There has never been a time when so much information was so freely available to so many people, thanks to the explosion of the internet.  Real estate investing success depends on current and accurate information.  Listing websites provide an invaluable service to many investors who might be frozen out of the market without them.  But what should you know to avoid problems and make the most of Zillow, Trulia, the MLS and other online real estate listing sites?

The venerable MLS (Multiple Listing Service) has a tradition going back over 100 years of listings from virtually every large and small broker and agent in the country, and is still a mainstay of real estate information.  I advise staying connected to the MLS, through an agent with access if you don’t have your own access.  A drawback of the MLS is that you must have a realtor’s credentials to gain access, so you may be dependent on someone who does, if you don’t. The MLS, is by far the BEST source of data for a real estate investor to evaluate any piece of property from land up to a 4-plex. Do NOT invest without it!

Zillow is one of my key recommendations for a great deal of ready information, easily accessed and invaluable for property searches and individual properties. Zillow displays a map with the property located along with other sale property in the nearby community.  A click presents a large amount of detailed information on the property and the community. It even includes “Zestimates” of monthly rental, along with the current listing status (available, pending sale, etc.) and information on past sales of the property – and more. However, be careful, “Zestimates” are NEVER EVER to be used in place of real comping and property valuation that can only truly be done through the MLS.

Trulia is another popular online listing service.  Trulia provides a good deal of the same type of information as Zillow, although Zillow often seems to provide more detail.  Trulia presents a better display of the property photos provided by whoever is listing the property on the site.

The caveat with Zillow, Trulia, and other similar websites is that all information needs to be verified if you are serious about a property or community.  Information on the website is not always 100% accurate.  Estimates provided by Zillow as “Zestimates” are just that – estimations, not promises!  Your own valuation, with the help of a qualified Realtor through the MLS, will almost always arrive at different numbers that are vastly more valid and reliable.

These websites are amazingly useful tools for real estate investors, provided they are used with understanding of their pros and cons.  The level of information makes an investor’s job much faster and more efficient.  But the information should not be relied on as gospel, particularly information from public sites such as Zillow and Trulia.  Check official records and verify the information you intend to rely on for your real estate investing decisions.

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