Various Articles

Consider the following models and the potential drawbacks and benefits that each presents.

HouseValues.com: HouseValues.com counts on site visitors to answer about 20 plus questions, which are then forwarded to a local Realtor who pays for the lead. Realtors prepay for service areas. When leads are received by HouseValues.com, they are assigned to the agent for the area. According to published reports regarding HouseValues.com "A weaker residential housing market has hurt. The end of the speculative boom is making homeowners, resale renovators, and condo-flippers less interested in knowing what their homes are worth. Cash-strapped Realtors are backing out of the program." This leads to the question, how accurate is the values that a home owner ultimately gets from the system? and what is the motivation of the agent to provide an accurate value?

Zillow: As puzzling as where they got their name is where they get the data from. Countless stories have arisen regarding the wrong information being recorded about properties # of bedrooms, bathroom, size, etc. No weight is given for overall condition or improvements. There own website states the following: "Our data shows that the majority of our Zestimate home valuations are within 10% of the selling price of the home. Of course, to a certain extent this depends on the accuracy of the home data we receive." 10% is the difference between your home selling and your home sitting. Fact is, with the average Sale price of Northern Virginia Homes for Sale being $507,546.40 in June of 2007, that is an amount of over $50,000 that the Zestimate could be off.

Homegain.com: Another data collector or lead generation engine like Housevalues.com. Inquiries from homeowners are posted to the site that Realtors post resumes to, allowing the home owner to "compare agent". Homegain takes a minimum of 33% of the commissions from the listing agent as a "referral fee" leaving the agent with very little money or incentive left to market your home. This leads to Realtors given a proposed listing value that is higher than the marketplace or at least higher than the other agents proposal in an attempt to win favor from the home owner, trying to secure the listing. This ultimately could cost the homeowner money.

When a house is listed for sale, the initial wave of prospective buyers is the most important. When a house is overpriced, they categorize the home as overpriced, they move on to other properties & the Homeowners end up having to eventually dropping the price below market value just to get the attention of the market again.

All this becuase the agent was trying to gain favor or recover upfront cost (Housevalues) or cover referral fees (Homegain) in the end.

Your Local Real Estate Professionals CMA: Best bet is to have a comparive market analysis performed by a local real estate agent with specialty and expertise in your particular market & area. A good CMA lays out the comparison of the owners home to other homes that have recently actually sold and it also provides an opportunity for the Agent to show the techniques & marketing strategies that they will use to ensure that the home owner gets top dollar.

Truly, This approach also makes economic sense to the homeowner because the agent is not paying out as much in upfront or backend cost to a 3rd party intermediary that has no stake in the transaction. More dollars can be directed towards the promotion & exposure of your home to the marketplace & potential buyers, ultimately netting you more money, which is really what most home owners are looking for in the first place.