How To Search Zillow To Find For Sale By Owner Deals


Hey guys, one of the number
one questions I get asked is, how do we find houses? So I’ve got zillow.com loaded
up right here on my computer and what I’m going to do now
is go ahead and show you how I search for properties on Zillow. So you’re ready, let’s
go ahead and get started. Okay and here we are on zillow.com. Now, keep in mind there’s
a lot of different ways to search for properties and if you have a real
estate license like I do, you can search the MLS but I’m going to go on the assumption that you’re watching this right now, you want to get started wholesaling and you don’t have access to the MLS and you’re not a real estate agent. So I’m going to show you some very simple but overlooked ways to look for property. So here I am, I’ve got
Zillow loaded up on my screen and it’s going to default to my last search. So it looks like I was
looking for Okeechobee, which is a town in the middle
of nowhere pretty much. About and hour and a quarter from here and it’s kind of rural. And now you can go in there and you can search anything you want. So I’m going to go ahead
just for the heck of it and start out with a search. So it says 25 listings in
Okeechobee not from the MLS. So that means that they’re
not listed on the MLS. So usually those are for
sale by owners, right? So you can see over here. And you can scroll through them and obviously this is constantly changing and a lot of these look like
there’s some mobile homes coming into the fray as well. So I’m going to go and just
let’s go back to the beginning and start taking a look here
and see if I’ve got anything that catches my eye. So I’m just going to click on
the see more listings button. And in order to do a search, I don’t care what city or state you’re in so I could just change this
right now and put in Arizona or Nevada or Chicago or New York. You need to have an idea of pricing, because if you don’t have
an idea of pricing, you don’t know what you’re looking for. So imagine if you went to the
mall to buy a pair of jeans and you had no idea what jeans went for, you wouldn’t know if $10 is a good price or $300 is a good price. So you have a generic idea in your mind before you go to buy a
regular item at the mall. Well, real estate’s no different, so you have to have an idea. So hey is this property over here is that a good deal at $36, 000? Or is it not a good deal? So I’m going to stick to single family homes, so I’m going to avoid a lot of
these that look like mobile homes, so a couple of things
to notice, all right? First of all just going
through this real, real slowly. Number one, when you’re looking at it you see a lot of data. So for example here, it
says for sale by owner. It’s got the price, it’s got
the number of beds and baths. So if you start paying
attention to details, look at that says 14 beds and 14 baths. Now, is that really 14 beds and 14 baths? So that then I want you
to look at something else cause there’s a lot going on
that you guys don’t realize. You see this over here, it shows you how many days
it’s been on the market. So if you were contacting
a for sale by owner and you were trying to get
them to sell you their house, you think you got more
likelihood with somebody who has the property
for one day on Zillow, because if you call
this guy up and say hey, you know, I see you are asking $36, 000 and I’d like to offer you $25,000 well he’s not very motivated to sell because he just put it on Zillow. So he’s going to be like well,
I just put it on Zillow… so let me see what kind of offers I get and how about you call
me back in a week or two? But if you go down to a guy
who’s being listed for a while, like let’s say this guy over here, he’s been there for like whatever,
three-quarters of a year, he’s going to be more motivated because he still doesn’t have it sold Now this looks like a funky property, so I guess this, okay, there
we go, it’s a mobile home park. So 14 spaces, comes with a cottage park, model several mobile units Owner financing available, look at that! First thing I clicked on and there’s an email address right there. So in this case what I
would do is I would go, another thing I want to show you as well, it’s a little trick over here,
a lot of people look at this but they don’t notice
that right down there is the property owner. So right there is the property owner. Don’t be all calling them
saying you watched Lex’s video because he’ll freak the hell out. But basically if you want
a for sale by owner because they don’t use an agent, they have to put their contact
info so they put their email and they put their phone number. So I don’t know what the price of a 14 unit mobile home park is, but it doesn’t cost a lot of money for you to send an email or to give a call and say hi, could you tell
me a little bit about it? How much money does it make? Tell me a little bit
about the owner financing. Could be potentially
something to look at right? Another way that you can
look at these properties is you can look at them
on a map. So in this case, because that specific property
happened to be on the lake, Lake Okeechobee is pretty interesting. It’s actually the second largest
lake in the United States after I believe Lake
Michigan’s so very interesting, because a lot of these properties that are on the lake is a
huge lake and it’s so big, there people go when they
like, if I take my boat and I go up like this, I have to go through this canal over here to get into the lake and then from there you’re
