5 ms·

Unfortunately I wasn't able to afford to have a professional appraisal done for every house my realtor showed me. I'm glad you were in a different position.

toomuchtodo 10y ago
Comparables are what a Zestimate is without the BS "special sauce" that Zillow makes you think exists. Comparables are free, and based on existing property market data (typically sold similar properties looking back a certain period of time). https://www.biggerpockets.com/rei/real-estate-comps-house-value/ https://www.biggerpockets.com/rei/real-estate-comps-house-va... Yet again the tech community believing a problem exists to be solved that has already been solved. > In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. This is true; you need to pay for access to the data source (no different than having to pay for access to equities market data). Redfin succeeds at this because they're a brokerage that happens to be a tech company, unlike Zillow who tries to just pay for feeds (that usually have stale data).
- ensignavenger 10y ago
  In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. You can hire or become friends with a real estate professional that pays for access to MLS (or become one yourself). But before sites like Zillow, there wasn't anything like it easily available to the average person.
  - toomuchtodo 10y ago
    > But before sites like Zillow, there wasn't anything like it easily available to the average person. Zillow unfortunately doesn't help though, as no one takes the value seriously (except perhaps uneducated consumers entering the real estate market). Bad data is worse than no data.
  - yoloswagins 10y ago
    Or they can be acquired via county assessor data, for free, from the court house. From the county assessor, you'll get sold price, deed type, beds/baths, and high level sundry information.
    - toomuchtodo 10y ago
      This works for historical data analysis, but falls over flat for trying to ascertain asset prices in markets, due to how much more quickly the MLS data is updated compared to public records (although, to Redfin's credit, they provide both the MLS record and public record for property events for completeness). Some properties are only on the market for hours/days; you'd never have a chance as a market participant if you only relied on stale public records.
      - ensignavenger 10y ago
        Redfin is indeed awesome, but they are only available in select markets where they have a brokerage.
        toomuchtodo 10y ago
        Scaling is hard and expensive.
    - ensignavenger 10y ago
      Not all counties in all states have or make public this data. In fact, I think sold price is not reported to the county in many (maybe most?) states.
- baus 10y ago
  > In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. I don't think appraisers can use MLS listings exclusively when valuing a property. The primary source is typically public records data.
  - toomuchtodo 10y ago
    They use both: http://www.corelogic.com/products/appraisersuite.aspx http://www.corelogic.com/products/appraisersuite.aspx
- deleted 10y ago
  [deleted]
- encoderer 10y ago
  Most of Zillow listings come direct from MLS now. They've talked about this on their earnings calls.
ensignavenger 10y ago
You usually do a professional appraisal after you have a house under contract, to verify that it is worth what you were willing to pay for it- this is usually done to protect the bank... though in many cases it may protect you as well, that (protecting you) is not the appraisers job. (At least, in most cases).
- cmdrfred 10y ago
  When I bought my house a year ago the bank sent someone out to appraise it.
- bertjk 10y ago
  This is correct; you don't do an appraisal before getting a house, you get an appraisal before getting a mortgage. Typically you also get reappraised every time you refinance, and often the bank pays for it.
- hnal943 10y ago
  Well, yeah. Does anyone need an appraiser to tell them how much the house is worth? Don't you look at what is available and negotiate the price accordingly?
  - ensignavenger 10y ago
    Banks are the biggest customers of appraisers. In most cases, they require an appraisal before they will lend on a property. As far as what you say- negotiating- yes, most buyers don't get appraisals done as part of the negotiating process. Some buyers do, however, get an appraisal to give them an idea what to ask for. Especially if their home is especially unique (and many people think their home is special, even when it isn't... but that is a whole 'nother ball of wax! :)
jsjohnst 10y ago
Why would you do an appraisal for every house you looked at? If you aren't seriously interested in it, what's the point in knowing what it's worth? This might not be the best analogy, but when looking for a wedding attire, do you walk into a store and look at the sticker price of every tux/suit/gown on the rack and then decide which to buy (especially without price comparing other places)?

