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Re: Zillow. Are you really going to take the opinion of a website that has never looked at your house over someone who has actually walked thru your house?
Thank you! Just curious as to why the Zillow estimate is no good. Wouldn't they be using the same stats the real estate agents use? They can't *always* be off, can they?
They can't always be right, that's the problem, when they are right it's just by coincidence. The have no idea of the condition of the home, or any upgrades. They don't know the actual comps and how they relate to a particular property.
We've never sold a house before, so treat us like the dummies we are. I'm already confused and we haven't even really started the process yet. There's a big disparity between the Zillow estimated cost of what our house is supposedly worth ($180,000) and what our (very tentative) real estate agent is telling us we could sell it for ($160,000). He's also telling us we'd be stuck paying all the closing costs which would be another $20,000. This means it would cost us $40,000 to get out from under this house (we've been here seven years). I understand that we bought high and the area we're in hasn't quite recovered, but it's supposed to be a seller's market right now--am I missing something here????
Also, how many real estate agents does someone usually consult before they pick the one they're going to go with. I'd really like a few more estimates of what we could reasonably get for the house. We're in a nice neighborhood and definitely not the most expensive house on the street. It doesn't seem like it should take 40K to get us out of here.
You agent is way off on what it will cost you to sell. 6% or so for Realtor fees which is around $10K and the closing costs for seller are not that high. The only way you will be out more money if you offer concessions towards the buyers closing costs, that can cost you an extra up to 6%. Do your research online first. Sellers Must Pay Closing Costs Too - Sell - realtor.com | realtor.com®
Zillow is good for one thing, and that is looking at pictures of houses, so that you can see what they look like. That's about it. Almost all of their data is incorrect and you can't go by any of that on their website.
...They had it listed as sold in 2013 for $350K. It took me a while to figure out what happened and how they came up with that figure, etc. Turns out, I remembered that I had refinanced it to get a shorter term and lower interest rate. They didn't know that fact, so they just put that it had sold for that price. ...
Zillow probably used that $350K from your home as data to value another 1000 homes nearby. Zillow claims any change in deed to be a sale. So, for example a young lady buys a home for 200K in 2010 and then gets married in June 2016 and adds her new husband to the deed. Zillow records that as "sold in June 2016 for $200K". And probably uses it as a data point for another 1000 homes.
We've never sold a house before, so treat us like the dummies we are. I'm already confused and we haven't even really started the process yet. There's a big disparity between the Zillow estimated cost of what our house is supposedly worth ($180,000) and what our (very tentative) real estate agent is telling us we could sell it for ($160,000). He's also telling us we'd be stuck paying all the closing costs which would be another $20,000. This means it would cost us $40,000 to get out from under this house (we've been here seven years). I understand that we bought high and the area we're in hasn't quite recovered, but it's supposed to be a seller's market right now--am I missing something here????
Also, how many real estate agents does someone usually consult before they pick the one they're going to go with. I'd really like a few more estimates of what we could reasonably get for the house. We're in a nice neighborhood and definitely not the most expensive house on the street. It doesn't seem like it should take 40K to get us out of here.
First of all: Zillow is only mildly interesting, kind of like an Ouija board -- it is FAR from defining the market value of your home. Ignore it, and instead, focus on what homes around you have sold for in the last year, preferable the last six months.
You should interview at least two, and preferably three Realtors in order to identify one that will market the heck out of your property and be a great negotiator when offers come in. $20K in closing costs on ANY house under $200K is completely and totally ridiculous, unless the agent is also including necessary repairs needed to bring the house to market . . . and at that, they better be pretty hefty repairs, including a new roof and a new HVAC! Closing costs, at most, would run about 3-6% - that's $6-12K -- and even that is highly negotiable, starting at zero. You CAN refuse to pay closing costs.
However, your agent could have been rolling the commission into the closing costs -- they are two different things, but for simplification purposes, if the agent's fee is 6%, and you elected to the pay up to 6% in closing costs, then that WOULD be $20,400 on $170,000.
