What would you tell your realtor if you just bought a house and zillow said it has already lost 100k in value?

Submitted by NecessaryMistake9754 t3_10utzw4 in newhampshire

Came across this house where it was initially listed for $569k and sold for $480k. But zillow for some reasons said it's only worth $389k. That translates to 190k loss over 30 years at 6% (90k overpaid principle + additional interest on the overpaid principle). I always thought zillow over estimate the housing price? For instance in my area, zillow estimates my place for well over 500k, but I looked at what my neighbors could sell for, it's maxed at 425k. What would you say to the realtor who keeps saying price won't drop, and is now no longer in touch with you after they get the commission check. $200k extra is a lot.

https://www.zillow.com/homedetails/56-Laclair-Road-Walpole-NH-03608/92805636_zpid/

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capta2k t1_j7duryu wrote

Your realtor is paid to provide advice, not guarantees. Sometimes that advice is “close this deal so I get paid”, only in not so many words.

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futureygoodness t1_j7dv1kl wrote

Are you planning on flipping any time soon? If not, it’s not a problem.

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madfoxmax t1_j7dvncb wrote

That looks like a very nice house. I would buy that house. Def for 380k. Probably for 480k too.

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Excellent_Affect4658 t1_j7dvyp9 wrote

Why would I tell my realtor anything? If it wasn’t worth $480 to me, I wouldn’t have bought it. Who cares what Zillow thinks?

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RoadAdventures t1_j7dw009 wrote

Nobody can tell anyone what the future price of a house will be.

If they really could do that, they would make a huge fortune in real estate.

I would not pay much attention to Zillow - the only way to find out how much a house price should be is to put it on the market.

Anything else is an (more or less) educated guess.

>What would you say to the realtor who keeps saying price won't drop in price, but is now no longer in touch with you after they get your commission check.

Nothing, until you need to sell your house, and even then, you would only need to talk to them if you want to hire them for the job.

They earned that commission check when they closed the deal. No future obligations left.

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RoadAdventures t1_j7dx7ud wrote

Replying to NecessaryMistake9754 (#1,732,810)

They don't - they list at an asking price that got picked after a long discussion between them and their realtor, which accounts for what the timeline of the seller is, recent comparable sales, market trends, interest rate forecast, and a ton of other details which Zillow knows little about.

Zillow is fine for a quick ballpark number. Anything else, they are too much of a one size fits all answer to a very unique question - what is THIS house worth?

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MornduNH t1_j7dxbtx wrote

Always remember the Realtor is working for the seller. And the commission.

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MommaGuy t1_j7dxm1k wrote

Nothing to tell. Unless there was something not disclosed like lead paint, not sure anything can be done. Also, welcome to the NH housing market. Little inventory and lots of buyers.

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Able_Cunngham603 t1_j7dz23x wrote

What would you tell yourself if you bought at the height of a real estate bubble and some rudimentary AI on an app figured out you overpaid before you did?

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BobLoblaw4Pres t1_j7dz932 wrote

Zillow does not appraise houses. Do not get the value of a home from an app that will likely go under in a few years.

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mattpap603 t1_j7e0411 wrote

It’s going to go down further. I’m just hoping that my house goes down in value as much as possible before the tax collectors reevaluate this year. Market goes up and down man, as long as you can make the payments and are happy with the house I wouldn’t worry about it

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Rocketman2026 t1_j7e0vxp wrote

If you can afford the payment and you bought it because you loved it go enjoy it. Prices go up. Prices go down. There is NO house that dropped 22% in 1 or 2 months. None, so Z is BS, as suggested by others. I would be concerned slightly that it was sold, then not, then sold, then not, all year for like 550k or so. Clearly something went down. But it looks like you have a great house, you bought it for like 80k less than the dudes over the summer tried to buy it for, and so forth. Step back. Do you love it? Are you happy? Well go trek around those 15 glorious acres of forest and enjoy your life!! You are a lucky person.

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ProlapsedMasshole t1_j7e1430 wrote

Look at the Comparable homes listed. It's an order of magnitude nicer than any of them. I don't know Walpole, but based on location and comparable sales it seems like the nicest house in a not so nice area, or at least for recent sales.

I'd buy that at 480k tomorrow if it wasn't in Walpole, so I guess that's your answer.

If your realtor is saying prices won't drop though, they're:

A) unethical

B) wrong

That said, they've no obligation to you after the deal is done, just like you're under no obligation to buy based on their advice.

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FTheOldWest t1_j7e17wl wrote

Zillow isn't indicative of the actual home value. It's just what the zillow algorithm is spitting out. In many instances, this is number is wrong. The median error of zestimates is nearly 8%. Also to add, your agent should have gone over how this works. I'm surprised they are no longer in contact with you. I typically text/email my old clients monthly to see how everything is going and wish them well. Ultimately, don't sweat the zestimate. It's a worthless number.

