A New Low for Incorrect Zillow Zestimates

Last night, Zillow posted a tweet, inviting you to look at this glorious mansion on the market for $35,000,000. Please note, that is $35 MILLION.

The amusing part to me, is when I clicked on it, directly under the asking price is the Zillow Zestimate: $396,500. Yes, you read that right, Three hundred ninety-six THOUSAND, five hundred dollars.

Now, I realize Zillow’s algorithms have what they claim to be somewhere between a 7-11% margin of error, but this one is off by 88.27%. OFF BY ALMOST 90% OF VALUE. Hm. Think something might not be right?

Yet Automated Valuation Systems are the way banks are doing quick appraisal reviews, and no wonder they may be coming in low.

I’ve discussed the Zillow Zestimates in the past, beginning with Zillow Zestimates for Towson Real Estate May Be Misleading. I have come across a large number that were not close to a selling price of a home.

Then, I had communications with some Zillow executives, where some light was shed on why it is possible they are off in our area, which I discussed in Misleading Towson Zillow Zestimates Explained Further.

Zestimates started to complicate things further as the market began to drop, because banks began to reduce Home Equity Lines of Credit, and were using Desktop Valuations to do so. When one of my clients called his bank, his loan officer pulled up Zillow & told him that’s why it had been dropped. (See Incorrect Towson Zillow Zestimate Strike Again.)

Earlier this year, Zillow updated their Algorithms to try to correct some of the problems. For the Baltimore metropolitan area, according to the site’s “Zestimate Accuracy,” Zestimates are within 20% of an actual sales price only 78.3% of the time (with a 7.9% margin of error).

For a $200,000 house, being 20% below would bring the price down to $160,000. Above, that price (which would make a seller happy, but not a buyer or appraiser), would be $240,000. That’s a tremendous difference!

Real estate is very local. Even street-by-street or neighborhood-by-neighborhood within a zip code can have majorly different values.

If you would like an accurate Towson home value estimate, please contact me. I can help you anywhere in the Baltimore real estate market area, or if you are in a different state, I can refer you to an agent anywhere across the country.

Moveable Feast Dining Out for Life September 22, 2011

On September 22, 2011, if you dine out at participating restaurants, at least 20% of the proceeds will go to Moveable Feast.

Moveable Feast is a charity that helps to feed hundreds of men, women, and children locally who are living with HIV/AIDS, and possibly  other life-challenging conditions (like breast cancer or other cancers).

A number of very popular restaurants are participating, and some offer breakfast, lunch, and dinner…check each one to see their availability.

Here is a list from the Dining Out For Life website:

Alonso’s – 50% View Details	Tel: 410-235-3433 Reserve Online Now	D
………………
The Brewer’s Art – 50% View Details	Tel: 410-547-6925 Reserve Online Now	D
………………
Clementine – 50% View Details	Tel: 410-444-1497	L,D
………………
Gertrude’s Restaurant at the BMA – 50% View Details	Tel: 410-889-3399 Reserve Online Now	D
………………
Loco Hombre – 50% View Details	Tel: 410-889-2233	D
………………
Miguel’s Cocina y Cantina – 50% View Details	Tel: 443.438.3139	D
………………
Woodberry Kitchen – 50% View Details	Tel: 410-464-8000	D
………………
The Dizz – 33% View Details	Tel: 443-569-5864	L,D
………………
Iggie’s – 33% View Details	Tel: 410.528.0818	L,D
………………
‘b’ A Bolton Hill Bistro View Details	Tel: 410-383-8600	D
………………
Bistro Rx View Details	Tel: 410-276-0820	D
………………
Blue Agave View Details	Tel: 410-576-3938 Reserve Online Now	D
………………
Bonjour Bakery/Cafe View Details	Tel: 4103720238	B,L
………………
Cafe Gia View Details	Tel: 410.685.6727	D
………………
Cafe Hon View Details	Tel: 410-243-1230	D
………………
Chameleon Cafe View Details	Tel: 410.254.2376	D
………………
City Cafe View Details	Tel: 410-539-4252 Reserve Online Now	D
………………
Giovanni’s View Details	Tel: 410-679-9805	D
………………
Jack’s Bistro View Details	Tel: 410-878-6542	D
………………
Joe Squared View Details	Tel: 410.545.0444	L,D
………………
Koco’s Pub View Details	Tel: 410-426-3519	D
………………
La Palapa Grill & Cantina View Details	Tel: 410-465-0070	D
………………
Laurrapin Grille View Details	Tel: 410-939-4956 Reserve Online Now	D
………………
Linwoods View Details	Tel: 410-356-3030 Reserve Online Now	D
………………
Marie Louise Bistro View Details	Tel: 410.385.9956 Reserve Online Now	B,L,D
………………
Meet 27 View Details	Tel: 410-585-8121	D
………………
Mia Carolina View Details	Tel: 410-526-5711	D
………………
Minato Sushi Bar View Details	Tel: 410-332-0332	L,D
………………
Miss Shirley’s Cafe – Inner Harbor View Details	Tel: 410-528-5373	B,L
………………
Miss Shirley’s Cafe – Roland Park View Details	Tel: 410.889.5272	B,L
………………
Mt. Vernon Stable & Saloon View Details	Tel: 410-685-7427	L,D
………………
Mt. Washington Tavern View Details	Tel: 410-367-6903 Reserve Online Now	D
………………
The Rumor Mill Fusion Bar and Restaurant View Details	Tel: 410.461.0041 Reserve Online Now	L,D
………………
Sascha’s 527 View Details	Tel: 410-539-8880 Reserve Online Now	D
………………
Saute’ Restaurant & Bar View Details	Tel: 410.327.2883	D
………………
Sotto Sopra View Details	Tel: 410-625-0534 Reserve Online Now	D
………………
Todd Conner’s View Details	Tel: 410-537-5005	D
………………
Village Square Cafe View Details	Tel: 410.433.2233	B,L
………………
Yellow Dog Tavern View Details	Tel: 410.342.0281	D

