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!