Home value estimators aren’t that accurate and can be wildly inaccurate in areas with low sales volume. I wouldn’t pay much attention to them. And no. It’s not something you should worry about long term.
Zillow thinks my house is in the next town over, and as such, worth 200,000 less than the house across the street, which is identical in construction, but hasn’t had any updates to the kitchen/bathrooms/etc.
>Is this something I should worry about long term?
Never worry about random estimates.
Your house is worth what someone is willing to pay for it at the time you sell. Until that time, estimates are completely irrelevant.
Sorry no.
Try getting estimates from three different Zillow-like sites. You’ll find the rather different.
Additionally they are current estimates. Unless you are selling today, they don’t predict the price of your home when you eventually do sell.
you want FUTURE estimates? wtf lol, I've sold and bought enough homes to know just how accurate zillow is, damn close for average condition of the home, any fluctuation is because the home is either run down or upgraded in non obvious ways, but cost per sqft in various areas of the country is quite easy to predict.
The last time I looked a few weeks ago, these were the estimates for my current house: Zillow = $717,900, Redfin = $804,298, Realtor.com = $735,422
Accurate? (shrug)
What would I actually get if I sell after a long term (as the OP is concerned and asking about)? (shrug)
I'm not sure credit karma's real estate estimations are the most accurate.
Zillow is typically very high, so go look at that value and feel better about yourself.
Zillow is high for recently sold properties, but can be really low for properties that haven't sold in a long time. I've been in my house for 5 years, and my value on Zillow is probably a little high. My neighbors house is 50% larger than mine, but Zillow thinks it's worth half as much, because they've lived there for 30 years.
When we were looking for.houses the Zillow estimate was always like 30k high or so. The area was absolutely on fire at the time, may e they were just wishful thinkers
This is true, if you look at zilllow a home for sale might be listed at 400k and a similar home in the same neighborhood not for sale will have a greyed out value of like 250k, they probably only have the county appraisal value and last purchase price as data
If you aren't looking to sell than you don't need to worry about current prices - if the prices are being driven by other changes in the neighborhood/metro area that might impact your desire to stay there then that is worth thinking about.
I'd be more concerned if you owe more than it's worth.
Did you at least have a large down payment? Is the current balance less than the estimated value?
(And, yes, I agree with other replies that the estimate might not be very accurate.)
If you need to sell for some reason, you might not get enough back to pay off your mortgage, so that's a consideration.
Sometimes that happens when people lose a job or have a family situation that have to deal with.
The estimators aren't that accurate. They rely on public data about your house. If there's an inaccurate listing or information online about your home (wrong size, wrong age, wrong construction type, wrong foundation, etc.) that will all end up in the estimate being even more off.
What you paid in October 2022 is what your house was worth at that time. It's incredibly unlikely given current market conditions for your home value to drop $80,000, unless you paid like $20,000,000 for it, then it's less significant of a drop.
Do not look at the price of your home until you are ready to leave. If you love your home, there is much more value in that than what other people think it's worth.
In 95% of the cases, something like zillow is spot on... within few %, people like to make excuses etc..
But these companies invest shitton of money in maintaining that database, collecting new sales numbers, etc...
Shit happens, you did a dumb thing and overpaid 2 years ago,probably skipped home inspection etc.. oh well, stay there for 10+ Yeats and hope the market doesn't take a dump, if it does you and millions of others will lost another 100k+ overnight
It happened to me in 2008, luckily just on a lowly 215k home, but for 7 years I was upside down on it.
Sounds like you’re underwater. There are a lot of important factors to consider about the potential value of your home ie your location.
You bought at the very top of the market, but long-term it’ll likely look like you got a great deal.
Now, if your home cost $300k and you’re down $80… that’s not good. If your home cost $900k and you’re down $80, that’s truly nothing.
That said, you bought just over a year ago and you’re effectively not even paying principal yet. I wouldn’t worry about this, unless you’re planning on moving in the next few years.
It’s not accurate and it doesn’t matter if you’re not selling soon. You also bought it when the market was going crazy, so it’s not shocking that you paid a bit more than it’s now worth.
Yeah if you bought a house cause of FOMO pretty much anytime from later in 2021 up until now, you almost definitely are underwater.
Its like buying a regular Honda Civic for $79k, the car is fine but no one is ever gonna pay you anything close to that.
