Chapter 2

Consumers Don’t Believe Everything They See on the Internet. Right?

1Page 20

2

Researching the MarketConsumers are more

plugged in and informedMore distractedMore sites competing for

attention

Page 20

3

Gathering (Mis)Information?Hours online form

misperceptions Media coverage distorts

market pictureAgents first step with

prospects—educate about market realities

Page 20

Same Data—Different Answers?

4Page 21

How Do They Get Away With It?

No risk if off target Disclaimers Variable accuracy ratings Caution—not an appraisal

Consumer AVMs try to estimate today’s value by looking at yesterday’s data

5Page 22

Non-Disclosure States

6

Sales not

publicly

reported

Page 23

7

Right Pricing#1 problem for sellersTendency to

overestimateThe market sets the

price

Page 23

Days on Market? % of List

8

West•8 weeks•96% of list

Midwest•12 weeks•95% of list

Northeast•10 weeks•94% of list

South•12 weeks•96% of list

Page 25

What Do Buyers Do?

9Page 26

10

AVMs Meet the Real-World BuyerPrice isn’t the final

determinant

AVMS can’t replace agents’ knowledge and experience

AVMs can’t communicate the experience of living in the home & neighborhood

Page 29

11

AVMs meet the Real-World SellerAgents must clear away the

noise of online estimatesEducate, or re-educate, the

client about market realitiesCheck online AVM estimates

before a listing appointment

Page 29

RPR®—The Data-Supported Reality Check

Developed specifically for REALTORS® Combines home information with MLS data

and public records Positions REALTORS® ahead of the

technology curve Reinforces REALTOR® value as local market

expert

12Page 32