[toomuchtodo]

Fair point! A realtor can still walk a property to perform a market analysis, which is still more accurate than an automated valuation.

I'm exhausted by the never ending comments here "it's easy! Anyone can do this!" when it's clearly not. I'm simply countering the disingenuity, whether the source is ignorance or arrogance.

[stickfigure]

Anyone can do this. In fact, I do it every time I walk into a home and decide what I might be willing to pay for it.

[dragonwriter]

Anyone can do an estimate; whether they can do it better than Zillow, etc., algorithms is a different question.

[bacontacos]

In markets where anything can happen and buyers overbid on the order of 100-300k over asking price simply because they want it and will do anything to get it, it is very difficult to accurately estimate the value and/or selling price of a home.

also, ever wonder why the home appraisal comes in right at the offer price during the loan process? its not a coincidence. the appraised price typically has more to do with conducting a business transaction in the interest of all parties involved and less to do with an actual valuation of the home.

[jrs235]

The market value of a thing is what someone is willing to pay for it. The appraisal usually comes in at the offer amount because the appraisal is ordered by the bank providing the loan. The appraiser knows/has the offer and works backwards to ensure that other people would likely offer the same amount as the current offer/buyer.

[bacontacos]

Thats what I'm saying. It's rare at that late stage of the process (at least according to my real estate agent friend) for the appraisal to come in off the mark. Nobody wants to see the deal fall through in the last stages.

[toomuchtodo]

I agree with you! That's why you can't automate a valuation, unless you can magically poll through digital means potential buyers in a market on demand. You don't know what the property is worth until it's on the market and you have bona fide offers in hand.

[just4themoney]

>A realtor can still walk a property to perform a market analysis, which is still more accurate than an automated valuation

Wow, how on earth do you know that!? That's a pretty bold statement and I don't really see anything to justify it at all. You start with "algorithm aren't as accurate as traditional appraisers" and then conclude from that "real estate agents (who aren't appraisers!) can give a more accurate market analysis than algorithms." There's a big leap there.

Even if this was true that real estate agents do a better job than automatic algorithms it's still kind of irrelevant because an appraiser cost somewhere in the neighborhood of $300-$600 where as an agent costs $5,000-$10,000+. If you need an appraisal you hire an appraiser, not an agent.

[cgh]

As buyers, we simply hired an appraisal firm. I think it cost around $300. Then we hired a notary public to handle the paperwork, about $2500.

Honestly, if you think real estate agents are the only ones capable of managing this process, then I can only assume you've never bought a house.