Combating Internet Comps

I am writing this piece to my REALTOR® friends. I have run into this issue over and over again, and perhaps, it is more problematic in a place like Philadelphia, where one street or two blocks can make a dramatic difference in real estate price and value. You have to know the blocks and streets to understand the pricing.

The issue, which I have run into, is clients/prospects running comps on Internet sites such as Zillow and Trulia. They tell me my judgment is wrong and give me evidence from these sites, which is not valid. The sites are furnishing properties, which are clearly not comps if you know the area. It can pull properties, which are less valuable or more valuable.

Now, I can run a CMA and have done so, but it is expressed that I am perhaps choosing the properties that suit my purpose. Yesterday, I told the client that the only thing I left out were 2 bedroom houses, and that I was showing all other closed properties.

So, I decided to waste some time and played around on the two aforementioned sites. I pulled the two following properties. The values supplied were generated by Trulia.

10XX Mollbore Terrace sold $225,000 10/13/2009
Similarly recently sold homes is $241,500

27xx South 12th Street listed $220,000
Similarly recently sold homes is $145,250

Now, each, of these houses, sit on a cute little square. In reality, the 12th Street property, in terms of land, is a little more valuable. It is closer to stronger neighborhoods. Also, the 12th Street property is larger. Now, I understand the sale price and the listing price being different. The 10XX Mollbore property has higher end finishes. How does Trulia, however, have such a large discrepancy in the "recently sold homes"? The "recently sold homes" should essentially be the same for each property, and they are not. I am looking at over a $90,000 discrepency. To me, it makes all of their statistics suspect.

Now, I have run into this issue more than a few times.