able to basically go on a boat all the way through out here. So that’s how some people
cross through the state, so it is a very, very big lake and so the area that we’re looking at, you can drag and drop it
just like I’m doing right now and as you do that on the right-hand side, you’re going to see properties
that are displaying. But if you look at the top, you’ve got these different dropdowns. So for example here
it’s this listing type. If you click on that, right now all of the
types are pre-selected actually not all because
recently sold is not. So now that I’ve got everything selected, the yellow items are recently sold, the purple items are for rent and the blue items are potential listings and the red items are for sale. So if you’re a potential wholesaler and you’re looking to get
a good deal on a property that you can wholesale to someone, well you’re not really
interested in rentals. So let’s go ahead and take that out. Now, that’s not to say that
there aren’t opportunities in rentals because you could
call this guy over here and say hey, I see you’re
looking to rent that house, would you be willing to do rent to own? And he could say yes, maybe I am and then boom you’ve got
yourself a potential deal because you could do a rent to
own lease option or whatever. But let’s just stick to the script here and assume you’re going
with a regular wholesale, so I’m going to take the for rent off. Now I don’t really want the recently sold because I don’t rely on Zillow for comps. I use my own comps. So basically, I’m going tp uncheck that. And now we’ve got for sale by agents. I don’t really want either
so I’m going to uncheck that. I’m not interested in new construction and let’s just uncheck
foreclosures and coming soon and potential listings too. So all I’ve got now is for sale by owners. So now look how all of
these listings on the map certainly have been
substantially narrowed down. And so as we change these selections and now we only have
the for sale by owners. Notice that on the right, these are the for sale by
owners and there’s 33 of them. Now we can sort them. So I can say I wantto sort by cheapest and then it updates it. And I’ve got more selections I can use so you can sort by beds and baths, so I could say, okay, so sort by bedrooms. So that’s going to give me the most bedrooms. So it goes from the 14 bedroom
down to the four bedroom. I could also sort by year built right. I could sort by the lowest or
the highest seller estimate, but I like to just go
and look for cheapest. So here I’ve got basically
land, then this is all land and then the cheapest
property that’s not land, is a mobile home and see that for sale by owner sign right there in the picture
and there’s another one. This looks like a lot. And now, let’s take a look at this. This is an interesting one so this is gonna, this guy got an RV, concrete slab to park an
RV on, very interesting, so you can park your RV
there for just $55, 000 and you’ve got a 30 foot
boat dock, very interesting. This is a one one. Keep going, lots of land
alright so there we go. So here’s our cheapest for sale by owner and it’s not looking very desirable to me based on the price. But you see once again I got
the property owner’s info there so if I wanted to call them, I can. I’m not particularly interested in that, so I’m going to exit out of that and I’m going to go and I’m
going to plug in another town. So let’s say I’m in, let’s
do a challenging one. So I live in Boca, so
I’m going to do Boca Raton. And now keep in mind, I still have the for
sale by owners checks. So now I can zoom in a little bit and I’ve got it sorted by cheapest and it’s going to be pulling
up a lot of condos right. So if I’m familiar with price points like I know for example, these condos are coming in out of a 55 plus retirement community, but I don’t want condos, I want houses, so I can go down to home type and I can unselect land,
manufactured, townhouses, condos apartments and I
could just stay with houses. If I wanted to, all right? And now I can see where I’m at and I can start going through these and I can see obviously not all of these have been characterized correctly
because that is a condo. It’s still showing up under house and this is where specific
knowledge of your market can come into play because in a place like Boca
there’s a lot of townhouses. So I would probably want to include that in order to see what’s out there in what looks like it
could be a potential deal. So this one over here is $349, 000 for a three-bedroom, three-bathroom doesn’t look too exciting for me. I don’t see anything that’s
getting me super excited. So I’m going to go now and
I’m going try another city, let’s try Deerfield Beach. And I’m just using cities
that are around where I live. So if I live in Boca Raton
my offices in Boca Raton, so I live just to give you an idea. This is Boca, so my target market, and you can zoom in and
out as much as you want to. But let’s see this where I live, like let’s say I wanna look at this area that’s within close enough proximity. So look how few properties there are that are for sale by owner
and the price points. So now let’s say I change
it let’s say Deerfield. Probably not interested in
a one million dollar home at least not for wholesaling. But let’s go ahead and
take a look at this one and that’s a condo with HOA approval, not seeing anything too exciting there. So I’m going to keep going on
and we’ll try another city. Let’s try. Let’s try Delray Beach. And whenever you’re doing this
