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Worse than that, the article states that you have to buy them out as part of a sale. My house has an ADU and came with paying tenants. Zillow thinks my place i

by tbyehl 7y ago

Worse than that, the article states that you have to buy them out as part of a sale. My house has an ADU and came with paying tenants. Zillow thinks my place is worth about $30K more than the average on my street... but I also have a pool (couple others do) and am the only one with a legit 5th bedroom, so I'm thinking the market value of that ADU is roughly nothing.

tbyehl 7y ago
As another piece of anecdata, my previous home had a spacious and nicely finished detached garage in addition to a single-car attached. It values the same as other similarly sized homes in the subdivision without a detached garage. It definitely had value to me as a workshop/office/man-cave, but not-so-much the market at large.
- davnicwil 7y ago
  Interesting. I sort of struggle to imagine anyone who wouldn't value an extra garage at anything - even if your need for it is just hypothetical or aspirational - or even just as cold storage space, which has not insignificant rental cost should you need it.
  - tbyehl 7y ago
    Well, I'm no expert, but for the vast majority of people a detached storage space probably isn't even on their shopping list. And for most who put some priority on storage space it will be fungible with an attached garage or full / partial basement, which are much more common. And it never comes down to these two homes are exactly equal but for the ADU. Logically, an ADU absolutely should be worth something but I don't see it reflected in my limited experience buying two properties with ADUs, one of them income-producing. Might be different for a rental ADU somewhere highly constrained on housing, but my rent-to-home-value ratio is comparable to what's being discussed here, too.
nradov 7y ago
Zillow estimates are not to be taken seriously in circumstances like that. The point would only be valid if the valuation came from a professional appraiser.
- wil421 7y ago
  My house gained $100k after I bought the house and Zillow realized it was renovated. A few other house have sold (including Zillow buying one) in my neighborhood and my house is on the high side of the average price. It makes me wonder why the estimate gained $100k in 60 days. Once Zillow bought a house of course everything went up.
  - ianai 7y ago
    Sounds more like an analyst saw a discrepancy between projected and actual - and someone was convinced enough to buy in the area.
- tbyehl 7y ago
  A single Zillow estimate is not worth much, but for making a relative comparison of 18 neighboring homes on the same street it's not unreasonable. Clicking around the ones that have changed hands recently enough for Zillow to have the full MLS data and photos, it's pretty clear that the transactional price differences come from the typical areas (# bedrooms, square footage, updates).

by tbyehl 7y ago

tbyehl 7y ago

As another piece of anecdata, my previous home had a spacious and nicely finished detached garage in addition to a single-car attached. It values the same as other similarly sized homes in the subdivision without a detached garage. It definitely had value to me as a workshop/office/man-cave, but not-so-much the market at large.

davnicwil 7y ago
Interesting. I sort of struggle to imagine anyone who wouldn't value an extra garage at anything - even if your need for it is just hypothetical or aspirational - or even just as cold storage space, which has not insignificant rental cost should you need it.
- tbyehl 7y ago
  Well, I'm no expert, but for the vast majority of people a detached storage space probably isn't even on their shopping list. And for most who put some priority on storage space it will be fungible with an attached garage or full / partial basement, which are much more common. And it never comes down to these two homes are exactly equal but for the ADU. Logically, an ADU absolutely should be worth something but I don't see it reflected in my limited experience buying two properties with ADUs, one of them income-producing. Might be different for a rental ADU somewhere highly constrained on housing, but my rent-to-home-value ratio is comparable to what's being discussed here, too.

nradov 7y ago

Zillow estimates are not to be taken seriously in circumstances like that. The point would only be valid if the valuation came from a professional appraiser.

wil421 7y ago
My house gained $100k after I bought the house and Zillow realized it was renovated. A few other house have sold (including Zillow buying one) in my neighborhood and my house is on the high side of the average price. It makes me wonder why the estimate gained $100k in 60 days. Once Zillow bought a house of course everything went up.
- ianai 7y ago
  Sounds more like an analyst saw a discrepancy between projected and actual - and someone was convinced enough to buy in the area.
tbyehl 7y ago
A single Zillow estimate is not worth much, but for making a relative comparison of 18 neighboring homes on the same street it's not unreasonable. Clicking around the ones that have changed hands recently enough for Zillow to have the full MLS data and photos, it's pretty clear that the transactional price differences come from the typical areas (# bedrooms, square footage, updates).