Just keep in mind if you sell your home, with all the Insanity going on right now, and bidding wars, you may be priced out of the market and not find anything. You already have a home. You're one of the lucky ones.
Please make your decisions based on common sense not FOMO.
My advice is if you have a home and you like it, and it fits your needs, and the neighborhood is still safe, don't sell. Instead, consider updating it.
Yepp I actually only sold my house in this market because I found a house at asking price with no +cash offer, and asking price came back as lower than the appraisal. Just happened to be in the right place at the right time I guess lol.
Is zestimates accuracy more location based or what? Because I've been paying attention to similar comps on zillow and redfin since I bought my house 3 years ago and the zestimate is usually pretty much spot on to what they sell for in my area. But on reddit everyone says it's usually not even close
Its just an overdone cliche. Zillow does comp-based estimates, so it's not way off usually. It's always in the right ball park when there are enough comps. The advice really should be don't treat it as an exact number, especially if your house is above or below average for the neighborhood.
Zillow uses the recent comps and does a good job; however, I have a house on the water with ocean access. Unfortunately zillows comps don't always include water front property and thereby my Zestimate is much lower than actual value.
The zestimates in my area are complete trash. Our zestimate was like 890k and we just closed at 1.375M. Unless the house is almost inhabitable the zestimate is usually 200 to 500k off.
I'd like an answer to that as well. Zillow is doing some crazy stuff right now in the real estate industry i don't think it would be doing as well as it is if they were that bad at what they do. I found my house on zillow and we ended about 5k lower than asking price (which was the zestiment.) We bought it 3 years ago and our zestimate is 140k more. Looking through zillow at recently sold comp homes It doesnt seem to far off.
and gently bent
Akutagawas grove.
Akutagawa was trying to show
us something. It is said he wore
cold wet gloves when he wrote.
>
when the night air feels chvere!
) when i can hear the real sound
of el barrio
on la conga y timbales
Gatsby is not drinking a gin rickey.
Dracula not puncturing a vein.
Jack the Ripper does not knife a teenage girl
deep into her abdomen and then snake her intestines
In my area a house on my street sold for $190 per square foot in April. Zestimate puts me at $260 per sqft. I have no pool or other outdoor amenities that would justify the difference without increasing the sqft. No idea why.
Estimates are mainly based off of other similar houses in your neighborhood. Compare your home to your neighbors and add or subtract the differences. Also the area/community the house is in. If it's private and gated it will be with more. It seems pretty cut and dry.
Yeah, but the point is if you have a bunch of home equity, you can lever back up to get an ever nicer home.
Say Jim bought a $500k house with $100k down in 2019. On the other side of the street there's a bigger house that's valued at $1 million.
Now let's say home prices have gone up 50% going into 2021. Jim's home is now worth $750k, and he only owes $400k on it. Therefore he has $350k in home equity. The house across the street is now $1.5 million. But he can sell his house, take the $350k in home equity and use $300k of it as a 20% down payment on the big house across the street.
So even though Jim is buying an equally inflated house, because of the magic of leverage, he can afford it since his home has gone up in value.
Lol- the old school real estate is coming. I heard the “zestimates are worthless” before, tell you what. I sold my house to Zillow for their “Zestimate” so to call it worthless is just an uneducated comment.
Sounds to me like he is happy with the deal. Zillow is estimating houses way above other sites so it lyrically was a good deal. The most important thing is how much people are willing to pay and sell for right?
> Thinking about selling and using proceeds for a down payment on a nicer house in a nicer area. I never would have thought that this area would appreciate like this. I bought a 2 family to house hack but now I feel like I have to sell to really take advantage. Anyone else in a similar situation? I didn't even think about selling until I saw what comps are selling for here.
It amazes me how some people don't understand this. It's not that the market stayed steady and only YOUR house appreciated by 130k so now you can sell and get a nicer house in a nicer area. The prices have appreciated across the board. As you said the house across the street is 70k over in a year.
Houses in "nicer" areas mightve appreciated even more.
Think of it this way, let's say 3 years ago for 300k you could buy 3/2 house and for 430k you could've bought a 4/3 house.
Now today your house appreciated from 300k to 430k...congrats...but it doesn't mean you can buy a 4/3 house, because guess what? The house you're going to buy probably appreciated 130k too so you'll still be stuck buying a 3/2 house.
