Baton Rouge Housing Reports Reader Question: How does Zillow’s “Zestimate” compare to a Baton Rouge Home Appraiser’s valuation?
READERS QUESTION: How does Zillow’s “Zestimate” compare to an appraiser’s valuation? Are they relatively in the ballpark, or is the Zestimate considered way off course?
For the specifics: I bought a house for $89,000 in 2008. It was appraised for a refinance in November 2013 and valued at $72,000, and this is after some home improvements (new tile floors, refinished master bath). Zillow right now says it’s worth about $130,000.
Thanks to the appraiser, the refinance fell through. Only 2 of his comparables were within 20% of the square footage of my house. That appraiser won’t change his valuation. I just want to know what a fair value for my house and property is!
BILL COBB APPRAISERS ANSWER:
Hi Mr. Moyer,
I’m not certain of your address or subdivision to comment extensively. GBRMLS is showing 5 solds in 2008 for $89,000:
5845 Wright Dr Mickens Place
16788 Webster Dr Stevendale
5323 Blair Ln A5 Village Woods
5480 N Afton Pkwy Melrose Place
224 Ocean Dr 208 Goodwood Condos
It sounds as though you may have paid a Post Hurricane Katrina high price and possibly that market has been in correction mode, which is not that uncommon for some Greater Baton Rouge Subdivisions in Baker 70714, 70802, 70805, 70807, 70811, 70812, 70814 and even 70815. While Baton Rouge home prices in general are stable to increasing, homes in these zip codes are still seeing some declining prices and still a significant share of foreclosure and distressed sales. This is not at all an “even recovery” for Baton Rouge Real Estate into 2014 with the homes closer to Mall of Louisiana experiencing great markets and homes in struggling markets like Park Forest and Baker not doing well at all.
My own experience with Zillow Zestimates is it’s not reliable. I looked up an address in comparison for an appraisal I was doing a while back on a $165,000 home based on GBRMLS Comps and Zillow Zestimate showed a value in low $150s based on “comps” from $26,000 up to $317,000 and there were no sales in that subdivision in $26,000 or $317,000 range.
Also see from my Appraiser Friend Tom Horn, Why Zillow Zestimates aren’t accurate
And from my Appraiser Friend Ryan Lundquist in Sacramento Article, Comparing 10 Appraisals with Zillow Values showing Zillow way off on true value
Tahoe Park Area House: Appraisal: $133,000; Zillow: $114,173 (-14%)
Del Paso Manor House: Appraisal: $332,000; Zillow: $305,000 (-8.1%)
Midtown Fixer: Appraisal: $130,000; Zillow: $203,000 (+56%)
Citrus Heights House: Appraisal: $278,000; Zillow: $240,000 (-13.7 %)
Citrus Heights House: Appraisal: $138,000; Zillow: $194,000 (+40.6%)
See Ryan’s other 5 at link above
I hope this helps you.
If you would like more information about your subdivision, please reply with subdivision name and I’ll write a market update for it with charts, etc…
Bill Cobb, Appraiser
GBRMLS DATA NOTE:
REAL ESTATE DATA NOTE:
Based on information from Greater Baton Rouge Association of \MLS for period 01/01/2008 to 12/01/2008, extracted on 01/27/2014.
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