HUD Uses Zillow Valuations on Short Sales

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Real Estate Agent with RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate
https://activerain.com/droplet/4b5v

HUD Uses Zillow Valuations on Short Sales

Coming up with a home sale price on a RI short sale should not be like bobbing for apples.  Should it?  All I can say that my last short sale approved sales price was fromfortune cookie short sale home bowl Zillow!  Yes, both my seller and I happened to look at their zestimate and lo and behold were struck it was the new price the bank wanted.  The buyer could not believe it either since his family had found the same figure online.
 
Now the BPO had been done before I listed the home as a short sale.  The bank appraiser knew the neighborhood and current comps.  I am sure he did not come up with this figure.  My comparable home price analysis was a couple of thousand below this bank approved price.  Condition, location and the right price makes a RI real estate sale happen whether it is a regular sale or a short sale.  
 
My experience on pricing well has been very good on short sale property and rarely challenged by the bank.  Yes, I do get a bit upset when even my current home price is not supported by the new 'Z' price.  I take ownership in my home pricing!  
 
Well the home buyer really wanted this house and has accepted the new price the bank is asking for (demanding).  Personally, if I were representing the buyer, I would have done the comps and sent it back in holding firm with my offer but it is not my call.  Representing the seller is my business here and all I want is a good strong offer to make the short sale lender happy.  We got it, we now wait for the approval letter and I am happy to say my seller will be given relocation expenses.
 
Just what galls me is that the new number looks like it comes from Zillow!
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 Ginny Lacey Gorman is a Rhode Island coastal real estate agent who works and knows the RI geographic area of homes for sale, schools, happenings and important tidbits of information well.
 
Coastal, water view, ocean front, luxury and waterfront Rhode Island real estate are my specialty.  If you are considering Buying, Selling or Relocating to Rhode Island and need a real estate Professional it would be my pleasure to help you!    When you are in need of an internet savvy RI realtor® who sells homes in this real estate marketcall Ginny today at 401.529.7849 or email at RiByTheBay@gmail.com. 
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the RI waterfront Realtor of Choice

 

Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.

 

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Rainmaker
1,793,777
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Deb, it just was crazy that it was the same figure as Z!

John, you are so right that they don't have any idea on condition...thanks

Ray, you are making my day!

Marney, unfortunately buyers are always looking at those sites.

George, waiting for that short sale approval letter as soon as I get the buyer to get to his agent a new POF.

Jan 28, 2014 04:01 AM #12
Ambassador
3,678,450
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Ginny, AAAARRRGH!  Zillow has so many disclosures so that people understand this price is coming from an algorithm that has never been inside the property.  I wouldn't think lenders would be more informed that the average home buyer.

Jan 28, 2014 06:32 AM #13
Rainer
25,312
Brandon Vukelich
BV Real Estate - Auburn, WA
Exceptional Service. Stellar Results.

Interesting.  I wondered if that was occuring, figured it was possible.  Owners in our area LOVE to refer to Zillow's omniscient data.  Drives me crazy.  Good luck on closing soon!

Jan 28, 2014 07:03 AM #14
Ambassador
3,983,135
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have seen that too in a couple of instances. I have been told by bank reps that they have bought the program and trust it to be equally or more accurate than what agents are doing. They have told me that the word is the agents are trying to beat down the prices in a rising price market

Jan 28, 2014 08:05 AM #15
Rainmaker
275,382
Susan Jacobsen
The Alliance Group Realty - Hilton Head Island, SC
20 Years Providing WOW Real Estate Service

Oh boy Ginny- don't get me started on this - I get soooooooooooooooo annoyed with this and Debbie's comment above really is aggravating. Obviously it's stupid - yes I said stupid - to think that 'agents are trying to beat down prices' - we're on commission. And as far as Z or any other online marketer being better than the agents that's a load of baloney. Most of the time they still have properties posted that are sold, contingent, or pending, and their information even on some of the sale information is incorrect - if it is a trust purchase for $1 or $10; they report that price. Whatever, sorry this so struck a nerve - you were totally correct not to get involved on the other side but I know you were aggravated.

Jan 28, 2014 08:27 AM #16
Rainmaker
843,253
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Wow, Ginny, if that's the case some of the short sales I see will never go through because Z has no idea that the interiors needs thousands of dollars in repairs.

Jan 28, 2014 08:44 AM #17
Ambassador
2,561,917
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Ginny, for the first time in years, the 'F' banks have shown a profit, and using figures like these and ignoring facts is one of the ways they are doing it

Jan 28, 2014 09:14 AM #18
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

This is price setting, and it's not kosher at all.  If the real estate current market value is X and Z says Y . . . it's price fixing.  Banks and Z need to keep at arm's length I would suggest, no?!?  The comps are the comps and price gouging is price gouging

Jan 28, 2014 10:00 AM #19
Rainmaker
1,086,367
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

How about we all agree to never buy a single product from Zillow? Problem solved. Our listings don't need to be "fed" to the green slime over in Seattle.

Jan 28, 2014 10:23 AM #20
Rainmaker
1,838,240
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I looked up an address on Trulia this weekend that I felt was low at $340,000 but imagine my shock when Zillow was trying to buy the listing at $440,000 !!!

Jan 28, 2014 11:29 AM #21
Rainmaker
1,317,551
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Oh my -- I hope that this is not going to be a trend. 

Jan 28, 2014 11:56 AM #22
Rainmaker
2,771,203
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
Never ignore facts! Amen to that! Love and light, Laura
Jan 28, 2014 01:00 PM #23
Ambassador
1,653,307
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Ginny I was not aware of this.  I wonder if the bank consider what Zillow itself acknowledge about the Zestimate.

Jan 28, 2014 02:18 PM #24
Ambassador
2,758,551
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning, Ginny. I do not have a dog in the hunt on this one. I have no idea on how to even respond this post.

Jan 28, 2014 06:15 PM #25
Rainmaker
2,265,996
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Ginny. I don't get the common sense for using Zillow for an valuation.

Jan 28, 2014 06:26 PM #26
Rainmaker
1,793,777
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Thanks all...I hope it is not a trend and right now I am happy that we were able to get the buyer up to agree to the bank's short sale price.  Other battles will be waged with the banks another time!

Jan 28, 2014 06:53 PM #27
Rainmaker
385,820
John F Muscarella
RIVER FARM PROPERTIES, LLC - Venice, FL
Broker/Owner, Venice, FL, Florida's Suncoast

Ginny, hard to believe anyone takes Zillow's valuation seriously.  I don't recall ever seeing one that is/was accurate. 

Jan 28, 2014 07:02 PM #28
Rainmaker
2,463,594
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Everyone is a Real Estate expert now a days...Opinions everywhere too. Give me an area agent everytime if you want the best transaction experience bar none...

Jan 28, 2014 10:51 PM #29
Rainmaker
372,890
Judy Jennings
The Green Company - Ashland, MA
Broker - The Lanterns at Warren Woods - Ashland MA

Good for you and the seller that the buyer was willing to come up to the price the bank wanted for the short sale. Hope the new bank comes in with an appraisal that supports the purchase price or things could get tricky. Ohhhh... the dilemma of the short sale.

 

Jan 29, 2014 05:09 AM #30
Ambassador
1,296,148
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Oh, Ginny!   The bank used Zilllow's Zestimate?     Crazy, but even crazier if the appraiser did!

Jan 31, 2014 10:17 AM #31
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