Home Value Estimates Gain In Accuracy and Popularity, Nearly Challenging Appraisers
Here’s another indicator that every real estate broker and agent must have a tool for home value estimates on their website.
And it’s a little bit scary. At least for real estate appraisers.
Perhaps you’ve seen the news lately.
Real estate pundits are sounding the horn that perhaps the days of real estate appraisers might be approaching an end. Just like the knockout punch that hit travel agents for example and cut their numbers way back.
There are an estimated 78,000 licensed appraisers in the US right now. That number used to be 120,000.
Should they be worried?
Why are the experts saying this?
Zillow and Redfin for two reasons.
Tools for home value estimates becoming more advanced
Experts are noticing that the Automated Valuation Models used by both Zillow and Redfin are becoming more refined as the years go by.
Those companies are diving deeper into relevant databases to supposedly report a more accurate estimation of the value of a property.
They are continually tweaking their algorithms. Scraping more relevant data. Their machine learning techniques are becoming more sophisticated.
And both companies are now boasting how accurate their home estimator tools are becoming.
Well, just like people keep hinting at the demise of real estate agents (which will not happen since 95% of the population still employs an agent to buy or sell a home). They are predicting the same thing for real estate appraisers.
Even Zillow admits this is very premature.
The challenge is, home value estimates are still just that, estimates. Even both Zillow and Redfin sometimes show big differences in the value of a property.
As seasoned real estate professionals know, there are quite a few factors that go into establishing the value of a home such as market conditions, mortgage rates, the condition of the home, upgrades to rooms, etc.
Here’s the big point.
As machines for home value estimates become more sophisticated, they are becoming more popular. It’s a proven fact that consumers love them. They get to instantly see the rough value of their most precious possession.
And the more buzz that is generated by home estimator tools, the more popular they are going to become.
The good news is that with advances in data coding and algorithms, these valuable tools are no longer the sole propriety of the mega real estate sites.
Basically, any broker or agent can now add the same type of tool to their websites.
National data providers such as Home Junction have made it their mission to provide similar data resources to individual brokers and agents to level the playing field. Even to related companies such as mortgage brokers and banks (and perhaps real estate appraisers, too).
It should be evident by now, that adding this type of functionality to a local real estate website is a necessity.
If you are going to compete with the big boys for customers, you need to provide the same benefits that they offer.
And you can.
With Home Junction’s home estimator technology, consumers can enter their home address and instantly get a result with an estimate of their home value.
Home Junction’s functionality goes several steps further to give home owners a broader picture.
For example, included in the home value estimate are high and low ranges. So a home owner has some parameters for where their property might appear within those estimates.
Next, Home Junction gives additional insight into individual appraisal factors.
For example, it will indicate the average prices per square foot. Then it will give a percentage on how homes in the market fit that particular window of data.
Same with the age of the home.
For example, one property might be relatively new, so the readout will show how that home is in a smaller percentage of homes in that marketplace, thereby adding more value.
All of these factors help to give that property owner a true consensus on their property.
They will appreciate that. Even to the point of filling out a lead generation form if necessary.
Those consumers will also establish in their minds that this local real estate broker or agent is on top of the game in the marketplace when it comes to local knowledge. They will also recognize this broker or agent as being a real pro when it comes to the latest in real estate-related technology.
What it will also do is persuade consumers that they don’t need to go to the mega sites for information. Their local broker and agent provide it for them. That’s including the local in-depth market experience and knowledge that those mega sites will never have.
The writing is on the wall folks. Home estimators tools have taken a quantum leap as far as reliability.
You must add this functionality to your website if you are going to survive in the 21st century. Compete with the big sites. Generate your own leads.
Fortunately for savvy brokers and agents, the ability to add functionality for home value estimates is now in your hands.