Accuracy of sites like Zillow and Redfin

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Accuracy of sites like Zillow and Redfin

Leland Dorchester
Member since 2020 · 2 posts · 0 votes

Hello,

I'm interested in getting started with investing in real estate and I'm curious about the accuracy of sites like redfin or zillow - Particularly the info which shows the estimated annual principal, interest, and taxes. I'm asking because I'm curious of ways that I can look at the cost/benefit of owning rentals while I do a little reading/research about investing in real estate to get started.

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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
5y

@Leland Dorchester

Taxes can be levied by the county, city and school.
I would doubt that Zillow is getting the figure correct for each property.

I would use the Zillow figure as a rough estimate and go to the county assessor website to confirm if you are close to making an offer on the house.

[email protected]917-280-8544
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  • Brad HammondBusiness Member
    Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
    5y

    Hey @Leland Dorchester, those sites are going to pull the tax information from the MLS listing, which pulls it from country records (at least in my area) so that should be accurate. Just know that taxes will go up after the property is sold. As far as the principle and interest, that will depend on what they are assuming for the down payment and interest rate. There should be a way to check that and/or change it. There are also lots on online mortgage calculators that can tell you that information. Hope that helps.

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  • Jamie Derasmo
    Real Estate Agent · RI · Member since 2020 · 73 posts · 86 votes
    5y

    Hi @Leland Dorchester, Redfin and Zillow just provide estimates based on average interest rates and standard loan terms. I find Realtor to be very user friendly to set what your specific interest rate and loan terms (30 year, 20% down, etc...) Realtor also has a Tab for Tax History which shows the last year’s taxes. Use that number and divide by 12, and when your adjusting your specific numbers, ensure to change the tax rate because those sites default the tax rate based on sales price. There are a lot of online mortgage calculators that you can do general calculations from (SmartAsset, NerdWallet). This site also has great calculators so you can put in your numbers and run them on a specific property to help you see the overall financial picture. Good luck!

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  • Leland Dorchester
    OP
    Member since 2020 · 2 posts · 0 votes
    5y

    Hi @Jamie Derasmo and @Brad Hammond, thank you for the detailed responses. I'll have to look into a few mortgage calculators as I learn how to look into the full picture of potential properties.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    @Leland Dorchester

    Taxes can be levied by the county, city and school.
    I would doubt that Zillow is getting the figure correct for each property.

    I would use the Zillow figure as a rough estimate and go to the county assessor website to confirm if you are close to making an offer on the house.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    2Reply
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