Get dizzy on AVMs, Part 2
The Wheel Estate Cam: Episode 6
By Frank Borges LLosa, Friday, December 4, 2009.
Episode 6: Frank Borges LLosa of FranklyRealty.com in Arlington, Va., proposes an "Ultimate AVM," a smarter automated valuation model that he calls the CRA, or Comparative Realtor Analysis. The CRA gauges the influence that individual real estate professionals can have on the ultimate selling price of a property.
Watch past episodes of the Wheel Estate Cam.
Frank Borges LLosa is the broker, founder and owner of FranklyRealty.com, a real estate brokerage in Falls Church, Va. He is the creator of the Trust Me I'm a Realtor blog and multiple listing service wiki site FranklyMLS.com. You can follow him on Twitter: @franklyrealty.
***
What's your opinion? Leave your comments below or send a letter to the editor.
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
You must login or register to post a comment.
Submitted by Susana Field, The Steamboat Gal, Steamboat Springs CO Realtor on December 6, 2009 - 9:34am.
Great idea; I will start doing this. I've always looked at the individual property's history of price changes, as well as the general market's sales-price-to-asking-price ratio for our 10,000+ population ski resort town, but never by individual listing broker. It will be interesting to see if I detect patterns. Thanks!
Susana Field
Exclusive Buyer Broker
Steamboat Springs, CO.
www.SteamboatGal.com
Submitted by Louis Cammarosano on December 6, 2009 - 8:39pm.
Hi Frank
I love the concept of taking into account the impact that a Realtor has in setting and getting the price.
This may not be a good way of rating agents but a good way of predicting prices
In your CRA example if the realtor sets the list price low, they will have a good chance of selling above "list"
Conversely a realtor can highball and over price and then sell under.
This may or may not tell you much about the realtor's effectiveness but could be a good indicator of final selling price
Taking all into account, the CRA, combined with a CMA, AVM sounds like a good tool for buyers and their agents
Submitted by Frank LLosa on December 7, 2009 - 11:07am.
Hey Louis,
Yeah there are many pitfalls in saying an agent is better because they get over list price. Since it would be easy to underprice.
But I find it helpful if an REO agent lists a house that seems "too good." I look at their track record and low and behold, they tend to get 5-10% above list, then my client knows what to expect. They love it!
Frank