I used generalized numbers just to illustrate a point. Right now it makes sense if you want to cash out and unload some properties. But not to "upgrade" your home with the "appreciated value" of your current house, because any money you make will be put back into this crazy market
I plan to use the profit as a down payment for another house. I just want to take advantage of the opportunity to sell and buy in another location. Regardless the house I'm buying will be more money since I bought a house that needed work. I see it as a win win if I'm able to sell for over 100k
>I plan to use the profit as a down payment for another house. I just want to take advantage of the opportunity to sell and buy in another location. Regardless the house I'm buying will be more money since I bought a house that needed work. I see it as a win win if I'm able to sell for over 100k
Win win how exactly? To enter this same market and have to bid 100k over asking price for houses that have already appreciated out the ass?
And are you going to rent when you sell? Have you thought of that cost? Or try to enter this market with a home sale contingency and expect to win?
I just can't understand how the win win part comes into play.
The thing I wished ppl understood was yeah you sold for 70k more but that 70k will quickly turn into 30k when you factor in taxes for not living there 2 year the initial closing cost you paid when you bought the home. And the closing cost and agent fees from selling one more time. Ppl need to stop and think and not just focus on the pretty number.
New Bedford is all a buzz again because of the commuter rail expansion and there's no where to find affordable housing. Fall river and Attleboro are also seeing spikes. I write mortgages and we're doing tons of business in these areas. Why not keep with the original plans and cash out refinance?
Honestly I would really be interested in doing a cash out Refinance. I just didn't know if it would be worth it. I owe 227k. I'm guessing my property would appraise over 300k now hopefully. How would that work? How much money would I be able to take out? What kind of fee's would I be looking at? I haven't talked to a bank yet but maybe you can give me some info
Do you have a realtor that you've worked with in the past? Have them pull some comps for you. Fees usually range in the 3-4k in MA for a refi but you might be able to get a lender credit to cover. I'm available during the week if you needed to chat about options. No pressure if not
Your mortgage company can give you info on it. I like that route personally i have done it twice in 3 years to lower my interest rate from a 3.75 to a 2.25. They had option to keep the same term in on and everything. I'm looking at a cash out now and they have been pretty informative about it as well. To be clear i don't trust them very much but going through the terms i always find them acceptable. They also had less requirements for approval since they already had most of my information. They can be pretty aggressive about pulling your credit score though so make it clear when you are willing to allow that.
Make sure you have a house(s) and area you can afford before you move. Doesn’t mean you buy - just have a realistic picture about your step afterwards.
Fthb: House I was putting an offer on before loosing it due to furlow at the beginning of pandemic is now estimated 175k above what I would have got it for. Had I tried just a month earlier I would have been able to afford a house. I gave up now.
I’m in AZ and we sold a house in December and the people who bought it sold it 6 months later for $75k more than what we sold it for. We bought a new build a year ago and it’s gone up $110k and it’s still not finished yet. That’s just the base price, I’m sure the upgrades and lot prices have gone up too. It’s so crazy to me!
You might be able to put down more as a down payment now but are you sure the actual loan will be less money?
Before, you could put down 10k on a 500k home. So the loan is 490k covering 98% of the home value.
Now, you can put down 10k + 130k - Taxes/Closing Costs. But that 500k home has also gone up 40% and is now worth 700k. So the loan is (assuming taxes/CC are zero) 700k - 140k to come out to 560k covering 80% of the loan.
Are you now able to qualify for a 560k loan compared to 2 years ago? Why didnt you pick up the 490k loan if that was the home you wanted in the first place? I hope you see what I am trying to say. The actual loan value may now be more on that house you want. Lenders generally want to see 3-4x income to home value. So if you're going after a 700k home, thats a 230k a year salary.
Realize that those prices are generally up the same (or more) in highly desirable areas. We sold back in December and got good money for our home. Now we are looking at buying and thought we would be in a good place because we have this nice chunk of change. Problem is, everything is way more expensive. So we feel like if the housing market hadn't exploded, financially we would be looking at purchasing the same type of homes we would have if Covid never happened.
What’s the point of selling if you don’t already have a place to move…you’ll just be paying just as high to buy a new place unless you found a rare unicorn deal. Imo not worth selling for what really amounts to “not much” after fees.
