How can my house decrease in value 1k, while another 2 doors down exactly like mine increase 4k?

Question

I checked my home on zillow.com and the house 2 doors down from me sold 1 month ago and it has the same floorplan, same pool, everything the same. Zillow had it worth more...is that a website to trust? We are going to be listing our house and have done some comps online, and within one week, there was the increase for that home and the decrease for our home. Nothing has changed.

Answer 1

I don't think the other respondents understand what you are talking about. I do. I have also wondered how Zillow sets significantly different prices for two homes that are exactly the same and in close proximity on the same street. And other respondents must realize that Zillows can't possibly check the condition or interior of every house in the U.S.

The only logical reason I can think of is that Zillows is just randomly differentiating the prices to make its service seem more accurate and credible. I think CMAs from a few real estate agents would be more accurate.

Answer 2

Without knowing any specifics, such as what area you are talking about, what the 2 houses in question are like, or when/if they sold, this is hard to answer.

If we were talking about the Toronto market, which is my home turf, then I could assume that the houses in question are around the local average of approximately $350,000. Thus we could be talking about houses that sold for $349,000 and $354,000 - a marginal difference at best.

So, what would account for that difference? Almost anything, to tell the truth. From buyers liking one colour of paint better, different decorating, buying at different times of the year, etc. Could even be that the one seller had a tougher negotiator as an agent. One buyer may even have just been a little looser with the purse strings.

If the different were in the $10-20,000+ range, then there would be much larger and more serious issues at hand. Could be anything from one having a newer roof than the other to one having a pool in the backyard.

People are a strange lot, they do things for their own reasons. It can be hard to know just why someone did something, you don't know the reasoning process that went on in their head.

Answer 3

Do you know the terms of the comparable homes? Are these value adjustments based on actual sales or are you quoting an assessor's evaluation for tax purposes? If your neighbor's house sold for $4000 more than your's it is possible the seller offered more with the sale, such as buyer's closing costs, buydown points for a lower interest rate, appliances, an antique car in the garage, etc. You need more information to make an accurate comparison. \

Answer 4

First off, I am not sure how you are able to ascertain a $1,000 movement in the real estate market.

Changes in value can happen for many reasons (especially if they are that small).

The difference between your house and the other house could be:
style of the house, age of the house, square footage of the house, size of the lot, extras (basement, garage, pool, lawn, etc).

Answer 5

It could be the way you have maintained your home inside that makes a difference in price. Some homes can be the same but if one was maintained to perfection while the other one hasnt...well that changes the value or if they have made upgrades that you are unaware of

Answer 6

Assuming neither of you live on a corner, appraisals have an error function built into them. Choice of comparable homes determines the estimate. Depending upon the gross value of your home, a difference of $5,000 may be statistically equal. They may both be within the standard error of the estimate.

http://en.wikipedia.org/wiki/Standard_error_of_estimation

Answer 7

neighbors? landscaping? siding? windows? driveway? there could be many reasons for this==I would look and see what exactly is different or new with their house plus the size--maybe the indoors is split with more bedrooms or more bathrooms or newly remodled===if it is hust an outdoor appraisal then check the size-and other different info--houses directly surrounding you make a big difference too.

Answer 8

It depends how you know this. If two similar houses sold for 4K more than yours they should be able to use those sales as comps for an appraisal.

Answer 9

How do you know it decreased in value by $1000? Did you sell it for less? If so, you just got a cheaper buyer.

Answer 10

Different school district ? other house has better curb appeal and home improvement inside ? so many things to consider....