- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (11)
- DanaEv
- Contributions:62
What does the bank say it's worth? We paid about $15,000 less than the bank said it was worth, but paid significantly higher than the Zillow estimate.
Since Zillow doesn't go inside and can't see upgrades and they don't track items like $20,000 for a new roof, etc. they can't give a true estimate of a house.
Only an appraiser, like one from the bank you'll be borrowing the money from, is truly accurate.
I've seen it discussed over and over on this board, but it's always good to repeat it. Zillow is a ball park price range and that's it. Don't go by a Zillow estimate, use the estimate from the bank to determine what the house is worth. In the end, the current owners can say "No" and keep the house on the market as long as they want. There's a house 5 miles from us that has been on the market for over a year because no one can afford it, (it's absolutely gorgeous and if we had the money we'd jump on it!) but the owners are holding onto it until someone comes along that will pay the price. Many sellers would rather live in a house and pay the mortgage instead of selling for much less than they owe.
If they won't lower the price to what you want you may have to move on. Many people can still afford their mortgage and may not want to sell it for less than they owe.
Since Zillow doesn't go inside and can't see upgrades and they don't track items like $20,000 for a new roof, etc. they can't give a true estimate of a house.
Only an appraiser, like one from the bank you'll be borrowing the money from, is truly accurate.
I've seen it discussed over and over on this board, but it's always good to repeat it. Zillow is a ball park price range and that's it. Don't go by a Zillow estimate, use the estimate from the bank to determine what the house is worth. In the end, the current owners can say "No" and keep the house on the market as long as they want. There's a house 5 miles from us that has been on the market for over a year because no one can afford it, (it's absolutely gorgeous and if we had the money we'd jump on it!) but the owners are holding onto it until someone comes along that will pay the price. Many sellers would rather live in a house and pay the mortgage instead of selling for much less than they owe.
If they won't lower the price to what you want you may have to move on. Many people can still afford their mortgage and may not want to sell it for less than they owe.
- John Valdez, "John Valdez"
- Contributions:419
Did you buy this house? Are u still looking. Contact me if you need help.
- Joelie Quezada, "joelieq"
- Contributions:10
MAKE AN OFFER ALL THEY CAN DO IS SAY NO, AND THEN YOU GO FROM THERE
- Robert Walker, "So Cal Agent"
- Contributions:1425
How did you get an appraisal? Was this from a licensed appraiser, or just an agent telling what their thoughts were? Have you been inside the house?
That is the problem with Zillow, Zillow has never been in the house, as well as the assessor, where Zillow draws most of their data from.
An appraiser will go inside and see what the home has to offer, measure the house and get the comparables that actually meet up with that particular home.
I have a listing that is a custom home with upgrades galore, 126 fruit trees, sits on a 1.75 acre lot, can have horses, etc... Then you have tract homes directly behind it. agents kept trying to come in at $375K and $395K, because that is what the tract homes are selling at. We had it listed at $599K, it appraised at $580K because of the market decline, sold for $580K.
Sometimes there are reasons for the price. If you want to submit an offer at $240K, go for it. All they can say is no.
Good Luck in your adventure...
That is the problem with Zillow, Zillow has never been in the house, as well as the assessor, where Zillow draws most of their data from.
An appraiser will go inside and see what the home has to offer, measure the house and get the comparables that actually meet up with that particular home.
I have a listing that is a custom home with upgrades galore, 126 fruit trees, sits on a 1.75 acre lot, can have horses, etc... Then you have tract homes directly behind it. agents kept trying to come in at $375K and $395K, because that is what the tract homes are selling at. We had it listed at $599K, it appraised at $580K because of the market decline, sold for $580K.
Sometimes there are reasons for the price. If you want to submit an offer at $240K, go for it. All they can say is no.
Good Luck in your adventure...
offer an irrational price, such as Pi or e.