toomuchtodo 10y ago

Comparables are what a Zestimate is without the BS "special sauce" that Zillow makes you think exists. Comparables are free, and based on existing property market data (typically sold similar properties looking back a certain period of time). https://www.biggerpockets.com/rei/real-estate-comps-house-value/ https://www.biggerpockets.com/rei/real-estate-comps-house-va... Yet again the tech community believing a problem exists to be solved that has already been solved. > In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. This is true; you need to pay for access to the data source (no different than having to pay for access to equities market data). Redfin succeeds at this because they're a brokerage that happens to be a tech company, unlike Zillow who tries to just pay for feeds (that usually have stale data).

ensignavenger 10y ago
In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. You can hire or become friends with a real estate professional that pays for access to MLS (or become one yourself). But before sites like Zillow, there wasn't anything like it easily available to the average person.
- toomuchtodo 10y ago
  > But before sites like Zillow, there wasn't anything like it easily available to the average person. Zillow unfortunately doesn't help though, as no one takes the value seriously (except perhaps uneducated consumers entering the real estate market). Bad data is worse than no data.
- yoloswagins 10y ago
  Or they can be acquired via county assessor data, for free, from the court house. From the county assessor, you'll get sold price, deed type, beds/baths, and high level sundry information.
  - toomuchtodo 10y ago
    This works for historical data analysis, but falls over flat for trying to ascertain asset prices in markets, due to how much more quickly the MLS data is updated compared to public records (although, to Redfin's credit, they provide both the MLS record and public record for property events for completeness). Some properties are only on the market for hours/days; you'd never have a chance as a market participant if you only relied on stale public records.
    - ensignavenger 10y ago
      Redfin is indeed awesome, but they are only available in select markets where they have a brokerage.
      - toomuchtodo 10y ago
        Scaling is hard and expensive.
  - ensignavenger 10y ago
    Not all counties in all states have or make public this data. In fact, I think sold price is not reported to the county in many (maybe most?) states.
baus 10y ago
> In most markets comparables are acquired through an MLS database, and access to MLS is usually not free. I don't think appraisers can use MLS listings exclusively when valuing a property. The primary source is typically public records data.
- toomuchtodo 10y ago
  They use both: http://www.corelogic.com/products/appraisersuite.aspx http://www.corelogic.com/products/appraisersuite.aspx
deleted 10y ago
[deleted]
encoderer 10y ago
Most of Zillow listings come direct from MLS now. They've talked about this on their earnings calls.

ensignavenger 10y ago

You usually do a professional appraisal after you have a house under contract, to verify that it is worth what you were willing to pay for it- this is usually done to protect the bank... though in many cases it may protect you as well, that (protecting you) is not the appraisers job. (At least, in most cases).

cmdrfred 10y ago
When I bought my house a year ago the bank sent someone out to appraise it.
bertjk 10y ago
This is correct; you don't do an appraisal before getting a house, you get an appraisal before getting a mortgage. Typically you also get reappraised every time you refinance, and often the bank pays for it.
hnal943 10y ago
Well, yeah. Does anyone need an appraiser to tell them how much the house is worth? Don't you look at what is available and negotiate the price accordingly?
- ensignavenger 10y ago
  Banks are the biggest customers of appraisers. In most cases, they require an appraisal before they will lend on a property. As far as what you say- negotiating- yes, most buyers don't get appraisals done as part of the negotiating process. Some buyers do, however, get an appraisal to give them an idea what to ask for. Especially if their home is especially unique (and many people think their home is special, even when it isn't... but that is a whole 'nother ball of wax! :)

jsjohnst 10y ago

Why would you do an appraisal for every house you looked at? If you aren't seriously interested in it, what's the point in knowing what it's worth? This might not be the best analogy, but when looking for a wedding attire, do you walk into a store and look at the sticker price of every tux/suit/gown on the rack and then decide which to buy (especially without price comparing other places)?