An Algorithm Usually Doesn’t Know Your Home’s Value

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By Bill Sauneuf / John L. Scott Real Estate, Yelm
Posted 8/22/22

Don't be fooled by a Zippy, Zaney, Zilly, and in my opinion, an incomplete algorithm.

That being said, there is a lot that an algorithm’s estimate can do, so I’ll start with …

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An Algorithm Usually Doesn’t Know Your Home’s Value

Sponsored Content 

Posted

Don't be fooled by a Zippy, Zaney, Zilly, and in my opinion, an incomplete algorithm.

That being said, there is a lot that an algorithm’s estimate can do, so I’ll start with that.  If your house is in a brand new community of homes built by the same builder to the same basic construction standards, then it can work in this limited situation.  An algorithm can do the math on bedrooms, bathrooms, the square footage of the house and lot size and come up with a pretty accurate value once some houses in that community have been sold.

The other thing that an algorithm can do well is to follow the housing trends of an area.  If the algorithm’s estimated value of your home shows an upward or downward trend in value, that is likely based on enough data to show that trend reasonably accurately.  While it likely doesn’t know the actual value accurately, it can reasonably say that the value of your home is trending up, down, or holding steady.

A computer algorithm is only as good as the data behind it.  In the case of the big tech companies that rely on computer algorithms to estimate the value of a home, the data relies on user submitted and publicly available information.  A computer can't look beyond the data and see the difference between granite and plastic countertops.  

It can’t hear the noise from the airport, or from a train, the shooting range, or even the local racetrack speedway.  It can’t see things like old carpet versus new carpet, or a well maintained and nicely updated or upgraded home versus one with old, neglected appliances.  It can’t smell lingering pet odors, or the cigarettes that have been smoked inside, and so much more.  All of these things can have an effect on the value or desirability of a home.  

There is simply no substitute for an experienced, professional real estate agent with eyes, ears, a nose and a brain.  Nice try HAL.



Bill Sauneuf

John L. Scott Real Estate / Yelm

360-708-2929

www.Sauneuf.com

Equal Housing Opportunity

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