[RP TownTalk] Zip Code Change

[Jonathan Ebbeler]

Bruce, et. al. -

It is not just about selling and moving.  It is also about attracting young, vibrant new families to the area, it is about attracting new and varied businesses and economic development, it is about division of state tax money, it is about qualifying for home improvement loans.  I could list out 10-20 reasons from the top of my head that have nothing to do with the benefits of selling and moving that directly impact the local community.

And to the point about image I would disagree with those bringing up that it hasn't worked.  Obviously the news story got it wrong and that is why this conversation is being had.  But the town has been pursuing the zip code change over the last 6 months - this story is hardly a catalyst.  The fact of the matter is that housing in Riverdale Park fetches a 100-150k+ premium over an identical house in Riverdale.  The issue becomes that although higher, we still lag some of our surrounding communities in price per square foot.  Is this all related to the zip code?  Of course not, but until there is a clearly delineated division between the county 'Riverdale' and the incorporated town of Riverdale Park in the minds of the less informed (and yes zip codes help), lingering understanding of what is the town vs. what is the county will remain.

Take the shooting story for example.  In this case, you have a story going out to the media that has an address.  In recent memory, Riverdale Park has received much more attention than Riverdale so when looking at a zip code and having to pick between two cities it is quite easy to confuse the two.  The 4-digit extension ties an address to a specific house or property, it doesn't necessarily indicate municipal boundaries.  Take for example the new NOAA building, it has a Riverdale Park address yet gets marketed as being in College Park since a portion of the building is in our neighboring city.

To the point of the Zestimate - those are HIGHLY inaccurate and that point just buttressed the argument I had made concerning the zip code change.  They are HIGHLY inaccurate due to the aggregation of all of 20737 as 'comps' when they are in fact not.  Our true 'comp' areas (if you are considering the core historic area) tend to be College Park, University Park (to a lesser degree), and Hyattsville.  This is not true in every case but in the majority of purchases over the last 3-5 years.  I will give you two instructive examples:  4601 Riverdale - Zestimate 233,336, was sold after a 1-day listing for 366,100 and 4601 Queensbury - Zestimate 297,444 but appraised over the last year for over 400k using real comps.  4601 Queensbury and 4601 Riverdale are 2 houses away from each other, and although both were high-end renovations, Queensbury has substantially more square footage, a 50% larger yard, and a two car garage.  The Zestimate has it 70k less than what its neighbor sold for in less than a day (indicating the market may have absorbed an even higher price for the property) - not a believable estimate juxtaposed to its real appraisal.  Again, Zestimates are based on the zip code 20737, not what banks and real estate agents, and the buying public will determine as 'comparable.'


Respectfully,
Jonathan

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