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Paper_Disastrous t1_j7e4pdx wrote

If you bought the house to live in, what difference does it make?

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smallboxofcrayons t1_j7e5k3h wrote

Zillow isn’t an accurate appraisal take their # with a grain of salt.

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MiggySmalls6767 t1_j7e7a6o wrote

Replying to roundeye2020 (#1,733,179)

The point is they make money off a sale.. not off telling you the market is likely going to change in the next year with higher interest rates and people no longer smoking the crack they have been for the last few years thinking their shit box is worth $300k when it’s a $175k home

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MiggySmalls6767 t1_j7e7fey wrote

No one should be buying a home right now. Sellers are still smoking crack thinking their homes are worth way more than they are. This will topple even more so if you’re the buyer in this situation.. sorry to hear it man but housing market is going to keep falling for a while.

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steelymouthtrout t1_j7e9pvd wrote

Both Zillow and realtor.com are simply sales websites. They use algorithms and other bullshit to inflate the prices of all the houses and this is why the insanity and the fomo that you are obviously feeling right now. Because people sit on Zillow and other websites and they let it dictate their decisions and it's dumb.

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MagicalPeanut t1_j7en0ux wrote

Zillow isn't the end-all-be-all pricing index for the market. Take a look at Redfin who estimates you at $484,737:

https://www.redfin.com/NH/Walpole/56-Laclair-Rd-03608/home/88030354

Next, read up on just how bad Zillow's data scientists failed Zilllow when it came to pricing the market:

https://towardsdatascience.com/invaluable-data-science-lessons-to-learn-from-the-failure-of-zillows-flipping-business-25fdc218a62

Feel better yet?

My hot take is that prices should go down for everyone as rates go up. What you, and everyone, can afford is a combination of principle and interest. Therefore, as rates go up, what you can afford in principle is less, because you are paying more in interest. Combine all of this will a staggering economy due to high(er) interest rates and you have fewer people that can afford homes.

As far as what you should tell the realtor? Nothing. Like all of us, you likely got your house because you were the high bidder. No one was willing to pay more than you at the time it was listed. That being said, love your house. It's beautiful on a nice piece of land. Take care of it and maintain it well. No one is getting a good deal buying anything that is a 1:1 with many people looking to buy it.

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RobynZombie t1_j7ewgeg wrote

…Here I am hoping someday to be able to purchase an actual house on my salary in New Hampshire before I turn 50.

Feel happy and blessed that you have what you have.

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dreams_n_color t1_j7eygk2 wrote

I’ve noticed that Zillows estimates are way below many other websites. If you look at your address on Redfin or Realtor you’ll see it’s valued much higher, close to what you purchased it for. Buying a home is scary, yours is lovely and it’s on 15 acres! Wow, I’m envious. If the payment is comfortable, that’s all the matters in the end. If this was my home I truly wouldn’t be worried over what Zillow says it’s valued at. Especially when every other site has much higher estimates. Congratulations on your new home!

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Selina-Street t1_j7f1050 wrote

Zillow is a racket. In 2019 they began including realtors’ MLS listing prices to their zestimate algorithm. They are not independent of the realtor system although they imply they are.

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smartest_kobold t1_j7f417u wrote

The real estate value estimator run by gigantic real estate speculators doing market manipulation is not to be trusted.

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SasquatchGroomer t1_j7f9pf3 wrote

Did Zillow send a qualified appraiser with local knowledge to appraise the value of the house, or did they simply use some sort of algorithm?

Zillow's estimates are just estimates. Not appraisals.

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WhoWhatWhereWhenHowY t1_j7fews0 wrote

Replying to NecessaryMistake9754 (#1,732,821)

Was this an investment property you purchased or a primary residence?

If it was purely for investment that market is very hot and I could see the argument that an ETF would be a better route but you need a place to stay and by purchasing a home you are locking in your "rent" price long term. Also real estate isn't like stock. You don't get a ticker update every 15 minutes with an approximate market price.

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rochvegas5 t1_j7ffgom wrote

Nothing. It’s not their fault. Hold the line because the market fluctuates

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FairCut7009 t1_j7fjwya wrote

Replying to NecessaryMistake9754 (#1,732,836)

Real estate will always perform over time. This is only concerning if you intended to make short term gains. In this market you can expect values to decrease but they will turn back around. So whether you wanted to or not you're into it for a longer term investment unless you plan on losing money. It's just the way real estate works and not your agents fault. Although it is possible that they were expecting it and lied to you so you wouldn't get scared and back out.

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Ok_Low_1287 t1_j7fnaeo wrote

I have always listed homes I was selling (as an owner) for 10% less than what I thought the market value was. I ALWAYS had multiple bidders who ending up bidding up the price. People love a perceived bargain.

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Azr431 t1_j7fvsqp wrote

Treating a house like an investment vehicle instead of a place to live is a large part of why our housing market is so unaffordable.

