All Forum Posts by: Lori Greene

@Lori Greene When I tried to use management tool, I usually use them as aids but will not totally rely on them. Zillow is helpful in some aspect, but I would not suggest you put 100 percent of your hope on it. The most important thing for investment is not looking for a reliable tool, is keeping your eyes on the market all the time. 

@Lori Greene if you look at objectively, Zillow is pretty good considering it is completely algorithm based system. Of course there is never a substitute for someone walking into a property to view condition actual condition and amenities. Zillow is actually more accurate than our county assessments because Zillow uses near by sales data. Our county assessor uses square feet, number of plumbing fixtures, number of fireplaces and neighborhood class value. They think that formula detects homes with higher end finishes, but not always. 

Even when people evaluate property value, it depends on what comparable properties they choose, which means you need a skilled person doing the analysis. Two identical houses a half mile away may not sell for the same price. One may be on a busy road, the other next to a city park. Two similar square foot homes can also vary greatly in condition and finishes. The formulas mostly use square feet, but location, quality of finishes, floor plan and condition all play into the real value.

Of course the other factor is what value Zestmate comes up with. People dislike Zillow more if it is undervaluing their property, versus overvaluing. Which brings up the point, there is a difference between not agreeing with Zillow and it not being accurate. 

Realtors hate Zillow, but the smart ones understand it is used extensively by buyers, so it is best to work with Zillow rather than against it. You can edit property details and it affect the value, but the change takes time.

I don't look at zillow for anything other than estimating rent rates. They just take averages for areas, don't factor condition. It's such a stretch that it's a waste of time. If you're in a market connect with your team and have someone run comps for you! 

You can easily mess with their Zestimate. I bought my house for $120k, then threw it up for sale for $375k a year later and all the houses around me had their values on Zillow go up too. You'll get to know what things are or should be worth if you're in an area long enough. That's why it can be tough to buy in an area that you don't live in and don't have a good team established in. 

It’s hit or miss. It depends what you’re going to use that number for.

I use several resources when I need to get a quick roundabout estimate of ARV. Problem with any of these tactics, really, is that it does not account for upgrades or the reverse. My own house, for example, has pics on Zillow from when we bought it in 2007. That entire house has been redone by us in the time since. This is the same problem with getting a BPO...that broker likely hasn't been inside the house, either.

What I do for best estimating ARV takes longer but involves pulling comps and looking at pictures of the interior and exterior of potential comps, and comparing that with what I estimate the flip in question will turn out like based on previous experience. Obviously building a full CMA takes longer but it's worth it to me bc we can better gauge what the investor is getting into.

Zillow is okay for getting a very rough estimate to see if a property is worth considering in the first place, I guess.

@Lori Greene No way. I used to work for a wholesaling company so when we got the address the first thing I would do is go on Zillow to see the most recent pics of the inside of the property. Not for any estimating purposes but just to get an idea of what I was getting into.

There’s factors and data that Zillow does not and cannot yet account for. If a home owner is using it to negotiate their price you need to be ready to handle that with real comps on hand.

So they say it’s worth $270 cuz Zillow says then you need to be able to say “let’s take a look at some differences between the other houses that are going for $270” or “let’s look at what homes with similar specs are going for right on this street” then walk them through each point. Floor plan, square footage, condition, features, land, garage, etc and so on...

I’ve found Zillow to be more accurate on properties in the Midwest than on the West Coast.

@Lori Greene not always accurate...but sometimes. It seems like they set the zestimates on autopilot according to what they expect the market to do. I notice that sometimes they will make big adjustments which are also not always very accurate. Ive found Redfin to usually be more accurate where I am located.

@Lori Greene Sometimes, in the same way that a broken clock is right twice a day :)  Definitely not often enough to rely on without having other data to back it up.