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Answers (3)
- Richard Underwood, "Richard Underwood"
- Contributions:29
Just reiterating what John wrote below. The value of anything is only what someone is prepared to pay for it!
Usually, a tear-down is only worth the land it sits on. A great example of this is a tear-down on lakeside property. One local house, a tear-down on a beautiful lakeside lot, sold last year for $200,000, although the asking price was $399,000. Either side of this house were houses valued at over $900,000. In better times, the tear-down would probably have sold for over the asking price. However, at the worse of the 'Great Recession', many people tried to buy it but they couldn't get a mortgage. It eventually went to a cash buyer.
Usually, a tear-down is only worth the land it sits on. A great example of this is a tear-down on lakeside property. One local house, a tear-down on a beautiful lakeside lot, sold last year for $200,000, although the asking price was $399,000. Either side of this house were houses valued at over $900,000. In better times, the tear-down would probably have sold for over the asking price. However, at the worse of the 'Great Recession', many people tried to buy it but they couldn't get a mortgage. It eventually went to a cash buyer.
- Jonathan King, "king1060"
- Contributions:13
Zillow is a great place to get an ESTIMATE of your home value, but there are limitations to it's calculations.
Next time there's an open house in your neighborhood, tour the property and take an honest assessment of how your home stacks up.
When it sells, you can then determine your exact home value based on whether your home is superior or inferior.
Next time there's an open house in your neighborhood, tour the property and take an honest assessment of how your home stacks up.
When it sells, you can then determine your exact home value based on whether your home is superior or inferior.
- Jon Griffith, "RealScottsdaleLiving"
- Contributions:30
Zillow bases their valuations on public tax records, which are notoriously incorrect. You may see a very large swing in price between what Zillow says, and what your home would bring at sale, or auction.
The value of a home is a combination of both the location of the land it is on, and the home that sits upon that land. That is why the same home built in Grayhawk would sell for twice as much as the one in a Gilbert neighborhood.
If the house is in really bad shape, it may be considered a tear-down, and valuation by a prospective buyer would be simply an opinion based on the "land value" as they may say.
As with anything in a free market, the products that are being sold are worth what someone paid for them, not what someone thinks they're worth. That is why at the top of an appraisal you see the disclaimer that it is an "opinion of value."
The value of a home is a combination of both the location of the land it is on, and the home that sits upon that land. That is why the same home built in Grayhawk would sell for twice as much as the one in a Gilbert neighborhood.
If the house is in really bad shape, it may be considered a tear-down, and valuation by a prospective buyer would be simply an opinion based on the "land value" as they may say.
As with anything in a free market, the products that are being sold are worth what someone paid for them, not what someone thinks they're worth. That is why at the top of an appraisal you see the disclaimer that it is an "opinion of value."
how are homes valued?
House next door was sold recently for 100k more than mine is valued by zillow. Zillow has increased the est. value of that house. Property is smaller than mine and house is rumored to be a tear down. These houses are old and mine will probably be a tear down, too. What is the value then, the property or the house. The house next door,by the way, was empty for years except for a summer rental one year. Not selling right now, but curious.
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