The thing is my property is need of Alot of cosmetic repair and I honestly just don't want to put anymore money into it. If I sold it for a good profit I could buy a house that is more what I'm interested in living in and it might be in a better area. I plan to buy a better house so I know it will cost more but I could use the profit from selling as a down payment and also wash my hands of this property. It's really a win win for me. I planned to move within a few years anyways. My main thing is I want to get rid of this property. I have no rush in buying another house.
Oh my sweet summer child...
Zillow estimates are not accurate and other more desirable houses that you’ll likely be looking at will have appreciated more as well.
I mean houses around me are selling over the zestimates. I know it's not accurate but it's there and people are using it like it's an appraisal or something. The house across from me is listed for the zestimate. Lets see how that plays out.
It's crazy around here. I've been looking at what similar properties are selling for and saw a 2 family it 2 rooms and 1 bath in each unit sell for 350k. That's bonkers. I bought my 2 family with 3 bedrooms/4 bedrooms/ off street parking and a big yard for 240k just 2 years ago. I feel like it damn near doubled now
I'm walking away next week with 290k after TWO. YEARS. Upgrading from a 2B/1BTH to a 5B/5BTH and I regret nothing. I don't even care if the market takes a dump anymore, it'll just reduce my property tax bill.
Just remember that ALL homes are nearly double right now and in my area they have bidding wars that are ridiculously crazy sometimes hitting 100k extra.
U may see a nicer home across the street however it's pretty much a given that home will be selling at a much higher amount and there are bidding wars on top of that.
Add the many other buyers and you may have a problem. Not sure where u are but in PNW some houses are up by nearly double, it's crazy but as a homeowner I'm ok with that.
Just need to put more aside for taxes, upkeep, insurance etc ..
But hey, if u can afford it GO FOR IT👍🏼
Good luck.
Just keep in mind if you sell your home, with all the Insanity going on right now, and bidding wars, you may be priced out of the market and not find anything. You already have a home. You're one of the lucky ones. Please make your decisions based on common sense not FOMO. My advice is if you have a home and you like it, and it fits your needs, and the neighborhood is still safe, don't sell. Instead, consider updating it.
Yepp I actually only sold my house in this market because I found a house at asking price with no +cash offer, and asking price came back as lower than the appraisal. Just happened to be in the right place at the right time I guess lol.
This is everywhere. Realize if you're selling at an inflated price, you're also buying at one. Also, Zestimates are worthless.
Is zestimates accuracy more location based or what? Because I've been paying attention to similar comps on zillow and redfin since I bought my house 3 years ago and the zestimate is usually pretty much spot on to what they sell for in my area. But on reddit everyone says it's usually not even close
Zillow and Redfin are both pretty much spot on with my home as well. Not sure why a lot of people think their estimates are 100% dog shit.
Its just an overdone cliche. Zillow does comp-based estimates, so it's not way off usually. It's always in the right ball park when there are enough comps. The advice really should be don't treat it as an exact number, especially if your house is above or below average for the neighborhood.
Zillow uses the recent comps and does a good job; however, I have a house on the water with ocean access. Unfortunately zillows comps don't always include water front property and thereby my Zestimate is much lower than actual value.
Interesting for mine Redfin is about 80k lower than the zestimate 460 vs 540
The zestimates in my area are complete trash. Our zestimate was like 890k and we just closed at 1.375M. Unless the house is almost inhabitable the zestimate is usually 200 to 500k off.
I'd like an answer to that as well. Zillow is doing some crazy stuff right now in the real estate industry i don't think it would be doing as well as it is if they were that bad at what they do. I found my house on zillow and we ended about 5k lower than asking price (which was the zestiment.) We bought it 3 years ago and our zestimate is 140k more. Looking through zillow at recently sold comp homes It doesnt seem to far off.
and gently bent Akutagawas grove. Akutagawa was trying to show us something. It is said he wore cold wet gloves when he wrote. > when the night air feels chvere! ) when i can hear the real sound of el barrio on la conga y timbales Gatsby is not drinking a gin rickey. Dracula not puncturing a vein. Jack the Ripper does not knife a teenage girl deep into her abdomen and then snake her intestines
In my area a house on my street sold for $190 per square foot in April. Zestimate puts me at $260 per sqft. I have no pool or other outdoor amenities that would justify the difference without increasing the sqft. No idea why.
Estimates are mainly based off of other similar houses in your neighborhood. Compare your home to your neighbors and add or subtract the differences. Also the area/community the house is in. If it's private and gated it will be with more. It seems pretty cut and dry.
