Zillow Advice: Refinance - My Zestimate is 42% higher than a recent appraisal I had. Why? http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ Zillow Advice | Zillow Real Estate I wouldn't put a whole lot ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ I wouldn't put a whole lot of stock into the Zestimate. &nbsp; It's a great tool, but can be way off at times. &nbsp; That said, remember that due to HVCC appraisers really have no interest in being anything other than conservative. &nbsp;They can in some instances get in trouble if they're high. &nbsp; But they don't get into trouble for being low. &nbsp; The way the system is set up now, they really don't have to answer to anyone, which naturally drives valuations down in my personal opinion. &nbsp; &nbsp; So, the CMA that another user mentioned is a very good idea. &nbsp; If the Realtor gives you an answer more like Zillow, and it matters for what you're trying to do, &nbsp;you might consider doing another appraisal (which may or may not require switching lenders). &nbsp; Keep in mind, though, that Realtors are almost the opposite of appraisers in that it's their job to look at it from a "what's the most we can get for this" perspective. &nbsp;Whereas, the appraiser might look at it from a "what's the lowest value I can justify reasonably" perspective. &nbsp; And for the record, I believe most appraisers are trying to give the "correct" valuation, but they're typically going to err to the side of caution. &nbsp;&nbsp; Fri, 18 May 2012 15:50:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2012-05-18T15:50:00Z Hi,Try asking a local agent ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ Hi,<br/><br/>Try asking a local agent to do a CMA (comparative market analysis) for you, to see where it comes out.<br/><br/>All the best,<br/><br/>Arpad<br/><br/> Fri, 18 May 2012 05:51:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2012-05-18T05:51:00Z For some discussion on the ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ For some discussion on the statistical variation of individual machine generated <u>opinions</u> of <strong>approximate</strong> value, see the thread:<br/><a href="http://www.zillow.com/advice-thread/Research-on-Zestimates-part-2/414484/">Research on Zestimates part 2</a><br/><br/>For some discussion on other sources of machine generated <u>opinions</u> of <strong>approximate</strong> value, see the thread:<br/><br/><a href="http://www.zillow.com/advice-thread/What-is-the-most-complete-list-of-Home-Estimating-websites-that-you-have-seen/413475/">What is the most complete list of Home Estimating websites that you have seen?</a><br/><br/>One might also want to consider the "purpose" of machine generated opinions verses appraisals verses CMA's.<br/><br/>CMA's are generated by listing Real Estate Agents to establish a list price, and to get a property to sell reasonably quickly but still try to get as much net revenue for the seller as possible.&nbsp; CMA's a generated by selling agents to assist a buyer in knowing what a fair offer amount is, and to try to get a good deal for their client.<br/><br/>Appraisals are produced by appraisers for legal purposes, or to protect the interests of a lender to make sure there is sufficient collateral to cover the loan.&nbsp; Occasionally insurance companies are also interested in an appraised value, but more often, insurance companies are concerned with replacement value.<br/><br/>Tax assessments are done for assigning a fair tax amount for the usage of the property and the services provided by the community for the property.&nbsp; This usually means empty lots are assessed substantially below market value as there is no revenue nor benefit for the property owner, just expenses.<br/><br/>Sites like Zillow use the machine generated estimates for creating market indexes for various real estate markets, to track market trends.<br/><br/>Other websites that provide machine generated estimates use them to provide rough statistical numbers on properties for general comparison.<br/><br/>Banks, financial institutions, and lending institutions often use in-house or other paid for AVM (automated valuation models) to get a preliminary check on loan to value ratios, and to avoid paying appraisal fees where not necessary, and to avoid unnecessary site visits when not required.<br/><br/>Since the purpose of all these estimate numbers is different, of course the numbers will also be different.<br/><br/>Actually, even if you have 2 CMA's come in identically, there was either "collusion", or the people preparing them were using the same software, the same comps, and were lazy on their line item adjustments.<br/> Tue, 20 Sep 2011 22:42:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2011-09-20T22:42:00Z It's unfortunate, but chances ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ It's unfortunate, but chances are that your appraisal is more accurate.&nbsp; That said,with the new appraisal guidelines, some clients are still getting valuations from out of the area appraisers or those with less experience.<br/><br/>Zillow can not really be used for reliable data, as hard as it tries to do so.&nbsp; No disrespect, just a fact.<br/><br/>I also use eppraisal.com which I find to be more accurate.<br/><br/>Sorry, we can not be of better help. Tue, 20 Sep 2011 20:22:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2011-09-20T20:22:00Z I recommend not looking at ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ I recommend not looking at the Zillow estimate at all. It is often completely wrong about estimated home value.&nbsp;What ever flawed formula Zillow uses to estimate home values, it&nbsp;does not take into account most of the relevant factors that typically are considered when evelauating market value. It would not know to look at surrounding areas if there are no close comparables present, neither would it take into account seller concessions, short sales, condition of the property, and many other important factors. that's not to say that your appriaser is right.<br/>&nbsp;I recommend you try to refinance with a different lender, you may be surprised that the value may be much different with another appraisal as often happens today. However, you should definitely consult with me, or any other professional real estate broker on Staten Island about the home's value to make sure that efforts would not be in vain. If your broker tells you there are no comparables and the value is way below what you need to refinance, it is likely that the appraiser will have an issue as well. Tue, 20 Sep 2011 20:01:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2011-09-20T20:01:00Z Because Zillow isn't always ... http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ Because Zillow isn't always accurate. It's working with averages, trends, and public data (which may contain errors).<br/><br/>Did you get screwed on your appraisal? Not likely. But here's what to do. Take a close look at the appraisal. Are the three properties selected by the appraiser good comps? Are they close by your home? Are they about the same age? Do they have the same number of bedrooms and baths? Have they sold within the last 90 days?<br/><br/>What I've described above would be ideal. Most likely, your appraiser had to make some adjustments. Maybe one of the comps had an additional bedroom, so the appraiser would have subtracted an amount from that property (maybe $15,000-$20,000 . . . maybe more, maybe less) to account for the variation. Maybe one of the houses didn't have a garage and yours does . . . so the appraiser would have added some amount to the other property. And so on.<br/><br/>In other words, analyze the appraisal yourself.<br/><br/>That'll tell you whether the appraisal is a good one. Odds are very strong it is, and that the Zestimate is the one that's less accurate.<br/><br/>One other point: If you bought for $315,000 in 2009, it's very likely that the value has declined. It'd be remarkable, in this economic climate, for its value to have gone up to $370,000. Without knowing anything about your home or your community, $260,000 sounds a lot more likely than $370,000.<br/><br/>Hope that helps. Tue, 20 Sep 2011 19:51:00 GMT http://www.zillow.com/advice-thread/My-Zestimate-is-42-higher-than-a-recent-appraisal-I-had-Why/416349/ 2011-09-20T19:51:00Z