12626 Intermezzo Way San 12626 Intermezzo Way San Diego, CA 92130 (2,350 sf)
This mid sized SFR was sold in Carmel Valley on July 7th, using it as a test case, here’s what the following sites provided for its value:
Zillow gave it $858,000
Eppraisal gave it $801,622
RealQuest gave it $793,000
RealtyTrac gave it $675,632
The home sold for $810,000. At least with this home Eppraisal seem to come up the winner. What about others?
an
July 11, 2009 @
10:08 AM
ocrenter wrote:12626 [quote=ocrenter]12626 Intermezzo Way San Diego, CA 92130 (2,350 sf)
This mid sized SFR was sold in Carmel Valley on July 7th, using it as a test case, here’s what the following sites provided for its value:
Zillow gave it $858,000
Eppraisal gave it $801,622
RealQuest gave it $793,000
RealtyTrac gave it $675,632
The home sold for $810,000. At least with this home Eppraisal seem to come up the winner. What about others?[/quote]
Based on my understanding, one cannot buy a house at a price that is higher than an appraised price. However, one can get a great deal and buy much lower than an appraised price. So, using that logic, I’d say Zillow is the only winner here, since the rest are appraising it below the real current market price.
SD Realtor
July 11, 2009 @
12:51 PM
AN a quick minor correction, AN a quick minor correction, a buyer can buy a home at any price. To be clear, a lender will only lend at the appraised value. Thus you as a buyer must be willing to make up the difference with your own coin. I have a listing right now that is going to sell above the appraised price. Now as a buyer I am not sure I would recommend to purchase a home above appraised price but if you really love it, that is entirely up to you.
an
July 11, 2009 @
1:47 PM
SD R, I agree. I forgot SD R, I agree. I forgot about that case. I guess I was assuming most people wouldn’t be willing to offer more than appraised value and most seller would be fine w/ selling at the appraised value. However, there are a small minority who won’t sell at any price lower than the list price and there are a small minority of buyers who love the house enough to over pay for it. I think this is the exception more than the rule though. So, I guess none of the site is perfect, but if you take a number between Zillow and Epraiser, you might get a good estimate.
patientrenter
July 11, 2009 @
2:32 PM
I find Eappraisal is lower I find Eappraisal is lower than Zillow where I look. Since I am a buyer, I like the lower numbers better. (I could justify with a long argument, but buyers like low numbers.)
So Eappraisal it is.
ocrenter
July 11, 2009 @
3:09 PM
SDR, so in your experience SDR, so in your experience which of these sites is closest to the purchase price?
temeculaguy
July 11, 2009 @
8:57 PM
I think zillow has gotten I think zillow has gotten better, they have made some changes to their formula over the last year or two. When they are most out of whack is when things are changing rapidly, they just can’t keep up, nor can any of them if things are moving rapidly. Redfin lists the zillow, eapraisal and cyberhomes (realtytrac is powered by cyberhomes) price at the bottom of every listing and they list the ranges, like kelley blue book, based on condition. I like the ranges, because thrashed repos should be discounted and former models or upgraded turnkey places are worth more in the real world, yet computer generated appraisals have no ability to evaluate condition, so just plug the condition into the estmated range and it’s better than it used to be.
There was a “runner up” in my house search that I was going to hold out for but it became part of the shadow inventory and a few days ago it listed (think it sat empty for a year and the bank paid a gardner the whole time and kept the landscaping alive). I decided to run a test case on it, since prices have flattened out up here, I decided to test the four services.
