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Why is 16 acre property w similar sq footage valued less than closest neighbors?

Note:   16 acres is far more land than adjacent properties.
  • October 23 2012 - Scotts Valley
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Answers (5)

My pleasure. Here is what the website says about "Zestimates":http://www.zillow.com/wikipages/What-is-a-Zestimate/
Hopefully this will clarify their process for you.

I understand what you are saying about negotiation and pricing, and buyers' desire to rely on any information that supports the value of their offer. That's only natural, as is the seller's corresponding desire to maximize value. This is where good real estate professionals add value to the process. By providing their respective clients with accurate and insightful information about the market, the seller's and buyer's agents help them understand what fair market value is at the point in time the negotiations are taking place. We also help bring some objectivity to the negotiation process without compromising our client's interests, and help our client distinguish the real buyer or seller from the one who is just out toying with the marketplace, and has no real intent to buy or sell.

My experience, especially in a market like the current one, is that if the house is appropriately priced and marketed well, there are other buyers to compete with for the house. SV has been very active with buyers recently. The real buyer will make a solid offer with the intent to close a deal and get the house they want.
  • October 24 2012
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Thanks, Curt, for the insightful response.    Is it possible to submit appraisal results to Zillow on one's property?   I do think that Zillow has impact on buyers.   One of the 12 rules of negotiation is putting facts in "writing".   If a store hangs a sign on a refrigerator stating it is $799, the prospective buyer thinks it does cost $799, and often will not negotiate, even though there is some leeway.
  • October 24 2012
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OK, that's helpful. It looks to me like there is a range of values in the immediate area (Apple Valley) from about $600k to $1.5m, and that this property is close to a median at the Zillow estimate of $934k. Quite a few are in that $900k-$1m range. An interesting thing about acreage is that unless it can be subdivided or it has some other income-producing characteristics, having more acreage doesn't usually add that much value to the home.
I'd also comment that Zillow is by no means the best way to determine value of your property. It's useful for discussion, and for getting info about recent sales activity on other properties, but there is no ability to factor in upgrades, unique features, views, etc. There are mysterious calculations they use unknown to any of us, involving recent sales, square footage, and other details about the homes probably including the quality rating included in the tax assessments. There's lots of room for error.
An appraiser can give you their perspective, but it will cost you $4-500. Your best bang for the buck: A seasoned local realtor will help you determine probable market value of your home at no charge, and can share info about other recent sales as well. If you are thinking about selling, this is a good way to evaluate listing agents.
I'd also comment that no real estate professional considers the values in Zillow to carry any weight. There is no potential negative impact for you from these valuations.
If you'd like more detail about any of this, feel free to contact me. I'm happy to chat!
  • October 23 2012
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101 Kendall Lane, Scotts Valley, Ca
  • October 23 2012
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It's pretty difficult to answer this question adequately without more detail about the properties in question. can you supply an address for us to look at?

Thanks!
  • October 23 2012
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