- Keys
- Posts
- Redfin vs. Zillow: Who Wins? 🥊
Today’s top stories…
Redfin vs. Zillow: Showdown of the home value estimators!
5 Home Improvements That Can Boost Your Property Value
5 Real Estate and Realty Stocks to Add to Your Portfolio
🔥 Deal of the Day! 🔥: 3 bd | 3 ba | Ludlow, VT
Today’s mortgage rate (30 Yr. Fixed): 7.03%
Redfin vs. Zillow: Which Estimator Reigns Supreme?
As a real estate investor, you're always on the hunt for the most accurate data to make informed decisions. That's where Redfin and Zillow come in with their home value estimators. But which one should you trust more?
Let's break it down:
Redfin's median error rate for on-market homes is 2.1%, while Zillow's is 2.4%.
For off-market homes, Redfin's median error rate is 6.45%, and Zillow's is 7.49%.
When estimating within 5% of the sale price, Redfin is 41% accurate for off-market homes, while Zillow is 35% accurate.
Both estimators are 98% accurate when estimating within 20% of a home's sale price. However, that accuracy drops to just 77% when estimating within 5% of the sales price.
Why the difference?
Zillow covers more homes (104 million) than Redfin (92 million).
Hot markets and unreported renovations can throw off the algorithms.
Redfin updates its accuracy rates weekly, while Zillow does it less frequently.
The bottom line? Redfin is more accurate with less coverage. These estimators are a great starting point, but nothing beats a comparative market analysis (CMA) from a local real estate agent. They have the inside scoop on your market and can help you price your investment property to sell.
So, use Redfin and Zillow to get a ballpark idea, but always trust a professional to guide you home.
Boost Your Property Value with These 5 Smart Upgrades!
We’re always looking for ways to increase our property's value. The 2023 Cost vs. Value report by Remodeling by JLC has identified the top home improvements that deliver the best return on investment (ROI). Let's dive into the data:
HVAC Systems: A Cool Investment
Average job cost: $17,747
Average resale value: $18,366
ROI: 103%
Upgrading your heating and cooling systems not only enhances energy efficiency but also attracts buyers who prioritize lower utility bills.
Garage Door Replacement: Elevate Your Curb Appeal
Average job cost: $4,300
Average resale value: $4,400
ROI: 102%
A new garage door on galvanized steel tracks with a motorized opener can make a lasting first impression and boost your home's value.
Exterior Upgrades: Stone Veneer or Vinyl Siding
Stone Veneer ROI: 102%
Vinyl Siding ROI: 94.7%
Enhancing your home's exterior with manufactured stone veneer or new vinyl siding not only improves aesthetics but also signals quality construction.
New Entry Door: A Grand Entrance
Average job cost: $2,000 - $3,000
ROI: 100%
Investing in a sturdy, stylish 20-gauge steel door with glass can make a subconscious impact on potential buyers.
Minor Kitchen Remodel: A Recipe for Success
Average job cost: $26,000
Average resale value: $23,000
Modernizing your kitchen with updated cabinets, energy-efficient appliances, and resilient flooring can significantly increase your property's appeal without breaking the bank.
Remember, it's crucial to strike a balance between modern touches and neighborhood compatibility. Over-renovating can actually diminish your ROI. Focus on functional, energy-efficient upgrades that have staying power in your specific market.
By strategically investing in these top home improvements, you can maximize your property's value and attract discerning buyers in today's competitive real estate landscape.
Analysts Reveal the 5 Hottest Real Estate Stocks for Your Portfolio
As the real estate market continues to evolve, savvy investors are always on the lookout for the best opportunities. Despite the challenges faced by the residential sector due to elevated mortgage rates, certain areas within real estate are showing promising growth potential. Let's dive into the data and explore the top real estate stocks to keep on your radar in 2024.
KE Holdings Inc (NYSE:BEKE)
Average Analyst Price Target: $21
Upside Potential: 58.13%
This Chinese real estate services company is making waves with its integrated online and offline platform for housing transactions. With 39 hedge funds holding stakes worth $1.7 billion, KE Holdings is a top contender for investors seeking international exposure.
SBA Communications Corporation (NASDAQ:SBAC)
Average Analyst Price Target: $264.63
Upside Potential: 27.05%
SBA Communications, an independent owner of wireless communications infrastructure, is attracting attention from 41 hedge funds with a total stake value of $1.5 billion. As the demand for cellular connectivity continues to grow, this company is poised for success.
Ventas, Inc. (NYSE:VTR)
Average Analyst Price Target: $53.56
Upside Potential: 21.73%
Ventas, a Chicago-based health care REIT, is benefiting from improving fundamentals and favorable long-term demand driven by an aging population. With 22 hedge funds holding stakes worth $427.4 million, Ventas is a strong player in the health care real estate sector.
Realty Income Corporation (NYSE:O)
Average Analyst Price Target: $62.11
Upside Potential: 18.89%
This retail REIT, based in San Diego, has captured the interest of 27 hedge funds with a total stake value of $332.5 million. Realty Income's diverse portfolio and steady performance make it an attractive option for income-seeking investors.
VICI Properties Inc. (NYSE:VICI)
Average Analyst Price Target: $34.59
Upside Potential: 16.94%
VICI Properties, an experiential REIT owning a portfolio of gaming, hospitality, and entertainment destinations, is backed by 44 hedge funds with a total stake value of $960.1 million. As the travel and leisure industry recovers, VICI is well-positioned for growth.
Other notable real estate stocks to watch include American Tower Corporation (NYSE:AMT), Alexandria Real Estate Equities, Inc. (NYSE:ARE), and Mid America Apartment Communities Inc (NYSE:MAA). These companies are demonstrating resilience and adaptability in the face of market challenges.
As you navigate the real estate investment landscape in 2024, remember to diversify your portfolio and stay informed about market trends. While the residential sector may be experiencing temporary setbacks, opportunities abound in other areas such as retail, health care, and experiential real estate.
By keeping a close eye on these top real estate stocks and their performance, you can make informed decisions and potentially capitalize on the growth potential of this dynamic sector.
🔥 Deal of the Day! 🔥
Price: $729,000
Located just three miles from Okemo Mountain, this custom-designed home offers breathtaking mountain views and privacy, making it an ideal vacation rental. With luxurious amenities like a dual-sided stone fireplace, radiant heat, a gourmet kitchen, and an oversized hot tub, plus direct access to snowmobile trails and close proximity to town, it promises both relaxation and adventure in the heart of Vermont.
Airdna data:
Estimated monthly payment: $$5,193/month (if financed)
Estimated monthly revenue: $4,608/month
Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.
See you tomorrow!
✍️ Brett