If there is a B next to it, it is serving breakfast, L, Lunch, D, dinner. The ones at the top of the list are donating more than 20% – seven of them are donating 50%! Wow!

What a great way to give back to the Baltimore community while also enjoying a wonderful meal in a terrific restaurant!

 

Power Still Out in Towson After Irene

Well, here we are, coming up on two days without power at our house in Towson after losing it during Irene on Saturday night.

It’s maddening because our neighbors across the street lost it Sunday morning for only a few hours, and they are back up & running. Why?

We are on a separate line, and much of Towson is without power. I guess our neighbors are the lucky few.

Driving from my house to my office, I found the lights at Bellona and Joppa to be still out, as well as Thornton Rd and Joppa.

BGE is estimating 3-5 days before power is restored to all customers. A press release sent out to the media states that they should have most restored by FRIDAY. (Yes, today is MONDAY.)

As of 12:45pm, over 106,000 were still without power in Baltimore County, down from the 214,000 that were out originally.

Dry ice is out everywhere. We have just given up & realized our food will all be spoiled.

So, here I am at the office, charging all of my equipment that needs it.

Good luck to all of you who are also still without power. I hope yours (as well as ours) is restored sooner rather than later.

Hurricane Irene and Potential Settlement Delays

I received emails from two lenders warning of possibly repercussions of Hurricane Irene in Baltimore, in terms I hadn’t considered.

An excerpt from an email from Brian Nowakowski, of Academy Mortgage,

“it is very likely that settlements will be delayed next week.

Lenders across the board will require re-inspection of all properties should we be considered a disaster area by the government.  As you can imagine if this is the case the appraisers will be overwhelmed trying to meet the demands of re-inspections.”

I hadn’t thought about the Baltimore appraisals that have happened and how the lenders for those banks will want to make sure the property is in the same condition as it was when they were appraised.

With the large amount of rain we are supposed to receive, in addition to the heavy rains we have received already, plus the high winds predicted, there are many homes that may be damaged.

Be prepared for Hurricane Irene in Baltimore using the tips I shared yesterday.

Buyers and sellers, if you are settling next week, please know it is likely you will be delayed!

BE SAFE, EVERYONE!

Hurricane Irene in Baltimore

Well, the new predicted path for Hurricane Irene is trending more west, bringing higher winds and heavier rain our way most likely this weekend.

Here in Baltimore we are right on the cusp of the “High” to “Extreme” threat level for the storm. It appears that it is supposed to be between Category 2 & Category 1 when it hits us — meaning sustained winds of over 100 MPH. This, on the heels of the earthquake Baltimore felt on Tuesday!

Though it was supposed to reach us on Saturday, it looks like it is going to be more like Sunday into Monday. I guess Irene has slowed down as she has picked up strength.

I found a hurricane preparedness section on FEMA’s website, and thought I would share.

• A few of the easier (and most likely to be able to be accomplished before Sunday) ones include making sure your gutters are cleaned and tree branches trimmed — especially any that appear loose. Secure outdoor furniture (like deck tables and chairs!)

• A really good one — turn your refrigerator to the coldest setting. This way it can hopefully keep things cooler in case of power loss.

• If you need electricity to flush your toilets or wash your hands (i.e. you are on a well), fill the bathtubs and other large containers with water.

• During the storm, stay inside, away from windows and glass doors, in case they break with the force of the wind.

I hope it calms down before reaching us!

BE SAFE, EVERYONE!

Charm City Kids Club in Timonium

Charm City Kids Club is a new and unique place for young children, and is located in convenient Lutherville!

Taking over vacant space in the Seminary Crossings building, it is located right off Seminary Avenue in Lutherville across from the Royal Farm Store and near the lightrail crossing.

