The amazing variance in the cost of housing...

[Livefree]

Eugene-Springfield area of Oregon. 3/2 ranch home, attached 2 car garage, built in 1976, 1781 sqft on 2.84 acres (no idea how many tomato plants would fit!) Bought in 2006 (near a market high) for ~350k.

As of April 2018, Redfin (Zillow doesn't seem to know our home exists) claims a current market estimate of ~$430k.
The Chase bank home value estimator gives a range of ~$375k to ~$588k.
I am skeptical of the high skew by both tools - prior to using those tools my own assessment was ~$380k.

At least in our area, it looks to me that these online estimation tools are estimating too high. I've seen homes go up for sale near Zillow's estimates and invariably after several months the sellers drop their asking price to make the sale - this in a market that had an average 1.9 month inventory during 2017.

My Realtor told me tools like Zillow and Trulia are not accurate, because they don't know what the inside condition is like..just a ball park figure.

 

[meierlde]

Agree on the Museum of Science and Industry. That and the Museum of Natural History. Both awesome.
With that, I end my digression

Just an observation if you ever get to Munich go to the Deutches Museum, it is Munich's science and industry museum, (and get a german view of who developed what tech)

 

[MRG]

My Realtor told me tools like Zillow and Trulia are not accurate, because they don't know what the inside condition is like..just a ball park figure.

I believe that. They always seem high. We moved in '16 and both homes appear to be worth 25% more in a year and a half according to Zillow.

 

[NW-Bound]

My Realtor told me tools like Zillow and Trulia are not accurate, because they don't know what the inside condition is like..just a ball park figure.

They go by the square footage, lot size, and some descriptions from public records. And even that could be wrong.

The county record for my home is wrong. It shows that it is a one-story home, while my home is 2-story. The square footage on record is less than the original house. And the 2-room addition that I paid to have built does not show up at all, despite the permit and inspection process that the builder went through.

 

[Sunset]

I live in Illinois just outside St Louis and a 1750 square foot ranch built is 2011 with 3 bedrooms and 2 1/2 baths is valued at about 230,000 with 3/4 acre lot. property taxes here are stifling also at 5500 per year. People complain about a 2% deductible on their homeowners policy and then pay that much in taxes every year without a whimper.

I always complain about taxes in IL, our house is smaller, built in the 80's and our property tax is $5,000 /yr, Sales tax around here (combined) is 11%
Extra special add on tax on booze, bullets, and guns as well.

 

[braumeister]

Just an observation if you ever get to Munich go to the Deutches Museum, it is Munich's science and industry museum, (and get a german view of who developed what tech)

Just pick a small section each time you visit. An enormous place, kind of like the Smithsonian in DC. Well worth your time.

 

[golfnut]

I live in Illinois just outside St Louis and a 1750 square foot ranch built is 2011 with 3 bedrooms and 2 1/2 baths is valued at about 230,000 with 3/4 acre lot. property taxes here are stifling also at 5500 per year. People complain about a 2% deductible on their homeowners policy and then pay that much in taxes every year without a whimper.

Wonder what your taxes would be in the "show me" state - guessing much lower than $5500.

We live in the Chgo burbs - 2800 sq ft home on a 1/4 acre. Pay approx. $10,000 in property taxes. Gotta get out of here but my wife won't think of it. Between the taxes, the crap weather (for about 5 months) and the stench of the politics can't see many advantages living here while retired (except no state income taxes on retirement income).

 

[W2R]

Agree on the Museum of Science and Industry. That and the Museum of Natural History. Both awesome.
With that, I end my digression

YES!!! I saw the Field Museum of Natural History on that same trip to Chicago back in the 1950's. All I specifically remember about the Field Museum is a stuffed bear that scared me to death (being a little girl), but once I got past the bear I enjoyed it a lot as well. But the Museum of Science and Industry was my favorite.

 

[exnavynuke]

~2,200 sq ft 3/2 on 1/2 acre with fenced in back yard cost me $167k 4 years ago (Zillow tells me it's worth right at $200k now)- NW Atlanta suburb.

I have a 4'x32' and a 4'x16' garden in the backyard currently.

 

[PandaBear]

I'm guessing a San Jose suburb. Willow Glen?

Willow Glen would probably be higher.

 

[daylatedollarshort]

YES!!! I saw the Field Museum of Natural History on that same trip to Chicago back in the 1950's. All I specifically remember about the Field Museum is a stuffed bear that scared me to death (being a little girl), but once I got past the bear I enjoyed it a lot as well. But the Museum of Science and Industry was my favorite.

I grew up in the Midwest and have fond memories of the Chicago museums as well, especially the Museum of Science and Industry. I still like museums. Many of the museums in the area we live now each have discount, late night events once a month that are fun for cheap date nights out.

 

[michelek]

In the Raleigh suburbs, you are looking at the same. New builds closer to Raleigh are much higher.

The best ITB Raleigh land cost runs 459999++ for a .20 acre. Then put the house on it. Over 1 mill all day long.
Outside the belt line ( OTB) real estate feels the same frenzy at a slightly lower price point.
One thing they don’t make more of us land. He or She who owns the dirt owns the money.
This market is unrecognizable compared to 8 years ago.

