New Book: "Zillow Talks: The New Rules of Real Estate"...

[David Krulac]

I am not evaluating or recommending this book, but new book written by Zillow has the following items in their book. 

1.  Location, location, location is NOT the number 1 rule.  Buying and predicting what the area will be like 20 years down the road is the number 1 rule.

2.  Don't buy the worst house in the neighborhood.  Buy the worst house in the hottest neighborhood.

3.  Houses on "streets" & "roads" don't sell for as much as houses on court, lane, way and place.

4.  Foreclosure discounts according to Zillow data are only 7.7% of value.  Most people think the discount of buying foreclosures is much higher.

5.  Calling a house "cute" decreases the selling price.  Cause or effect?

6.  Properties within .25 miles of a Starbuck appreciate more.

7.  Remodeling a kitchen is NOT the #1 best payback?  Rremodeling a bath is better.

8.  Neighborhoods close to downtown don't appreciate more than neighborhoods further away.

9.  Close in suburbs don't appreciate as much as further out suburbs. 

10.  Mortgage interest deduction costs the government $100Billion

[Elizabeth Colegrove]

Originally posted by @David Krulac:

I am not evaluating or recommending this book, but new book written by Zillow has the following items in their book. 

1.  Location, location, location is NOT the number 1 rule.  Buying and predicting what the area will be like 20 years down the road is the number 1 rule.

I agree with the mentality that they are not saying you need a "crystal ball". They are simply saying that if you look at the city its growth potential and where it is going. Those are places you should invest. 

2.  Don't buy the worst house in the neighborhood.  Buy the worst house in the hottest neighborhood.

Now we are splitting hairs (that has always been my meaning behind worst neighborhood in best area), but that has always been my mentality 

3.  Houses on "streets" & "roads" don't sell for as much as houses on court, lane, way and place.

I agree! ESPECIALLY in family areas! Families are buying for safe areas for their kids

4.  Foreclosure discounts according to Zillow data are only 7.7% of value.  Most people think the discount of buying foreclosures is much higher.

In my area foreclosures are over priced and really aren't a deal. They start out so high that they really need to fly under the radar to make sense.

5.  Calling a house "cute" decreases the selling price.  Cause or effect?

I think that is more about the fact that your "description is very important"

6. Properties within .25 miles of a Starbuck appreciate more.

Starbuck usually installs stores in up and coming areas. So my guess is that this has more to do with the "area" the company installs their stores than actual store.

7. Remodeling a kitchen is NOT the #1 best payback? Rremodeling a bath is better.

I think this comes down to "cost". A good kitchen is important but with all these upgraded features that people are putting into their house. You just can't get the money back. Think tile back splashes. Whereas bathrooms are very important (who wants to show in a grudge bathroom) and not paid attention to it. You also find alot less people over do the bathroom.

8. Neighborhoods close to downtown don't appreciate more than neighborhoods further away.

In my opinion this is market based as I know many areas that downtown and than suburbia are doing better than expected.

9. Close in suburbs don't appreciate as much as further out suburbs.

see 8

10. Mortgage interest deduction costs the government $100Billion

While I have no idea of the number I am sure it does :) Just as does any tax break.