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Tim Bray, B.S. Real Estate (UConn) (Seaport Real Estate Services)

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Rainmaker
1,052,321
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Only if you use them! LOL

Real estate remains local and hyperlocal. AI will never know that, as it will never be in a house.

 

PS this is more appropriate as a blog post. If it already is, it should just be linked to.

Mar 22, 2023 04:41 AM
Ambassador
3,345,257
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

It depends on what they are being used for.  

Acceptable for a refinance of a home that clearly has a lot of equity.  With enough equity, I've known lenders to waive appraisal on refinances.

There are likely more instances where they are being used in a manner that does not serve the greater good. 

 

Mar 22, 2023 07:10 AM
Rainmaker
584,756
Shayne Stone
HomeSmart - Fulshear, TX
"Your Rock Solid Choice Realtor" RETIRED

I really don't care for AVM, for I believe the system robs my buyer clients of Equity. Especially when in the slower market when I know I made a great deal for my client.

 

I'm also NOT a fan of having an Appraiser the means of viewing the Contract until after they presented their opinion of Value of House!

 

Mar 22, 2023 06:44 AM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Why are you writing a post the the Q&A section. Since AVM's are not new, I do not think they are lowering property values. In fact, I think it points out how valuable an agent actually is.

Mar 22, 2023 06:41 AM
Rainmaker
2,390,787
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

They were not prevalent when I was active Tim Bray so they had little effect on my market. I don't know what our City tax assessor is using but I'd sure like to put a stick of dynamite underneath it.

Mar 22, 2023 06:23 AM
Rainmaker
644,165
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

AVM's are just one tool in a professionals toolbox, and can be affirmed or proven incorrect with proper analysis of the data or...missing data.

Mar 22, 2023 05:44 AM
Ambassador
4,694,312
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

If people would just understand what they are and why they aren't accurate, it would make things a lot better, haha.

Mar 22, 2023 03:25 AM
Ambassador
3,126,213
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

No. It is not usually local and does not replace the human aspect of business. Thank goodness1

Mar 22, 2023 06:53 AM
Rainmaker
2,781,313
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

algorithms are replacing reality in many of our subjects and will soon take over called artificial intelligence. Human reasoning, common sense and allowances will take a back seat to statistics, charts & projections a type of pseudo truth if you will.

Mar 22, 2023 05:34 AM
Rainmaker
901,902
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
NC Real Estate Transition & Relocation 919-602-848

It's one more opportunity for us to educate people. 

Mar 22, 2023 05:23 AM
Ambassador
2,436,470
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

It's also difficult for AVMs to be able to accurately estimate prices in states that do not disclose sale prices publicly such as MT, TX, UT, WY and more.

Mar 22, 2023 04:39 AM
Rainmaker
2,241,703
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

     A west coast algorithm attempting to nail the current market value of a home four time zones away doesn't cut it. Only a real live real estate professional who knows the current local market backwards and forwards can. 

     The market cycles, economic shifts, the neighbor who just had a police raid last night, all of it. You ooze all that is local and have the instincts, skill set custom fit for where list, twist, sell.

     Experience. Awareness. Connection. Intuition. Vested. And adapting to the many personalities and time deadlines work arounds. Heart and soul. Real estate is a jealous master, everything local and fixed based. 

     You eat, breathe, see and feel the market temperature to make the best decisions in the moment because you are smack dab in the middle of listing sale surgery 365-52-7-24 Tim Bray !

Mar 22, 2023 03:25 AM
Rainmaker
1,197,555
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

It all depends, they are the elephant in the room,  there are various different versions and some are better than others.  Valuation is an art not a science.  

Mar 22, 2023 04:48 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

As Candice A. Donofrio said... only if you use them! No reason to use them. I had a client just the other day who questioned why my analysis showed a lower value for his home than what Zillow showed. I gave him five reasons why there was a discrepancy... he got it. 

Mar 22, 2023 04:46 AM
Ambassador
3,164,405
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I find it rare that local lenders use them.  Just had one that did and waved appraisal, but buyer is putting down 60% so it didn't hurt anything there.

Mar 22, 2023 08:42 AM
Rainer
378,517
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

In today's market it seems pretty solid, when a market is rapidly changing it can cause issues.... 

Mar 22, 2023 08:45 AM
Ambassador
2,178,703
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

I know it is misleading and confusing buyers and sellers.

Mar 22, 2023 08:26 AM
Rainmaker
900,278
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No, they are just muddying the waters and making our jobs more difficult - more explaining to do. They are okay for getting a sense for the value.

Mar 22, 2023 04:42 PM
Rainmaker
7,836,873
Roy Kelley
Retired - Gaithersburg, MD

Good agents and mortgage loan officers will challenge incorrect valuations. 

Mar 22, 2023 01:08 PM
Ambassador
6,393,709
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

They can add a bit of confusion to the consumer, however they are powerful for collecting names of potential sellers, just ask Z or many of others that are in the business of collecting names and selling them to agents.

Mar 22, 2023 12:31 PM
Rainmaker
1,196,798
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

This would make a good blog post.

As far as AVM's, I've never held them in high regard. They tend to be misleading and cause confusion

Mar 22, 2023 08:54 AM
Rainmaker
679,404
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

My buyers have gone out there and looked on their own (using Z, R, etc), however once I take the time to give them all the reasons they want me to do the research and give them a professional opinion ... they get it!  There is a time and a place for these and when you are working with a client who wants to really understand the local market, I'm their gal!  Not some AVM that is just pulling stuff out of the database -- Real Life happens!

Mar 22, 2023 03:45 PM
Ambassador
5,230,164
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

It is our responsibility to educate our sphere/consumer.

These automated 'guesstimates' are getting closer to accurate than ever before. AI technology is perfecting automated valuations but, there will never be any computer that can compete with the accuracy of a skilled real estate professional's valuation.

Mar 22, 2023 09:24 PM
Rainmaker
1,311,772
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We cannot stop giants like Zillow and other from putting out their AVMs.

When we make a listing presentation, we include a sheet displaying several AVMs for the subject property. They are usually widely divergent. It makes our professional, custom valuation look more legitimate and correct.

Mar 22, 2023 07:52 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Yes, but they are getting better. 

Mar 23, 2023 04:53 PM