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Blog: Speaking of Real Estate
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In response to your article on the new features at REALTOR.com (“Keeping REALTORS® First,” July 2008, page 12), in Dallas-Fort Worth, we tell buyers not to use data from Web sites to determine market value of a property. There are so many variables in determining a home’s value that even a real estate professional or a licensed appraiser can make only an educated estimate. 

I’ve had buyers and sellers tell me that a certain house has to be worth a certain amount because they saw it on Zillow or looked at the county tax rolls. Providing comparables for homes on REALTOR.com is compounding this problem.

In addition, when REALTOR.com shows who has listed and sold a house, it does a disservice to all real estate professionals and to the homebuying public. A salesperson may list a house in a subdivision and then not list another in that same subdivision for quite some time. 

When REALTOR.com puts buying and selling information on its site, it implies that those salespeople are better at working with buyers and sellers in that area and discourages customers from seeking out another salesperson. I get many leads from REALTOR.com, but I strongly advise that REALTOR.com reconsider whether to add these features.

 - Jodi Foster, Keller Williams Realty North Collin County, McKinney, Texas

Foster’s letter sums up many of the letters and calls we received from readers about the REALTOR.com article. We invited Errol Samuelson, president of REALTOR.com, to respond:

Jodi Foster’s letter about home valuation highlights several important dynamics at play in REALTOR.com’s new additions.

Consumers’ interest in seeking home valuation information online is accelerating. At the same time, they may not understand the difference between a computer-generated value estimate and the personalized analysis provided by a REALTOR®. They may also be unaware that REALTORS® are involved in over 85 percent of real estate transactions. REALTOR.com’s new “Find Home Values” addresses these points and encourages dialogue with REALTORS®.

When REALTORS® work directly with buyers, advising them of the pitfalls of computer valuation may be a valid strategy. In an online environment, this isn’t possible and simply causes consumers to go elsewhere—away from REALTOR.com and away from the REALTOR® brand.

The computer valuations provided in “Find Home Values” are identified as such, clearly stating that they are based on limited public records information and that a local REALTOR® is the best source for help in determining a home’s value. We also provide many related data points to underscore that an estimated value is just one of the factors consumers should evaluate with the help of a REALTOR®.

“Find Home Values” identifies the buyer and seller representatives in recent transactions because consumers want to know who’s active in a market. We believe it’s appropriate to credit a REALTOR®’s accomplishment with cooperation from the MLS. It’s also being transparent, providing online the experience of driving through a neighborhood looking at the “For Sale” and “Sold” yard signs. Like that experience, the online sold data reinforces the message that working with a REALTOR® is the best choice.

“Find Home Values” is in its alpha version, meaning it’s still under development. We appreciate the important feedback and valuable suggestions for improvements we’re receiving from REALTORS® around the country. Thank you for joining the discussion. We at REALTOR.com look forward to these features being another way we can support REALTORS® in the online environment.

For more on the new site, visit http://www.TourTheNewREALTOR.com.

Send letters to narpubs@REALTORS.org

Letters are edited for space and clarity. Publication of a letter doesn’t constitute an endorsement of the writer’s views by the NATIONAL ASSOCIATION OF REALTORS® or REALTOR® magazine.