Real estate technology is a fast growing industry in its own right, so perhaps that is why it’s no surprise that the real estate brokerage firm Redfin is breaking with tradition and sharing some industry secrets with the average home seller.
Their new “Home Price Tool” puts all of the information traditionally available only to brokers at consumers’ feet – giving them the knowledge they need to determine a realistic price for their home before consulting with an agent.
According to Redfin, after using their new, interactive tool, “a home owner can then have a true dialogue with her agent about pricing of the home for the market.” This tool is unlike others now available because it educates the home owner about the pricing process rather than just plunking a number out on the screen in response to information the seller inputs.
This could be a very smart decision for Redfin, for at least 2 reasons:
- Home owners love their homes, and as such they typically think their home is worth more than what the market determines, so understanding the process can help smooth the entire process
- Foreclosures are a glut on many markets, distorting the true value of a property. When a homeowner understands more about how the market works, she will be more realistic about her asking price, thereby improving her chances of making a sale.
Jim Lamb, lead product manager for Redfin defends the company’s controversial decision. “Estimating a home price is more art than science. When the home owner and her real estate agent both have access to the same information, it becomes a productive conversation and it paints a much more accurate picture of the home’s value. The Home Price Tool is a kind of freedom for home owners. They no longer have to accept what their agent or some website’s mystery formula tells them their home should be worth.”
How do you feel about this new tool? Do you believe it will help or hurt your business?