Home Buying in Mill Creek>Question Details

Belinda Harr…, Home Buyer in Philadelphia, PA

I appraised this house on line @ realestateabc.com for 68,616 when I went back on it states its now appraised @ 74,500. How can that be?

Asked by Belinda Harrison, Philadelphia, PA Fri Dec 9, 2011

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That site, like Zillow and some others, uses algorithms to attempt to determine value. First, understand that the house could well be worth less than $68,616 or more than $74,500. They're really not very accurate. So: Pay no attention to the numbers.

To answer your specific question, it's likely that the numbers that get pumped into the algorithm have changed. The calculations take into consideration what it considers comps or recent sales. So if a property sold nearby for, say, $85,000, it would boost the number for the house you're looking at upward. Or maybe it was using an old comp at, perhaps, $60,000. But now the comp is more than 6 months old so it's dropped out of the calculation, raising the average.

Those algorithms also take into account price moves in your county and, to a lesser degree, in your state. So maybe nothing changed with the house or the neighborhood. But prices rose somewhere else in Philadelphia County.

Those algorithms also consider tax assessments. I don't know when your area comes out with them, but those can exert an upward or downward force on the calculations.

So that's why the number changed. Does it mean that the house actually rose in value? Probably not. Does it mean that the house is now worth $74,500. Absolutely not. Have a Realtor run a CMA for you on the property to get a real idea of the value of the house.

Hope that helps.
1 vote Thank Flag Link Fri Dec 9, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Did you have all the information that an Appraiser has?
Do you know the Concessions that were made on the Comp's to sell them?
Did you use good SOLD Comp's, that were within 1/2 mile of the Subject?
Did you allow for the differences between the Comp's and the subject?
How much did you allow? What is a pool or fireplace worth?
Were the Kitchens upgraded? The baths?
How old were the Heater/AC units?
How good were the roofs?
Was there a discrepancy in the squarefootage of the houses or the lots?
What was the CONDITION of all the houses?
How many Comp's did you use?
What was their Age?

If you didn't allow for everything I just listed, then you didn't do a realistic Appraisal.
That's why they get paid the big bucks.

Good luck and may God bless. Merry Christmas
1 vote Thank Flag Link Fri Dec 9, 2011
I agree with prior comments. Need a licensed appraiser.
0 votes Thank Flag Link Tue Dec 20, 2011
You appraised this house? Are you a licensed appraiser?
These sites do not do legal, licensed appraisals.
0 votes Thank Flag Link Fri Dec 9, 2011
Hello Belinda, Happens all the time... that’s why Banks sometimes want 2 appraisals’s before issuing a mortgage commitment.
Also there is a limited time that an appraisal can be used for a home value i.e. market changes, updated recent home sales in your area etc….

In essence an Appraisal is an Estimate of value, as for sale, assessment, or taxation; valuation.

For additional info? Feel fre to touch base with us at 215-757-2889
All the best, John + Sheri Curci RE/MAX Properties
Web Reference: http://www.HomeCatch.com
0 votes Thank Flag Link Fri Dec 9, 2011
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