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Baltimore, MD Home Value - August 2024 RPR Blog Challenge

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Real Estate Agent with Cummings & Co. Realtors

Thank you, Kathy Streib and Debe Maxwell, CRS for the August 2024 blog challenge about RPR (Realtors Property Resource).

While I use RPR, I don't always find the valuations to be accurate, even though it pulls data from our MLS.

I decided to run a report on a home that I could potentially be listing in the near future. I had already run a CMA for the owner prior to this, I have seen the home and the homes nearby, and feel I have a good understanding of the value range of this home. I figured this would be a good test to see how RPR's "RVM" valuation compared.

A neighboring house, only a few houses down, was not used as a comparison. This house is currently active in the MLS. I checked the parameters in RPR and it *should* be there. Going into the search function, it came up - but I cannot figure out why it wasn't used in the first place. (Interestingly, RPR starred that it WAS used in the "RVM" valuation, however, I went back and checked, and it was NOT used.)

When adding that home in, and weighing the comparable sales, the updated "valuation" changed dramatically.

I decided then to run an RPR report on a home I just sold less than two weeks ago.

I thought this one should be more accurate since it *just closed,* which I would have thought would assign an actual value of the sold price.

It was off. Not by as much as the other report I ran, but $8,000 is a lot in this price range. Even the top end of the RVM range is lower than the actual sales price. The homes used in comparison? They were not really applicable to this home - the location is very different, as are the amenities. The only things they have in common are the zip code and that they are all the same type of home.

So, how would I use RPR in this situation? I would use it, along with other "valuation" sites, to show my seller that these online "valuation tools" are not always accurate.

RPR's automated tools used homes that are not truly comparable - just because the type of home - "townhouse" "condo" or "detached" may be the same, and they are located nearby - this does not mean they are actual comparable home sales.

RPR can help show part of the value that I can bring to the table - that just looking at data without understanding the nuances of the data generally may not always helpful.

For any real estate needs in Towson, Maryland or around the Baltimore Metropolitan area,

THINK MARNEY IN MARYLAND!

Marney Kirk

Cummings & Co. Realtors

108 W. Timonium Road, Suite 100, Timonium, MD 21093

E-mail: marney@realtormarney.com 

Website: www.realtormarney.com 

Office: 410-823-0033 Cell: 410-493-4884

 

 

Comments(4)

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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Yes, that is quite interesting! I'm so surprised that they said they used an active listing as well. A home we are listing could be valued at $1M and the crazy 'active' seller could be asking $2M! That would definitely sway valuation tremendously. They should only be using sold for comps, right?! 

The developer of the program will be joining us on our call at the end of the month. We definitely need to pose this scenario to him! Thank you so much for sharing this, Marney!

Aug 11, 2024 07:08 PM
Marney Kirk

The whole thing was an interesting experiment. The active unit does show what the competition would be...and this home is almost exactly the same house - same model, very comparable updates...so there is definitely value in that...I just couldn't understand why it wasn't even showing as an option (if nothing else, to show the seller what is currently out there,) but stated that it *was* included in the RVM. It just didn't make sense to me!

Aug 12, 2024 05:11 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

 Hello Marney - so many factors can combine to arrive at a conclusion of any kind. Your post reminds me of hearing in classrooms growing up, "show your work" in math "word problem" assignments.  Hmm. . .  

Aug 12, 2024 02:40 AM
Marney Kirk

Haha, exactly, Michael! I like to show potential clients how I come up with my interpretations so they understand I didn't pick it out of thin air! NOW, I understand my math teacher...it only took 30 years... ;) 

Aug 12, 2024 05:12 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It's good to show our clients why the online valuation systems aren't accurate.  I like that we are able to add other properties and amenities to update the valuation, but it sure would be a lot better if we didn't have to do that in order for it to become more accurate, haha.

Aug 12, 2024 04:57 AM
Marney Kirk

It definitely helps to show the value we bring to the situation! I just find that it is easier to run all of this in our local MLS than the RPR site.

Aug 29, 2024 06:05 AM
Eileen Burns 954.483.3912
Trans State Commercial Realty Inc. - Fort Lauderdale, FL
FLorida Real Estate Connector

Marney Kirk I would suggest calling RPR support with this dilemma so they can offer suggestions to come to your same conclusion.  Often times, it is not necessary to include active listings, remove properties that are not similar etc. when adjusting value😎

Aug 30, 2024 05:43 AM
Marney Kirk

Hi Eileen! Thank you for your idea! This house, though, has been on the market, is the exact same house, a few houses down, exact same layout, exact same amenities - and continues to drop in list price - so it is absolutely something to watch and affects what the potential seller's house is worth. That being said, the weird part was that it wasn't showing when I ran reports, but the site claimed when I looked specifically at that property, that it WAS in the valuation (but again, was not!) The valuation is using other neighborhoods nearby with but not including those on the same street as the subject property (including a recently sold property.) The whole thing was just odd! Then to have the valuation off on a property that I just sold really shocased to me that my work is valuable and one can't rely on websites to give you a true understanding of the local real estate market!

Aug 30, 2024 05:58 AM