Monday, April 10, 2017

Homebuyers MUST Validate Home Values at a Self-directed Site like Homequant.com

Instead of blindly accepting some model-driven estimates from online brokerage sites (we all know those estimates are not explainable) or totally relying on salespeople's comps, prospective homebuyers MUST do their own validations at Self-directed Sites. A free Self-directed Site like Homequant.com will allow users to go through the valuation process in a step-by-step manner via the following FOUR steps:

1. Defining the Subject:  Subject property data from Public Records is often unreliable. As a homeowner, you know your home better than any such records. In Self-directed Sites, you can define/enter your own home data, without being forced to accept the data from Public Records. Here is an example of the basic subject data that you would be entering into a Self-directed system...

  (ONE Click on the image to enlarge)

2. Selecting Comps:  A list of sales - by default - does not become comps; nor do some cute model-derived estimates provide true home values. Comps - however close they are to the subject - require proper selection and adjustments. In a Self-directed Site you will get to enter your own comp selection and adjustment criteria. Here is an example...



3. Ensuring Proper Location:  The concept of Spatial comps (picking comps right off the map) is always a better way as it helps avoid picking comps from the "other side of the freeway" which could be a pricier economic neighborhood, thus inflating the value of your subject. Here is an example...


4. Understanding Final Value:  A statistically significant range, say 25th to 75th percentile, is a more meaningful way to understand comps-based subject valuation than one unique parameter.  Here is an example...


You may try out your subjects at the Homequant site. It is absolutely free and requires no registration whatsoever...


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