OfflineHi Everyone,
I saw a house on Zillow near me that is listed for $224,000. According to the records, it was just purchased in June of '09 for $463,500. This is currently also the Zestimate with a Zillow price range showing of $394K - $515K.
It is described as a great investment opportunity and as needing a new roof and several other repairs. The listing also states that the pool and spa are "not working".
I'm going to take a look at it this weekend, but in the meantime I wanted to find out what everyone thinks. How could the value have plunged $240,000? I'm thinking perhaps it's been gutted, but even then, a price drop almost equal to the asking price?
Also, I am just starting and my head is full of facts and ideas and I can't always recall where I saw something when I need to refer back. I know somewhere Dean told us where we can go to find out what the owner currently owes on the house. Just don't know where I saw it. Can anyone please steer me in the right direction?
Thanks much. Have a great day!
Cindy
Life isn’t about waiting for the storm to pass…
It’s about learning to dance in the rain.
The most difficult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life; and the procedure, the process is its own reward. - Amelia Earhart
"The greatest mistake you can make in life is to continually be afraid you will make one." - Elbert Hubbard
You can contact the tax appraisors office (or visit their website if they have one) and find out who owns the property.
I wish you the best in your new RE career!
Lea
SPR Property Solutions, LLC
Cindy...
Try going to the student resources section...at the bottom left of this web site. Click on Real Estate Analysis System and input your property. Your result will show what Zillow, Cyber Home, and Eestimate value the property at. Compare all of them and see what the differences are.
Tom S.
Depending on yoru area the local assessor, treasurer's office (for taxes) or county recorder's office could have the information on the current owner. In regards to the price drop get some comps of everything that has sold in the past 3-6 months in that area.
If the proepty needs a new roof you may want to make sure there is no major water damage or mold. This may be a nice opportunity at a potential deal. Just verify the information, work the numbers and make sure you have an exit strategey with this home. Good luck with real estate investing. Believe and Achieve!
- Joe
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Hi everyone,
Thanks for your input. But I think perhaps I wasn't clear enough with my original question. What I need to know is:
1. What could possibly cause a person to buy a house for $463,500 and then 2 months later have it on the market for $240,000? I haven't done any flipping myself, but I don't believe it works that way (especially since it is in need of repair). I was hoping someone with more experience may have run into something similiar and can give me a reason why this may be happening. Could this be an inheritance situation where the person took possession of the house in June, didn't pay anything for it, but since there was a change of owndership it is showing up as the last date the house was sold? And now they just want out of it and are looking for a quick sale so have priced it so low?
The comps in the area are between $350K - $500K.
2. Dean mentioned somewhere that you can go somewhere and find out what is currently owed on the house to figure out how much equity is in it and whether it is worth pursuing based on that info. I'm trying to remember where I saw that and was hoping that someone could steer me toward that info or, alternatively, know off the cuff what it is.
Thanks again.
Cindy
Life isn’t about waiting for the storm to pass…
It’s about learning to dance in the rain.
The most difficult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life; and the procedure, the process is its own reward. - Amelia Earhart
"The greatest mistake you can make in life is to continually be afraid you will make one." - Elbert Hubbard
If the house is in foreclosure what you're seeing on zillow is the bank transferring the property from the owner to another company or department in their institution. They do it this way to reflect the losses in their books and to take title in their name. They can't just transfer title and not account for the bad debt. Unfortunatley, zillow and the rest of the online market analysis sites do not always account for this. That is why you will see a house sold for $420k and then a few month later it's listed for half that or even less. That is why it is so important to have a good relationship with a realtor who will pull comps for the areas you are interested in. MLS is the most accurate way to get market value of a home.
KimmyJ
Press on...
There are many different web sites that use data differently and more and less current for statistics. If a home is reported on Zillow last sold, it does not mean it was a market value sale. When the bank buys their own foreclosed property at auction it is for the loan balance. Many sales are reported as such, not sold as market value.