Recently I have been working with buyers that put all their faith into Truila and Zillow to determine property value. While we are viewing a potential property for them to purchase, the buyer pulled out the smart phone, pulled up these sites and started telling me what homes have sold for in the area. How can I explain to this buyer that the site they are using is not publishing the most accurate data? How can I explain that the data being collected does not disclose all the facts of the sale?
For instance; we are viewing a home in a neighborhood and the asking price is $205,000, this home is in excellent condition with 1700 square feet. A home very similar to this one, on the same street, sold for $150,000 just a couple of months earlier and Zillow and Truila are reporting this sale but they do not report the details of the sale. According to the Multi Listing Service (MLS), used by Realtors and Appraisers this home that sold for $150,000 had 1500 square feet, it appraised for $175,000 but it had damage and estimates of repairs to be made in the amount of $40,000. The buyer's of this propety will have $190,000 in this property once the repairs are complete. This important information was not reported by Zillow or Truila.
Another example; the buyers told me they found a home on Zillow that had sold in the neighborhood for $100,000…I tried to find this sale in the MLS with no luck. I searched the Walton County Property Appraisers site to find that the property was a quick claim deed to a family member, meaning that this transaction was not an “arm’s length transaction” and cannot be used as a comparable for value according to an Appraiser, this is one family member deeding propety to another family memeber and it was reported as a sale by Zillow. Ask an appraiser, "do you use Zillow or Truila to compare propety value?" and the answer will be "NO".
While Zillow and Trulia have some excellent information for consumers, please keep in mind that this site is for internet advertising; Zillow and Truila are being paid by Realtors to advertise listings and capture buyer’s attention. Some homes being advertised on these sites are already under contract, some are not on the site for a week or so after they have been offered for sale and added to our MLS system, so rely on your agent for accurate updated listings and sales, because as Realtors we have the most accurate data at our fingertips.
Bev Dudley, Realtor
Fleur de Lis Realty
http://www.luxurygulfproperties.com/
For instance; we are viewing a home in a neighborhood and the asking price is $205,000, this home is in excellent condition with 1700 square feet. A home very similar to this one, on the same street, sold for $150,000 just a couple of months earlier and Zillow and Truila are reporting this sale but they do not report the details of the sale. According to the Multi Listing Service (MLS), used by Realtors and Appraisers this home that sold for $150,000 had 1500 square feet, it appraised for $175,000 but it had damage and estimates of repairs to be made in the amount of $40,000. The buyer's of this propety will have $190,000 in this property once the repairs are complete. This important information was not reported by Zillow or Truila.
Another example; the buyers told me they found a home on Zillow that had sold in the neighborhood for $100,000…I tried to find this sale in the MLS with no luck. I searched the Walton County Property Appraisers site to find that the property was a quick claim deed to a family member, meaning that this transaction was not an “arm’s length transaction” and cannot be used as a comparable for value according to an Appraiser, this is one family member deeding propety to another family memeber and it was reported as a sale by Zillow. Ask an appraiser, "do you use Zillow or Truila to compare propety value?" and the answer will be "NO".
While Zillow and Trulia have some excellent information for consumers, please keep in mind that this site is for internet advertising; Zillow and Truila are being paid by Realtors to advertise listings and capture buyer’s attention. Some homes being advertised on these sites are already under contract, some are not on the site for a week or so after they have been offered for sale and added to our MLS system, so rely on your agent for accurate updated listings and sales, because as Realtors we have the most accurate data at our fingertips.
Bev Dudley, Realtor
Fleur de Lis Realty
http://www.luxurygulfproperties.com/
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