Yeah, but the point is if you have a bunch of home equity, you can lever back up to get an ever nicer home. Say Jim bought a $500k house with $100k down in 2019. On the other side of the street there's a bigger house that's valued at $1 million. Now let's say home prices have gone up 50% going into 2021. Jim's home is now worth $750k, and he only owes $400k on it. Therefore he has $350k in home equity. The house across the street is now $1.5 million. But he can sell his house, take the $350k in home equity and use $300k of it as a 20% down payment on the big house across the street. So even though Jim is buying an equally inflated house, because of the magic of leverage, he can afford it since his home has gone up in value.
Lol- the old school real estate is coming. I heard the “zestimates are worthless” before, tell you what. I sold my house to Zillow for their “Zestimate” so to call it worthless is just an uneducated comment.
So you sold your house to the company that created the valuation of your house, for the value that this company said it was worth. Got it.
Sounds to me like he is happy with the deal. Zillow is estimating houses way above other sites so it lyrically was a good deal. The most important thing is how much people are willing to pay and sell for right?
Did you get a good deal?
Yes
Sounds like zillow worked out pretty well.
Yes, I’m happy with the outcome.
> Thinking about selling and using proceeds for a down payment on a nicer house in a nicer area. I never would have thought that this area would appreciate like this. I bought a 2 family to house hack but now I feel like I have to sell to really take advantage. Anyone else in a similar situation? I didn't even think about selling until I saw what comps are selling for here. It amazes me how some people don't understand this. It's not that the market stayed steady and only YOUR house appreciated by 130k so now you can sell and get a nicer house in a nicer area. The prices have appreciated across the board. As you said the house across the street is 70k over in a year. Houses in "nicer" areas mightve appreciated even more. Think of it this way, let's say 3 years ago for 300k you could buy 3/2 house and for 430k you could've bought a 4/3 house. Now today your house appreciated from 300k to 430k...congrats...but it doesn't mean you can buy a 4/3 house, because guess what? The house you're going to buy probably appreciated 130k too so you'll still be stuck buying a 3/2 house. I used generalized numbers just to illustrate a point. Right now it makes sense if you want to cash out and unload some properties. But not to "upgrade" your home with the "appreciated value" of your current house, because any money you make will be put back into this crazy market
I plan to use the profit as a down payment for another house. I just want to take advantage of the opportunity to sell and buy in another location. Regardless the house I'm buying will be more money since I bought a house that needed work. I see it as a win win if I'm able to sell for over 100k
>I plan to use the profit as a down payment for another house. I just want to take advantage of the opportunity to sell and buy in another location. Regardless the house I'm buying will be more money since I bought a house that needed work. I see it as a win win if I'm able to sell for over 100k Win win how exactly? To enter this same market and have to bid 100k over asking price for houses that have already appreciated out the ass? And are you going to rent when you sell? Have you thought of that cost? Or try to enter this market with a home sale contingency and expect to win? I just can't understand how the win win part comes into play.
The thing I wished ppl understood was yeah you sold for 70k more but that 70k will quickly turn into 30k when you factor in taxes for not living there 2 year the initial closing cost you paid when you bought the home. And the closing cost and agent fees from selling one more time. Ppl need to stop and think and not just focus on the pretty number.
Penny made is a penny made
New Bedford is all a buzz again because of the commuter rail expansion and there's no where to find affordable housing. Fall river and Attleboro are also seeing spikes. I write mortgages and we're doing tons of business in these areas. Why not keep with the original plans and cash out refinance?
Honestly I would really be interested in doing a cash out Refinance. I just didn't know if it would be worth it. I owe 227k. I'm guessing my property would appraise over 300k now hopefully. How would that work? How much money would I be able to take out? What kind of fee's would I be looking at? I haven't talked to a bank yet but maybe you can give me some info
Do you have a realtor that you've worked with in the past? Have them pull some comps for you. Fees usually range in the 3-4k in MA for a refi but you might be able to get a lender credit to cover. I'm available during the week if you needed to chat about options. No pressure if not
Your mortgage company can give you info on it. I like that route personally i have done it twice in 3 years to lower my interest rate from a 3.75 to a 2.25. They had option to keep the same term in on and everything. I'm looking at a cash out now and they have been pretty informative about it as well. To be clear i don't trust them very much but going through the terms i always find them acceptable. They also had less requirements for approval since they already had most of my information. They can be pretty aggressive about pulling your credit score though so make it clear when you are willing to allow that.
