Real Estate Help

Obviously worth $392311.69 ..... seriously just get pro estimate.

Zillow has all the house in my neighborhood about 50k - 75k below market value. I hope you made your offer contigent on getting a mortgage. That way if the appraisal comes in too high, most lenders won't offer a mortgage for more that the house is worth. That should nullify your offer.

Take a closer look at the comps Zillow is using. They might not be appropriate. Zillow used to compare my house to the horse properties across the ridge -- now it's comparing my house to condos.

Shane & other experts: Since the appraiser will be hired by the lender, is there a way to make sure s/he actually goes inside? Or do they just do computer searches these days?

If you're borrowing money, you mortgage company will do an appraisal and charge you for it.

They're not going to finance a house for $100K more than its market value.

If you're asking these sorts of questions, you have no business making a nearly half a million dollar transaction.

quoted for preservation:

ajooba said: Dear All

I need immediate help. I have made a bid for a home and it has been accepted and now I am having all sorts of worries. Please help me.

1) The square footage is 1260sqft +200 sqft finished basement
2) The price of a house in the town this house is is $429,000
3) But zillow.com shows the zestimate as $340,000. The offer has been finalised at $430000. But I am really worried now. I am waiting for home inspection. I need to take a final decision before that!

Do you think zillow is taking into the following facts? Do you think this is a fair price?

1) The house is absolutely charming
2) 0.73 acre land and absolutely beautiful back yard.
3) Professionally done land scaping
4) New roof in 2004
5) 200sqft of porch with mahogany floor, not included in total sqft
6) 4 buildongs away from the middel school, and the school system is very good.
7) New paint and very nice colors chosen
8) 20 homes away a plaza with grocery and all, which I love. I like to walk to stores.
9) Not a very busy street except probably for school.
10) Kitchen has custom cherry cabinets.

Please help!!!!!!!!!!!!!

Ajooba

OP, I think you are vastly overpaying and trying to justify it any way possible. THIS FORUM IS NOT FOR AFFIRMATION OF BAD DECISIONS.

Also please keep all your homebuying questions in one thread. you asked about insurance here

http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=738747&highlight_key=y&keyword1=

and are now asking about RE offers and values. Separate threads for each issue clutters the forum. Also, you need to talk to local experts vs. people on the internet.

ThursdaysChild said: Shane & other experts: Since the appraiser will be hired by the lender, is there a way to make sure s/he actually goes inside? Or do they just do computer searches these days?

Usually on purchase transactions the lender requires an interior inspection be done as well as an exterior, if it's an automated underwriting approval from Fannie Mae/Freddie Mac it'll spell out what type of appraisal (1004, 2055, etc.) is needed in the approval.

ajooba, like others have said, your best indicator will be to get a full appraisal on the home. These days a lot of appraisers are hurting for business so it should be a quick turnaround.

OK. I have a real estate agent. She is apparently award winning etc etc. But when I asked for comparisons and price of the house She said this house is so charming that it cannot really be compared with others. She has 18yrs of experience and her gut feeling is it is fabulous and if I do not buy the house it will be sold this weekend. This makes me hard to believe my agent. Specially since the estimate of zillow is so much lower. I have talked to mortgage companies and they will do the appraisal.But till then i have to keep my fingers crossed. Thanks for all the info.

This might be the funniest thing I have read on FWF in a LONG time.

anthonyu said: You should still ask for comps for houses with similar configuration/specs. You can decide how much more the "charming" factor is worth.

ajooba said: OK. I have a real estate agent. She is apparently award winning etc etc. But when I asked for comparisons and price of the house She said this house is so charming that it cannot really be compared with others. She has 18yrs of experience and her gut feeling is it is fabulous and if I do not buy the house it will be sold this weekend. This makes me hard to believe my agent. Specially since the estimate of zillow is so much lower. I have talked to mortgage companies and they will do the appraisal.But till then i have to keep my fingers crossed. Thanks for all the info.

ajooba said: OK. I have a real estate agent. She is apparently award winning etc etc. But when I asked for comparisons and price of the house She said this house is so charming that it cannot really be compared with others.
In OTHER WORDS, a house like this has NEVER SOLD FOR THAT MUCH

90% of real estate agents are maybe a step above a car salesmen, in other words, they don't make a DIME if they don't "help" you buy a house. On that note, if they do extra "work" for you, for free, like research comps they are working for nothing.

"She is apparently award winning etc etc."
I'd bet she has a few classes and maybe is a certified "realtor"

"But when I asked for comparisons and price of the house She said this house is so charming that it cannot really be compared with others."
Oh yeah she can, but will it mean extra work and if it comes back low, she either has to renegotiate your deal which increases risk of the sale going through, and the lower the sales price, the lower her commision.

"She has 18yrs of experience and her gut feeling is it is fabulous and if I do not buy the house it will be sold this weekend."
Something tells me her gut is counting her $430k x 3% = $12,900

"This makes me hard to believe my agent."
If I was paying $430k for something, I would verify ever word that came out of the used car salesman's mouth.

"Specially since the estimate of zillow is so much lower. I have talked to mortgage companies and they will do the appraisal."
Mortgage company doesn't make money (some fees) either (and do work) unless you buy the house, and like insurance agents, they are paid differently on different programs. Sometimes a conflict, like 80/20 means more money for them, wrong deal for you perhaps.

zillow always overpirces properties at least 10%~20%

As a previous post said, no mortgage company will finance your home unless it is worth about what you are paying. (unless of course you are putting 90% down. Do not let zillow influence you positively or negatively. If you like the house go for it. I would rather pay a little more than a house might be valued if I really liked it, than pay less than valued for I house I do not like as much. If you have loked around and this is what you like, than you made a good decesion.

Hi, it's David from Zillow,

Tough room but some good advice here.

I want to reiterate what bopc1996 said; the Zestimate value is by no means the final word on house values - it's a starting point for doing your research but your final decision should be based on your physical inspection of the property and the advice of local experts who know the market well.

If it makes you feel any better, I just bought a house for $25K more than the Zestimate value.

It's critical that you work with a Realtor you trust. If your Realtor can't make a convincing, logical case for the value of the house it is appropriate to have doubts. It sounds like it may be too late for this, but you should also ask the seller/sellers agent to talk you through their pricing assumptions. If you're not convinced, say so.

@caonima - Both internal and independent analysis has shown that inaccurate Zestimates have an equal chance of being high as they do of being low.

People who would make a huge financial decision about the purchase of a home based on something like Zillow amaze me.

Zillow does not go in houses so they do not factor condition in to their zestimates.
Zillow does not have access to complete sales and public record data in many markets.

There is a $14 million dollar home in my area that was purchased a bit over a year ago for that price. The Zestimate is $1.4 million dollars. The current owner must feel like a fool for overpaying by so much. Or Zillow is just plain wrong.

Zillow is an interesting and entertaining site, but it is dangerous that consumers would make decisions based on data they get from Zillow.