Sellsius real estate marketing blog

That's cute !!! I look forward to subsequent ads.
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So how close to actual sales prices does Coldwell Banker get then?

Unless some human being is visiting a home, it can't be much better. Let banks use AVMs (as they do) but it's not the best tool for agents looking to accurately price a home.

Here is the AVM in a nutshell:
It will either confirm a value you already know or be off from the value you already know...BUt, if you have no idea of value it is a crap shoot--- OK for games but not for serious business.

But CB is claiming they are "accurate". The way I read that ad is that CB is claiming their AVM is more accurate than Zillow.

I agree that AVM's are crap shoots, but it doesn't seem like CB is claiming their crap shoot is better?

Good point Athol. But those clever marketers say accurate Home Value "ranges".

Yeah but look at the ranges they have. It's like letting the guy at the fair that guesses your weight have a 40 pound spread both sides of his number. Seems like a lousy game.

At least Zillow publish how accurate they are. Plus Zillow was bringing up information on the actual house rather than being nothing more than a fish hook for getting a CMA.

I'll be honest, I use Zillow several times a day to bring up property information that would otherwise have made me drive to town hall to get. I've impressed callers on floor time a couple times by knowing the number of bedrooms, sqft etc by Zillowing their address as we chatted.

Is it always 100% accurate? No it isn't, but it gets me in the ballpark pretty quick. Offering to correct the data is a nice segway into an appointment too.

Great AD! Attack the credibility of the Zestimate, not Zillow's right to exist.

I have long said that the phrase "you get what you pay for" is appropriate.

Athol,

Agreed. Zillow ranges are not much different. And zillow says the greater their range the less accurate the zestimate is apt to be.
But Zillow publishing how accurate they are in the general sense (all zillowed homes) is of no value in the specific sense (this particular zillowed home.) Is it? It's not like rolling dice and knowing the odds of throwing a 7. Home values & error rates don't work like that.

Knowing Z's median error rate is totally irrelevant IMO. I am 50% as likely to be above the median and Zillow has NEVER disclosed what the average error rate is in that area.
So 50% have an error rate below 7.5% and 50% above----but how much off will I be if I'm in the 50% ABOVE---you dont know.

Zestimates do not get you in the ballpark unless you already know where the ballpark is. As to home value, Z will confirm what you already know, not educate you on what you dont know.

And why on earth give a zestimate when you lack KEY data like beds, baths, sq ft. total rooms?:
http://tinyurl.com/nv243

Dont get me wrong. Zillow's contribution is in making public information more accessible (as we both agree), but not in valuing property for a serious purpose ---like pricing a home for sale or submitting an offer. But... if you are impressed by Zillow's public data visit Property Shark and you will see that zillow is a minnow compared to the Shark.
http://tinyurl.com/yqhhql

Also (segway)--nothing wrong with using zillow as a fish hook.

Brian,

Agreed.

I think we've all worked over Zillow enough to get what it is and is not. It's just slightly irksome to me that CB would claim to have a better AVM in their advertising, yet offer no actual proof.

I went to their site to check out what they suggested as a range etc and really it just seems to be a weak version of what Zillow offers and even less disclosure of the AVM's truthiness than Zillow was disclosing a year ago.

I agree that all the AVM's are fish hooks in some from or another.

Property Shark looks great JF. Really impressive data. Just not available in Connecticut except for Danbury. So.... :-/

Yes, I see your point Athol and the pros do get zillow. Unfortunately, many consumers don't. Perhaps CB wants a piece of that easy action :)

They are using that as bait to get consumers to have a Coldwell Banker agent actually contact them and prepare a CMA. Check out their site to see for yourself (look at the top right hand corner of CW's home page and/or read my post).

They should just be honest and upfront and call out AVM's faults (completely inaccurate) and say that a CMA is really the true way to determine market value. That would get a better response from consumers that way rather than trying to trick them.

Danilo,

What I admire most about you is your direct, no nonsense pursuit of the truth. I think your commitment to professionalism is admirable.

I'll ask you to look at this issue in a different way. Zillow changed the rules of the game and CB is playing by them. Zillow forces the consumer to consider online valuations. The idea that they are accurate is, well...Zilly.

Is Coldwell Banker deceiving the consumer? I don't think so. I think they're playing the bait game like so many advertisers.

Finally, you said, "That would get a better response from consumers that way rather than trying to trick them."

I think an American consumer is so in tune with advertising messages that they actually appreciate witty little diddys.

Thank you, Brian. I see your point and how CB is playing by the rules of the "game" like so many other advertisers, but that doesn't make it ok nor good. Yes, the American consumer appreciates these "witty little diddys", but most home buyers and sellers I come across are tired of the deception and just want want plain old honesty from the real estate industry and those in it.

We'll get there one day hopefully sooner rather than later before we lose all consumer confidence.

Danilo -
I totally agree that consumers are looking for complete honesty in advertisements. If I see something on tv or in print that sounds like a great deal, then I go check it out only to find they are just trying to get my contact information to sell me something(or mail me another credit card offer) or they don't deliver what they promised, I leave and never come back (plus I probably tell others not the be tricked like I was).

FYI - this comment is not on behalf of Zillow. It's my own opinion.

Hey Athol,

First of all I wouldn't be joining in this Fray if it weren't for Sock Puppet sending me here, but now that I'm here, are you defending a computer algorithm against your colleagues? I don't see what's problematic -- any agent with a few months experience and a halfway decent mentor can do a better job than Zillow's brain dead algorithm.

Fortunately here in Sacramento, land of hot summers and data, we have property profiles available from Title Company web sites as well as our own MLS. Driving to town hall? There's no reason to do that unless the girls there are pretty.

John I'm not defending individual zestimates, I'm saying CB put out an AVM and advertised it was better than Zillows. All I'm saying is "is there any proof to that claim?".

I do agree that real live agents should do a vastly better job on pricing than an AVM.

Though for every laughably over priced home thats listed out there, there is an dumb as mud agent.

Here are a few interesting blog threads that show how HomeGain differs from Zillow because it encourages consumers NOT to rely on a computer generated estimate:

WHY HOMEGAIN BEATS ZILLOW:
http://www.futureofrealestatemarketing.com/why-...

ZILLOW MISSES THE MARK
http://blueroof.wordpress.com/2007/05/03/zillow...


Homegain created the first avm seven years ago and recently brought back the tool after seven years of dormancy.
Try it at Http://www.homegain.com