very valuable tool, and will certainly be improved upon, but at the moment there is no substitute for a good Realtor, particularly if your home or the home in question is not of the cookie-cutter variety.
Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.
For Sale: $33,000
For Sale: $287,000
For Sale: $255,000