As I’m sure you know, there are a number of websites that say they provide instant home evaluations.  Many of the websites lead consumers to believe that they can magically determine the value of a specific home based on publically available data ground up in some type of an automated pricing model.

You may have run into prospects who have visited one of these websites.  If so, you know from the start that your job is going to be more difficult.  Why?  Because there is no automated model that can accurately pin a price on a specific home.  They might get close some of the time, but overall, the entire concept is flawed.

So, how do you handle working with a buyer or seller who is convinced they know how much any home is worth in the market?

Know the Facts

There is little benefit in trying to change your prospects’ minds if they’re already sure they know everything there is to know about the real estate market.  But, you can gain some leverage if you have the facts.

Take a look at this article at Realtor.org.  There you’ll find an explanation of how the major players in the home valuation arena work: CyberHomes, HomeGain, HouseValues, HouseFront, ValueMyHouse, and Zillow.

You’ll find that these sites provide evaluations for one of two reasons.  Either they use the home valuation as a source of generating leads, or to help drive traffic to their site.  Either way, the main goal is not to provide the most accurate home valuations.

To me, it’s the same situation as going to an “American fare” restaurant and ordering a Greek dish.  The restaurant may serve Pastitsio, but you can bet it won’t be the best version you’ve ever had.

Evaluate Home Valuation Sites For Yourself

If you find that consumers in your area use the valuation sites a lot, it would be worth your time to periodically run a check on one of your listings that has sold, or one the most recent sales in your area.

The best time to do a test would be right after the home is sold, and before the sale price gets into the public data that the valuation sites use.

If you can provide examples of where the valuation sites are accurate or inaccurate, you’ll help to establish yourself as the true local market expert.