Two identical properties, 80k price difference

4 Replies

Looking around on zillow in my city of san antonio and i find a house thats being foreclosed for 160k, everything looks to be in good condition.... a few blocks away i find a literal mirror image of the same property listed for 120k, opening bid at 80k except the carpets are all stained, theres a dent in the wall about the size of a basketball, grass is overgrown, theres no tile downstairs (just cement slab). i feel like this is  good entry home to start flipping seeing as though i have a comp right down the road.  Any advice for a 22 year old trying to dive in?

@Abel De Loera You should use actual "sold" prices for your comps - not other active listings. I can list my $200k house for a million dollars but that doesn't mean it's worth that and definitely doesn't mean my neighbor's house is worth that. Be careful.

Most importantly, dont use Zillow. How do they know what a property is actually worth? The answer is that they dont and people make horrible buying decisions based on that information. 

I have heard people say, "Well, Zillow said it had an ARV of $XXX,XXX, thats why I bought it." Of course arv was nowhere near that price.

@Abel De Loera To @Rick Pozos ' point, Zillow claims that in my market area, 90% of their "Zestimates" are within 20% of actual market value.

Take a minute to digest that.

That means that 10% of their home value estimates are wrong by more than 20%.  And in a market like eastern MA, where the average price is about $500,000, 90% of their estimates are within $100,000 of true market value.

With or without disclaimers, they are knowingly pushing bad data out to the unsuspecting public.

My favorite Zillow pic from November 2016...

@Abel De Loera My advice for you is don't be so naive and ignorant man! Learn the comps and ACTUAL prices. Take Zillow and other sites with a grain of salt. They are trying to make money and sell you they aren't focused on being 100% correct or even 90% correct. Be careful and look on the MLS and see what properties are actually being sold for. Good luck!

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