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Asking an Algorithm to tell you how much your home is worth is like…

by Connor T. MacIvor on December 30, 2013

home values by a algorithm“Asking an Algorithm to tell you how much the real estate you own is worth, is like asking an 18 year old, that thinks he wants to go to medical school, for a medical diagnosis over the phone…” - Connor MacIvor, Paris911 Team leader.

The nicest thing about writing your own blog is that you can quote yourself :)

In this case, this is my quote, and it is very true.

“There is no replacement for a live, professional, real estate expert, entering your home, and giving it their professional once over.  And, as they have done hundreds to thousands of times before, telling you what your home is worth and how long it will take to sell, having proven their “expertise” by their performance record…” - Connor MacIvor, Paris911 Team leader.

Ha, I did it again…  :)

Here is where I’m gathering this information. We have had several clients in the past couple of months come to our team after gleaning their home’s value from three different real estate syndication websites. You may recognize them starting with a Z, T and Z(another z – brokerage).

They have developed an “algorithm” that does home and real estate value estimates.  However, there is a cost associated with your query.  It’s not monetary, it’s by way of you giving up your personal and private information.

It will only be a few minutes and BOOM…. Your phone is ringing off of the hook and your email is filling up.  Your personal and private information has just been monetized.  

That’s step one, you have what they say your home is worth, let me get back to the most recent contact that called us about giving them what we thought their home was worth.

1. Zil….. told them their home was worth $515,000.00

2. Tru…. told them it was worth $485,000.00

3. Zip…. had the value showing at $530,000.00

“Sandra” Called me and I responded to her home.  I gave it the once over, asked what improvement had taken place since the last time they had sold.

I enjoyed the view, I also liked the cherry wood flooring, the bull-nose corner additions, the wains coating in the bathrooms and the fact they added on – expanding their kitchen by 415 square feet.

I wanted to see what had changed, because when Sandra called me, I pulled the title report and observed the square footage was different than when the homes were constructed, if my memory was serving me correctly.  After I observed the kitchen expansion, I knew it was :)

The local Elementary school also achieved “Blue Ribbon” Status three years ago, we have several friends that we have sold homes to in the same neighborhood(they had been bragging), plus the community meetings we attend mentioned this as well.

I told them their home was worth, after gathering all of the facts, $590,000.  I also told them it was going to sell in less than 15 days at over $610k.

We listed their home, I built the advertising around it and did my 7 day premarketing, we released the home to the masses(after building interest), via the MLS and our on-line channels.  Door knocking the neighbors coupled with our “active” real estate selling, brought them two offers that exceeded $615,000.00.  One of the offers was willing to waive their appraisal contingency on their loan and wanted to close in 15 days, they were also over 50% down.

BTW – in “Sandra’s” Case, her and her husband had received over 15 emails from agents and twice as many phone calls within the first 30 minutes after asking what her home was worth on these websites.  In addition, she is still getting calls and emails over 50 days later(as of the date of this post)…

I know what the Real Estate syndication websites, with these home value estimate algorithms, are attempting to do. They have to make the money to pay for their website, pay to make a profit, pay their employees, pay for their pay per click, make their shareholders happy, make it so those agents paying them for leads are happy, I get all of that.

However, there is nothing quite like the local Real Estate expert conveying to you what your home is worth.

Do some Googling for them, and I’m sure you will find one or two that know what they are talking about.

What is your home or any worth now 600Google+

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