Each agent you interview should come with a preliminary range for your list price, which may be adjusted after they get a good look at what features your home has -- i.e., if a similar house down the street has recently sold, with a granite and stainless kitchen and a 2 car garage, and you still have formica and a carport, yours is likely going to be downgraded in price. Some agents will even ask to come preview the house before their listing presentation, to see the condition of the house and estimate the improvements to compare to other sales. Beware of agents who give you inflated values, trying to get you to list with them, and then have the house sit on the market before dropping the price to a realistic level. Wouldn't you love to hear that your house is worth $220K? Sure you would -- but be realistic. If no other home in your neighborhood has sold for over $190, what makes the agent think it would fetch over $200?
Zillow is good for one thing, and that is looking at pictures of houses, so that you can see what they look like. That's about it. Almost all of their data is incorrect and you can't go by any of that on their website.
To give you an example - when I looked at my own current house just out of curiosity a few years ago, I saw that they have it listed as sold, just a few years after we bought it, for a MUCH lower and ridiculous price - many thousands of dollars less than what we originally paid for it and many thousands of dollars less than it is actually worth. These aren't the actual numbers or years, but to show you what I mean - say I paid $500K for it in 2008 and it's still worth more or less about the same. They had it listed as sold in 2013 for $350K. It took me a while to figure out what happened and how they came up with that figure, etc. Turns out, I remembered that I had refinanced it to get a shorter term and lower interest rate. They didn't know that fact, so they just put that it had sold for that price. I knew it was wrong, because I hadn't sold it and I still haven't moved from this house. It hasn't even been for sale or on the market since I bought it.
Hope that helps!
So that's why I'll see weird sales on some houses! That explains it all. I've often wondered how a house would sell a year or 2 later for much less money.....makes so much sense now.
You should interview at least two, and preferably three Realtors in order to identify one that will market the heck out of your property and be a great negotiator when offers come in. $20K in closing costs on ANY house under $200K is completely and totally ridiculous, unless the agent is also including necessary repairs needed to bring the house to market . . . and at that, they better be pretty hefty repairs, including a new roof and a new HVAC! Closing costs, at most, would run about 3-6% - that's $6-12K -- and even that is highly negotiable, starting at zero. You CAN refuse to pay closing costs.
However, your agent could have been rolling the commission into the closing costs -- they are two different things, but for simplification purposes, if the agent's fee is 6%, and you elected to the pay up to 6% in closing costs, then that WOULD be $20,400 on $170,000.
I would not say $20K in closing costs is completely and totally ridiculous. Closing costs encompasses a great deal of things and it's not the same everywhere. Some places the commissions are 7-8%. There's also taxes and fees required by law and many of those laws determine who pays. Where I live, closing costs include property and school taxes. They are prepaid for a year. Where I live, property taxes are very high so when you add all these items up $20K is not far off! My last closing was over $17K for a house that was $158K. And by law, you can't refuse to pay closing costs where I live. Both buyers and sellers incur closing costs. Sellers can contribute to the buyers closing costs, but they don't have to.
Zillow sent me my monthly update yesterday. And using that new math I keep hearing about, the value of my house increased by almost $11K in the last month. They're absolutely full of crap!
I would not say $20K in closing costs is completely and totally ridiculous. Closing costs encompasses a great deal of things and it's not the same everywhere. Some places the commissions are 7-8%. There's also taxes and fees required by law and many of those laws determine who pays. Where I live, closing costs include property and school taxes. They are prepaid for a year. Where I live, property taxes are very high so when you add all these items up $20K is not far off! My last closing was over $17K for a house that was $158K. And by law, you can't refuse to pay closing costs where I live. Both buyers and sellers incur closing costs. Sellers can contribute to the buyers closing costs, but they don't have to.
Agreed! Closing costs include property taxes to the buyer, county stamps (some states), lawyer fees, commissions, etc. Ask the realtor for an estimated sales disclosure of fees, this will show all "estimated" closing fees and a "net" figure you would walk away with based on an "estimated" sales price. All realtors should be giving you this anyway so you know what your bottom line is.
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I'm already confused and we haven't even really started the process yet. There's a big disparity between the Zillow estimated cost of what our house is supposedly worth ($180,000) and what our (very tentative) real estate agent is telling us we could sell it for ($160,000). He's also telling us we'd be stuck paying all the closing costs which would be another $20,000. This means it would cost us $40,000 to get out from under this house (we've been here seven years). I understand that we bought high and the area we're in hasn't quite recovered, but it's supposed to be a seller's market right now--am I missing something here????
