Profile picture for BlueMonkMN

Why the insanely high home value?

Home values in my area have been slowly declining (slower than many other places, but still declining).  Why then is the house at "9300 1st Ave S, 55420" the only one in the neighborhood whose value has skyrocketed from $200K to $380K in the past 5 months?  I would like to know the real value of the house, not this ridiculous estimate... or understand why this estimate is skyrocketing.
  • December 18 2008 - Bloomington
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Answers (2)

While I must say that Zillow has managed to improve their ability to determine values of property, sometimes they can get it insanely wrong. Too many environmental factors influence the value of a home, including the neighborhood, the quailty of the home, the number of foreclosures and the sheer ability to sell a home in that neighborhood.

You can only get an accurate picture of home value from a real estate agent who is not only familiar with your neighborhood but also who knows what has sold in that neighborhood. I've been in homes that looked great on the outside but were total wrecks on the inside. A real estate agent who has been in alot of the homes in your neighborhood will have the experience to diferentiate actual values, and not some computer model that is unable to understand the nuances of the neighborhood. 
  • December 24 2008
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Profile picture for pauljohnson_1
The estimates are computed using a variety of sources, and it is likely one of those sources recently updated. Perhaps the tax assessor finally discovered a remodeled kitchen, addition or living area. That would increase the homes tax value, which has little to do with market value now. A price that shows up on Zillow, Cyberhomes or other websites has little to do with the market value which can only be determined between a willing buyer and a willing seller.
You should se the price estimates only to determine your relative value. For instance, If you both put your homes on the market for $250,000 at the same time, it is likely that the home with the computer-generated value of $380,000 will sell first.

For a good market snapshot including the value of your home and others in your neighborhood, contact a realtor who understands the current market.
  • December 18 2008
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