pab - Philly Appraisal Blog - The Coyle Group
Philly Appraisal Blog from The Coyle Group
The Coyle Group is pleased to announce that on October 10, 2014 we will be expanding to a new office. We will be moving to 433 Germantown Pike, Lafayette Hill, PA 19444. Only our address will change. You will find the same great people and service at the new location. Even our Phone and Fax numbers will be the same. Join us in celebrating! We look forward to assisting you our clients and friends at our new location for years to come! Click below for our Moving Notice and map.
It’s that time again for the annual match up between Zillow and The Coyle Group. This year we randomly selected 25 appraisals completed by our office with in the past 3 months. The appraisals were of properties across Philadelphia, Montgomery County, Bucks County, Delaware County and Chester County. Housing styles ranged from simple South Philly row homes to Center City condos (you’re welcome Mark) to Main Line mansions.
Below is a chart of the results. The first column shows where the property is located, the second The Coyle Group’s appraised value and the third Zillow’s Zestimate. The last column shows how high or low Zillow was relative to our appraised values.
|
Property |
Appraisal |
|
Zillow Zestimate |
Difference |
| Rittenhouse Square Townhse | $ 990,000.00 | $ 954,000.00 |
3.63% |
|
| Chestnut Hill Twin | $ 285,000.00 | $ 329,000.00 |
15.43% |
|
| Ambler Colonial | $ 570,000.00 | $ 396,000.00 |
54.47% |
|
| Burholme Twin | $ 125,000.00 | $ 138,000.00 |
10.40% |
|
| Media Split Level | $ 325,000.00 | $ 251,000.00 |
29.48% |
|
| Mount Airy Twin | $ 310,000.00 | $ 259,000.00 |
9.69% |
|
| Northeast Philly Row | $ 171,000.00 | $ 172,000.00 |
0.58% |
|
| Hatboro Split Level | $ 225,000.00 | $ 244,000.00 |
8.44% |
|
| Gladwyne Colonial | $ 600,000.00 | $ 758,000.00 |
26.33% |
|
| Society Hill Townhouse 1 | $ 875,000.00 | $ 848,000.00 |
3.18% |
|
| Conshohocken Single | $ 190,000.00 | $ 252,000.00 |
32.63% |
|
| Flourtown Colonial | $ 735,000.00 | $ 698,000.00 |
5.30% |
|
| West Chester Colonial | $ 1,300,000.00 | $ 1,000,000.00 |
30.00% |
|
| Society Hill Townhouse 2 | $ 2,100,000.00 | $ 922,000.00 |
127.76% |
|
| Chestnut Hill Colonial | $ 975,000.00 | $ 857,000.00 |
13.77% |
|
| Bryn Mawr Colonial | $ 770,000.00 | $ 750,000.00 |
2.67% |
|
| Havertown Cape Cod | $ 295,000.00 | $ 286,000.00 |
3.14% |
|
| South Philly Row | $ 186,000.00 | $ 151,000.00 |
23.17% |
|
| Doylestown Colonial | $ 395,000.00 | $ 337,000.00 |
17.21% |
|
| Villanova Tudor | $ 1,550,000.00 | $ 1,430,000.00 |
8.39% |
|
| Roxborough Row | $ 240,000.00 | $ 210,000.00 |
14.20% |
|
| Warrington Colonial | $ 435,000.00 | $ 378,000.00 |
13.10% |
|
| Condo – The Philadelphian | $ 675,000.00 | $ 634,000.00 |
6.07% |
|
| Condo – Queen Village | $ 180,000.00 | $ 183,000.00 |
1.63% |
|
| Lafayette Hill Colonial | $ 325,000.00 | $ 275,000.00 |
15.38% |
The results are pretty amazing. In a few comparisons, Zillow was right on target. For instance, I would say that they were spot-on with the Northeast Philly Row and the Queen Village Condo. They were fairly close with number of others including the Rittenhouse Square Townhouse, Society Hill Townhouse 1, the Bryn Mawr Colonial and Havertown Cape.
However, Zillow completely whiffed on a number of others, most notably the Society Hill Townhouse 2. Zillow wasn’t even close. The Zestimate missed the mark by more than 127%. That’s crazy considering there was a recorded sale of this property in 2013 for $1.85M. This is where having a human being analyze the market data is so crucial. All the fancy algorithms and computer models overlooked the simple fact that this property sold only months ago for twice the Zestimate amount. We appraised the property a couple months after the sale and following a renovation of the kitchen and baths.
On average, including the Society Hill 2 property, the Zillow Zestimate was 23.42% lower than the appraised value. Excluding the Society Hill 2 property, Zillow was still off by 16.47%. When Zillow over-Zestimated they did so by 11.25%, on average. These are some significant numbers. If you were selling and used a Zestimate to potentially under-price your house, you could be leaving huge sums of money on the table. If you overpriced, the market would likely pass you by in favor of more competitively priced homes. Eventually, you would have to reduce your price and by that time many of the interested buyers will have moved on.
