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Online home evaluation vs. the Realtor CMA (who is more accurate?)

By
Real Estate Agent with Classic Communities Corporation

The debate continues:  Online vs. Realtor.  With the resurgence of some lead generating companies and the HUGE market share that zillow.com and other online home evaluation companies are getting:  Where does the Realtor stand?  Have we as a group lost the confidence of the consumer OR has the consumer just gotten more internet savvy and have begun to rely on the vague/broad evaluation they recieve on line?  Where does that leave us?  What has that done to pricing?

I'll be the first to answer some of the questions.  As far as what it has done for pricing:  I am experiencing that consumers are shocked when they are told that the value they received from zillow.com isn't even close (in some cases) to what their property is worth.  In some cases the property is worth well under the "zestimate".  "How can that be" is the question I hear often.  Well, let's look at things Mr./Mrs. Homeowner.  Have you ever been to kellybluebook.com (kbb.com) to get the value of your trade in?  Yes!  Wouldn't you agree that the value you recieve online is generally 10 to 20% off what you are given at the dealership?  Yes!  Well let's take that into consideration on your home.  The same computer factors are put into place when arriving at a value for your car as they are for arriving at a value for your home.  Are you familiar with computer error?  Yes!  Well unfortunately a computer CAN'T look at your homes features, benefits, location, new and upcoming developments and formulate a value.  I CAN AND WILL!  Also the market is ever changing, your homes value may increase or decrease overnight.  I'm here to make sure that you are given an appropriate evaluation based on ALL of the factors that affect your homes value.  My value range will show you a high and low end for pricing that will be within 5% of your homes value (up or down) and will have my suggested market value for your home........You know it's scary to a homeowner that the price they thought their home was worth is truely $20,000 to $40,000 (base on 10 to 20% of $200,000) off the true market value.

Question #2: Have we as a group lost the confidence of the consumer? Unfortunately, I believe to a degree we have.  Now that is not in every market and certainly isn't for every agent.  I believe that the clients I work with greatly appreciate my honesty and integrity.  BUT overall, there have been agents that haven't had the same integrity that most of us apply to our daily business plan and use the Lazy, Scared or Stupid approach.  I can tell you that those who are preaching and using the programs like the lazy, scared and stupid approach aren't selling Real Estate today.  Unfortunately again for those of us trying to do the ethical approach, we are pooled together with the others.  So it will take a conservative effort by everyone to regain the consumers confidence.  

Question #3:   Where does that leave us?  It leaves us in a position to work together as a group or allow the online companies of the world to divide us.  In most cases, the traditional mentality is that we are Independant Contractors who are only out for ourselves.  Let's change that!  Let's work together to be ethical, understanding and supportive of each other.  We also have the opportunity to work together as a group and form our own on line lead generation organization.  As the former Senior vice President of an online lead generation company, I can tell you honestly that 85% (or more) or the monthly subscription price goes to the company and not to generating leads.  If we as a group decided to get together on a national basis, we could eliminate online lead generation companies.  I know you are thinking it's crazy, but it's the truth.  The problem is, we as a whole, generally DON'T cooperate with each other when it comes to generating leads. BUT, what happens if we do??????????????????? 

Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

I'm with you Marc.  There are way to many lead companies that have become masters at selling us back our own business.  Even our own association does this.  You show me where and how and I'd be happy to help.

Dec 16, 2008 08:30 AM
Marc Hargraves
Classic Communities Corporation - Mechanicsburg, PA
CNHS

Brian,

 

Thanks for responding.  Financially the cost is minimal.  Truely it is up to us.  Hopefully we can get some more responses and build a small network.  If there are other agents in your office or in your market area or outside the area who are interested, let's find out.  The more the better. 

PS-this is not an online scam that requires upfront money!!!!!

Dec 16, 2008 11:57 AM
Anonymous
Jackie Lewandowski,GRI Spring Hill, FL (Century 21 Alliance Real

I agree with you Mark, the consumer is very skeptical of our industry and for good reason. Educating the consumer of changing markets is the slowest and hardest part of our job. There are still a few (less than honorable) realtors that are misleading customers about the value of their home, just to generate leads for themselves.  After these overpriced homes sit on the market for six months or longer, the homeowner loses faith in our ability and motivation. I think it is a great idea to band together and try to alter these illusions. I work in Florida, the state ranked forth in the country with forclosure inventory. I would rather use a networking/lead generation system of just cooperating realtors,  than pay a company that knows little or nothing about the customers needs.  You have my support.

Jan 02, 2009 04:43 AM
#3
Anonymous
David Pylyp

It is incredible with the change in technology what will be possible.

In My market (Toronto)  we pay for the assessment  values.   The sold prices that they post are details gleened from the seller's price date base.  Our OWN INFORMATION!

Others purchase that information and provide online evaluations then sell those leeds back to local realtors.  As long as realtors continue to pay....

Soon it will be possible to see homes that have the same square footage; that have sold in the last ie 6 months, Calculate your costs of Transport to and from your place of work and driving times.

The next business model would be  Sign up to get news of this size home in this neighbourhood sent to you instantly.  A true Buyer Based website.

We need to put ourselves infront of clients to provide value.

 

 

Jan 31, 2009 12:04 AM
#4