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DeeLight

To Zillow or Not to Zillow?

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Newbie here,

 

What has been your experience with sites like Zillow, Trulia or Realtor.com for getting estimated selling prices and/or rents?

 

If you have few or no comps do you take their (those sites) word for it?

 

Thanks!! :D

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I iike zillow. You can get a ton of information about a property there and it also links to the county assessor. The rent and selling prices can be fuzzy. If its a cookie cut neighborhood with lots of activity, its easier and more reliable. If its an odd/unique property with few comps, its much less reliable. I wouldn't take zillow's word for it...I think you should always get a couple opinions be it from your own observation of comparables like craigslist or a realtor or an appraisal... Also getting a homeowner's opinion of the rents and sales price and why will give you more information to compare sites like zillow to.

 

I'm in a situation where zillow is off the mark by $70,000 because of another structure on a piece of horse property. I still use zillow to learn things, but I have to go with other opinions including the home seller and a realtor. Because I'm relatively new at this, its not fun making offers where you don't know for sure because the property is unique and you don't have enough supporting data.

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Thanks for your input Brian. I like Redfin better but it doesn't have some of the more remote areas---rural. You are right it's a drag to make just random offers. I'd love to hear how the resident pros would do those. (psssst, that's a hint, Michael, John and Steve).

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Zillow is often inaccurate, as are the other free sites. Their Zestimate isn't something we can take at face value. I guess we get what we pay for.

At best it is a starting point for determining value. The bulk of the work involved is our's. Begin to whittle down the list of comps they show you to the best half dozen or so. Discard anything that sold more than six months ago, and find properties that are in the same subdivision, if possible, and have similar amenities. Now you should be down to a few of the best comps. From there I break it down to the cost per square foot and apply that to the subject property. You'll end up with a pretty accurate idea of value.

Of course, this doesn't work everytime. There may not be enough data; the property could be unique in several ways, making a comparison difficult; or it could be in a rural area, etc. In these instances, you'll need to call on some folks in your circle: a helpful Realtor or mortgage broker. If all else fails you may have to trust your judgement sometimes and make your best educated guess. The market will always tell you where you stand.

Also, always ask the homeowner their asking price and where they got it from. They may surprise you with a recent appraisal or a Broker's market analysis.

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I'm a resident pro :D How do you like that! B)

 

I can only imagine how difficult it is getting accurate comps with out of the area deals. I have done some outside my area but for the most part they were in more metro areas and easier to find comps. I have been in my specific market for a long time, so at first blush it is somewhat easier. I do what MC says and pull from all the resources online that are available and see if there is a pattern with pricing and will do per square foot too then whittle it down. And typically there is a low high range. I focus on properties that have "Sold." But, I will also look at listing in the area to see the competitions 'asking' price. Nothing is perfect and there is no perfect property, so I also ask myself is this something someone would be willing to pay at this price?

 

Also, most of the focus with the tenant/buyers is first, the rent amount and the amount of the option consideration. The price although important is secondary.

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