In 2018, Home Junction Inc. announced there were more than 1.1 million online requests by consumers for property value estimates through client websites using our home valuation widget.
“This milestone is important for two reasons,” reported Ed Kim, Senior Vice President with the company. “First, the total demonstrates the importance of home value estimates to consumers.”
“Secondly, now that local brokers and agents have the ability to provide their own estimating tools on their websites, these numbers show consumers will visit their local agent sites to obtain these property value reports.”
In essence, Kim explained, a home valuation widget helps the public find answers to this question, “What is my home worth?”
How Home Valuation Tools Work
According to organic search results for Google, people are searching for websites that offer this service. In January, there were about 27,000 queries that asked, “How much is my home worth?”
Variations of searches for home valuation widgets also generated a significant amount of activity. For the term “What is my house (or home) worth?” there were a combined 20,000 searches last month. Another variation, “Value of Home?” was asked 6,600 times.
The industry term for these home valuation estimator tools is referred to as an Automated Valuation Model (AVM). The AVM is a formula that gathers data from a variety of sources such as municipal records, historical sales data, geospatial coding, property attributes, and other sources. The machine-based calculations then provide a current estimate of the “Predicted Market Value” of a house based on data available at the time.
The result is only meant to be an initial estimate and is not as detailed as a formal Comparative Market Analysis or estimate from a licensed appraiser. However, the home valuation widget is very popular with homeowners because it gives them a relative idea of the current value of their home, allowing them to compare their homes to others in the same neighborhood and to see pricing trends.
Home Valuation Reports Can Boost Lead Generation for Realtors
“This is a valuable resource for consumers. The AVM feature is a great way to start a conversation between agents and homeowners who may consider listing their homes for sale,” said Kim.
Brokers and agents are encouraged to add a lead form next to the home valuation results, stating “Request a Professional CMA” for those visitors who are interested in obtaining a more detailed evaluation of their property.
“The home valuation widget is a proven lead generation tool,” Kim indicated. “And now advancements in technology enable local brokers and agents to offer this powerful marketing feature just like the larger real estate portals.”
The AVM values are considered a guesstimate based on the age of comparable information.
For that reason, Home Junction includes a pricing range, showing the High and Low estimated values along with a “Confidence Range” of a plus or minus figure to give users parameters on the accuracy of the data.
To help homeowners see an overall picture of the market position of their property, Home Junction also provides a chart showing how that property compares to other homes in the neighborhood
That chart will report which percentage the property ranks in the area compared to others based on Size, Price, Price per Square Foot, and Age of the structure.
“This home valuation data really helps to give an owner a snapshot of how their property matches up with others in their neighborhood,” Kim explained. “Perhaps our data shows that one particular property is in the upper 20% for square footage, but priced in the lower 30% for price per square foot. That’s important information that a homeowner needs to know.”
“As we continue to gather and compare data, our methodologies are becoming more accurate,” Kim said. “From our data, we can see consumers want this service. Brokers and agents would be smart to provide this feature on their website as an effective way to generate leads and market to prospects.”
Add Relevant Real Estate Market Data to Your Website
Home Junction tools aggregate a wide range of relevant national real estate market data points including:
- Municipal Boundaries
- School District Boundaries Such As Attendance Zones
- School Data Such As Student/Teacher Ratios
- Recent Home Sales
- Trends In Home Prices
- Parcel Numbers
- Tax Assessed Value
- Property Attributes
- Zoning Codes
- New Construction
- Utility Usage
- Points Of Interest
- Flood Zone Maps
- Comparable Sales In The Area
Realtors can leverage this information through real estate data API and WordPress plugins which pull all property and neighborhood data they want for a particular listing or a neighborhood they are farming for their website. The data is not only available for county and zip codes but, also down to the neighborhood and subdivision levels.
For brokers, agents, and other companies interested in generating leads and traffic by adding a home valuation widget or plugin to their websites, contact Home Junction today.