You check one website for your home’s value, your neighbor uses another, and a potential buyer pulls up their phone during a showing to see what the “computer” says. After 39 years in real estate, I can tell you this: automated valuations are just sophisticated guesswork—and relying on them can cost sellers thousands.
The Algorithm Problem: Automated Valuation Models analyze data points: square footage, recent sales, tax records, etc. But what is more important is what they cannot analyze: the custom kitchen renovation that transformed your home, the problematic drainage in that “comparable” sale, or the fact that the house down the street sold quickly because of a job relocation, not market value.
Technology can do a lot, but it is important to understand that it misses:
- Unique property features that add or subtract value
- Neighborhood nuances invisible to databases
- Market timing and seller motivation
- Property condition variations
- Jurisdictional changes affecting value
- Micro-market trends within broader areas
Technology handles data processing efficiently. Humans interpret what that data means for your specific situation. An experienced agent knows that the “comparable” sale had certain issues, understands how a new development affects traffic patterns, and recognizes when timing creates opportunity or urgency.
Smart real estate professionals use technology as a starting point, not the final answer. Digital tools help us research, market, and communicate more effectively. They cannot replace the judgment that comes from walking through properties, understanding client needs, and reading market conditions that change faster than algorithms can adapt.
Algorithms can also distort appraisals—and that is where a competent, experienced agent can set the record straight. Several years ago, we listed a substantial property purchased by a tech professional who handled everything online, from discovering the listing to applying for a mortgage to the appraisal. The appraisal came in far below the contract price. Why? The appraiser spent barely five minutes at the property and based his assessment almost entirely on lot size and square footage, missing the unique features that truly defined its value.
What the ‘appraiser’ missed was the level of finishes and upgrades, including the brand new kitchen with state-of-the-art appliances and finishes, the renovated bathrooms, the newly installed hickory hardwood floors, the luxurious landscaping and hardscape throughout the back yard, and the new roof. The value of the missed elements exceeded 4 times the appraisal shortfall.
That is when the listing agent shut down technology and insisted on a local lender with local appraisers. The cost to the buyer was less than their internet options. The appraiser who visited spent extensive time learning the features and benefits of the particular property and submitted an appraisal slightly over contract price. They spent over an hour at the property. So—five rushed minutes with a checklist versus a full hour recognizing the details that truly defined the property’s worth. Which do you think produced the more accurate value?
At Properties on the Potomac, Inc. we use technology and automation to complete tasks. We use intellect and experience to value our clients’ properties. In a market where precision matters, you need someone who combines technological efficiency with human insight—especially in our Potomac area where unique properties and varying market conditions require local expertise that no algorithm possesses.
When choosing a listing agent, experience and strong support should be at the top of your list—your home deserves nothing less. To connect with one of our experienced agents, call or text 703-624-8333 today!
Properties on the Potomac, Inc. 