- Carol-Lynne Mittelbusher, "Carol Lynne"
- Contributions:642
In this market, we see tons of educated buyers who are reading everything on the internet and listening to all the news about the falling prices, buyers' market, etc. Many sellers, however, have apparently been sitting around with their fingers in their ears, going "NAAAAAAA,. NAAAA, I can't hear you..." It sounds as if this seller is living in a skewed reality; get the comps, Market Trend reports, anything else you can, and give them to the sellers.
The appraisal is the key; if it won't appraise, buyers would be fools to pay the price.
The appraisal is the key; if it won't appraise, buyers would be fools to pay the price.
- Nathan Miller, "brokernathan.com"
- Contributions:244
Comps aren't just sold properties. Active and pending properties are comps too, and I would place heavy weight on them when determining market value or placing an offer.
- space_acer
- Contributions:4311
Forget Comps and Appraisals, they are based on past inflated prices.
Look at the history!
http://www.housingbubblebust.com/OFHEO/Major/SoCal.html
Low Ball your offer and live worry free...
- Nathan Miller, "brokernathan.com"
- Contributions:244
Offer no more than what you think the property is worth based on your appraisal, Realtor's advice, zillow data, comps or otherwise. If the seller wants to be unrealistic with their price, walk away. There's more than just one house out there for everybody and with the market going down, don't put yourself at a worse disadvantage by overpaying.
- dddj
- Contributions:30
Especially in this market, my advice would be never to offer more than the appraised value of a house. I don't see many reason to do that!
If a house is listed at 335k, is it for sale by owner? Is it a pre-foreclosure? Perhaps the seller cannot or will not sell it for less than what they listed it for. In such a case, unless you want to pay over-value, then do not bid over-value.
My advice (personal) is to bid low in this market. Bid 230k max! :) Or wait wait wait.
I recently was interested in a house listed for 650. Another buyer attempted a purchase at 625, but that didn't go through. The value dropped over time, and I offered 580. Before they accepted, I got anxious and decided to wait. A month later, it was still for sale and dropped to 575! I offered 515, received a 550 counter, and we settled on 528. This was an REO. Everyone told me they wouldn't sell for under 530. I wanted to go for 520 as my counter, but I felt pressured to increase it to near 530--that's how I got the 528 number (8 is good luck to me... a Chinese thing). Anyway, it worked out and I'm happy with the price. I went with a realtor that gave me half of the buyer's commission back too! I'd rather have paid less on the house, but I accepted the money :)
If a house is listed at 335k, is it for sale by owner? Is it a pre-foreclosure? Perhaps the seller cannot or will not sell it for less than what they listed it for. In such a case, unless you want to pay over-value, then do not bid over-value.
My advice (personal) is to bid low in this market. Bid 230k max! :) Or wait wait wait.
I recently was interested in a house listed for 650. Another buyer attempted a purchase at 625, but that didn't go through. The value dropped over time, and I offered 580. Before they accepted, I got anxious and decided to wait. A month later, it was still for sale and dropped to 575! I offered 515, received a 550 counter, and we settled on 528. This was an REO. Everyone told me they wouldn't sell for under 530. I wanted to go for 520 as my counter, but I felt pressured to increase it to near 530--that's how I got the 528 number (8 is good luck to me... a Chinese thing). Anyway, it worked out and I'm happy with the price. I went with a realtor that gave me half of the buyer's commission back too! I'd rather have paid less on the house, but I accepted the money :)
- sunnyview
- Contributions:25139
I think your best approach is going in with the appraisal in hand if possible. No bank will loan over the appraisal amount so if they want to get their asking price of 335K they would need a rent to own, hard money or all cash buyer. The sellers may be unaware of the changes in the market or they may feel that since their house is not an REO that their price is unaffected. All you can do as a buyer is gently suggest that they may need to reevaluate their value. You can also offer to get a CMA done to show them if they do not have an agent at this point.
rational offer price
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.