Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Redfin launches interactive home price estimate tool for consumers

Redfins “Home Price Tool” seeks to empower consumers by giving them more than an automated home value and offering interactivity so homeowners are better equipped to discuss their home with an agent.

Redfin’s bold move

No stranger to self-perpetuated controversy, real estate brokerage, Redfin has just launched an interactive online tool to help homeowners “determine a fair price range for their home, using the same process and up-to-the-minute data that professional agents use.”

The company says their goals is to empower consumers to put accurate home pricing in their hands with their “Home Price Tool” which allows customers to see, choose and edit the homes that make up a comparable market analysis (CMA) like agents do. As a result, Redfin says “a home owner can then have a true dialog with her agent about pricing of the home for the market.”

The Home Price Tool has a transparent formula which the company says differs from other online CMA tools, and along the way, they educate homeowners on the pricing process so they have an estimate before entering discussions with an agent.

“More art than science.”

Users begin with a price range based on similar, recently sold homes in the neighborhood, then eliminates comparable homes that are dissimilar (new constructions, abandoned foreclosures, too big, too old, or unimproved, for example). Redfin says this results in a fair, competitive price range to guide users as to what their home is worth or how it should be priced.

Advertisement. Scroll to continue reading.

“Estimating a home price is more art than science. When the home owner and her real estate agent both have access to the same information, it becomes a productive conversation and it paints a much more accurate picture of the home’s value,” said Jim Lamb, lead product manager for Redfin. “The Home Price Tool is a kind of freedom for home owners. They no longer have to accept what their agent or some website’s mystery formula tells them their home should be worth.”

Leaning toward art over science is fascinating given Redfin CEO Glenn Kelman calling the team “scientists” on a 60 Minutes interview several years ago, but the company has certainly undergone several makeovers as they have expanded not only their size but their offering and price model. Under Kelman’s leadership, Redfin has attempted other controversial moves like the recent four day stint attempting to offer consumers transparent ratings on all real estate professionals through “Scouting Reports” and the recent launch of “Open Book” which offers consumers a local directory of reviews and rankings of title agencies, inspectors and lenders with more to come.

CMA, AVM, and transparency

While Redfin is not pioneering the CMA, nor the AVM (automated valuation model where a price is electronically generated), they are making strides toward what they call transparency by allowing consumers to interact with the data. This move will ruffle real estate professionals’ feathers, but could also be advantageous to Realtors whose listing clients refuse to budge on pricing, and for homeowners who feel the need to verify what their agent says. It’s not a revolutionary move, it’s an attempt to improve an existing technology and an existing concept in a transparent way.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

20 Comments

20 Comments

  1. Dyana

    March 15, 2012 at 2:03 pm

    Interesting article Tara! I think this proves even more that as technology grows and buyers and sellers gain more access to information agents job will continue to transform.

  2. Tina Powers

    March 15, 2012 at 3:46 pm

    Hopefully their new home price tool will be a little more accurate than the competition.

  3. Steve Crossland

    March 17, 2012 at 1:32 pm

    There is no automated valuation method that can account for the intuitive and subjective adjustments that an experienced Realtor, who knows the market and neighborhoods, can make.

    This is just further “dumbing down” of the consumer in the guise of “consumer empowerment”. It empowers them to be misinformed most of all.

    Steve

  4. Laura

    March 19, 2012 at 2:23 pm

    I plugged in my own address and got a range between $150K and $330K. Not very helpful. This in no way replaces the advice of a knowledgable, professional Realtor.

Leave a Reply

Your email address will not be published.

AdBlocker Message

Our website is kept FREE to you by displaying online ads to our visitors. Please consider supporting us by disabling your ad blocker OR subscribing to our email newsletter: https://theamericangenius.com/get-american-genius-newsletter/

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

(FINANCE) An anti-trust lawsuit against major players in the residential real estate industry sheds light on misinformation and misunderstandings about commissions - when you're...

Social Media

(SOCIAL MEDIA) Facebook is updating its trends page as another step in its revamping process.

Business Marketing

(MARKETING) Opcity is the Austin startup making big changes to the ways that lead generation happens in real estate.

Business Marketing

(MARKETING) Whether an anomaly or the new normal, publishers are seeing diminished reach with text content on this popular site.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.