Zillow: 40% of homes are underwater

  • Article by: JIM BUCHTA , Star Tribune
  • Updated: May 25, 2012 - 8:27 PM

Many Twin Cities area homeowners owe more than their homes' value.

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thatisright1May. 25, 12 8:37 PM

Zillow's "zestimate" is about 70,000 less than what two appraisers recently valued our house at during refinancing procedures. Zillow is cool but the numbers are usually WAY off.

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drscheibleMay. 25, 12 8:58 PM

Zillow is worthless. We refinanced 2 months ago and the web site had our house listed as an address 5 houses down. Our official apprasial came in at $250,000 more than Zillow's useless number. We had to shop around for a bank who luckily agreed that Zillow is meaningless.

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jbpaperMay. 25, 12 9:27 PM

"...especially those who bought at the market peak or borrowed against the equity in their home..." ---- It would be nice to see them break it down and see what percent each of these was.

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aonealphaMay. 25, 1210:23 PM

Just to give balance, our home just appraised for $43,000 LESS (10%) less than Zillow estimate.

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uno1950May. 26, 12 8:03 AM

If you looked only at zillow to determine values in my highland park neighborhood, you would gather that every house was worth between 160-175k. The recent sales prices show a range 90-300k. This is because zillow cannot adjust for a home's condition. For older neighborhoods, it is far less accurate for this reason.

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FrankLMay. 26, 1212:17 PM

The bigger issue is that many homes are priced below the cost of rebuilding them. Thus, any improvement in the market is just a baby step. Right now if my house burned down, it would cheaper for the insurance company to buy my neighbors house instead of rebuilding mine.

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pitythefoolsMay. 26, 1212:20 PM

This is a classic doom-loop scenario. The only houses that have sold in my neighborhood for the last few years have been foreclosures & walkaways. Every time one sells the comp values go down, and more people end up underwater, resulting in more walkaways. Even people without a mortgage are starting to see they're losing real money as the value of their house continues to drop. It's not just the irresponsible flippers anymore. Now everyone is losing regardless of how responsible they've been. And there's no way to stop it.

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