How accurate are the appraisals at Zillow.com?

Question

I live on three acres in the woods in Summerdale, AL. We are close to Gulf Shores and Fairhope. Land on our road is selling for $175K for an unimproved 4 acre lot, and a 1800 sqft home on 3 acres on our road sold for $260K. How accurate are tax record appraisals and zillow?

Can anyone give me some insight into the market in the Gulf Coast area of Alabama? I was under the impression that the more acreage you have the better. I have to price this place at appraisal or nobody will be able to get a loan for it and I can't see the appraisal being accurate. Please help. Any resources other than these mainstream would be good.

Zillow and Tax records say 120K but we've doubled the sqft since the last record appraisal.

Our appraiser, using comps, which are almost non-existant for our property, say in the high 70's. Why such a HUGE difference? I can't sell it in the 70's, we'll lose money.

Answer 1

OMG!  Don't bank on them. I don't use Zillow for sales information. The information is old, and inaccurate. For example I listed my own home on there last year for a high price, now when you check it on Zillow it's at a high price. But, we haven't been able to sell it for $376,000, let alone $423,000! So beware of using that information.

Answer 2

Over the years, I have found that zillow and zestimate are completely useless tools for estimating property values. I looked up estimates on those sites after having properties appraised a few times (purchases and refinances) and they were off by as much as $250K on a $760K property (appraised value). The only worthwhile estimate on property values is an appraisal based on a comparison of similar nearby properties and what they sold for recently.

Answer 3

Zillow is never accorate and is not an appraisal.  It is for entertainment purposes only.

The appraisal given by a real live licensed appraiser is the legal one.    He should not have relied on comps though, he should have visited the property himself.

He can not add your additonal square feet if you did not obtain the proper permits to add it in the first place.   Since you are not paying property tax on the addition it sounds like it is an illegal addition.

Answer 4

Zillow and other services are fun sites, but they're not accurate. Here's a link to a column I wrote recently on the subject: http://www.chroniclenewspapers.com/artic...

Also, tax records use assessments, not appraisals. There's a big difference. Also, there's almost no relationship at all between a tax appraisal and what a property is worth. None. Nada. Zilch.

You say your appraiser, using comps, says in the high 70s. However, you live on 3 acres. And you say an unimproved 4 acre lot goes for $175,000 and a 3 acre lot with house goes for $260,000. You don't say what type of structure you live in, or whether you have access to the road...or whether your property is considered more desirable than property on the road. But, without knowing any more than what you've said, it sounds like land is going for about $35,000-$45,000 an acre, at least on the road. So, if you three acre lot is somewhat similar (say they all have septic and all three perc), your three acres without any improvements (house) might be worth in the rough area of $120,000.

Examine your appraisal, and ask the appraiser why his figure came in so low. Point out the properties you mentioned above.

Hope that helps.

Answer 5

In this market the appraisal number is king, if its coming in at 70K then that is the limit a potential buyer will only be able to qualify with a loan, so unless you find some one willing to pay cash you will not find a qualify buyer  

Answer 6

Zillow.com provides a free estimated value for most homes, and that is where it is at, free.  Its appraisal is worth an interesting glance at, but no one really gives it any value than the price it costs to obtain.  Although it sometimes can get awfully close to reality, it serves to give a ballpark range, at best, in most situations.  The records of the most recent sale price, if within 3 months or so, provides a real look at the market in the property's immediate vicinity.  

You mention a very frequent source of price discrepancy from Zillow.com, where the homeowner makes major improvements and the Zillow system is ignorant of the situation.

You will need a licensed appraiser to provide you valuation figures which banks will look at with some seriousness, and a good real estate agent or agency to provide you with 'on the ground' valuation of what the property might fetch on the open market.  Sometimes those two valuations will differ.

Answer 7

Zillow uses tax records and prior home sales to estimate the value of the homes.  This can be used as a rough guide and a fun toy, but it shouldn't be used for truly estimating the value of a house.

Trust the appraisal, not the internet.

Answer 8

Zillow got my house within $10.  Same with my brother's house.  In the last year, Zillow has been a poor guide.  The reason is that it is including foreclosure auctions.   A $200,000 house may end up going back to the bank for $250,000 after the bank adds 14 back payments, 13 late fees, and $20,000 attorney's fees.  Zillow shows it as a $250,000 sale even tho it never "sold"... it just went back to the bank.

Buy a realty agent lunch and ask them to sit at their computer for the 2 minutes it takes them to value your house./

Answer 9

spend about $350 and get an appraisal done so that you know. Zillow is not always accurate.