Profile picture for m518

why my home is so under valued on your website?

I recently went to my bank to inquire about refinancing my current mortage rate and found out that by your estimates my home is severely under valued. I was told that you use comparables to estimate home values. I think that this is totally unfair, you provide no information specific to my home, number of beds/baths, or current renovations that would increase the value of my home substantially. I presume that you are valuing my home off of the 2003 assessment, which would have been 2 bedrooms and 1.5 baths. We have replaced our roof. all of the windows, replumbed our water and sewer connections throughout the home added a second story master suite with full size bathroom with separate central air system. In 2009 we built a brand new garage 2.5 car, with a custom garage builder from our area. In the summer of 2010, I had a patio installled in my back yard. These improvemnets cost us $85,000 on top of the $155,000 we originally purchased the home for in 2003. There are no comparable homes in our immediate area. I would like to know what we have to do in order to have you reappraise our home so the true value is reflected? I would like potential buyers to be aware of the significant changes our home has had since 2003. The city of Elgin, where my home is located has valued our property at $183,500 for property taxes, your estimate is $125,000, can you see why I have a problem? Please consider all information provided within this email. I am available for comment/help at any time you would like to contact me. [content removed by moderator]. Thank you for your time and consideration with my problem. Sincerely, [content removed by moderator]
  • December 07 2011 - Elgin
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Answers (6)

I recently went to my bank to inquire about refinancing my current mortage rate and found out that by your estimates my home is severely under valued.

Hey Michael, which bank uses Zillow to estimate values for refi's ?
  • December 07 2011
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Hi M518.

When you are on the HDP, go to the larger map view, choose recently solds, and zoom out, you'll see there are not a lot of homes that have recently sold for a higher price than your current zestimate.  Since you just edited your home facts, your zestimate may continue to rise.

The zestimate is based on:
Physical attributes:  location, lot size, square footage, number of bedrooms and bathrooms and many other details.
 
Tax assessments:  property tax information, actual property taxes paid, exceptions to tax assessments and other information provided in the tax assessors' records.
 
Prior and current transactions:  actual sale prices over time of the home itself and comparable recent sales of nearby homes.
  • December 07 2011
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Profile picture for wetdawgs
I'm glad to see you claimed your home and filled in the missing data.
  • December 07 2011
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Profile picture for hpvanc
m518,

You can either find another lender or insist that your current lender go through with an appraisal, if you believe your value will support the refinance.  If the lender is using a more detailed AVM (they aren't supposed to be using the Zestimate), ask them if they can share the details for you to review before you lay out the $400+ it will cost you to do the appraisal.

If you go through with the appraisal (you pay for you should own it), and it does not support your refinance you would hopefully be able to recapture some of the expense by using it to appeal your taxes and lower your taxes for 2013.  If you find that the details from the lenders AVM (not Zillow) don't support the value you need to do a refinance you may want to look into the property tax appeal anyway.
  • December 07 2011
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Profile picture for Dunes ..
If you wish to talk directly to or with someone from Zillow hit Contact on this Profile...Russ Hatfield Zillow Customer and Community Support

not implying at all that you are not getting good advice...
  • December 07 2011
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Profile picture for wetdawgs
Hi Michael:

Here's a link to your [content removed by moderator]. The first thing to note is that Zillow has almost no information on your home except for it is a single family home and the last sales price.  What can you do about it?  Claim your home and fill in the missing data.   Over the next few weeks to months the Zestimate is likely to adjust somewhat in response to your edits.   (Zestimates do not include calculations on upgrades.)

A second point:  any financial institution using the Zestimate to make a decision without noting (as I did) that Zillow has no information on your home is violating Zillow's terms of use.   

A Zestimate is not an appraisal, but only a starting point for comparison of homes.
  • December 07 2011
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