By Patrick follow 2009 May 26, 12:55pm 1 link 1,735 views 8 comments
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I was once again invited by Marketplace at PublicRadio.org for my input/opinion on the real estate market - this time a survey about home valuation sites like Trulia, Zillow, and several others. The core question of the day was "What does the internet say your home is worth?", and I was asked to visit several of these home valuation sites, and find out what they say my property is worth. Curious (and, admittedly, bored on this fine and lazy long weekend), I got 2 comps from 2 different sites for nearby/similar homes, and one estimated value for the *actual* property in question.
Needless to say, it's a good thing I didn't have a mouthful of coffee when I saw the numbers. The two "comps" were $59,590 and $91k, but were not for the actual property, so I dismissed them as irrelevant, but Zillow's "zestimate" was for the actual property in question, so I got quite a chuckle when I saw it listed it as being of approximately $89,500 in value.
To fully appreciate Zillow's completely unwarranted optimism, you'd have to know a little about this dump. I bought it almost exactly 1 year ago, for the lofty price of $5,350 plus $850 shipping, er,...I meant closing. At the absolute "peak" of insanity, it may have been "worth": $20k-25k, tops. It's currently worth pretty much about what I paid for it.
PS: Feel free to use any/all of this on your site, including the pic. I reluctantly admit to being the owner of this travesty of a trailer, but I don't live there, (Yet). But if the economy keeps getting worse, who knows? $13 a month "rent"(property taxes) for a 3bdrm is starting to look more and more attractive;-p
Have a great weekend!
What Im wondering is why banks are still sitting on most RE priced $250+.
I cannot count the props in that range they sit on in only ONE moderate area; page after page after page.
Mostly they are not shorts.
Some have been listed for TWO years.
A few THREE years.
Banks wont reduce to ranges people will buy.
I sure hope the next wave rocks their boat.
It's so easy to see how it's worth $89,500:
- It's a view lot (probably overlooks a feed lot)
- Mature landscaping (look at the shrubbery, a structural landscaping element in that it holds up the structure)
- Like the Leaning Tower of Pisa, it provides a local tourist attraction
- Fenced lot
- Custom screened porch
- Power supply on property
- Plenty of parking
I'm practicing to be a realtor. How'm I doing?
elliemae, you missed "they're not making any more land", "buy now before interest rates go up", "$8,000 tax credit!!1!!", and "starter home for less than a townhouse" promotional points. Otherwise you're ready to pass the test and pay those enormous dues.
As for Zillow, they over-estimate everything in my area (Baltimore) too. Home Price Check does a decent job. I can actually believe Zillow marked that property for $90k. It would be nice if they didn't give such high estimates. I've seen a lot of sellers list their properties for the Zestimate even if they comps it selected are obviously incorrect.
I think we need to do more with "trailers". Make them actually movable, so if someone moves, they can take their home with them. We need to develop mobile home parks all over the country so people have an affordable place to live. Let those uppity people take their McMansions in the suburbs and cities and shove-it up you know where. We have become grossly overconcerned about living in luxury. We are too spoiled. That's why most Americans won't do a dirty job like restaurant work, farmwork and other low-paying jobs because they couldn't afford to buy a McMansion and look like everyone in the upper-middle-class to which we have been aspiring.
Let's figure out how to work a 4-day week, have health care at the grass roots level, and live close to where we work in alternative, small, modest houses because it really doesn't add to your live to have more than you can use. Many people with McMansions have two kids and a five bedroom house, but the garage is full of junk. Give the junk away, rent out the rooms when your kids go to college and house someone not in your family. Learn to compromise and have just what you need to survive and use the rest of your excess money to end poverty or educate and care for children. If both parents have to work, they need the help.
Meanwhile, while our hearts pine over our neighbor's excessive life style, we need to develop a trailer park near their subdivision so the "window" to their home includes driving by some poorer people. If they have to look at their trailer shacks every time they go home, they can be reminded that they have too much stuff and they should share their excess with those less fortunate. The selfish gene needs to be countered by public inclusion of poor people in the same neighborhoods as the rich live so they don't forget where they came from.
LOL, elliemae!!;-) You'll make a fine Realtor™ ;-) It's certainly easy to make fun of(heck, *I* do it all the time;), but thought I'd touch on the positive points of this property - just some "food for thought" so to speak:
(in it's defense;):
1) It was cheap.
2) The average home price in this little town at the time, was $175k.
3) "Upgrading" is relatively cheap and simple.
4) Nice little town, pop 2k, VG demographics
5) Location, LOCATION, *LOCATION*:
a) Rural-ish/suburban setting, yet close and convenient to everthing.
b) 5 minutes to downtown Spartanburg, 10 minutes to Amtrak, BMW
c) 20 minutes to beautiful GSP International Airport
d) About 20 minutes to Greenville, largest city in upstate SC
e) Not in flood-zone, hurricane alley, snow-belt or earthquake zone.
f) Halfway between NY and S Fla - best combination year-round climate
6) Best school district in the County.
7) Property taxes total $150 year (Land + MH combined)
8) No HOA/POA dues/fees or restrictions
9) City water and sewer
10) Detached steel garage
11) Large family-room addition to main unit
12) Creek running across back of property-line
13) Lots of mature shade trees helps keep place cool
14) Backyard borders on forest owned by furniture company
15) Decent-sized lot (80 wide x 155 deep)
16) Did I mention it was *cheap*?
IMO, this place is an Economic Bomb-Shelter, and an excellent "fall-back"
or bugout property if everything goes to sh!t elsewhere. It also makes it
possible to retire early, and live fairly well on an income that would *never* support retirement in many ares of the country. I don't know about you, but *I* don't want to HAVE to work till I drop dead, just to keep a roof over my head. I can always fix it up and rent it out, buy something
else for me, and let the place produce some income for me.
It may just be a dilapidated, run-down old trailer, but it represents basic
housing security in very insecure times. I have no loan or mortgage on it to worry about, and feel a tad more secure than I would if I had no "Plan B" at all. Besides, there are FAR worse places to live than beautiful upstate SC, and there are far worse things I could have spend $6k on. ;-)
$5,350 + $850 shipping? That's OUTRAGEOUS! I got my trailer for $500!
For the cost, you did well. I'm actually a little jealous of the trees. Mine are babies. :(