Zillow. How accurate?

Question

I’m still new to this and hoping to buy my first property within the next month. I was just curious how often do y’all go off of Zillow numbers? After checking the numbers out for your self.

Joe Villeneuve · Answer

Not at all.  The Zestimate is based on the average property covering an area that is much larger than the one you need to use.

Matthew Bell · Answer

Okay thank you. When you say comps what do you mean?

Kenneth Garrett · Answer

@Matthew Bell

Don’t trust the Zillow numbers.  The sales information is generally accurate.  You can run your own comps by using the sold comps.  I use Redfin and Zillow to run sold comps.  I have used it and compared it to a MLS comp.  My numbers are very accurate using this system.  You can do the same with rental information.  I use Zillow, rentometer, trulia, hot pads, apartments.com, etc.  Run the numbers the same as sold comps.  Most don’t use the MLS in my area for rentals so it doesn’t really help much.

Matthew Bell · Answer

I don’t even have an agent yet

Brendan Dekora · Answer

For rentals I have been using the calculator here on BP Insights.

For comps I just started using icomps.com though I'm not positive how accurate it is, it does analyze a lot more properties than the zillow one, but the best best I'm sure is talk to your trusted agent.

Anyone else using icomps.com?

Matthew Bell · Answer

Thank you everyone

Matthew Bell · Answer

Thank you to both of y’all. With that being said what is your method for calculating rent and finding out if it’s a good deal or not?

Bonnie Low · Answer

Never. We have a Realtor we work with locally who will pull comps for us if we're considering offering on a property. I've found Zillow to be extremely misleading.

Ayne C. · Answer

@Matthew Bell. The only Zillow numbers I trust are the SOLD price and maybe property tax.

Charles Cooper · Answer

Its not that accurate, I use comps in the area that are similar. Even Zillow has acknowledged their algorithm is bad, that's why they offered $1M to anyone to come up with a better valuation tool to help them out.