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Why Does the National Association want to give home value estimates?

This was my response to a blog written by John Elwell http:

//activerain.com/blogsview/569682/Isn-t-NAR-and.

Hi John,

I was on an advisory group for the NY State Association of Realtors regarding statewide datasharing.

THe group after much discussion came up with the idea to keep the Realtor in the forefront of the Real Estate transaction.

Zillow and Trulia have these estimates out there and information out there. Realtors have the best information out there. Why would you not want the buyers and sellers not to get it from us and go to Zillow, Trulia or Google.

I understand that you will have to educate your sellers explaining why their property is worth more or less, but that will show them what a true professional you are.

My market analysis has differed with appraisers on different occasions because I take factors into consideration that an appraiser might not. Noise from a busy street nearby or the style for the neighborhood. My numbers are usually more accurate.

When a computer estimates value it can't be really accurate there are so many "Feelings" attached to valuing a home. It is an art.

By explaining this to your sellers you will do better not worse.

All the best!

Posted by Kevin O'Shea, White Plains, NY Real Estate on 06/29/2008 12:51 AM

Comments (12)

realtors, pricing, market analysis, homes, sellers, buyers, zillow, trulia, nys, nar, information, accurate, educate

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12 Comments on Why Does the National Association want to give home value estimates?

JUN

2008

I agree education is the key when presenting a CMA. However, these services often establish a mindset where it makes it difficult especially when asking the home owner to lower their anticipated price.

Good Post!

I am like you...there is nothing more accurate than a good Realtor® who takes everything into consideration before passing along the CMA to the seller ...or the buyer who is putting in a contract who wants to make sure that the price they're offering is in sync with real market value. The consumer has the ability to search around all over the internet and when they come back with questions...it's up to me to explain away :)

JUN

2008

Michael: If they listen, we can educate. The real question for them is "Do you want to sell your house?"

Sally: That's why you are so good at this :)

You're right on the money Kevin.

There's another site out there now that a lot of people are using that many realtors see as competition as well. It's a MLS/Google Maps/RealtyTrac mashup by PropertyMaps

Kevin - I love computers. I have worked on them and with them for almost 40 years. I even met my wife online, with both of us using computers. However, computers, no matter how well programmed, still aren't able to provide the human element. They don't go out to the neighborhood, they don't visit the homes. They don't see he comps in the first person. In effect, all they are doing is passing along heresay. At least the courts system disregards heresay.

Thanks for the post.

Kevin- I agree with Mike S. as great as computers are they aren't perfect and they aren't made for human elements and consideration. Realtors deal with so many homes, they know the values and know what buyers will be willing to pay for that nice home on a busy street with the college partiers next door, all things a computer won't see, know, or figure in.

JUL

2008

Das: Thank you.

Ed: There are lots of new sites. That's why I like the idea of people going to the Realtor sites. The best info.

Mike: Real Estate will always be a human business. People who know things.

Chris: No question Realtors know areas and streets. Where is the party? :)

The way I understood John's position was that having such a system on Realtor.com only enhanced the myth that these systems were accurate. There appears to be no liability for "mistakes" in computer generated "zestimates" if you will. Nevertheless, they can cause a good deal of harm. I'm on the fence on this one. Perhaps NAR should have taken the position that since there is a great margin of error in these attempts, that they should push the consumer towards consulting a Realtor rather then relying in computer generated "drivil." I'm on the fence on this one. I understand why it was allowed, but I think an opportunity to debunk the accuracy of these systems was missed. Seems to me everyone was in "if you can't beat 'em, join 'em" mode.

JUL

2008

Hi Kevin ... In the public sense, NAR speaks for all us. We pay dues to be members, and whatever it says or does would appear to be the voices of the Realtors it represents. Therefore, I believe that it should act in our best interests at all times. Does it not have a responsibility to do so. If it is not telling the public to consult a Realtor for home value estimates, it is not working in our best interests and actually, exacerbating the problem. Period.

KEVIN - Zillow estimates are wildly inaccurate, and buyers and sellers that use them as gospel are not helping themselves in anyway. I don't necessarily think that the idea is bad, it's just that the execution is lacking.

Ruthmarie: Not if you can't beat them. More if you have the best info they will flock to you. There could be signs all over the site saying Consult a Realtor for the true value of your home.

My bigger problem is we aren't able to get data from other Realtors all over the country by the fact that we are all members of NAR.

Marie: I have to disagree, I think NAR has to represent the membership, but I want the public coming to Realtor sites for the best information and sending the clients to Realtors.

Adam: GIGO Garbage in Garbage out. Our info is the best, we will have better estimates.

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