Zillow home estimates

[W2R]

Quote:

Originally Posted by Dtail Actually it was fairly close to the asking price on the house we bought. Some folks count their house as part of NW even though they don't include it in investment asset calculations.

Woo-hoo! If my house is worth what Zillow says, then I'm sitting pretty.

[Another Reader]

California is considering imposing a rather punitive estate tax. A number of other states already have estate taxes with relatively low minimums and high rates. If you live in one of these states, it's a good idea to include your home in your net worth, as your heirs may have to have to pay that tax and you might want to seek a more tax friendly state at some point.

I calculate net worth separately from net investable assets anyway. The house could be leveraged to extract 80 or 90 percent of the value if needed, so it's relevant.

Zillow is now in the "house buying" (equity stealing) business. Here's a real example. Z-estimate is $242k. Offer from Zillow is $223k, based on "comps." Net to seller is $203k. And that's before inspections. I would be extremely reluctant to trust Zillow in any capacity, given this example.

[aja8888]

Zillow does not know the actual sales prices of homes in Texas as that is not public information. Their estimates in Texas are all over the map.

[W2R]

Quote:

Originally Posted by aja8888 Zillow does not know the actual sales prices of homes in Texas as that is not public information. Their estimates in Texas are all over the map.

Same here in Louisiana. I don't think they can get that info from local government easily. From what I can tell, they get averages for zip codes, throw in a few recent sales if they can get those amounts somehow, and do optimal interpolation. It's most obvious in our neighborhood, where older 1500 sf 1965 homes like ours are slowly being replaced by 4000 sf McMansions. Zillow values them all the same, unless one has sold recently.

[Mdlerth]

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Originally Posted by dirtbiker I recently signed up at Personal Capital to track spending, net worth, etc., and I linked my home value estimate from Zillow, and my home value estimate is changing daily by swings of up to $50k plus.

Help me out here, because I don't understand. Are you saying you check these data on a daily basis? Do other people do that?

I think there are two reasons this is a bad idea. One, this is a retirement forum, yet you contrive for yourself an extra task each day. A reasonable person might consider this counter to the concept of retirement. Admittedly, I'm a lazy lump whose retirement goal is to REDUCE the number of tasks I have to do each day, so maybe I'm an outlier. But I don't check my PF more than a dozen times a year, and even that's probably too often. Similarly, most days I purchase nothing, so there would be no need to track spending every day.

The second and more important reason is that, unless you have an asset allocation of 0/100, your NW is likely to vary a LOT. Real estate, stocks, gold, pork bellies, artwork, classic cars, bitcoins, etc.; they all bounce around constantly. If you follow your investments too closely, every fluctuation could potentially influence you to react in ways you'll wish you hadn't.

Quote:

Originally Posted by dirtbiker I calculate it into my net worth because, well, it's part of my net worth. And we're not living in our forever house, so the equity is something that will be used one day.

Sure, "one day" you'll roll your current equity into your forever house. But if that day isn't imminent, what is the urgency for checking it on a daily basis?

If I simply "do not get it", it wouldn't be the first time, so I'd appreciate if you could explain why you do this.

[OldShooter]

Why would you care what Zillow thinks? For net worth I use the annual county appraisal but I don't take it too seriously.


When the time comes the market will tell you what the house is worth. Until then why worry about it?

[SumDay]

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Originally Posted by Mdlerth Help me out here, because I don't understand. Are you saying you check these data on a daily basis? Do other people do that? ............. If I simply "do not get it", it wouldn't be the first time, so I'd appreciate if you could explain why you do this.

I'm retired, I have the time, I enjoy "fiddling" with it, it gives me an excuse not to vacuum, and it brings me comfort. I've only been retired 9 months, so maybe this will fade in time, but for now it's a daily morning thing for me. I can say I've never slipped into a panic when the market has a bad day, nor have I rushed out and bought a yacht when it's on an uphill climb.

And I don't care what PC says my home is worth. I'm paying more attention to our spending and investment performance.

[ivinsfan]

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Originally Posted by Bamaman What I don't like is the pictures of my home when it was for sale 4 years ago. Inside and outside pictures. I really don't want anyone to know what it looks like for defensive purposes. Our community has too many cat burglars out there scouring the internet and Facebook looking for citizens on vacation and especially those with fine homes to burglarize. We've gone into a defensive mode including installing a new, stronger front door unit, new monitored alarms, beefed up door locks and door jambs. And it doesn't hurt to have a 130 pound Rottweiler living as a house dog.

This shouldn't be happening, Zillow should bring up a pic of the outside of your house with the Zestimate, but only that since your house in not for sale. I'd contact Zillow and complain.

[davebarnes]

Quote:

Originally Posted by ivinsfan This shouldn't be happening, Zillow should bring up a pic of the outside of your house with the Zestimate, but only that since your house in not for sale. I'd contact Zillow and complain.

Create an account on Zillow.
Claim you house.
Then you control most of the data (including photos).

[foxfirev5]

The only numbers I care about for my homes are the taxable value and annual property taxes. Since I have no plans to sell or take out any loans the NW factor is moot.

[eastnortheast]

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Originally Posted by Rianne I check home value on: https://www.redfin.com/ They at least give you recent "solds" in your area and the date of the sale so you can see what they're basing the value on.