you’re seeing here on the map where the properties are located, you can zoom in and out
as much as you want. You can drag your map around, zoom out and you can see the price point. So if you have an idea, going back to that concept
of going to the mall, if you have an idea of what you want to pay for in a
neighborhood, it’s difficult. If you know what you want to
pay for it then it’s not difficult. So I’m not seeing anything here that’s like really grabbing my attention. I’m going to go ahead and put
a different city in now. Let’s say I put in Miami Gardens. Now Miami Gardens, I know
that most of the houses there have an ARV of around 220
and if I can pick up anything that’s substantially cheaper than that, I might be interested. And this is, okay there we got something. So this looks like for
sale by owner, $85, 000. There’s the guys phone number. There it is into the property owner and that’s something I would
definitely be calling on and the reason I’d be calling on that is because, in this
specific market you can just see I’ve got a student of mine,
I just posted in fact, if you look on my YouTube channel, a video going back maybe
two or three videos of me and my student Andy, so that property was in
Bunche Park in Miami Gardens and he bought it for $187,000 from me and it just got appraised at $254,000. So this one looks like it may
be a little bit below market, but this is certainly very
very, very interesting. I don’t know how damaged it is. well, there are a couple of
pictures, well there we go. So we know how damaged it is. This place is like really damaged. And that’s exactly the kind of
stuff that you’re looking for this is a potential deal. I don’t know how long we’ve
been doing this recording, but not too long. But I could tell you right now
that if I picked up the phone and I call this guy and said, hey I’m interested in your property and what could you sell it for? That would be a deal. So not that difficult to find deals and I can keep doing that in any market. The only variable that you do need to know is you need to know your price point. So some markets are easier than others. So if you go into larger cities, like let’s say if we
go into Miami, Florida, the case is an example of a larger city, not as large as let’s say Los
Angeles or Chicago, New York, but it’s larger. Now what’s gonna happen, is you’re gonna run into
a little bit of a dilemma. And the reason you are going to
run into the dilemma is because you could have
million-dollar properties here and you can have properties that are in like really rough areas. So that becomes a little challenging. So you’ve got to have specific areas that you know are popular for investors. So I know for example investors
like West Little River. So I can zoom in on this and as I zoom in, I can
see what is available and see if there’s anything
that kind of meets my criteria of what I would be looking for and it’s uncheck town homes
and there isn’t really. So I just move on and put in another town. So the variable that you need to know and just so I can show for those of you that are not in Florida, let’s say I went into Chicago,
Illinois, so it’s a big city. So in Chicago these are
the for sale by owners and I actually lived
in Chicago for a year. So if you’re on the lake here, then this I think it was
called Lake Shore Drive, so basically that stuff’s very expensive, so you need to know your
neighborhoods once again. This is Lincoln Park where I used to live, more desirable than living in
this area or any other area. And if you don’t know that well, then that’s like the
guy who walks into the mall and says hey. I want to buy a pair of jeans but I’m not sure if they’re
worth $20 or $300. So before you start going out
there and mailing postcards and doing automated dialing
which is all the rage now, I get a ton of questions
from students about dialing. First understand, listen you can dial a
thousand people every day, but if you don’t know
what the house is worth, if you don’t know the neighborhoods
that you’re dealing in, it’s a little bit of a problem. So make sure you know your neighborhood. So Zillow works nationwide. I don’t care if you put in Los Angeles or whatever city you put in, if you know the price points then you know what’s a good deal, you can see it over here
and you can search it out. So Los Angeles, which is also a
city I lived in for 12 years. So I lived in this area in Sherman Oaks. I know Sherman Oaks is a really nice area and I can see the price points and what stuffs going for and
if I know those price points and I know what’s a decent deal, then I’ll give you a little bit of a hint, most people that want to sell
their house for sale by owner, don’t want to pay the 6% commission. So a lot of them are cheap. They just don’t want to
pay the 6% commission. I’ll tell you another statistic, on average, for sale by
owner homes sell for less than homes that are listed with a realtor on the MLS So if you factor in the
percentage with the realtor, what you will find is that they’re really deluding themselves because they often times
get less of a price and they don’t get broad market exposure. Now sites like Zillow have changed that a little bit for them, but still not getting the kind of exposure that you would get on the MLS. So when you’re searching like this and you’re searching specific
cities, that’s one thing, but if you could start narrowing it down and you could drill down
