Estimates So Broad You Could Drive a Truck Through Them
[Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.]
RealAVM: $859,828
RealAVM Range: $662,068 to $1,057,588
Confidence Score: 66
Forecast Standard Deviation: 23
–Excerpt, MLS
If you only read the first line (above) of CoreLogic’s estimated market value, you’d think the Edina home was worth mid-$800’s.
But, that’s NOT what CoreLogic is really saying.
Rather, they’re merely saying that that’s the mid-range of the home’s possible value.
And, it’s not even very confident of that: its confidence score is only 66 on a scale of 60-100.
As for the “forecast standard deviation” of 23, if I understand it correctly — and I doubt there are 10 Minnesota Realtors who do — CoreLogic is saying that there’s a meaningful chance that the home is outside of its (rather broad) $400k estimated range.
But, rest assured, at least a few homeowners are likely to cite CoreLogic (or equally unreliable Zillow or Trulia) when deciding what to ask for their home.
Go figure — and I mean literally . . .
See also, “Why Realtors Hate Zillow.“
