In a world where homebuyers are seeking out instant home valuations and frequently obtaining them on non-brokerage websites -- the most popular of which is Zillow's Zestimate -- Seattle-based brokerage Redfin is claiming to have devised the most accurate automated valuation model (AVM) the industry has ever seen. The high-tech brokerage has added home value estimates to property pages on its website that can cover more than 40 million listed and unlisted homes in 35 major metro areas. It cast the "Redfin Estimate" as an important way for the company to maintain a competitive website as it targets Zestimate users. A growing movement The brokerage's rollout of home value estimates reflects a growing movement in the industry to embrace automated valuations rather than shun them -- a shift that has been fueled by the National Association of Realtors (NAR) and could theoretically help brokerages better compete with listing portals online. Brokerages that wish to feature ...
- Redfin says its automated home valuation model (AVM) produces the most accurate estimates available, thanks in no small part to a recent change NAR made to its MLS guidelines.
- Brokerages can produce home value estimates based on the same MLS data by developing their own AVMs or by using third-party AVM software.
- Redfin won't display estimates on active listings if listing agents indicate that they don't want the valuations to show up on their listings.