Pro & Cons: Home Value Websites vs MLS Comps
NOTE: We are not agents. We are a service that helps investors get MLS comps from an investor friendly agent in 1 day, even if you need comps everyday from markets all over the U.S. We work with agents in every market.
Home value websites are instant and convenient. That's why they're so popular. As an investor, you need property value answers quick. Otherwise, you'll be in analysis paralysis and never get an actual deal done.
They can be okay to find out some info on a property when you need it fast.
But how accurate are they to use for a property value when you're investing in a property? Not very. Just do some research online for articles about their accuracy and you'll find more than enough information to support the fact that they aren't accurate at all.
I did a test on my own home using my recent appraisal as the accurate value. Then I compared the values from 7 popular home value websites. I had recently refinanced my home so I had an appraisal and a CMA from my realtor to compare the website values to. Here are the results . . .
$514,651 CMA Before Appraisal
$500,000 Actual Value Confirmed by Appraisal
Automated Home Value Estimation Sites:
- $606,483 Zillow Zestimate - 82% Accurate - $106,483 Potential Loss
- $682,000 Chase Home Value Estimator - 73% Accurate - $182,000 Potential Loss
- $588,078 ForSaleByOwner Pricing Scout - 85% Accurate - $88,078 Potential Loss
- $622,000 Eppraisal.com - 80% Accurate - $122,000 Potential Loss
- $606,259 Trulia Estimate - 82% Accurate - $106,259 Potential Loss
- $700,000 Realtor.com - 71% Accurate - $200,000 Potential Loss
- $718,000 Remax Home Estimate - 70% Accurate - $218,000 Potential Loss
As you can see, there is a huge difference between the instant values for my house but the CMA, done from a human being, a knowledgeable agent who has insight in my area, came the closest.
So, there's really just one question: How important is your real estate investing career to you? Are you willing to gamble on the potential loss of thousands of dollars just to get an instant value?
I know it can sometimes take a while to get comps from an agent. But now there is a faster way. If you can't get good comps from your agent immediately, you can now simply order them online from RealEstateCompsToday.com. It only takes 2 minutes to order and costs 5 bucks.
We have agents in every market in the U.S., even rural areas. We can even run comps on land and commercial properties.
Your order will be immediately given to a local agent who is knowledgeable in the neighborhood market of your subject property. The agent will pull your comps and email them to you within about a day. Real Estate Comps Today will follow through with you and the agent to make sure you receive the very best comps and analysis.
Isn't your investing career worth a day? It could save you thousands of dollars and so much frustration. Now the easy way is also the most accurate way.
What are your opinions on the pro's and con's of Home Value Websites vs MLS Comps from a Realtor in the area?