The Charm City Kids Club is a place with free play, classes, and good times for young kids.

There are cooking classes, art classes, movement, and music classes, and they are split up by age group — generally 18 months-3 years is one group, while 3-5 years old is the other group.

There is one cooking class that is for older kids — age 5-7, that is happening this fall, called “Culinary Creations”, which is for children older than the membership program and general classes/play groups are for. You don’t have to be a member of the Club to join this class.

The cost of the session of classes depends on the course and the intended age group. You can visit their website for more details.

What a great idea for children in Timonium. My son is in the upper age group, but that cooking class sounds really neat!

Charm City Kids Club is located at the corner of Seminary & Railroad Drive, (google map) 1500 Railroad Drive, Lutherville, MD 21093. Come see what it’s all about!

Baltimore Earthquake

A 5.9 earthquake hit just north of Richmond, but we felt it up here in Timonium!

The walls were swaying, the floor was shaking. It was rather frightening.

Though West Coasters tend to know what to do, we here in Baltimore certainly do not.

I found a quick guide from FEMA as to what to do during an earthquake for future reference. One is, if you are inside, stay there — people tend to get more injured when they try to exit! I stayed in a door frame, but realize now that it wasn’t a load bearing wall, so it wouldn’t have done me much good.

Luckily we didn’t have much damage up here in Timonium. I am hoping there isn’t too much damage and few injuries as a result of this big quake.

Next up for us is Hurricane Irene, which is now tracking towards us and could still be CAT 1 when it hits us early Sunday morning.

Be careful out there!

Baltimore Grand Prix

The Baltimore Grand Prix is coming Labor Day weekend — and Downtown Baltimore is getting ready!

Roads have been under construction, parts closed, causing traffic nightmares to prepare for the big event. Our city will be hosting for five years — great for Baltimore!

There will be races and practices throughout the weekend, with the big Indy Lights Race at noon on Sunday, September 4, 2011.

There are also many events to enjoy, including go kart tracks (to practice for yourself!), IndyCar Fan Village with driver appearances and autographs, Big Wheel races for the young ones, and remote control car races as well!

A party zone with bands, family fun zone with games, and Budweiser Block Party are just a few of the other activities. Here is a link to the website with all of the details.

A new & cool thing for Downtown Baltimore that will be with us for a few years!

Happy Labor Day!

Photo courtesy of Jaffa The Cake via Flickr CC

Maryland State Fair in Timonium 2011

The Maryland State Fair begins on Friday, August 26 and runs through September 5, 2011.

With 11 days of games, rides, livestock, concerts and more, the Maryland State Fair has something for everyone!

The big concerts this year are Blake Shelton, who many learned about when he was a coach on The Voice and when he married Miranda Lambert, Selena Gomez of Nickelodeon fame (and most recently made headlines dating the Maryland State Fair 2010 star show, Justin Bieber,) and the locally (TIMONIUM!) bred band, All Time Low, whose hit, “I Feel Like Dancing” has been in the top 100 for months!

Just like last year, the Timonium Farmers Market will be open each day to get fresh fruit, vegetables, and meat from local farmers.

Food Lion also again has a limited number of $5 off ride coupons for certain days.

Ride tickets generally cost $1 each, and rides take 1-6 tickets.

Admission is still $8 for adults and $3 for children 6-11. Children 5 & under are free.

Parking is $3 on site, but free at the Deereco Park & Ride. There are a number of private parking lots where you can pay for parking as well.

Come to Timonium and enjoy the Maryland State Fair! It will be a lot of fun!

The Maryland State Fairgrounds are located at 2200 York Road, Timonium, MD 21093.

3.875 Interest Rate?!

I received an email this morning from one of the lenders that I would recommend, and he said FHA and VA loans started the day at 3.875%!

So far this week, mortgage rates have improved as investors continue to worry about the health of the economy and anticipate a moderate recovery. Treasury prices have advanced as weak economic data, continued concerns in Europe, and a gloomy outlook from Morgan Stanley have diminished investors’ appetite for risk and spurred demand for the safety of U.S. government debt. Bad news in the economy is good news in the bond market, meaning lower interest rates for your clients. Currently, Wells Fargo’s FHA and VA 30 year fixed interest rate is 3.875% with no points and minimal closing costs (feels weird even writing it)! I am optimistic that the recent rally may provide a second chance to beat previous all-time lows in mortgage rates and a second chance for your buyers who feel like they missed their window of opportunity.

I am amazed at how low the rates can be! Thank you, Jason, for sharing this great news! Jason Lerner is with Wells Fargo Home Mortgage. He is very much on top of the mortgage market and economy news! Visit his website for more details on him!

The biggest thing to note, is that not everyone will qualify for that rate, and there are many variables that effect whether you could get the starting low rate.

If you want to buy a house in Towson, please contact me. These low rates may help you qualify for the home you may want. My team, including mortgage and title professionals, would love to help!

Next Page »