Quizzle Launches New AVM Tool
Quizzle is the latest web effort to try and put a price on your home. This time from the folks at Quicken Loans.
What do you get from Quizzle? From the Quizzle Blog:
What will you get? A free Experian credit report and score, a free home value estimate, free personalized mortgage recommedations, a free custom big-picture budget and access to a lot of other great tools that will help you improve your home know-how. And yes, it really is free. Not free as in we’ll take your credit card info and charge you later, not free as in we’ll give you a taste but you have to pay for the really good stuff. Really and truly free.
I was disappointed to see that the site requires you to register to get your “Quizzle Score” though.
Frankly, they’re stepping into a pretty crowded space – with HomeGain, eppraisal.com Cyberhomes and of course Zillow, all offering instant valuations. So I’m skeptical that such an obvious lead generation tool will gain much traction, given there are so many free alternatives.
That said Quicken is a strong brand, and they’ll likely drive some traffic through that relationship. It’s just too bad Quizzle chose to fizzle the sizzle of their new AVM tool by requiring registration.
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Raj C. | Feb 19, 2008 | Reply
The race to efficently combine the ease and convenience of Web 2.0 with the customer services reuired to sell home is defintily on. It will be interesting to see how things shake out.
Sean O'Toole | Feb 20, 2008 | Reply
The best thing about all these home value websites is that they clearly demonstrate the value of working with a real estate professional.
The reason I say that is because AVM’s are terrible estimates of current value – making it very easy for Realtor’s to demonstrate why buyers and sellers need to work with a professional.
Why are AVM’s terrible:
1. They are based on sales data from public records which lags the actual deal by 6 weeks to 3 months due to time for escrow, county delays, abstracting, compiling, and analyzing. And there is no indication of seller credits that affect real prices.
2. Data lags are made worse by the need for multiple comps – this can easily result in a price that is 6 months or more behind the market.
3. Insufficient property characteristics are available to determine price. In my neighborhood we have the identical home on a park, a lake, and on the CA Delta. Delta properties are worth double park properties and there is NO way for an AVM to figure that out. So park properties are significantly overvalued, and Delta properties undervalued. This isn’t an exclusive problem. “Bad” neighborhoods are often close to “good” neighborhoods – current AVM’s have no way to tell. Nice homes can sit right next to dumps. Nuff said.
I’ve analyzed most of the available AVM’s, even some that claim to use MLS data, and have found them all insufficient to accurately and consistently estimate price.
THAT SAID — I AM A HUGE FAN OF AVMS’s, for the following reasons:
1. They create conversation among consumers around house values that create interest in our profession and give Realtors a perfect opportunity to demonstrate their market knowledge and value.
2. They are very useful in doing initial research. For homebuyers to find neighborhoods that may be in their price range. And for investors, like myself, to quickly evaluate foreclosure and other opportunities to narrow the field and focus on the best opportunities.
3. Cruising around neighborhoods online looking at prices is just plain fun – even if the values aren’t perfect.
Sean
Ann-Marie Murphy | Feb 20, 2008 | Reply
Good points Sean. Despite their flaws, AVMs do get people talking about their home values, how other homes in their neighborhoods affect that value and how to increase the value of one’s home. That conversation is an education in and of itself.
Quizzle, however, isn’t really a home value tool. True, the site gives you a free AVM, but there’s a whole lot more to it than just that. Quizzle is more of a home and money tool, and knowing one’s home value is an important part of expanding that broader know-how.
Brian Requarth | Feb 21, 2008 | Reply
Fo shizzle. The formizzle is going to be a road blockizzle and I think the sizzle is going to miss quizzle. Crowded space. Probably not going to take off.
House Values | Feb 21, 2008 | Reply
Great *really long comment* Sean. And I totally agree AVM’s can be put to good use, as long as consumers dont take them as fact and become irate when they find out the truth. It is definitely a jumping off block to get consumers in touch with real estate professionals.
Everyone else hit it right on the head, Quizzle is not an AVM or specific real estate tool, its a home financial tool that provides an AVM. Brian is right it wont take off as an AVM or real estate tool. Especially since you have to go through a long signup process to get the same information you could get else ware quicker.
Quizzle will not be the shizzle in AVMizle land (sorry had to do it…Brian made me)
Bert Sperling | Feb 21, 2008 | Reply
@Sean –
Great discussion of the pluses and minuses regarding AVMs.
Well stated.
Darrin Clement | Feb 22, 2008 | Reply
This is fascinating to a map geek like me. But how are “neighborhoods” defined in AVMs? Purely proximity? Demographic similarity? Actual boundaries?
Jon Sigler | Feb 23, 2008 | Reply
AVM’s like what Zillow offers are great for consumers. They offer instant anonymous gratification. I think Quizzle might be off the mark here. Late for the party, and a little to “sales” focused. Just like HouseValues. It is a sales tool.
Michael Pierce : Overland Park Real Estate | Mar 9, 2008 | Reply
Agreed, I dont know how Quicken will be able to get into such a tight space(unless they find some magic way to make the estimates more accurate then the other sites). Why would the consumer sign up for this service when they can get it for free on other sites (without a sign up). Also, if it does become a good lead generation tool for them, what competative advantage would they have over every other lender in the universe that could offer the exact same tool?