Do you trust Redfin's Estimates?

Question

Hey, I'm a new investor, currently analyzing a lot of deals (to buy and hold). I was wondering if the numbers on Redfin are fairly accurate, or do they just use a generic percentage across the US? There are two sections I'm referring to, one is the "Payment Calculator" area:

And the other is the "Taxes" under the "Property Details" section. Are these the real taxes on the property, or is Redfin estimating what the taxes would be?

Thanks a lot, I really appreciate any advice!

-Zach

Kenneth Garrett · Answer

@Zachary Schimenz

Don’t trust Redfin or Zillow values.  They are generally incorrect.  You need to conduct your own analysis.  Use sold comps, with similar style of house, square footage, bedrooms, baths, etc.

Account Closed · Answer

Thats on you to verify via county website

Sam Shueh · Answer

Homes.com, realtor.com, Zestimates, RF, Trulia.  You can try them and get a large variance of values.

They are accurate for a complex consists of many recent sales with same floor plan. Condos are accurate as long as market price is constant.

That being said when the market changes like now in West Coast RF is based on 2018 sales and this is 2019. We see -15 to -25% price reduction last 10 months. Now it is taking off since Feb. There is just no way to use AVM for any accurate estimate.   You need human to pull and make adjustments.

Account Closed · Answer

To much analyzing is newbieland just set your criteria of neighborhoods and rent to value 0.8 - 1.2% and buy buy buy til your rich

Angie Shires · Answer

@Zachary Schimenz are you purchasing off market houses, or MLS listed homes? If the homes are on the MLS, then go ahead and find a buyers agent to work with. They can run all the numbers you need.

If you are doing off market, use Realtor.com...it is fed directly off the MLS and the most accurate for folks without access to the MLS.

Zachary Schimenz · Answer

Ahh ok I see. Would you use them for rough estimates? Like if you're analyzing a ton of properties to find ones that are "maybe's" and then run a more detailed analysis on those? Or just skip the Redfin estimates all together?

Do you trust Redfin's Estimates?

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