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Is Zillow Accurate?
Clients ask me all the time: Leigh, what do you think of Zillow? I think Zillow is a data point…and, typically a very poor one! Anyone who makes a buy, sell or hold decision for their most valuable investment based upon Zillow’s Zestimate should have their head examined. I’m not kidding. Do you think Zillow’s famous algorithm takes into account a home’s floor plan? How about a home’s condition? Landscaping? Age of windows, roof and systems? Garage age and usability? And, most importantly, location within the neighborhood?
Even if all of those qualitative attributes are considered by Zillow’s algorithm, does Zillow even have the correct quantitative data to accurately give you a value based on your home’s square footage? Do they consider seller concessions? How do they adjust square footage when it’s not reflected correctly in public records (happens all the time)? Do they delineate between above grade square footage and below grade square footage? If only valuing a property were as simple as Zillow would have you believe, buying and selling a house would be easy! If Zillow were accurate, you could just order a house with a click of the mouse from the comfort of your living room couch…and life would be swell!
Seriously, don’t rely on Zillow! Here’s an example that strikes close to home (literally, my home!) where Zillow has gotten it completely wrong! The house at the end of my block sold in April, so I was super interested in this sale and the ultimate value of this comparable home when it sold last year. I mean, it’s a Denver Square…just like my house. It’s in a similar condition and has 3 beds and 2 baths upstairs just like my house. It only has one car garage, however, and it’s one house off of busy 8th Avenue…I hope that Zillow adjusts my value relative to its value for these factors. Well, let’s see…
It sold for $58,000! $58,000? What? I mean WHAT?! Those buyers got the deal of the century!…a Central Denver home for $58,000! Oh, wait…That can’t be correct. Oh, okay…Phew…Zillow is wrong. According to the MLS, it sold for $580,000…just a slight typo I guess (that still hasn’t been fixed after 11 months!). Ok…let’s look further. Wow, it’s 2,914 SF? Really? That’s bigger than it looks! Oh, okay…according to the MLS, it’s actually 2,132 SF above grade, but Zillow is combining above and below grade square footage and counting it like it’s all the same. Hmmm…interesting. I wonder if Zillow has accurate data on my house. Wait…Zillow has my house listed as 1,708 SF which is correct but only reflects my above grade square footage, so Zillow isn’t giving me any credit for my basement and is treating my neighbor’s basement like it’s above grade!
Luckily, I pay no attention to Zillow when valuing homes…and, you shouldn’t either!
Housing prices on the rise in Denver!
Home prices continue to rise across the country and Denver has now added a 12th consecutive month to its tally of year-over-year price appreciation according to Case-Shiller data released on 2/26/13.
While the rest of the country has been on a decade long housing price roller coaster, Denver has weathered the storm in a much more controlled fashion and is now leading the way out of the recovery with an 8.5% year-over-year price increase across the metro area and double digit gains in many of the Central Denver neighborhoods. With inventories at an all-time low across the metro area and a market that’s flooded with buyers hungry to find homes before interest rates increase, if you’ve been thinking about selling but were waiting for the right time, now is finally a great time to make a move and put your house on the market!
2448 Race Street, Denver, CO 80205
This beautiful Denver-Square is ideally located just three blocks from City Park! A large foyer with an original grand staircase welcomes you into this home. The main level has an ideal floor plan with large rooms and archways that provide separation between the rooms but preserve a sense of spacious openness. The living room is sizeable with lovely hardwood floors, a brick fireplace and a large front window for plenty of sunshine.
The kitchen is large with lots of cabinet storage space and counter preparation area. The formal dining room is conveniently located off of the kitchen and has plenty of space for large dinner parties.
There are three bedrooms and one full bathroom upstairs. The master bedroom is spacious with an adjacent sitting area and two closets. The second and third bedrooms are both good sized with substantial closet space. The entire second floor has high white ceilings, beautiful hardwood floors and ceiling fans. An original built-in outside of the bathroom in the hallway provides convenient storage for linens.
The basement is lightly finished and has tons of potential. There is one, non-conforming bedroom with an adjacent study/office/media room, a three-quarter bathroom and tons of storage space.
This home is ideally located on a quiet street just 3 blocks from City Park. Take a jog around the 3.6 mile park perimeter trail, visit the Denver Zoo located in the middle of the park or make a tee time at the City Park Golf Club…there are tons of activities right around the corner from this home!
Additional Information:
- Priced at $315,000
- 1,638 SF Above Grade
- 819 SF Below Grade
- 4,000 SF Lot
- Built in 1908
- 4 Bedrooms
- 2 Bathrooms
- 2-Car, Detached Garage
- Gas, Forced-Air Heating
- Central Air Conditioning
- Sprinkler System
Photo Gallery:
Highlands Development Site!
This is a truly unique development site on Tennyson Street in the Highlands neighborhood of NW Denver. These 2 side-by-side lots are zoned U-RH-2.5 which allows the construction of townhouses in addition to duplexes and single family homes. Combine the lots to create a huge 12,500 square foot development site! Contact Red Door Properties today for more information!
Details:
- Location: 3528 & 3536 Tennyson
- Priced: $538,000
- Site Size: 12,500 SF
- Zoning: U-RH-2.5
- 2 existing residential structures
Bungalow Demo in Observatory Park
On Thursday morning, construction began for Red Door Properties’ clients in Observatory Park. The existing 1,200 square foot bungalow was demolished to make way for a new 4,200 square foot contemporary home. MJS Properties, an active custom home builder in the Observatory Park, Platt Park and Wash Park neighborhoods, will be the be the GC on the project which is expected to be complete in October or November of this year. Check back here for ongoing construction photos!
373 South Sherman, Denver, CO 80209
Welcome to 373 South Sherman Street!
