Yes, you read that right. Honestdoor.com is a website and a startup in Edmonton, AB that uses artificial intelligence to share that data with the public. It is currently a free site that you can go onto and see what homes have sold for, what they believe it's valued for in today's market as well as the assessed property value history, past permits pulled and much more. They are currently showing properties located in Edmonton, Calgary, Cochrane Winnipeg and many more. Many real estate agents are typically fearful of these types of sites, but we here at Chamberlain Group think this is great. Here is our review on their site as of January 2020, and what they are providing. We will walk through the good and the bad and how you as a home buyer or seller in Calgary could use a tool like this in your real estate journey.
Searching for Sold Home Prices on Honestdoor.com
One of the things that makes this site very interesting is the ability to see past sale prices. We have done searches as REALTORS® in Calgary for properties on here when they weren't previously sold on the MLS® system. And we have to report that we got some great news and mixed news. For example, we pulled info on one of our own personal homes and the last sale price listed on Honestdoor.com was actually the value of a refinance, and not an actual sale price. I would say that the majority of the time you are going to get a great result here, but also be aware that with all the data they are pulling, it may not actually be the sale price.
In saying this, we did have fantastic results when we were in a negotiation situation and one of our agents, used this site to see what the home sold for previously as the data was not inside the MLS® system. This did give their buyer leverage in the negotiation and we were able to get them a great price because we were able to call their bluff during the negotiations.
Honestdoor Price - Is it accurate?
So this is a touchy subject. A home market value is very subjective to what a buyer is willing to pay for it. Now, will artificial intelligence one day be able to nail home values within a $10,000 range? I'm sure it will happen. We haven't done enough testing on this to see how accurate their Honestdoor Price is, however when looking at my own personal home, and knowing the market well, it is showing a value of $50,000 - $65,000 higher than what it would actually sell for in today's market.
This could be looked at similarly to what Zillow has done with their Zestiamte. I have talked to agents where Zillow is dominant in their area who have seen large differences between what Zillow's website gave as a value and what the home would actually sell for on the market. I am not saying this is the case with Honestdoor, but I do think it's worth saying, their value is a start. Start from the value they have for your home on their site, talk to real estate agents you trust and see how the market reacts to your listing.
How is Honestdoor.com Helpful?
After digging into the site and using it, we have concluded that the best features of this site is the sales values, last sales (transactions) and permit information. Again, we have seen some permits that have been pulled on homes, not on the site, but honestdoor is a great place to start and all the agents in our office use it as one of the tools in our tool belt to help our clients find the best homes for the best prices.
Check them out, tell them we said hello and let us know what you think of their site! Comment below with what you think of their site and what they are offering!