Another AVM Entrant: BuyerPrice
I’ve written about AVM’s before, here. Another one looks to have recently entered the market.
Aside from their chrome extension (which seems cool, but not defensible), I’m not sure what’s different about what they’re doing. I assume the algorithm is based on MLS data? How is this better than Redfin Estimates or Surefield’s Pricepoint?
Anyone have any intel to share?
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Tim Hammond
Posted at 03:12h, 15 OctoberHi Drew,
I saw your post and happy to share some more intel about our dynamic ‘buyer pricing model’.
It’s different than other valuation methods as we take into account buyer demand (or lack of it) and buyer activity and feedback from actual home tours. Our algorithm is not just based on market data or comparables but actual data related to that individual home and activity during its time on the market. We analysis this data in real time to produce a daily updated dynamic ‘buyer pricing model’, called the buyerprice.
Buyer Pricing (otherwise known as dynamic pricing) has become commonplace in most consumer sectors. Airbnb has ‘smart pricing’, Uber has surge pricing, and airlines now rely heavily on demand pricing.
But we’re not just an AVM. We’re a licensed real estate brokerage with partner brokers being assembled across the US.
Users of the app can ‘check the buyerprice’ either online, overlaid as a price tag over homes they search online, or they can use our location based iOS and android apps while touring homes or at open houses to get the uptodate price of what the homes really worth, but with a difference as this time its from the buyer’s perspective, not the seller’s or listing agent’s.
From within the app users can arrange tours, ask questions about homes or start offers directly with licensed real estate agents. What’s compelling here with our business model is that our agents only get paid if they save the buyer money, so they are financially motivated to negotiate the buyerprice amount we predict. So its the only model that put’s it’s money where it’s mouth is.
Our mission is to empower buyers, give them more price transparency and negotiating ability.
Happy to share some data with you or your readers to prove the new BuyerPrice app has been able to more accurately predict the likely closing price of homes than other valuation methods.
I know that sounds like a bold claim, but its logical that if you base your pricing estimate on actual data on the individual home and its activity during its time on the market you are going to be much more accurate and significantly closer to its eventual closing price.
Keen to show you more and demonstrate how BuyerPrice and our dynamic pricing model works and also comparisons with other AVMs we have done on homes that have recently sold.
All the best and have a great weekend everyone.
Tim Hammond
CEO
BuyerPrice Inc.
Drew Meyers
Posted at 08:33h, 15 October“It’s different than other valuation methods as we take into account buyer demand (or lack of it) and buyer activity and feedback from actual home tours. ”
Without a massive, massive pool of buyer data – this seems like a moot point, no? How do you know what the buyer demand is? That’s not in MLS data sets.
Uber can do surge pricing because they have full access to the demand side of the market analytics/data. Same with AirBnB.
What’s your median margin or error? In which markets? How’s that compare to zillow, corelogic, etc?
Tim Hammond
Posted at 08:53h, 15 OctoberHi Drew, more info on our algorithm and the factors included in the calculations for each home can be found at; https://www.buyerprice.com/algorithm/
A home that is listed for sale simply is not worth the same amount a week, or a month later. Market sentiment, time on market, other homes entering the market and the balance of supply vs demand, etc all influence, in real time, the likely eventual closing price of a house. Where we have ratings from buyers who have toured the homes that is also factored in too with the BuyerPrice.
BuyerPrice.com’s dynamic pricing model identifies daily price changes on every home on the market based on all these factors, and more, that influence the real price of a home.
You asked about Zillow and happy to show you the comparison;
We recently took the last 50 regular residential sales (excluding short sales and repossessions) from a sample county, Monmouth, NJ and plotted the proximity of both the BuyerPrice and the Zestimate against the recorded selling price. The mean Zestimate difference to the selling price was 28.2% (including one at 94.7% adrift) against the BuyerPrice mean accuracy of 4.8%.
You can see the chart with actual sold data at the link here;
https://www.buyerprice.com/buyerprice-vs-zestimate/
Importantly we have tracked the eventual closing price of homes and analysed how accurate the BuyerPrice is versus the Zestimate.
Happy to share more information with you and your readers, and of course feel free to use our free apps.
all the best
Tim.