Generate Ideas to Create a System of Valuation

2 Replies

Good Morning Everyone,

and gurus! @Michael Quarles @Sharon Vornholt @Ben Frink @Johna Medeiros   

Recently I have been exploring ideas on how I could use VAs, real estate agents, other employees or a combination to create a system that can take an address and generate a confident market value. The output of this system would be more than just a CMA as that relies only internet/archived data. Ideally someone would schedule a showing, take pictures and use the real time information to create an accurate valuation that an offer could confidently be based on.

This area represents a bottleneck as my marketing volume goes up.  As it is now a call center handles my incoming calls.  I follow up on the most promising.  From them it is time consuming to evaluate all the properties that come in.

Is there anyone else who has similar issues or a system implace to outsource this portion of valuation?

Thanks

Rick 

The "system" is called an appraisal. Have you thought about taking and/or becoming a licensed appraiser? Or taking the classes to understand valuation techniques? While there are parts you can automate, it's the parts you can't easily automate that create the biggest problems. Just look at the perceived industry leader, zillow, with their zestimate. How many programmers do you think they have on that part of the business? Not saying that yours will be better or worse... it's just a complex problem in the general case. 

Hi Chris,

Thanks for the response.  I am familiar with appraisals.  They are expensive however.  When i mentioned a "system" I meant more of a flow.  From caputring leads that call, to quickly looking them up online, to visiting the property to confirm value.  I think of a lead as a spectrum.  In the beggining nothing is known and at the other end would be the full blow appraisal.  Obviously it would not make sense to perform an apraisal on every call that comes in.

So a tiered process must be in place to evaluate each lead at each step.  In the beginning if the seller says they have a house worth $200K and want $300K for it it is easy to deem that deal a no go.  It is not so easy precisely determining value on which a bank will lend against.

As I expand I would like to create a system.  Having an appraiser on call may be a good idea but he would only get involved near the end of the chain.  As far as me becoming an appraiser that is not what I am trying to do.  My passion is real estate investing.

Thanks again

Rick 

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