Zillow, Trulia, Realtor.com, Bane or Bust Part 1 – Evaluation Effectivenss

The attached article addresses the most current trends in thinking when it comes to so called “syndication” of an agents listings to every website, search engine, and agent on the web.  MSN.Money  In Sherman Oaks, Los Angeles, California and pretty much the whole nation the fundamental problem with any kind of syndication is that Real Estate is a Local Business dictated by very individual tastes and preferences.  This is not a generic business such as Airline tickets that can be packaged and simplified into easily quantifiable factors  of timing, location, and price. 

Except for the most vanilla wrapped tract house each house has very unique characteristics that cannot be effectively fit into a spreadsheet to be analyzed by algorithms and formulas.  And that is not even considering that perhaps more than any other product, beauty is in the eye of the beholder.  Each person percieves a houses features very differently.  So on both sides of the equation are extreme variables.  I have seen many automated valuation models that come close much of the time.  But I have also seen some that are 20 to 50% off the most conservative true value.  And the problem is that these automated valuations are being used by many people as gospel.  The courts, banks, appraisers, not to mention many individuals will not beleive that the models do not work in many cases.  If the valuation has erroneous assumptions or bad information it can cost an innocent homeowner $10’s of thousands to$100’s of thousands of dollars in value.

And this can be an ongoing problem.  If a particular house is tagged with bad data, it takes a hurculean effort to get it corrected.  The CEO of Trulia states that they spend millions of dollars trying to provide good data.  I believe that!  But this is a problem that despite the desires of programmers really cannot be fixed thru automation.  A local, informed, custom valuation is the ONLY way a true value can be obtained on most houses.  In the end, your local Real Estate Agent is the most effective way to determine what your home could sell for at any given time. Don’t be shy, GIve them a call!

In part 2 I will cover how effective the property valuations are.  I will analyze the positives and negatives that affect the accuracy of the computer model.

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About Blair Thompson

Blair Thompson has been selling homes throughout the Los Angeles Area centering on Sherman Oaks and the San Fernando Valley for 20 years. Working with sellers and buyers on the first time condo right up to the Multi-Million Dollar Estate he has experience with most any situation. His business is based on refferals past clients, friends and business associates he prides himself on his high level of service and extremely high customer satisfaction. Using a high service hands on approach he consistently gets the highest value possible for his home selling clients and insures that his buyer clients get the home of their dreams. In the rapidly changing field of real estate sales, Blair prides himself on keeping pace with technology and the best and newest ways to conduct business from electronic signatures, automated listing information, to the multitude of ways to communicate via text, email, facebook or email. He still values the old fashioned morals and ethics to earn repeat business

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