Every AVM on the planet uses strictly physical features to derive a home’s value. The problem is that buyers fall in love with and most value the home which triggers them to envision future life events. The QValue™ AVM derives a value using the qualities of homes which trigger these emotionally charged expectations. To offer the marketplace an automated valuation you must emulate how the marketplace values homes.
QValue™ is like having every buyer in your neighborhood walk into your home, tell you exactly what they want—and how much they’ll pay to get it.
Essentially QValue™ analyzes what qualities of homes buyers in each neighborhood most desire.
In a $300,000 neighborhood this might be cherry cabinets, slab granite, remodeled bathrooms, open floor plan, contemporary, or any other quality triggering the buyers for this area to envision future life events.
In a $2,000,000 neighborhood the qualities sought may include a guest house, lake view, gated community, penthouse, Sub-Zero refrigerator, Viking range, or Bulthaup cabinets.
We never set a value for any of the qualities of homes in any neighborhood. Each and every valuation custom analyzes and discovers what the buyers most desired in each neighborhood and their impact on value. To demonstrate why this is important let’s compare our $300,000 home to our $2,000,000 home.
The cherry cabinets in our $300,000 home will probably have a large impact on demand and thus the home’s value. It’s a high-end quality in this neighborhood. Those exact same cabinets will have a low impact on demand and little impact on the value of our $2,000,000 home. In one home they are an emotional treat for the buyers; in another they are considered a minimum expectation. The QValue™ AVM picks up on what is important to buyers in each area and values the homes based on how many qualities each has relative to what the market most demanded—and what they paid the most to attain.
This is pretty good stuff, but more important than how the value is derived is how this information is presented to the marketplace. QValue™ redefines what an AVM is to the marketplace. It’s a learning tool. It achieves this by allowing the user to see the exact qualities the home being valued has in common with other homes at that price point. And the user can click on other price points (QValues) to instantly see what the buyers got at those prices. The user can see precisely what the subject has in common to each price point and what is unique at each price point. It’s an amazing learning experience for the user.
Now the home seller can understand what creates value in their home based on what buyers most demanded and what they paid the most to attain. This allows the seller to prepare their home for sale, price their home, and know exactly which qualities to advertise.
The easiest way to understand this is to see it in action—it’s ultra-intuitive.
Please watch the AVM in action at QValue™: Value Genius.
Disclosure: Creed Smith (the Demon of Marketing) created the QValue AVM