Accuracy of Pre-foreclosure amounts on zillow?

Question

I run across multiple listings on zillow that say the home is in pre-foreclosure and gives the estimate on how much they think the pre-foreclosure is.

Anybody have experience on how accurate the amounts might be?

Michael Noto · Answer

As someone who pays to be on local pre foreclosure listings through Zillow in my local area I can tell you the amounts they list are wildly inaccurate and cause mass confusion among the average potential homeowner who responds to the ads.

Bill Plymouth · Answer

The “zestimate” can be as much as 40% off.  I imagine that can leaks over to the pre-foreclosures.  Zillow is a good place to get a base idea.  Not 100% solid information.

Check your city/county records.  You should be able to see what properties are about to go up for auction due to tax liens and foreclosures.  That is a much more accurate way to find that information.

Jeff Wallace · Answer

"Zillow" and "accurate" should never be used in the same sentence

Bill Plymouth · Answer

@Mark Rocka I don’t know how your county/city does auctions, but in Philadelphia, you have 30 days to close on the property.  During those 30 days, you can run a title search which will tell you about any other potential liens.

The biggest thing I can think of that would be an issue is that you’re busting without seeing the inside of the house.  The previous owners could have destroyed the inside or the house could have issues that you cannot see with the naked eye and you go over your repair budget

Mark Rocka · Answer

Thanks Bill!  Much appreciated!

Justin NA · Answer

I've been searching Pre's for my realtor.  If you're talking about the estimated foreclosure price, it's 20% of the zestimate.  My guess is it's not accurate at all, their formula just calculates 20% from the estimated price.

Brian Rodriguez · Answer

Thank you Bill!

Mark Rocka · Answer

Hey @Bill Plymouth! Checking with the county is something I’ve been thinking about doing. I’m brand new to investing and haven’t purchased anything yet. I understand you have to make sure there aren’t any other liens on auction property. Is there an easy way to do that? Also, any other unseen potential gotchas I need to worry about?

Thanks!

Wayne Brooks · Answer

Not at all.

Accuracy of Pre-foreclosure amounts on zillow?

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