to a zip code level, then it becomes so much easier. You see so now I’ve switched
over back to Florida and now I’m going into a zip code where I actually have property. So for example, I have a property
currently listed for sale on North East, Ninth Terrace. So I’ve got a property
listed, that’s 33064. And my properties right
around here for sale and it’s not on Zillow. But what is on Zillow
is these other people in the same subdivision
with it for sale by owner. And I can see that most of these
people want too much, that guy’s probably a
little on the high end. But I can just by knowing
their target market, I can go through price points and I can see hey what’s that $25, 000 and that looks like it is
that property over there, which is a mobile home. So the more you know
your markets the better. So that’s why I always tell students when they come to my bootcamp, the first thing I say is
look, pick a target market. So let’s say, if this was your
target market Pompano Beach, then what I want you to do is get a map, learn the subdivisions on it and I want you to drive
through this whole thing. So what I want you to do
is go on the main road, let’s see get off the
freeway, go along here and then get into the subdivision,
let’s say on the street and then I want you to
just start grading it like literally just drive up and down and when you’re done with
that keep going like this and just drive through the whole thing and you’ll find that it takes some time. And if you’re driving slowly like at around 15 miles an
hour, it’ll take a lot of time. So you might have to come back and you might do this section
one day and then go home and then the next day come
back into this section and then the next day come
back and do that section. So I suggest that what you
do is you break it down and you learn the subdivision. So for example here, this subdivision of Cresthaven
is between Dixie Highway, US One, Sample Road and Copans Road. So I would rather see you go in and just say okay, I’m just
doing this subdivision today and I want to see all
the for sale by owners, I want to see all the
properties listed on the MLS and I want see how many
properties are vacant, how many have lock boxes,
how many are for rent and learn that. Now go home then the next day you can come and you can say okay, I’m gonna do this. Then the next day you can go back and you can come and you can do this. And then the next day you can come back and you can do this and so forth. So what’ll happen is you’ll
learn these little pockets and then little by little,
you’ll be much more knowledgeable of where there’s a good price point. But right now just on what we did today, I would say there’s
this one slamming deal, there’s one potential deal and there’s another potential deal, and we haven’t been doing
this video that long. So what I want you guys
to do is just go out there and start applying this and
this is just a very very brief. And there’s a lot of other stuff that you can do with Zillow. For example, you can see pre foreclosures, so if I uncheck this and I check potential
listings pre foreclosures, so these are all the foreclosures. So if you’re looking for a list of people to potentially market to, then
there’s your list right there So you could go by, you
could go knock on the door and say hi, I’m interested
in buying a house or you can mail them
letters or post cards, you could call them, there’s all kinds of stuff you could do. And then you’ve got also
the for sale by agents, so you could look at those and see stuff that’s listed on the MLS and something that might
be agreeable for you. The only thing I would
not really be searching is the recently sold or
the new construction. But these are people
that are in foreclosure, already foreclosed, pre foreclosure and these are the for
sale by owners right. So there’s a lot of different stuff that you could be searching
and you just got to decide what it is that you want to search for. So I encourage you to
take the time to learn some of these tools and
add them to your weapon and remember that this
was just zillow.com. When you’ve learnt this and
it’ll take you a few hours, like in other words, you’ve probably been on zillow.com before, but you probably are not familiar with the extent of the search
that you could do on it and if you just started
experimenting with it and there’s all kinds of stuff you can do. So if you’re looking at the properties, there’s a lot of tools
that are available for you that are built into these
sites that a lot of people that even if the ones that use
them every day like realtors, are quite surprised when
I show them certain things that they weren’t aware of. So another key thing just to
remember before we end off is that zillow.com is
not the MLS listings. There’s a lot of people that
don’t understand that. In other words, realtor.com
shows all the properties that are listed on the MLS
and are fed into realtor.com. But Zillow is not like that, because Zillow shows all
of the properties, period. Those for sale and those for not sale. So if your properties not for sale, then it would just show as a zestimate. If your property is for sale by an agent, it would show that way. If it was for sale by
owner, it would show that way if it was listed on Zillow. So that’s an important point because a lot of times I’ll see people and they look at a property, and I see beginners
especially doing listings then say, well this property’s
for sale and it’s $299,000 and Zillow says it’s
