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That would certainly be interesting but after working in real estate for a bit now, I've yet to see an appraisal company that was able to figure out the current
by rgbrgb 11y ago
That would certainly be interesting but after working in real estate for a bit now, I've yet to see an appraisal company that was able to figure out the current market value with any precision. In general appraisals are looking at the intrinsic long term value (i.e. will the bank be able to sell this if the buyer defaults on the loan?), not the current market value which is more about market dynamics. That isn't to say it's impossible... I know that Redfin has done pretty well with their Estimates tool, but I'd guess that their model (like other models I've seen) relies heavily on list price as an input -- which in this case seems to be completely rigged by the participating brokers.
Even if someone came up with an automated valuation model that predicted potential sale price with a high degree of accuracy, you really shouldn't trust it unless it was completely interpretable or open source. As seen here, there's a great deal of money to be had in misquoting that price. Even messier, these sellers would want a model that could predict sale price today as well as in 3 months (when the home is foreseeably being re-assigned).
If anyone has a model like this, I'd like to talk.
- deleted 11y ago[deleted]