I just went on Redfin - actually the first time I had heard of it. The estimate it is giving for my house is ~ $200K over the Zillow estimate.

Live in a rural area with non tract houses, so difficult to estimate value, but not sure where/how redfin came up with their number. If someone offered me what they estimate the house it worth, I would sell in a split second.

[imoldernu]

Zillow is quite close on our home, and similar Villas in our CCRC.

I believe, but don't know, that the numbers are based on local government valuations and real estate sales... If that is the case, it's not a matter of individuals walking up and down the streets of town guessing what the value of a house is. So... tax value, recorded sales, economic considerations... locally recorded sales and general economic conditions (housing market).

So... gross numbers... not individual, so if you had hardwood floors, a new roof, a recently refinished basement, or a major upgrade, your valuation may not have changed. In effect, it's a mechanically produced estimate, based on publicly available statistics.

And... a still small voice that says that net worth DOES include the value of your house, that $8,000 diamond ring, the $45,000 Mercedes, and the house on the lake. My Stradivarius won't count 'cuz I giving it to my granddaughter, so she can see what it's like taking violin lessons for three or four years.

[W2R]

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Originally Posted by eastnortheast I just went on Redfin - actually the first time I had heard of it. The estimate it is giving for my house is ~ $200K over the Zillow estimate.

In my case, I just checked Redfin, and it says my house is worth 126% of what I paid for it less than 4 years ago.

Zillow: My home is worth 142% of what I paid for it in June, 2015
Realtor.c0m: My home is worth 139% of what I paid for it in June, 2015
Trulia.c0m: My home is worth 129% of what I paid for it in June, 2015
Redfin: My home is worth 126% of what I paid for it in June, 2015

So, in my case, Redfin is the lowest so far. Apparently all of these websites are having a hard time figuring out what my house is worth.

[braumeister]

For those using USAA, I find their home value estimates to be very good. Conservative and pretty much in line with what I would estimate myself. I'm not really interested, but it shows up whenever I log on because my home insurance is with them, as well as a bank account. I'm mildly surprised they don't add another section for what our cars are worth!

[Another Reader]

Quote:

Originally Posted by W2R In my case, I just checked Redfin, and it says my house is worth 126% of what I paid for it less than 4 years ago. Zillow: My home is worth 142% of what I paid for it in June, 2015 Realtor.c0m: My home is worth 139% of what I paid for it in June, 2015 Trulia.c0m: My home is worth 129% of what I paid for it in June, 2015 Redfin: My home is worth 126% of what I paid for it in June, 2015 So, in my case, Redfin is the lowest so far. Apparently all of these websites are having a hard time figuring out what my house is worth.

The most important takeaway is that it's worth MORE! In fact, it's probably at an all time high! Whee!!!

[W2R]

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Originally Posted by Another Reader The most important takeaway is that it's worth MORE! In fact, it's probably at an all time high! Whee!!!

I know! I shouldn't be so skeptical and should be utterly thrilled!!!

[Scrapr]

Zillow has "the number" then below that has a range that they estimate. Zillow also doesn't take into account special items you may have improved the home with. Like special landscaping, paver patios, built in BBQ, the Viking range in the kitchen, etc.

That said it was close on our home sale 3 years ago. That home is plus $100k now, so I try not to look

[W2R]

Quote:

Originally Posted by Scrapr Zillow has "the number" then below that has a range that they estimate. Zillow also doesn't take into account special items you may have improved the home with. Like special landscaping, paver patios, built in BBQ, the Viking range in the kitchen, etc.

In all but a few areas, it also doesn't take into account the really "special" stuff like square footage, bedrooms, or bathrooms. (see below, from the Zillow listing of my house; the same is true for nearly every other house around here).

Quote:

Originally Posted by Scrapr That said it was close on our home sale 3 years ago. That home is plus $100k now, so I try not to look

Hey, that is great! It's nice to see your property going up, especially if it tends to be realistic in your area.

[MarieIG]

Quote:

Originally Posted by Mdlerth Help me out here, because I don't understand. Are you saying you check these data on a daily basis? Do other people do that? I think there are two reasons this is a bad idea. One, this is a retirement forum, yet you contrive for yourself an extra task each day. A reasonable person might consider this counter to the concept of retirement. Admittedly, I'm a lazy lump whose retirement goal is to REDUCE the number of tasks I have to do each day, so maybe I'm an outlier. But I don't check my PF more than a dozen times a year, and even that's probably too often. Similarly, most days I purchase nothing, so there would be no need to track spending every day. The second and more important reason is that, unless you have an asset allocation of 0/100, your NW is likely to vary a LOT. Real estate, stocks, gold, pork bellies, artwork, classic cars, bitcoins, etc.; they all bounce around constantly. If you follow your investments too closely, every fluctuation could potentially influence you to react in ways you'll wish you hadn't. Sure, "one day" you'll roll your current equity into your forever house. But if that day isn't imminent, what is the urgency for checking it on a daily basis? If I simply "do not get it", it wouldn't be the first time, so I'd appreciate if you could explain why you do this.

No, I don't. But this thread did make me look!

The Zillow photo of my house is very funny. I wish I knew how to post it. All you see is a tree.

[RobbieB]

Zillow is pretty close for me. Mine is within 20 grand of a comp (that sold) just down the street.