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Nov. 2, 2006 - More about eppraisal

A couple of days ago I wrote about the relatively quiet launch of eppraisal.com, a new website that provides estimated home valuations for consumers in a manner akin to, but significantly different than, Zillow. I also touched on the topic on Active Rain yesterday.

My primary two concerns with eppraisal.com as it stands right now are the accuracy of the numbers (my home's estimate was off the charts; my guess is data is being pulled from smaller homes that sell for more dollars per square foot), and the consumer's view of the site - will the range help them realize they're seeing only an estimate (unlike the singular dollar figure Zillow provides) or will they realize that the valuation estimate has little to nothing to do with the market value.

Among the comments I received on Active Rain yesterday and today was this from Erik at Realty Thoughts, creators of eppraisal.com:

Hey John,

Thanks for taking a look at eppraisal.com (that's eppraisal, not eppraisals, for the commenter that found the wrong website). We are continuing to fine tune our AVM to get a more relevant range, and it's getting users on it (like you) over the last 2 days that is helping us do that. So, we appreciate any and all feedback.

I've just written a blog post that answers some of the things said in this post. In fact, after reading this and a couple other blogs I realized I needed to answer the fundamental question of "Do eppraisals matter?"

In short, yes and no. "Yes", they matter to the end consumer, that's what is driving the demand for websites like Zillow. "No", that in the end an automated valuation can never be as accurate as someone in the neighborhood on the ground doing the estimate.
Our eppraisal is the first step, the second step is where we connect you to the real estate professional who can really fulfill your need.

And Erik also wrote further about the ultimate goal for eppraisal.com this morning on Realty Thoughts, including ...

The chief recurring theme that I see being asked is, “what value does an automated valuation actually add to the real estate transaction?” Our answer is very little. It’s a person’s first step towards a real estate decision, that is it.

Some questions remain as to the ultimate use of the eppraisal.com platform but at first blush it does appear the perspective being taken - that the estimates cannot replace the work of an appraiser or a real-estate professional - is a healthy one.

(c) Jonathan Dalton, 2006 / Jonathan Dalton's Arizona Homes

Technorati tags: home valuation, eppraisal, zillow