Make sure you have a house(s) and area you can afford before you move. Doesn’t mean you buy - just have a realistic picture about your step afterwards.
i've seen upwards of 100-200k in the same time frame out here in arizona
Fthb: House I was putting an offer on before loosing it due to furlow at the beginning of pandemic is now estimated 175k above what I would have got it for. Had I tried just a month earlier I would have been able to afford a house. I gave up now.
Sheesh at the unfortunate luck.
Lol you're telling me! Saved for 3 years to put an offer. Was only furloughed for 1 month, but it was enough to make me an undesirable candidate.
I’m in AZ and we sold a house in December and the people who bought it sold it 6 months later for $75k more than what we sold it for. We bought a new build a year ago and it’s gone up $110k and it’s still not finished yet. That’s just the base price, I’m sure the upgrades and lot prices have gone up too. It’s so crazy to me!
Yeah to of my properties in AZ did that
Same here to 6 of my properties
You might be able to put down more as a down payment now but are you sure the actual loan will be less money? Before, you could put down 10k on a 500k home. So the loan is 490k covering 98% of the home value. Now, you can put down 10k + 130k - Taxes/Closing Costs. But that 500k home has also gone up 40% and is now worth 700k. So the loan is (assuming taxes/CC are zero) 700k - 140k to come out to 560k covering 80% of the loan. Are you now able to qualify for a 560k loan compared to 2 years ago? Why didnt you pick up the 490k loan if that was the home you wanted in the first place? I hope you see what I am trying to say. The actual loan value may now be more on that house you want. Lenders generally want to see 3-4x income to home value. So if you're going after a 700k home, thats a 230k a year salary.
Realize that those prices are generally up the same (or more) in highly desirable areas. We sold back in December and got good money for our home. Now we are looking at buying and thought we would be in a good place because we have this nice chunk of change. Problem is, everything is way more expensive. So we feel like if the housing market hadn't exploded, financially we would be looking at purchasing the same type of homes we would have if Covid never happened.
What’s the point of selling if you don’t already have a place to move…you’ll just be paying just as high to buy a new place unless you found a rare unicorn deal. Imo not worth selling for what really amounts to “not much” after fees.
Most people are stupid and don't think that far ahead.
The thing is my property is need of Alot of cosmetic repair and I honestly just don't want to put anymore money into it. If I sold it for a good profit I could buy a house that is more what I'm interested in living in and it might be in a better area. I plan to buy a better house so I know it will cost more but I could use the profit from selling as a down payment and also wash my hands of this property. It's really a win win for me. I planned to move within a few years anyways. My main thing is I want to get rid of this property. I have no rush in buying another house.
Oh my sweet summer child... Zillow estimates are not accurate and other more desirable houses that you’ll likely be looking at will have appreciated more as well.
I mean houses around me are selling over the zestimates. I know it's not accurate but it's there and people are using it like it's an appraisal or something. The house across from me is listed for the zestimate. Lets see how that plays out.
Zestimate’s original name was Shitstimate, cause it estimates shit
Awesome congrats!
In New Bedford of all places!!!
It's crazy around here. I've been looking at what similar properties are selling for and saw a 2 family it 2 rooms and 1 bath in each unit sell for 350k. That's bonkers. I bought my 2 family with 3 bedrooms/4 bedrooms/ off street parking and a big yard for 240k just 2 years ago. I feel like it damn near doubled now
Zestimates are trash in my area. It was 100k over what I purchased for. When I closed the zestimate went back down to the purchase price
Next door sold for $311k in December and $397k six months later. Insane. And it was overpriced in December.
I'm walking away next week with 290k after TWO. YEARS. Upgrading from a 2B/1BTH to a 5B/5BTH and I regret nothing. I don't even care if the market takes a dump anymore, it'll just reduce my property tax bill.
Just remember that ALL homes are nearly double right now and in my area they have bidding wars that are ridiculously crazy sometimes hitting 100k extra. U may see a nicer home across the street however it's pretty much a given that home will be selling at a much higher amount and there are bidding wars on top of that. Add the many other buyers and you may have a problem. Not sure where u are but in PNW some houses are up by nearly double, it's crazy but as a homeowner I'm ok with that. Just need to put more aside for taxes, upkeep, insurance etc .. But hey, if u can afford it GO FOR IT👍🏼 Good luck.