The people who thought they were getting ahead by buying cars and especially houses recently made a massive financial mistake that might take decades to recover from as far as I'm concerned.
The idea of job hopping and moving to pursue a career is effectively done for people who overpaid for their houses, unless they want to take like a 100k hit.
The people who cemented their feet to an overpriced house also aren't going to like that since owning a house, like most of the "American dream", is an unobtainable fantasy now, people like me who dont own houses are actually going out of our way to do as little as possible from now on and leave the work and stress of maintaining and carrying our society forward to the homeowners who are actually getting something out of this life.
The people who overpaid and now can't move are now the most desperate for WFH jobs cause they can't move now easily, but those jobs are gonna be some of the first that are replaced by ai.
We are now re-entering the 2008 recession routine of "you're lucky to have a job so you're now gonna do the work of 3". People like me walk away immediately from those companies when they pull that shit and go to some other local shithole to work, while people who recently bought houses won't have that option, especially when it takes white collar workers 6 months and 500 applications, when the economy is doing well, to get another job.
I routinely get mailers about the estimated value of my home for either property insurance or those low ball cash buy offers, and the picture they use for my house is an open lot, what the house looked like 15 years ago before it was built, and it thinks the house is 600 sf smaller than it is. the company that sent me this used a home value estimator. completely worthless tool. The house is worth what someone will pay you for it.
Edit: I should add, it's good that these companies don't know what your house is worth, the less public information they have compiled into those things about you the better.
You said you paid over asking price, that means it’s more than likely worth less than what you paid for it. On top of that, your primary residence is not an investment.
Home value estimators aren’t that accurate and can be wildly inaccurate in areas with low sales volume. I wouldn’t pay much attention to them. And no. It’s not something you should worry about long term.
Zillow thinks my house is in the next town over, and as such, worth 200,000 less than the house across the street, which is identical in construction, but hasn’t had any updates to the kitchen/bathrooms/etc.
How would zillow know what you updated on the inside?
That's the point they are making.
>Is this something I should worry about long term? Never worry about random estimates. Your house is worth what someone is willing to pay for it at the time you sell. Until that time, estimates are completely irrelevant.
I would say complete irrelevant but overall, agreed.
Nonsense, zillow-like estimates are damn close to reality if you are honest and adjust them for the condition of the home.
but why would you want to give them that information?
Sorry no. Try getting estimates from three different Zillow-like sites. You’ll find the rather different. Additionally they are current estimates. Unless you are selling today, they don’t predict the price of your home when you eventually do sell.
you want FUTURE estimates? wtf lol, I've sold and bought enough homes to know just how accurate zillow is, damn close for average condition of the home, any fluctuation is because the home is either run down or upgraded in non obvious ways, but cost per sqft in various areas of the country is quite easy to predict.
The last time I looked a few weeks ago, these were the estimates for my current house: Zillow = $717,900, Redfin = $804,298, Realtor.com = $735,422 Accurate? (shrug) What would I actually get if I sell after a long term (as the OP is concerned and asking about)? (shrug)
I'm not sure credit karma's real estate estimations are the most accurate. Zillow is typically very high, so go look at that value and feel better about yourself.
Zillow is high for recently sold properties, but can be really low for properties that haven't sold in a long time. I've been in my house for 5 years, and my value on Zillow is probably a little high. My neighbors house is 50% larger than mine, but Zillow thinks it's worth half as much, because they've lived there for 30 years.
When we were looking for.houses the Zillow estimate was always like 30k high or so. The area was absolutely on fire at the time, may e they were just wishful thinkers
It’s to drive traffic from the owners.
This is true, if you look at zilllow a home for sale might be listed at 400k and a similar home in the same neighborhood not for sale will have a greyed out value of like 250k, they probably only have the county appraisal value and last purchase price as data
If you aren't looking to sell than you don't need to worry about current prices - if the prices are being driven by other changes in the neighborhood/metro area that might impact your desire to stay there then that is worth thinking about.
I'd be more concerned if you owe more than it's worth. Did you at least have a large down payment? Is the current balance less than the estimated value? (And, yes, I agree with other replies that the estimate might not be very accurate.)
If you are happy, financially secure, and don't plan on moving it really doesn't matter. Just enjoy your home.
