06-09-2011 12:24 AM
What do you think of the home value estimates on Redfin? There are two estimates for each listing at the bottom of the page on Redifin. One is Zillows estimate, and the other is Eppraisal. In general, which medium value do you think is more close to the real market price?
I’m interested in one house. The Eppraisal estimate is very close the price I want to offer ($25,000 lower than the listing price), but Zillows gives a much lower estimation, even $50,000 lower than Eppraisal! I couldn’t wonder if I would be paying too much… I hope someone knows how Zillow comes up with their estimate.
06-09-2011 03:37 AM
Neither. They both use mathematical equations based on the last sold price to come up with a home value. Neither takes into consideration condition or other information that would adjust the value. The longer the time period since the last sale the more likely the value to be off.
Use comps and condition to come to an offer amount. Have your agent go over the comps and discuss condition/upgrades/features that affect the value. Your agent can discuss with you what they know about the type of sale (standard, short, REO and corporate) that will determine how to approach the negotiations of the home.
One can always worry about paying too much. It's part of the trials and tribulations of real estate. Getting an offer accepted is the first step in getting to that point. Knowing your price range, what you want in a home, the housing trends where you are looking and understanding asking vs sold price will go a long way to alleviate your concerns.
More than a year prior to our last relo I started looking at homes on-line. I tracked them and when possible I did preliminary tours. I watched asking vs sold prices, days on the market and trends prior to making our first offer. Each house hunt has been different over the years. Understanding the market conditions makes is a must.
Best of luck in your home buying quest.
06-09-2011 03:01 PM
I think you should use your own formula. Look at the asking and sale price for the homes in the same neighborhood. Neighborhood is defined or based on schools, etc. Most of the time home prices just across the road varies by 50 to 100K based on good school. Redfin data can be used for both school info and sale price info. I think Zillow estimate missing this variation due to school.