With the rise of investors seeking out other ventures such as foreclosures, one wonders which company is the best data provider. Critics often say that foreclosure data is “inherently” inaccurate, but I beg to differ. Depending on the source, foreclosure data can differ dramatically. With some sites not only is inaccuracy a factor but even their foreclosure classifications are off the mark.

Take a recent article from The Wall Street Journal as an example. They took three competitors and assessed their level of accuracy based on a sample of homes in Atlanta, Georgia. The Journal found that only one of the three sites correctly reported that the price of a house had been cut to $145,900. The site’s competitor placed the property’s value at roughly $204,000.

The Wall Street Journal wasn’t the only source to uncover such divergences in reporting. Inman News also found some variances in foreclosure classifications between a couple of different sites giving one the upper hand when it comes to accurate foreclosure data. According to the article, one data provider estimated a 24% increase in the number of homes in foreclosure, a 53% increase from the previous year. At the same time another reputable data provider reported a decrease in foreclosures by 6.7%, only a 7.3% increase from the previous year. Reason being, the first provider was reporting data on all stages of foreclosures, rather than foreclosures in bank possession, or post auction. This is a huge error in reporting considering some pre-foreclosures never even make it to foreclosure status and should certainly not be included into national statistics.

Although some minor inaccuracies are inevitable, the trustees of the foreclosures themselves aren’t so quick to the draw when updating the data on their own side. This is due in part to legal factors or as simple as a lack of technology. In either case, foreclosures are still highly sought after and having an accurate data provider is one of the first steps to success.