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Alejandro Barreto as you have discovered, the existing models used by real estate professionals involves a great deal of personal judgment on the agent side is extremely prone to selection bias. This should and does cause many agents to share the same feeling your expressed.
This issue is what inspired me to create the revolutionary CIS Score method of home evaluation. This process uses community data and tangible assets of the home to derive an OBJECTIVE value for the home.
After 100's of CIS Scores the margin of error is at 4%.
The reports are not 80 pages of gobbly gook but in it's entirety, TWO WHOLE PAGES! Take a look at my AR blogs or put big G to work with 'CIS Score" and let me know what you think.
At this time I am looking for a business partner, a lender or title company to finance the cost of a website, and agents willing to invest the time to test the CIS Score in their area.
Raymond E. Camp
Well, they are not that difficult. RPR is good.
I have found the RPR to be very poor for some areas in my neighborhoods, though occasionally it's pretty good.
As an agent who is not new, I never use one source for CMA statistics. I use MLS, I use RPR, etc. You need to learn how to analyze the numbers you see and translate them into a cohesive story for a seller. It takes time, patience, and lots of homework.
Raymond E. Camp
Use it all the time, if you keep an eye on what is going on in your market you will get a feel for how accurate the RPR estimate is.
You'll overcome that fear for sure.
just looking back through some of the old questions and answers, looks like you got some good replies.
In my opinion, RPR is the best and one of the most underultized tools available to the REALTOR community. I have put compiled a lot of videos, am promoting the use of RPR within the REALTOR community, and will be adding content on how I use the products available in my own business. Here is a link to the video site - http://www.solutionsrealestateacademy.com/courses/rpr-realtors-property-resource < --- just click he link. I will be making this the goto place for everything RPR, with as many best practices from around the country as possible.
I have not used either one. We use Toolkit.
I use it, and it's ok. But, you still have to do your own reseach. For one thing, not all companies allow RPR to post their listings so those comps won't appear in RPR data. Also, I can change the results of RPR data. RPR is usually in range, but don't rely on it 100%. Same applies to the MLS. not all data is in the mls, and not all data in the mls is 100% accurate.
I too have not used RPR, as the data crosses into other neighborhoods and does not provide the correct data.
It is about like a Zestimate - unless these sites are visiting the house I would not count on their judgement in pricing it.
Alejandro Barreto - this should be the least of your worries!
There aremany tools available for that - including RPR, Toolkit. And you can get an idea based on the recent sales how much a home is worth!
I haven't and found the best tool is to look at lots of properties and get a good feel for the market. It is not an exact science but I get close, very close just checking sold properties against what is out there.
Great question. One of the things that will not be reflected on any cma is current market conditions - by this I mean what will happen in the next 30 days. Is the market heating up cooling down? Are more listings coming on or is inventory dwindling? I have found that, in my market, if you take a 6 month average sold price - adjust for the immediate market condition and then factor in or out the condition of the home you have arrived a very fair estimate of value.
I encourage you to tour as many homes as you can and when you are showing buyers really listen to the comments. You will find many common factors in buyers likes and dislikes. This really helps you when talking with sellers about the condition and amenities in their home.
Like Nina Hollander I use multiple sources. Our MLS has software to produce a CMA but it is not enough as a good pricing tool.
Hi Alejandro -- first don't be afraid -- I know, it's easy to say but your feelings are natural and good because that shows you care about your clients.
Experience and seeing lots of properties certainly can give you extra confidence but if you are feeling as if you need assistance - why not partner with an more seasoned agent who would be willing to share and is skilled in proper pricing and marketing? It could be a win-win.
Good morning Alejandro,
Even after 10 years a particular property can have problems.
The old phrase practice makes perfect and if that doesn't work ask your Broker.
RPR is adjustable given that the AVM (Automated Valuation Model) doesn't take everything into consideration. I use both Cloud CMA & comparitive sold data for best results. Never fear about the size of your estimates...it's all in how you use it.
RPR can gather data from all public sources but they cannot see the home inside and the condition or what the neighborhood looks like. I don't know what the privacy laws are but have been told that google maps are always several years behind, so condition of property is not known to them.