 

[michelek]

Suburb of Charlotte, NC.... 3 br 2.5 ba on 2 acres.... maybe about 350k or so. Excellent school district.

We also have a house in the Charlotte (UNCC) University area for our college student. Paid 160 last year ( 10k over asking to win the deal). House is only 10 yrs old , new roof, 3 bed 2.5 bath 1/4 acre fenced lot. Taxes 1300/yr.
Roommates pay 1200 per month which means daughter lives free and house pays me $500/mo.
I get yellow letters requesting me to sell the home at least 5 per month from investors. I’m sure the home’s value has increased to 180 in less than a year. Home is in a reasonable HOA community which polices general maintenance items like grass length, parking, and exterior maintenance. Mostly owner occupied, the HOA keeps the landlord and residents in check.
Charlotte is a good housing market to invest in, plus a great city to live in!

 

[Scuba]

We live in a beachfront condo in Southern CA with a 180 degree view of the ocean/coastline. It’s about 1,600 sq ft. The unit underneath ours sold for $1.3 million a few years ago. Prices have risen since then but there hasn’t been any other turnover of similar units so not sure exactly what ours is worth. Property taxes are $14K/year and rising every year. It’s a newer building, only 15 years old.

 

[davismills]

Central Georgia. 2300 sq ft all brick with brick privacy fence and 3 car garage. 16 years old. HOA is $60.00 per month and includes pool, tennis, workout facility and community center and gates. Taxes are $3100 per year and include county and city. Kroger, Kohls, Publix and numerous restaurants within one mile.

Zillow says $235K.

 

[Out of Steam]

We wive in suburban DC, and I simply can't relate to housing prices here any more. We're not really satisfied in our current area, too far out and short of amenities, and anything we'd really like to live in would be $650K.

We'll be retired and gone inside of 2 years.

 

[Mulligan]

What?!

I'm from Chicago originally, and almost spit out my coffee when I read this.
Agree about the weather... But let's look at the facts:
'Hawks 2010, 2013, 2015 stanley cup champs
Cubbies 2016 world series champions
Sox: 2005 World Series Champions
Bulls, well 6 NBA titles in 10 years in the 90's says something.
Bears - OK yeah... It's been a while

So, really, you can't make a general statement like that without pushback

None of the above compares to the fact Blackhawks got the worlds best back up beer league goalie Scott Foster who currently has the best all time NHL goal save percentage of 1000%. Has stopped every shot he has faced when suiting up for the Hawks.

 

[ChiliPepr]

So this thread had me curious and I looked up the estimated value of my, quite old, 1300sqf condo. I looked at both Redfin and Zillow, and I threw up a little: the low price of their ranges was $750k with a high of $950k. Who can afford that?

I'll join the poster who said thank you for prop 13

My old 1220 sq ft condo in Boston sold two years ago for $1.2 million. Two bedroom, one bath, no parking and minimal storage.

 

[4legsgood]

3/2 1500 sq ft house, 2 car garage, 12,000 sq ft lot, Redmond, WA, 1 mile from microsoft campus. Value about $730k - zillow says $830k, tax assessor says $630k. $6k in property tax. Though property values have gone up, it seems like the neighborhood has gone slightly downhill, with more renters and less well kept yards. Still seems like a very safe, happy place. It seems kind of strange to own a house that I now couldn't possibly afford to buy.

 

[harley]

DW loves looking up houses on Trulia or whatever. It's a hobby. Just for fun last night she checked out the house she grew up in back in the 50s-60s. It's a 900 sq ft 3/1 SFH on a fairly big (~.75 acre) lot in McLean VA. It's old, sort of worn out, and the only house in the neighborhood that hasn't been torn down and McMansionized. The estimate on it is $1.3M. It was on the market last year for $1.25M but didn't sell, so I think that's a bit inflated. But still! That's crazy. Our house in FL is 1200 sq ft, newer (but still 30 years old), fairly close to the beach, and probably worth a tad over $200K. Nothing makes sense.

 

[MichaelB]

Nothing makes sense.

+1

Interesting, made me want to look back. The house DF bought in '67 has a Zillow estimate of 3X the price he paid. Over that same stretch, CPI is 7X. They sold in '97, and it is 1.5X the sales price. A real loss for someone.

We bought a house when we moved back to the US in '98, sold it 6 years later for 1.8X, pure luck, because the location was work related and the housing boom was just getting started. It helps to be lucky.

According to Zillow that house it is now worth 18% less, but the [-]poor[/-] unlucky guy that bought it is paying about 50% more in property tax. Bad luck.

 

[daylatedollarshort]

I'll join the poster who said thank you for prop 13

+1 on Prop 13. Prop 13 and the ACA have helped to keep our retirement expenses pretty reasonable so far.

 

[braumeister]

We bought a house when we moved back to the US in '98, sold it 6 years later for 1.8X, pure luck, because the location was work related and the housing boom was just getting started. It helps to be lucky.

My favorite similar story:
A friend built a beautiful custom house in Redmond, Washington a few years before Microsoft moved in. He cashed in big time!

 

[Doribe]

I just sold my "country house" in rural central Illinois. Four bedroom, two bath ranch on 4 wooded acres overlooking a wetland. $150k, taxes $2k.