The place listed for 263k, in between the four, but I’d wager that it goes for the zillow price and it will go in the next few days if it isn’t gone already. It has bidding war written all over that price, but not enough for the realquest 299k, I’ll guess 285k
On the same street, one just closed escrow for 299k and the values were tighter amongst the sites, maybe a 10k spread and they all nailed it within 10k. The difference is the one I listed above is a 2000 sq ft one story and the recent closing on that street is a 2800 sq ft two story. With the exception of zillow, the other ones seemingly just multiplied the sq ft by a $ amount, but it’s more complicated than that, one stories live a little larger and tend to cost more per sq ft, smaller homes tend to cost more per sq ft, big one stories are kinda rare and they don’t last and they don’t get discounted as much. I used to find tons of examples where zillow was overestimating but lately, they are the closest one to what the sale price ends up being. Right now they get my vote, but if your area is experiencing volatility, then they all suck.
temeculaguy
July 12, 2009 @
12:29 AM
Can i take back what I said, Can i take back what I said, with customs and new construction, they get all wacky, it’s near useless.
zillow has it as 789k, I wish!!!
cyber is closer at 1.7 mil, if after checking my lottery numbers and I’m the winner, that would be my offer.
eappraisal at 945k
these programs work well then are lots of recent sales and model matches, they miss the many variables and are worthless when properties are unique, seldom sold or recently built. In the case I used, the land was purchased in 1997 and the property was built, it’s never been sold as a completed house so their appreciation/depreciation formulas cannot capture the improvements. The neighborhood is extremely unique, so it’s hard to figure comps. I’d say anything on land, ignore the online stuff, land is weird, the usability of acerage can vary wildly. This is why they actually have live appraisers.
ocrenter
July 12, 2009 @
8:02 AM
temeculaguy wrote:Can i take [quote=temeculaguy]Can i take back what I said, with customs and new construction, they get all wacky, it’s near useless.[/quote]
that’s definitely true. on some of the new homes you don’t even get any results from eppraisal. and in TG’s example, zillow got it wrong likely because it just appraised the land prior to the addition.
July 11, 2009 @ 9:30 AM
12626 Intermezzo Way San
12626 Intermezzo Way San Diego, CA 92130 (2,350 sf)
This mid sized SFR was sold in Carmel Valley on July 7th, using it as a test case, here’s what the following sites provided for its value:
Zillow gave it $858,000
Eppraisal gave it $801,622
RealQuest gave it $793,000
RealtyTrac gave it $675,632
The home sold for $810,000. At least with this home Eppraisal seem to come up the winner. What about others?
July 11, 2009 @ 10:08 AM
ocrenter wrote:12626
[quote=ocrenter]12626 Intermezzo Way San Diego, CA 92130 (2,350 sf)
This mid sized SFR was sold in Carmel Valley on July 7th, using it as a test case, here’s what the following sites provided for its value:
Zillow gave it $858,000
Eppraisal gave it $801,622
RealQuest gave it $793,000
RealtyTrac gave it $675,632
The home sold for $810,000. At least with this home Eppraisal seem to come up the winner. What about others?[/quote]
Based on my understanding, one cannot buy a house at a price that is higher than an appraised price. However, one can get a great deal and buy much lower than an appraised price. So, using that logic, I’d say Zillow is the only winner here, since the rest are appraising it below the real current market price.
July 11, 2009 @ 12:51 PM
AN a quick minor correction,
AN a quick minor correction, a buyer can buy a home at any price. To be clear, a lender will only lend at the appraised value. Thus you as a buyer must be willing to make up the difference with your own coin. I have a listing right now that is going to sell above the appraised price. Now as a buyer I am not sure I would recommend to purchase a home above appraised price but if you really love it, that is entirely up to you.
July 11, 2009 @ 1:47 PM
SD R, I agree. I forgot
SD R, I agree. I forgot about that case. I guess I was assuming most people wouldn’t be willing to offer more than appraised value and most seller would be fine w/ selling at the appraised value. However, there are a small minority who won’t sell at any price lower than the list price and there are a small minority of buyers who love the house enough to over pay for it. I think this is the exception more than the rule though. So, I guess none of the site is perfect, but if you take a number between Zillow and Epraiser, you might get a good estimate.
