Do your leads ever complain that the valuation that they received is not accurate from your seller lead generation site? Are you worried that a “bad” valuation is going to make you look bad to your leads? Charlene Scala Weston was recently asking me about this, and shared with me an email how she responds to her leads that bring up this point. Perhaps she would be kind enough to share it below in the comments.
Any home valuation tool is simply an automated system that instantly shows an estimated value of a home. Because it’s an automated valuation, it’s never going to be 100% accurate. The goal is to be within 15-20% of the home’s true value, which the vast majority of the time these valuations are. Occasionally, the valuation is off by more than this. It does happen. Although this is not necessarily a bad thing. There isn’t an automated system on Earth that can take into consideration the unique factors that will affect a home’s true value. Automated valuations will not know if the person’s home has new windows, new flooring, a new kitchen, etc. All of you are experts in your respective markets, so you understand these unique factors can affect the true value of a home.
The automated valuation is not meant to replace a CMA, or an actual appraisal. Clients will generally understand this if you explain it to them. What many of our agents do as well is let their leads know this, and then tell them that they will be in their neighborhood tomorrow afternoon and could they stop by and peek their head into the home real quick, so that they can see the unique factors of their home. They explain that after viewing the home quickly they can provide a much more accurate value of what the home is really worth.
Additionally, if the valuation was 100% accurate, then potential clients would not really have any need to talk with you about what their home is worth!
The ultimate goal of providing these valuations is to help you build rapport, and cultivate a relationship, with these potential sellers. It opens the door to start a conversation and to gauge their intentions.