Zillow now says my property is worth double!?

[Collin Smith]

Last year in September I purchased my first solo investment property. It is single lot with a SFH and a separate duplex on it. I purchased it for $96,000 and it generates $1700 a month in rent, with a 15 year mortgage (commercial loan because it is two separate buildings) that leaves about $1000 after mortgage, insurance, and taxes. It seemed crazy low to purchase because a SFH should sell for about $70,000 , and I got two for the price of barely more than that. Yesterday I get an update from zillow that says this property is now worth over $200,000! I know zillow is not an appraisal, but a starting point. Has anyone had this happen before? Would you suggest actually getting an appraisal done to see? I do want to do some updates in the next year so if it is worth more, that would be great.

[Benjamin Clark]

As an agent Zillow "Zestimates" have got to be one of the biggest challenges when dealing with the general public about values of their homes from either the selling or buying standpoint. The challenge with these "estimates" is that they can give a severely false sense of value and can be manipulated very easily. Just adjust your house to have an extra 2500 square ft and see what happens to your estimate! There is no replacing a certified appraisal, but a cheaper option could be to get a Broker's Opinion through a local real estate agent/Broker. Hope that gives some direction.