Why is my appraisal so much lower than Zillow?

Why is my appraisal so much lower than Zillow?

Appraisal is lower than the offer: If the home appraises for less than the agreed-upon sale price, the lender won’t approve the loan. In this situation, buyers and sellers need to come to a mutually beneficial solution that will hold the deal together — more on that later.

Whose estimate is more accurate Zillow or Redfin?

How Accurate Are Redfin and Zillow Home Value Estimates? Both companies claim they are highly accurate, with a median error rate of 3.04\% for on-market homes for Redfin and a 1.9\% error rate for Zillow as of this writing.

How accurate are Zillow estimates compared to appraisals?

How Accurate is Zestimate? According to Zillow’s Zestimate page, “The nationwide median error rate for the Zestimate for on-market homes is 1.9\%, while the Zestimate for off-market homes has a median error rate of 7.5\%. For homes in LA, the Zestimate was fairly accurate – hovering close to -5\% for all homes.

Is Redfin estimate accurate for appraisal?

The Redfin estimate is a determined calculation of a home’s individual value in the market. Redfin states their estimates are very accurate, with a median error rate of just 1.77\%.

What happens when appraisal is lower?

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. So you’ll either have to pay more out of pocket or get the seller to lower their asking price. With the reduced loan amount, you’re now $9,650 short of the agreed-upon purchase price.

Why is my appraisal so low?

SUMMARY: Appraisals can come in low for a variety of reasons. Many factors are at play including market conditions, the appraiser doing the work, the subject property being appraised and the comps. Sometimes the appraisal is not even low; misplaced expectations were merely set too high.

How often do appraisals come in low?

How Often Do Home Appraisals Come In Low? Low home appraisals are not a common occurrence, but they do happen on occasion. According to Fannie Mae, appraisals come in below contract only about 8\% of the time.

How do I get my Zillow estimate corrected?

If a home differs too much from the norm in the area (with upgraded finishes for example), its Zestimate may be off. The best way to get an accurate estimate for your home is with a professional Realtor. They can perform a Comparative Market Analysis and get the true value for your home.

What increases the value of a house after an appraisal?

Popular amenities, such as a garage, fireplace, view, yard, or patio increase your home’s value. Appraisers review the workmanship, condition, and finishes of home improvements. Updates to the kitchen and bathrooms can have a significant impact on your home’s value.

Why is my home appraisal so low?

Behold the 9 most common reasons for a low home appraisal, according to our expert sources. 1. The home appraisal expert didn’t do a neighborhood deep-dive To appraise the value of a property, appraisers rely heavily on comps, which are prices paid for similar homes sold recently.

Why is my appraisal not showing up on the MLS?

For instance, if a comparable home has recently sold but was not listed on the MLS because it sold before being formally listed, appraisers may not have access to this data unless you point it out. Another situation that can impact appraisal values is comparable properties recently sold at a low price.

Do appraisers look at the space under the ground?

Unfortunately, appraisers are required to use much lower value per square foot for space below ground in a home appraisal. 5. The extras that totally sold you aren’t selling the appraiser