The Real Worth of Your ‘How Much is Your Home Worth' App
Your ‘How Much is Your Home Worth App’ is Worthless
If you despise investing in valuable consumer tools or new technology that actually helps to position the Realtor value proposition in a positive light, your solution is here - The completely thoughtless, utterly end-user useless ’How Much is Your Home Worth’ app.
At least call it what it is a “Seller Lead Generation for Our Agents’ app.
There are several key points that need to be made here, but let’s start with the most important one …
These ‘Apps’ are Only Designed to Create Leads for Realtors
The value to the end consumer with these apps is literally zero. Any property price that is eventually extracted is backed up by disclaimers out the ying-yang and the necessity for a boots-on-the-ground local Realtor to actually visit the property and verify any data provided through the ‘app’. Some of the ranges are so volatile that they are over 100k+ from top to bottom.
Well, then why did I fill out all these questions and give you all of this sensitive information then?
Simple, so that Brokerages and Realtors can generate leads on who might be interested in selling their home and now have permission to stalk the hell out of you for the next 6 months or so.
Some national franchises have been announcing recently that they would be adding this incredible ‘new tech’ to their corporate website. There has been plenty of public boasting around the Seller leads it would generate for their agents, but I have yet to see anyone suggest that it would actually add legitimate value for Canadian homeowners. Because it doesn’t.
So, end value for the consumer? Like I said, literally zero.
You are starting your customer relationship with a lie
Good marketing strategy never start with a con. End of story.
These apps are designed to lure the consumer in on the premise that this fancy new tech has solved a popular problem - what would my family’s largest investment be worth in this current market? As Realtors, we have been asked this question at every dinner party we have ever been to. It’s a great topic of conversation. , But these ‘apps’ aren’t actually intending to completely answer the question for anyone. They are mostly intended to generate leads for Realtors, not provide on-point information for consumers.
So, then the real question becomes - what is the value of a ‘lead’ generated by somewhat false pretences? Very little.
Realtors who are laser-focused on building a long-term career are in the relationship business. Turn-and-burn technology has no room in their bag.
What message are you actually sending to the consumer here?
This is one I cannot comprehend.
Traditional Brokerage models will fight to their death to defend the fact that software, robots, discounters, out-of-towners and new low-cost Brokerage models simply will never replace what they do - full-service experts with an unrivalled knowledge of the local market. And I agree completely.
Appropriately pricing a home is one of the more important things a great Realtor does. Anyone can pick a number, hell even a machine can, but pinpointing the exact right pricing strategy for this exact market in your exact town - that requires an expert. It’s a strategy based on risk versus reward, timing and detailed knowledge of who is in the market right now and how they may react to a property at a specific price point. Good luck with that one, robots.
Simple fact is, pricing a property properly takes the expertise that only local professionals can provide, not algorithms and access to databases. This is not part of the job description of a Realtor that machines will ever be able to adequately replicate. There are too many emotional, immediate and hyper-local variables that simply cannot be properly accounted for. A good Realtor always accounts for all of them,
So, why double-down on an app that furthers the notion that we are replaceable? For some suspect leads? I think you will find the juice just ain’t worth the squeeze on this one.
Good technology costs a fortune
I understand why the huge price ranges are given, because this is an extremely elaborate piece of technology required to generate accurate results.
You only have to look as far as the Realtor frenemis at Zillow. Their oft-hated web tool ‘Zestimate’ has had millions of dollars thrown at it to perfect the accuracy of a result. According to Zillow, one of the world’s smartest tech companies, they are only somewhere in the mid-to-high 90 percentile with their accuracy. Pretty impressive really, but that is truly the gold standard of software property evaluation available anywhere.
Zillow even offers up $1 million USD to anyone who can do it better than they can. So you think your app-in-a-box Wordpress plug-in can do a better job? Not a chance.
I love great technology that works to align all interested parties in the same direction. That would include the Brokerage, the Realtors and the consumer. However, the bait-and-switch premise of these rented apps simply does not come close to achieving that result. So, really ‘How Much is Your App Worth’? I say very little, and I don’t need to follow-up on the phone to schedule an in-house appointment to verify that.
I like the old-school app better - real local professionals, who know exactly what it is happening on the street, as of this very moment.