What makes a home's value change like this?

The price of homes has increased drastically in the last year. This is due to low interest rates and limited inventory for buyers.

 

Man, I wouldn't trust those sites too much. They usually just got off of tax valuation which most of the time isn't even close to market value.

 

The market in that area. Any improvements they made to the property, etc. Just check for comps in that area and see if it's about right. Don't go by with zillow says, but what comps actually sold for.

 

What he said, check for comps in the area.

Also what has been going on within that time frame? Example: Woodland TX based homes are skyrocketing and selling wayyyyy above market value because Exxon Mobile decided to move there transferring all of those workers to the area.

I also know several friends who will buy a home, list it extremely high.. live in it until someone makes an offer at their extremely high price-- rinse, move and repeat for extra income. Needless to say, they move around alot.

 

My home value this year went up freaking 30% thanks to all of the building of new homes, etc. inside the loop around my area. Needless to say, my taxes skyrocketed too.

 

I can't imagine with closing costs that this comes close to being worthwhile unless you're in a high charging market like LA that is recovering from the downturn in 2008? You'd be better off just staying put. The house would still gain in value except you wouldn't be able to cash out right away. But you wouldn't also be eating away at the profits with all those transaction costs.

 

Minorities.

 

Here's how zillow calculates home value.

http://www.zillow.com/wikipages/What-is-a-Zestimate/

My home increased 25% in value in two years. Supply and demand, basically.

 

Zillow doesn't have specific info about things like damages to houses. They just go off things like lot size, square feet, beds, baths, and local comps.

 

Agree with other posters; Zillow gives very spotty numbers. I just checked the home I sold about a year ago and the Zestimate is about $30K higher than the home actually sold for. I know the area and what my old neighbors got for their homes since I left, and prices have actually gone down, not up.

 

Obama

 

Those online sites just give estimates. Like someone said check the local comps and remember the market is peaking. I'd wait it out a year for price to come back down to earth. We'll see how these Yankees deals with the Summer heat.

 

Just came in this thread to hear this man's opinion:

And I did.

You listen to this man. ^^^

 

I don't sell around here, so I don't check the values that much, but I too am surprised about the skyrocketing prices....thinking about renting out my joint and sleeping in a shoebox. As for the taxes, Fight the power! Damn you Mike Sullivan.

Also, I was talking to my neighbor Yoga Girl the other day and the subject of the peeping tom came up. She said the guy who put up the flyers is her friend or something. Was that you? Are you friends with Yoga Girl?

 

Having a LOH or LOF as a neighbor!....
Seen it happen over and over again!!!
.......
.......
.......

 

They cap tax increase at 10% a year I thought. Shouldn't have gone up 30%.

 

You are correct. Even less when it's a homestead.

 

The value of my home since I bought it in May of 2011 has gone up 30%. My taxes went up close to 4% from last year though.

 

You've got a pretty solid case to protest that, IMO.

/Quoted wrong person. Meant to quote LonghornFan.