worth $293,000 so forget that. It’s not a deal. And that is very, very bad. Because what you’re doing, is you’re relying on a computer algorithm, that’s generated without any human input to tell you what a house is worth, and you should not be using this for an estimate of what a house is worth unless you want to just go and say, I’m going to offer 50 % of the Zillow amount and then I’m going to offer that guy 150, but you’ll probably be wasting your time. So if you can actually go in
then you can start learning how the different comps work. Then you can learn that Zillow estimate is not what you want to be relying on to make offers on properties. But what you do want to be relying on is knowledge of the area. So if you’re buying houses
to fix and flip or wholesale, then in every neighborhood, you can just see if you’ve
gone to any neighborhood and you see for sale by agents, it’s not very difficult to tell like in this neighborhood here where the houses are going
for, where they listed at. And if you’ve got an MLS then it’s even more of an example. So I’ll just go back to that
Miami Gardens real quick so that you guys can see
the Miami Gardens example. So when we did the Miami Gardens example, what we did is we said for sale by owner and there’s only seven. So that’s why for sale by
owners are real easy to look at and then we saw there was one, I don’t know where that property was. Where was that $85, 000
property that we had? Oh here we go, I’ve got to get
zoomed in a little I think. I had town homes checked
off before so maybe or that will do a difference. If it’s the same one. I lost it. I don’t think that’s the same property unless they just changed it. Oh here it is. This is the property, there it is $85, 000. So like in this kind of property, when you’re looking, regardless of what site you’re looking on, whether you’re looking on
Zillow or Realtor or the MLS, it doesn’t really matter, understand the source of where
your deals are coming from. So if in this neighborhood, we know stuff goes for $200k
and $299k and $192k and $297k so clearly something being $85, 000 is really, really super cheap. Now granted that is
right off of the freeway there’s the Turnpike. So that’s a negative but it
still looks pretty cheap. So your first tip to do would
be to pull up comparable sales and once again you would
not be using the Zillow. So, in this case it says
the Zillow estimates is $163k. So you could see there
that based on Zillow, it is substantially about
a half the price of that. So what you’re going to find
for deals is that the houses that are going to be a potential deal for you are going to be the ones where
there’s some kind of damage. So in this kind of property, it could have been either
an investor who was going to fix it up and
decide and got cold feet, decided not to or it could
be a bank owned property, or this case it’s just for sale by owner. So that’s not likely it’s also
being for sale for 200 days. So a probably bad area and a lot of work. But it could be a property
that was owned by landlord, it got vandalized and the landlord doesn’t want to
deal with fixing it up again. There could be a myriad of
reasons and here’s another one that’s also pretty inexpensive
as well in the same area. So a lot of times what you’re going to find is you’re going to find that houses that have some kind of a damage to them are going to be the houses
that make the great deals. Although this one over
here is not damaged at all. It does say mobile home though. So occasionally you’ll find a house that’s got a tenant in it and
doesn’t need a lot of work. But it’s going to be very
rare for that to happen, because usually the
seller will just sell it for whatever the going market prices. So a lot of times you’re going to
find that your best deals, that deals that we buy, are the houses that are
really really damaged. Cause these are the kind of houses that a lot of people run away from. They take a look at these pictures and they go oh my God look at that. Wow, that’s like you know
so much money to fix. And you can see the bars and the windows so that gives you an indication there of the quality of the neighborhood when you got bars on the windows. But these are exactly the
kind of things that we buy and the reason is cause we can fix them up and we can make them nice, we
can rent them out et cetera. So there’s a lot of
opportunity out there guys. The only thing I don’t
want to hear from you is, I don’t know how to find houses because there’s houses everywhere. I just showed you, in a
period of a few minutes, how you can find deals. If you started incorporating
this into your daily routine and every single day you just went in, and you made a list of 10 cities that were within a 45
minute or an hour radius of where you lived and you just plug them in
just like you just saw me do where I was going like, let’s
say I’ll plug in another one. Boynton Beach, that’s
another adjacent city that’s maybe 15 minutes,
20 minute drive away. It shouldn’t be very difficult for you if you’re sorting by
cheapest to go through and to take a look and zoom in or zoom out and know what potentially
jumping off the screen. Just if you look at the pricing, you can see a lot of times
something jumps off the screen that looks like a
really, really expensive. So that ends this video. Guys feel free to share this video and please subscribe to my YouTube channel and if you like this video,
I would really appreciate a thumbs up. And I will see you on the next one.

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