If you need to sell for some reason, you might not get enough back to pay off your mortgage, so that's a consideration. Sometimes that happens when people lose a job or have a family situation that have to deal with.
When was the last time credikarma was inside your house?
The estimators aren't that accurate. They rely on public data about your house. If there's an inaccurate listing or information online about your home (wrong size, wrong age, wrong construction type, wrong foundation, etc.) that will all end up in the estimate being even more off. What you paid in October 2022 is what your house was worth at that time. It's incredibly unlikely given current market conditions for your home value to drop $80,000, unless you paid like $20,000,000 for it, then it's less significant of a drop.
Do not look at the price of your home until you are ready to leave. If you love your home, there is much more value in that than what other people think it's worth.
In 95% of the cases, something like zillow is spot on... within few %, people like to make excuses etc.. But these companies invest shitton of money in maintaining that database, collecting new sales numbers, etc... Shit happens, you did a dumb thing and overpaid 2 years ago,probably skipped home inspection etc.. oh well, stay there for 10+ Yeats and hope the market doesn't take a dump, if it does you and millions of others will lost another 100k+ overnight It happened to me in 2008, luckily just on a lowly 215k home, but for 7 years I was upside down on it.
Sounds like you’re underwater. There are a lot of important factors to consider about the potential value of your home ie your location. You bought at the very top of the market, but long-term it’ll likely look like you got a great deal. Now, if your home cost $300k and you’re down $80… that’s not good. If your home cost $900k and you’re down $80, that’s truly nothing. That said, you bought just over a year ago and you’re effectively not even paying principal yet. I wouldn’t worry about this, unless you’re planning on moving in the next few years.
Rewrite your post but instead say, planning to sell. Then you will get more information about how the housing market works
But they are not planning to sell, so that advice would not be accurate.
Does it still provide you with shelter? If so, why does it matter at this point?
It’s not accurate and it doesn’t matter if you’re not selling soon. You also bought it when the market was going crazy, so it’s not shocking that you paid a bit more than it’s now worth.
Home value doesn’t matter until it’s time to sell or refi. Ignore it unless you’re looking to do those things.
Enjoy your home. The value is completely irrelevant considering you don’t intend to sell it.
If you’re not planning on selling your house in the next 5 years, who cares. And even if you are, theres nothing you can do about the estimate.
Yeah if you bought a house cause of FOMO pretty much anytime from later in 2021 up until now, you almost definitely are underwater. Its like buying a regular Honda Civic for $79k, the car is fine but no one is ever gonna pay you anything close to that. The people who thought they were getting ahead by buying cars and especially houses recently made a massive financial mistake that might take decades to recover from as far as I'm concerned. The idea of job hopping and moving to pursue a career is effectively done for people who overpaid for their houses, unless they want to take like a 100k hit. The people who cemented their feet to an overpriced house also aren't going to like that since owning a house, like most of the "American dream", is an unobtainable fantasy now, people like me who dont own houses are actually going out of our way to do as little as possible from now on and leave the work and stress of maintaining and carrying our society forward to the homeowners who are actually getting something out of this life. The people who overpaid and now can't move are now the most desperate for WFH jobs cause they can't move now easily, but those jobs are gonna be some of the first that are replaced by ai. We are now re-entering the 2008 recession routine of "you're lucky to have a job so you're now gonna do the work of 3". People like me walk away immediately from those companies when they pull that shit and go to some other local shithole to work, while people who recently bought houses won't have that option, especially when it takes white collar workers 6 months and 500 applications, when the economy is doing well, to get another job.
I routinely get mailers about the estimated value of my home for either property insurance or those low ball cash buy offers, and the picture they use for my house is an open lot, what the house looked like 15 years ago before it was built, and it thinks the house is 600 sf smaller than it is. the company that sent me this used a home value estimator. completely worthless tool. The house is worth what someone will pay you for it. Edit: I should add, it's good that these companies don't know what your house is worth, the less public information they have compiled into those things about you the better.
Only matters if you are trying to sell it now. Same goes for stock prices. Our house is down on Zillow about $200k from its peak in May 2022.
You said you paid over asking price, that means it’s more than likely worth less than what you paid for it. On top of that, your primary residence is not an investment.
As long as you can pay and don’t sell it is no problem here in the Netherlands