Why use unstable free services when Private Money Lenders Arizona is ready to help you

Welcome to Real Estate Investing. Today, we are brought to you by Private Money Lenders Arizona. We hear people all the time that are using free resources on the Internet to help establish the value of a property. Now I do not want to talk about any company and I am not notching your services. We have to think if it is free how good of quality is it really. And the service I want to talk to you little bit about is Zillow.

There are lots of people that use Zillow. In fact Private Money Lenders Arizona had an application that came to them where the price on Zillow was almost double the real value for the property. We have had clients that looked at Zillow. We have looked at Zillow and I can emphatically tell you that we have never find Zillow to be accurate enough. So what is Zillow and what they do?? My assumption is that Zillow is actually using public data and they are trying to determine a value. So the public data that is going to be available to a site like that is going to be tax records and with that they can do price per square foot analysis or they can do appreciation or depreciation analysis. So they are basically just using some sort of information and compiling it and coming up with a guess.

You know, in some states the tax data is actually accurate. Those are called disclosure states where the tax data, any type of property sales they get disclosed to the state or municipality of which the taxes are due for the property tax and their property taxes are adjusted or charges based upon the sale of the property. Other states are nondisclosure states meaning that the value of a sale is not disclosed to the municipality and with either one of those; we have seen errors in some of these free sites.

I am not knocking on Zillow specifically because there are actually a lot of free sites that offers these types of services that will actually come to hurt you as a real estate investor. So when I tell you why a free site that is claiming to give you the value is actually going to end up costing you money. And the reason is if you rely on a site like that or there are many other sites that lots of real estate investors are using or they have been trained or taught to use, but if you use something like that. Then the reason why it is going to cost you money is you are going to put a property under contract that you think is worth more than it really is!!

Majority of the time we see they are too high. It is rare that we see that they are too low but either way if you put a property under contact and lets say the Zillow says the property is worth $150,000 so you end up putting the property under contract for $100,000. Well let say, you get an appraisal done and you get an application done or you have an evaluation done on the property by a private money lenders arizona and you pay for that fee or you put some earnest money down on the property and it is non-refundable or may be refundable. But it is only refundable for a few days and your private money lender does not get the deal done fast enough. I mean with any of those situations, someone actually goes and looks at the property and does the research. If they are going to come up with a different value that one of those free services are giving you.

So the reason it is going to cost you money is that you are going to lose money on appraisals, evaluations and potentially losing earnest money potentially making a fatal decision of purchasing that property based upon information that may not be accurate.