How do I get accurate numbers when analyzing deals?

9 Replies

I feel like I'm "fluffing" the numbers too much when I am analyzing properties. What types of resources should I be using to get more accurate numbers? I'm currently using rentometer, homes.com (for home values), and a few other websites. Are these trustworthy sites or are they just ball parking the numbers? What are your opinions on the best sites to use and the ones to avoid?

Thanks in advance,

Colton

Those sources are OK. Rentometer never made much sense to.

My wife and I use Zillow, Trulia, etc. 

You can google for free analysis spreadsheets.

If you like, PM me and we can exchange email addresses and I will send you mine.

@Colton Blessen , when using Zillow, please remember that the ASKING price and/or the "Zestimate" values may have NO relevance at all to the actual market value. But their listings of the value of recently SOLD homes in the area can be useful (but still won't tell you if those values are wholesale/investor prices or retail/end-buyer price). To determine realistic comparable sale prices as they might relate to the properties you are researching, is an art rather than a science. All the best...

Zillow is a great resource for data, but ignore the zestimate.  That's nothing but an average covering everything possible, and distorts the real data.  Their data works though...you just need to learn to analyze it.

RentOMeter is great.  It's accurate, as long as you focus on the "candlesticks" on the map, and not that circular gauge.  That gauge is RentOMeter's version of the Zestimate.  Look at the candlesticks close to your property, and not the one's further away.

I use both of these tools when I teach analysis at my REIC.  My analysis is usually spot on.

Question is what are you really doing? Looking around for neighborhoods to farm? Trying to figure out where to invest?

In that case using these resources are fine.

If you're looking for actual properties to invest in, I strongly suggest building a relationship with a local realtor. He can give you historical sales data.

Question is what are you really doing? Looking around for neighborhoods to farm? Trying to figure out where to invest?

In that case using these resources are fine.

If you're looking for actual properties to invest in, I strongly suggest building a relationship with a local realtor. He can give you historical sales data.

Good advice by @Joe Villeneuve

I think Zillow and should trumpet more that they have very accurate data in terms of past closed sales, tax info, etc..

They seem to showcase the Zestimate which is usually wildly inaccurate at least in my area.

For rentals, I find rentometer to be reliable in suburban/urban areas where there is a good amount of data to draw upon.

Michael Noto, Real Estate Agent in CT (#RES.0799665)
860-384-7570

@Colton Blessen

What numbers are you seeking?  Sales comps?  Rental comps?  I typically use several sources like rentometer, Zillow, craigslist and comps requested from my real estate agent. I compare all info before coming to a conclusion.  Other investors in your target area may be a good source of info, as well.

Using the recent sales history on Zillow or like-sites is very effective. The reason for that is because it gives you an exact number someone else thought the property was worth. 

Anyone can put a number out on the market for their property, but that doesn't mean it's going to sell for that number. It's the actual SALE price that is of importance. Look at Comp sales for your market and use those to figure out a good pricing strategy. 

Rent is the same way. Look at what things are CURRENTLY renting for. Again, just because someone posts a rent amount of X doesn't mean someone else is willing to pay it. Look for recent rental agreement prices when creating a pricing strategy.

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