Zillow is also not good at estimating these kinds of listings. It's good for cookie-cutter suburbs.

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dilznoofus t1_j7fwn3h wrote

Replying to ProlapsedMasshole (#1,733,003)

Hi! I live in Walpole - it's a beautiful village that is a gem compared to the area surrounding it. it's full of old, expensive houses, and there has been very little turnover in properties here as almost everyone who lives here has wanted to stay here. We were only able to buy after waiting over a year for something to come up - and that was only after going and finding an off-market property to buy ourselves.

so 1.) Zillow estimates for this area are useless as there has been so little market activity, it's impossible to compare and 2.) because there are always people who want to move into Walpole and not decent housing to buy, there was horrible pressure to inflate prices. We definitely overpaid to lock down our house, but in the end we have a house here, and that was the end goal.

this town has so much to commend it vs. the surrounding towns - poorer towns, higher tax burdens, less infrastructure, etc. It's a fantastic place so hopefully OP can enjoy the fact they moved to a wonderful town.

Also OP: you live abutting the Hooper Forest and the reservoir, you have some amazing town-owned recreation land next to your property! you came to a good place. feel free to DM me if you want to chat more about walpole :)

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roundeye2020 t1_j7fz738 wrote

Replying to MornduNH (#1,734,451)

I think that depends on agency and the Broker you work with. Some want you to have it, some don't. Many agents fear it will scare the customer away. Plenty of the full-time professionals I have spoken with use them for Clients. With a designated agency, one of the first forms given to the client should be a Brokerage Relationship Disclosure Form that also lays out the different relationships and responsibilities between you and your agency/agent. You as the purchaser/buyer decide that relationship. I do agree OP is misguided here but understand buyer's remorse. It sucks. Zillow is not the end all be all. Prices are up right now year over year in many zip codes for NH. The market is also unpredictable. Just like any other industry, you have good agent and bad agents/ agencies. I would just enjoy the house and focus on life, not Zillow.

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thread100 t1_j7gkph9 wrote

What did the appraiser for the bank value the home at? Their process of comparison to comps is designed to protect the bank from helping you buy a house they can’t recover from.

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SheenPSU t1_j7gqh7g wrote

Don’t sweat it, prices fluctuate and Zillow isn’t always reliable. Walpole’s a nice town so I expect it’ll only rise for you

You’ve got land, you’re in Walpole, and you’ve got curb appeal. You’ll be fine.

Also, we just had our assessments done. Did you see a noticeable difference between the two?

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mcot2222 t1_j7h6vwz wrote

I know on the Seacoast and probably all of NH there are fewer homes being sold in the extreme winter months. This tends to mess up the zillow algorithms in my experience and you see dips. When the weather becomes warmer and there are more sales happening and more data you tend to see estimates rise.

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oldmanshiba t1_j7iuo2x wrote

Your post history is super sketchy. You seem like a predatory buyer with foreign money backing you. I think you are the problem with housing prices.

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JohnnyRebe1 t1_j7j1xxt wrote

Replying to NecessaryMistake9754 (#1,732,810)

Zillow uses the prices similar houses in that area sold for to get an avg. Zillow estimate means nothing. Could just mean they haven’t gotten updated sales figures or something along those lines. You want to know what your house is worth hire an appraiser.

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supergreen__ t1_j7klw2j wrote

No point in looking at what you could sell it for unless you need to sell it.

Hopefully when you purchased you have a home you can afford and won’t sell at a bottom. If you bought a house in 2007 and held on to it until today you’d be fine, if you tried to flip it in 2008 or 2009 you’d take a big hit.

If you are planning on living there for a long time your concern should be affording your mortgage, nothing but stress and lost sleep at this point worrying you timed your purchase wrong.

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Regular-Nothing-8821 t1_j7l5war wrote

Replying to roundeye2020 (#1,735,750)

The relationship disclosure is given to CUSTOMERS and CLIENTS at or before the first business meeting REGARDLESS of if an agency is designated or dual agency. You are NOT A CLIENT until you sign a buyer agency agreement or a listing agreement. Unless you signed one, your 'buyer agent' doesn't represent you, owe you confidentiality or represent your best interest.

Read it again, here.

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Regular-Nothing-8821 t1_j7l92jh wrote

Did you get an appraisal? If so, there's your fair market value.

As many others have stated, Zillow is a joke.

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OperatorDelta07 t1_j7lohe9 wrote

I’d have an appraiser do an inspection and then they’ll be able to give you a range of similar houses in your area to get a better idea of your properties actual current value.

I’d also not 100% trust a website to tell me something that nuanced.

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Mommason t1_j7se8n3 wrote

I’d say that Zillow is usually off by 100k

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The_On_Life t1_j818hs1 wrote

Zillow is not an accurate representation of a home's worth.

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