Back to real estate and making money. Are you guys getting Zillow emails indicating your Oakland properties’ valuations going up a lot? I have gotten two emails from Zillow in the last month or so indicating a healthy bump in valuation on my multi unit, which is nice (if really true). But I thought Zillow price valuation estimates were overinflated before (as opposed to say Redfin numbers). Which is it?
Since estimates from Zillow and Redfin are based on transacted prices, they lag.
In a bull market, estimates from Zillow and Redfin are below transacted price.
In a bear market, estimates from Zillow and Redfin are above transacted price.
Above can be used as a crude indicator for bull/ bear market.
Redfin estimate is crap. Zillow is much closer to reality.
Mucho gracias, gentlemen!
I am still surprised (but I guess I shouldn’t be since I see the stories being reported) how far Oakland has come around. And it kinda started with our good old Governor when he had his Mayor of Oakland hat on.
I don’t know why I fight it and keep thinking about 1031ing that property to something SFHish here in the fab 7x7 when it is doing well but sometimes you just don’t want to deal with tenants anymore. Yes, I said it…
I think you can use this data for trends only…Or maybe for condos where there are hundreds alike…Real estate is so varied, that estimates from 30,000 feet are too inaccurate. .You cant even get professional appraisers too agree…
But I love Redfin estimates for feeling good about past purchases…It is always fun to zillow someones house before you visit. .somtimes you get pictures…purient pleasure
My own house in Tahoe is priced about the same on both…Redfin is usally higher though…
As far as Oakland rentals…the value is based on rents…Rents are still going…values going up…Who cares what Zillow says…it is all about cash flow and cap rate…
Agreed, but keep in mind we are talking about a rent controlled city so one may not be able to “see it” when all you can get is the legal limit. It is great to receive good news often as long as the numbers are reasonably good, I always say…
My units are not rent contolled…Built in 2000…but generally we just raise vacant rents…The value was flat until the last couple years…My equity finally went up…maybe doubled since 2000…not great but we are holding long term…About a 6% cap with maybe 5% appreciation long term.
Agreed, values flat lined for a number of years…but ITS ALIVE!!!
Around 3 years ago, Zillow pricing was way off. I believe Zillow undervalued my home by close to $500k. Maybe like every homeowner, we think our homes are worth more than reality I suspect Zillow’s algorithm or update lagged severely in the seller’s market.
Then Zillow did some algorithm change. Zillow pricing become more inline with reality.
Right now, Zillow shows $200k more than Redfin for my home. I don’t know which is more realistic. I wish Zillow’s higher estimate is more accurate. However, I do follow Redfin sales for neighborhood, and sales are right around Redfin’s #. It seems to be it’s 50/50 above vs below Redin’s estimate. So I feel Redfin’s estimate is more accurate in general.
We’ve done appraisal for our house 13 months ago.
The difference between Redfin and real appraisal - 10K (redfin was less than real appraisal) and Zillow was 11% off. (House price 700K)
Again: it was 13 months ago.
From the slums, my figures are:
I think they are both very reasonable figures and they are close to what I believe be to market value for my place.
In La Honda prices are exaggerated on Zillow by about 20%. I don’t know if we are being compared with Woodside or what. Of course a low number of sales doesn’t help.
Value is what a ready willing and able buyer offers…anything else is speculation
Thanks @jk88cal! That’s what I thought, that Zillow used to be way off but I guess it sounds like for you you think Redfin now is better? Oh well, estimates/projections anyway. I agree, until you list the darn property you won’t know squat. But, positive estimated values are certainly welcomed more than negative ones. When was the last time someone saw consistent downgrades around these parts???
Come on, does this class action lawsuit have any merit? Zillow never says their estimate is a substitute for a true appraisal right? It is a guess after all, no?
A word of RF guess -estimates it is overly inflated. In an overpriced asking price it seem to suggest the homes are worth more than appraiser value. I have several transactions the buyers ended up putting more down payment as they found out other wise.
Muchas gracias caballeros.
On the topic, come on guys! We all know how the numbers from any stupid website are inflated or far away from the real price of a home.
Properties around me are worth more than mine, even though, some have never been painted since their construction 35 years ago.
So, let’s say a home in my area, a 4/2 is worth $700K, how come mine is the same price when it was “renovated” with $200K+ final expenses?
Location trumps condition. …So even if your house has $200k more improvement it probably is not worth $200k more…Granted zillow has no way to measure condition, but every year any remodeling adds loose value…as in depreciates. …