ARV from Zillow sold houses?

Question

I'm still learning, but when looking at potential houses, can I base ARV off of houses recently sold in the area by looking at Zillow.  Eventually my plan is BRRRR or houses asking a duplex.

Eric Cecere · Answer

Hello @jasonbranch. Great question. We have had some varying levels of confidence with Zillow estimates (aka Zestimates). For some properties the Zestimate is fairly accurate and for others it is like what is Zillow thinking!?!?To help strenghten our comps we use realtor.com as a quick tool for recently sold in the area. Make sure your comps are not only in the same area but also similar year built. You do not want to compare a house from 1971 to a brand new build a mile down the road.As a rule we also use 10% up or down in sq ft as a boundary for comps. For example on a 1,000 sq ft home you can include comps that range from 900 sq ft (10% lower than than 1000 sq ft) up to 1100 sq ft (10% higher). You do not want to comp with a 2000 sq ft home and think your 1000 sq ft house commands the same market value.But as everyone else stated get to know a realtor. They are a great source with MLS access. I heart my realtor sooooo much! Best of luck to you. Keep the community posted on any deals that you do.

Jeremy P. · Answer

I don't trust Zillow.They are known for delayed updates of houses, zestimates are over inflated by more than 30%.I own a D class property in Orlando, Florida, it can barely sell for $150k but Zillow shows the zestimates over $950k.Complaining to Zillow had no affect, they did reduce the zestimate but still was over inflated.Becareful using Zillow, if you don't have access to MLS it's easy make friends with an Agent and they run comps for you.You could also check Realtor.com not 100% accurate like MLS.

Tom ONeil · Answer

@Jason Branch Zillow usually has houses for the last two years in their "recently sold" category.  If you don't have MLS access or an agent who you can go to for those questions, i recommend Realtor .com for that info.  Their recently sold houses are typically in the last 6 months and more accurate, at least in my area.

Jason Branch · Answer

Awsome, thankyou everyone for all your info as I keep trying to learn the buisness

Kuba F. · Answer

@Jason Branch I use Zillow in my app to get basic data, but always recommend people bring their Redfin or MLS comps with them to run their comps adjustments.  Since Zillow uses public data, it's only updated as often as the data.  In some places including CA it's better than others, but never a reflection of current market conditions.  Redfin is a broker and thus connected to the MLS so their data is often as old as a few minutes.

Matt Lefebvre · Answer

@Jason Branch Not even talking about Zestimates (which can be wildly off), Zillow is NOT an accurate tool for comps, or even providing basic information.  In my market for example, another agent in my brokerage just listed six new construction single-families on the MLS.  All of the information there is fine.  Go on Zillow and search for the addresses and they're all listed as CONDOS.

Be very wary of any information you use from sites that pull from the MLS.  They are not 100% accurate, and sometimes are wrong more than right!  Finding someone with MLS access is the best way to get accurate information.

Jeremy P. · Answer

@Jason Branch

I came upon this great write up by Sherman Ragland about gaining access to MLS here:

https://www.biggerpockets.com/forums/443/topics/39...

Jason Branch · Answer

@Michael Williams I actually have a realtor in FL where I plan on moving, thanks for all the info

Michael Williams · Answer

Hi Jason I use Zillow for sold comps but as Ton said you have to check the dates sold. My mentor directed me to realtor.com for more detailed information, but I'm not sure if if this is in all areas. I have access to the MLS because my ex-mother in-law is an agent and my wife is becoming an agent as well. Create a relationship with an agent, it pays to have one in your circle.

Jason Branch · Answer

@Tom ONeil thanks alot, I'm looking to jump into REI sometime this year

ARV from Zillow sold houses?

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