Philadelphia and the surrounding counties are such a patchwork of real estate markets that computers and algorithms can’t possibly take into account the individual nuances. Zillow doesn’t take into consideration if there’s a vacant house next to your property or a golf course. Zillow looks at them as being the same. That’s why having a knowledgeable appraiser to physically inspect the property is so important to realizing a correct value. Nothing (so far) beats having a live human being appraising your property.
Bottom line, Zillow is not all bad. It is not an appraisal but it is a good place to start. The neighborhood data, general sales information, graphs and comparative tools are great and very user-friendly. However, if you are looking to properly price your home, I would pass Zillow by and get some advice from a good local agent or a certified appraiser.
The Coyle Group’s team of Philadelphia appraisers are a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing appraisals. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com
“Zillow told me that my home is worth…”
Appraisers across the USA hear those words at least once a week from well-meaning homeowners. What many homeowners don’t realize is that Zillow, while a very useful tool, is not always the best indicator of the actual value of their home. A Zillow Zestimate is not an appraisal. In fact, if homeowners use Zillow to help them price their home for sale, they could be leaving thousands of dollars on the table, as we will show you.
Below is a chart of 18 randomly selected appraisals that The Coyle Group completed in the past 3 months. The houses are located throughout Philadelphia, Montgomery, Bucks, Delaware and Chester County. The chart is a comparison of our appraised value and the Zestimates produced by Zillow. Keep in mind that our appraisals have the benefit of a full property inspection by a human being and nuanced market knowledge. Zillow’s Zestimates rely on public records, complex algorithms and no physical inspection of the property. Here are the results:
| Maple Glen Colonial | Appraisal: $430,000 | Zillow: $351,050 |
22.48% |
| Conshohocken Single | Appraisal: $370,000 | Zillow: $329,924 |
12.14% |
| Collegeville Cape Cod | Appraisal: $364,000 | Zillow: $355,012 |
8.65% |
| Bryn Mawr Mansion | Appraisal: $2,000,000 | Zillow: $1,662,317 |
20.32% |
| Lafayette Hill Colonial | Appraisal: $550,000 | Zillow: $470,806 |
16.82% |
| Chestnut Hill Colonial | Appraisal: $635,000 | Zillow: $686,018 |
7.44% |
| Gladwyne Cape Cod | Appraisal: $745,000 | Zillow: $697,428 |
6.82% |
| Condo – The Murano | Appraisal: $575,000 | Zillow: $458,870 |
25.30% |
| Art Museum Condo | Appraisal: $280,000 | Zillow: $257,852 |
8.59% |
| Condo – The Dorchester | Appraisal: $345,000 | Zillow: $339,499 |
1.62% |
| South Philly Row | Appraisal: $110,000 | Zillow: $157,378 |
30.10% |
| Berwyn Colonial 1 | Appraisal: $750,000 | Zillow: $886,168 |
15.37% |
| Berwyn Colonial 2 | Appraisal: $1,200,000 | Zillow: $1,153,633 |
4.02% |
| Doylestown Townhouse | Appraisal: $325,000 | Zillow: $294,410 |
10.39% |
| Fishtown Row | Appraisal: $225,000 | Zillow: $211,700 |
6.28% |
| Villanova Mansion | Appraisal: $2,450,000 | Zillow: $2,544,935 |
3.73% |
| Mount Airy Twin | Appraisal: $285,000 | Zillow: $324,137 |
12.07% |
| Roxborough Row | Appraisal: $245,000 | Zillow: $235,076 |
4.22% |
As you can see there are some pretty dramatic deviations between Zestimates and the appraisals. Based on our appraised values Zillow under valued 13 of the properties. In some instances Zillow was almost right on, take for instance the condo in The Dorchester. They were only off by 1.62%…that’s pretty good if you ask me. For the condo at The Murano, they were off by more than 25%…waaaay off! On average, Zillow under-valued the properties by 12.39%.
In the case of the South Philly row, the Zestimate was over by more than 30%. However, I can’t fault Zillow on this one. The property was really dated and needed a great deal of work. But this does illustrate how having a full interior inspection of a property can lead to more accurate values. Also, the Mount Airy twin was over-valued by 12%…but this doesn’t surprise me, everyone in Mount Airy thinks their home is worth more than it is. Just kidding.
Now imagine that you’re a homeowner getting ready to sell. You hop on your computer, plug-in your address and Zillow says your home is worth $300,000. Based on our findings, if Zillow under-values properties 12.39% on average, you (the homeowner) could potentially be leaving $37,170 on the table. That’s serious money!
This illustration underscores the importance of consulting with a knowledgeable real estate agent or Certified Real Estate Appraiser. Getting a Pre-Listing Appraisal prior to putting your home up for sale and knowing the true market value of your home can save you time, money and effort when it comes to selling.
As for Zillow, keep in mind that it is a tool…a starting point. It’s great for neighborhood data, graphs, general sales information or for seeing what your new neighbors paid for their house. It’s probably not the best place if you’re looking for assistance with making definitive decision or properly pricing your home for sale.
If you want to know more about our Pre-Listing Appraisal services or have any real estate appraisal related questions please visit www.TheCoyleGroupLLC.com. You may contact us directly at…215.836.5500 or appraisals@coyleappraisals.com
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