This charming Victorian home has tons of history! Built in 1893, it was affectionately known as “Daughter #3” because the original owner built this home and its two identical southern neighbors for his three daughters. Over the years, the home has been lovingly remodeled inside and out with the addition of a bright stucco exterior, front porch and back sunroom, sprinkler system, new roof and updated electrical panel.
A gracious entry foyer provides a convenient space to greet visitors and hang coats before welcoming them into the rest of the home. The living room features a wood burning fireplace with original oak mantel and original ceramic tile hearth and surround.
Between the living room and formal dining room are antique double pocket doors which were once common to Victorian homes but are difficult to find today. A lovely wall of built-ins provides storage for the dining room and new hardwood floors brighten the space.
The kitchen has an open floor plan with a sunny, southern facing window and bright white cabinets. A gorgeous, exposed brick wall and original white wainscoting provide historic charm to the room, while the remodeled granite counter tops, a double oven, tile flooring and movable storage/prep island provide the modern conveniences.
The master bedroom is located upstairs and has a spacious sitting area with great morning light. Two additional bedrooms upstairs would be perfect for kids! The center hallway between the upstairs bedrooms is brightened by beautiful clerestory glass above each doorway.
A fourth conforming bedroom with hardwood flooring, located on the main level, could also serve as a great office or study. A full bathroom with a restored antique claw foot tub (dating back to 1911) and original wainscoting is upstairs and a three quarter bath with newer tile flooring is on the main level.
This lovely home is ideally located on a quiet Washington Park street. Take a short jog to the activity of Wash Park or stroll around the corner to grab a cup of coffee and gourmet pastry at Buffalo Doughboy Bakery. The front yard is home to a rare black walnut tree that provides tons of nuts. The fully fenced back yard has a beautiful plum tree that yields over a bushel of fruit a year and the back deck features a trellis covered with white Niagara and Concord grape vines that offer delicious fruit, shade and ambiance. In addition, the owner has created a spacious, organic urban vegetable garden positioned south of the brick two car garage for plenty of sunshine.
Contact us today to set up a private showing!
Additional Details:
- Priced at $325,000
- 1,530 SF
- 4,320 SF Lot
- 4 Bedrooms
- 2 Bathrooms
- 2 Car Detached Garage
- Built in 1893
- Gas, Forced Air
- Sprinkler System
- Granite Countertops
- Updated Electrical Panel
- Newer Roof
Time to Buy or Refi!
Mortgage interest rates are at an all time low! Now is an excellent time to buy a home or refinance your current home. Contact Red Door Properties for lender recommendations.
What’s Your Zoning?
Regardless of your position on the current zoning debate taking place right now in the Highland neighborhood between the No High Rises in West Highland Group and RedPeak Properties, one thing should be completely clear…as a home owner, you must understand the Denver zoning code, you must know how your property is zoned, and you must know how your neighbors’ properties are zoned!
Even if you have no thoughts of ever developing your property or changing the external appearance of your home, your neighbors may not have the same plans for their home and their plans could greatly impact your property’s value. Fortunately, most of Denver’s Zoning code is logical, and you probably won’t be surprised by the zoning of your neighborhood, but that also might not be the case…
To find out the zoning of your property, refer to the Denver Zoning Map. Simply type in your property’s address and click search. For example, typing in “3220 Meade Street” returns the map below showing that the property is zoned U-MS-5 (which basically means…”Urban - Main Street - 5″ where the 5 more or less refers to the number of allowable levels).
To find out exactly what the zoning of your property means and specifically what type of development is allowable on your property or on that of your neighbors’, download a copy of the Denver Zoning Code. Doing a quick find on “U-MS-5″ will bring you to the following short description followed by a ton of details which pretty clearly describe what the City will allow to be constructed.
Now, if you’re a home owner on a residential street like Meade St. in the Highland neighborhood and you discover that you’re zoned U-MS-5, you probably won’t be too happy to read the above description and should probably start getting involved in your neighborhood association! If, on the other hand, you’re a landowner/developer who wants to build some high density apartments near the popular 32nd and Lowell retail area, you’re probably pretty happy to read the above description and should get your plans submitted for permit asap!
If you check out the Denver Zoning Code and have questions, contact Red Door Properties to discuss.
Denver Single Family Home Investment
Denver Colorado has great fundamentals for investment in single family homes. Check out this national news video to learn why…
[youtube]http://www.youtube.com/watch?v=Y9frmEv-vPA&feature=share[/youtube]
Factors that are causing Denver to be prime for residential real estate investment.
- In-migration from all over the country – the life-style in Denver is a major driver…relatively low cost of living, high quality of life, fresh air, outdoor sports, etc.
- Young population – average age = 31
- Unemployment well below the national average
- Foreclosure rate half the national average
- Stable housing market – recent trends more of a correction than a crash
- Apartments: An apartment building price is based on the building’s net operating income and a cap rate. Net operating income is really driven by rental rates. So, as apartment demand has increased, rents have also increased (simple supply/demand economics…apartment demand is growing faster than apartment supply in Denver) which has in turn has caused apartment building prices to rise. So, although you can get a great NOI on an apartment building right now, you have to pay a premium to acquire the asset.
- Single Family Homes: A single family home price, on the other hand, is based on comparable sales. The recent recession was driven by a major correction in the housing market which has left housing prices in Denver an average of 11% below the August 2006 peak (Case-Shiller). So, while apartment building prices are on the rise, single family home prices are either continuing to decline in some areas or are relatively flat in other areas creating great single family home investment opportunities throughout Denver. Rents for single family homes are rising just like they are for apartment building rental units, but the underlying asset can be acquired at a discount making the investment in a single family home attractive.
Contact
Leigh Wilbanks
P. 303.884.9166
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