July 11, 2009 @ 2:32 PM
I find Eappraisal is lower
I find Eappraisal is lower than Zillow where I look. Since I am a buyer, I like the lower numbers better. (I could justify with a long argument, but buyers like low numbers.)
So Eappraisal it is.
July 11, 2009 @ 3:09 PM
SDR, so in your experience
SDR, so in your experience which of these sites is closest to the purchase price?
July 11, 2009 @ 8:57 PM
I think zillow has gotten
I think zillow has gotten better, they have made some changes to their formula over the last year or two. When they are most out of whack is when things are changing rapidly, they just can’t keep up, nor can any of them if things are moving rapidly. Redfin lists the zillow, eapraisal and cyberhomes (realtytrac is powered by cyberhomes) price at the bottom of every listing and they list the ranges, like kelley blue book, based on condition. I like the ranges, because thrashed repos should be discounted and former models or upgraded turnkey places are worth more in the real world, yet computer generated appraisals have no ability to evaluate condition, so just plug the condition into the estmated range and it’s better than it used to be.
There was a “runner up” in my house search that I was going to hold out for but it became part of the shadow inventory and a few days ago it listed (think it sat empty for a year and the bank paid a gardner the whole time and kept the landscaping alive). I decided to run a test case on it, since prices have flattened out up here, I decided to test the four services.
Their middle of the road values:
cyber/realtytrac 235k
eappraisal 244k
zillow 288k
realquest 299k
The place listed for 263k, in between the four, but I’d wager that it goes for the zillow price and it will go in the next few days if it isn’t gone already. It has bidding war written all over that price, but not enough for the realquest 299k, I’ll guess 285k
On the same street, one just closed escrow for 299k and the values were tighter amongst the sites, maybe a 10k spread and they all nailed it within 10k. The difference is the one I listed above is a 2000 sq ft one story and the recent closing on that street is a 2800 sq ft two story. With the exception of zillow, the other ones seemingly just multiplied the sq ft by a $ amount, but it’s more complicated than that, one stories live a little larger and tend to cost more per sq ft, smaller homes tend to cost more per sq ft, big one stories are kinda rare and they don’t last and they don’t get discounted as much. I used to find tons of examples where zillow was overestimating but lately, they are the closest one to what the sale price ends up being. Right now they get my vote, but if your area is experiencing volatility, then they all suck.
July 12, 2009 @ 12:29 AM
Can i take back what I said,
Can i take back what I said, with customs and new construction, they get all wacky, it’s near useless.
Here’s one of my favorite Temecula castles.
http://www.redfin.com/CA/Temecula/43422-Calle-De-Velardo-92592/home/6327065
In escrow with on a short sale for 1.4 mil
zillow has it as 789k, I wish!!!
cyber is closer at 1.7 mil, if after checking my lottery numbers and I’m the winner, that would be my offer.
eappraisal at 945k
these programs work well then are lots of recent sales and model matches, they miss the many variables and are worthless when properties are unique, seldom sold or recently built. In the case I used, the land was purchased in 1997 and the property was built, it’s never been sold as a completed house so their appreciation/depreciation formulas cannot capture the improvements. The neighborhood is extremely unique, so it’s hard to figure comps. I’d say anything on land, ignore the online stuff, land is weird, the usability of acerage can vary wildly. This is why they actually have live appraisers.
July 12, 2009 @ 8:02 AM
temeculaguy wrote:Can i take
[quote=temeculaguy]Can i take back what I said, with customs and new construction, they get all wacky, it’s near useless.[/quote]
that’s definitely true. on some of the new homes you don’t even get any results from eppraisal. and in TG’s example, zillow got it wrong likely because it just appraised the land prior to the addition.
let’s try another one here:
11174 Spooner Ct San Diego, CA 92131 (2460 sqft)
eppraisal: 662k
zillow: 705k
realquest: 644k
cyber/realtytrac: 634k
actual sales price: 682k
looks like the contest really is between eppraisal and zillow.