Comments on: Has your home been undervalued?

By: Afraid Of Your Own Shadow

Afraid Of Your Own Shadow — Mon, 09 Nov 2009 15:11:48 +0000

I am actually fascinated by a story at AJC.COM dated 11/9/09 which talks about home prices creeping up. It linked to this story and I MUST call foul regarding the reliability of this information. There is alot of talk about Zillow dot com. The information in Zillow is HUGELY unreliable as it is mostly culled from data input by participating Zillow members – in other words a VERY small sample of Real Estate professionals. I cannot stress enough that the conclusion from the 11/9 article that “prices in Oxford GA are up 25%” is so far off it is not even funny – it is horribly tragic. ROckdale and Walton Counties are amongst the worst – with prices actually OFF by anywhere from 20-30% from a year ago. This is due to a HUGE incidence of half-built subdivisions, bankrupt builders – and also notoriously in Rockdale cCounty – Tax Rates on already-foreclosed homes (an “Investor” rate) that completely torpedoes any sales price due to an exhhorbitant CURRENT YEAR tax rate due to the property NOT being held by an Owner Occupant. An Owner Occupant buying such a home THIS YEAR may be faced with “absorbing” a $6,000 tax bill and CANNOT change it until NEXT year. This is just one of MANY problems.

To the comment by “DW” – be careful of assuming that an internet resource like Zillow will eliminate the need for Real Estate professionals such as appraisers – the data is not reliable – not yet anyway. Check back in 5 years.

By: DW

DW — Thu, 15 Oct 2009 13:19:50 +0000

To Dan: Are you guys hiring at all?

By: Dan Fries

Dan Fries — Thu, 15 Oct 2009 01:33:04 +0000

As an appraiser of 25 years, we do not like the new way the lenders now order- a mangement company and many deals go to the low bidder. That is why our firm has found other users of appraisals. Zillow.com is great in a tract s/d, but can be wrong by over by over 100% if you have a finsihed basement, renovation, upgrades or a site issue good or bad. It bascially gives you an average and can’t adjsut for many items. Don’t blame the appraiser, blame Barry Frank and congresss who let the mangement companies have total control at the 10th hour.It was a good law until they let their firends that own a few national appraisal mgt. companies hit the lotto. We are busy, we just now work for people that are willing to pay for a professional appraisal and let the mangment companies go find the bottom feeders who work cheap and are not willing to dig and do the extra it takes to come up with accurate value in today’s market- which has been declinning for the last 10 months. Sorry- but that is what has happened.

By: DW

DW — Wed, 14 Oct 2009 21:44:57 +0000

With resources like Zillow.com, it makes one wonder if human real estate appraisal services are going (or should go?) the way of the buggy whip. Any thoughts?

By: #1 Foxy Lady

#1 Foxy Lady — Wed, 14 Oct 2009 13:40:31 +0000

I bought a house at foreclosure auction a month ago. The builder built it for +/-$600K. I bought it at the auction for $225K – cash, no loan. When you buy a house, you should buy low and then sell when prices are high. I am glad I was patient while the suckers were falling all over themselves to buy in ‘06 and ‘07.

Houses will not magically appreciate anytime soon and lenders are not going to make stupid loans anymore to bail people out. The only people to get bailed out were the big banks, by the government, and at the expenses of the taxpayers. Sometimes those taxpayers’ dollars will come from the same suckers whose houses are under-water and can’t get new loans.

Seems hugely unfair, no?

By: Guilty of following the rules

Guilty of following the rules — Wed, 14 Oct 2009 11:32:32 +0000

I purchased a home in the Gwinnett area about 2 years ago just as the market was cooling down. This subdivison was in the first phase and just stopped growing. All but 2 builders have left the subdivision. I am not in forclosure so I can’t get help from the government. I tried to refi but I was told I need to pay for the apparaisal out of pocket. Normally, I was able to roll it into the new loan but that does not seem to be an option. Since brand new houses in my subdivison are being sold for about 100k less than mine, I really don’t have too may options.I was told by many lenders that the house has to appraise for the loan amount. So if my property is worth less I am stuck.

I can’t refi , will not allow myself to go to forclosure. My last option is to go for a loan modification. I am trying that now and hopefully my bank will help me out. I had to learn my lesson the hard way!