2224 Sacramento was on the market for $6,250,000, taken off for the Christmas holiday, then came back on the market for $5,900,000. The estimate Zillow provides of $4,575,000 is based on average sales in the neighborhood, which often includes homes that are not as comparable as one thinks: they may have different bedroom and bath counts, # of parking spaces, yard size, and square footage to name a few things. Zillow also doesn't pay attention to the minute differences in location that are so crucial in San Francisco - one block can be a huge gain or loss in value than the the next. Homes of this scale in Pacific Heights are currently selling between $5,000,000 - $10,000,000 depending on location, condition, architecture, and of course, what block it's on!
You mention a 2012 appraisal in your question, but there is no 2012 appraisal on this property profile. What you are looking at are numbers pulled directly from tax records, and they are what the City of San Francisco uses to calculate property taxes. SF bases it's property tax on the assessed value at the time of purchase. So what you are seeing is the city tax rate, not what the city thinks the home is worth. If you were to purchase this home for $5,900,000, then the City would tax use $5.9M as the tax base. So the number you see there is irrelevant to both Zillow's estimate and what the seller is asking for the home.
I hope this is clear but if you have more questions feel free to contact me.
McGuire Real Estate
The reason the property is higher is because of the following:
1. Appraisals often have very little to do with real world value.
2. The market has gone up considerably in the last year.
If you would like to see this property or other similar ones, contact info below:
Lance R. King
King Realty Group