New Algorithm Estimates a Home’s Time on the Market

“How much longer would it take my home to sell if I increased the asking price by $20,000?” While real estate algorithm accuracy is a bit dicey, a new Homesnap product allows sellers to play with their asking price to see how a change would impact the time it takes to sell.

BETHESDA, Md. – A new calculator allows home sellers to estimate the time their home will spend on the market.

Homesnap, a real estate technology company, announced the debut of Sell Speed, a “proprietary artificial intelligence algorithm composed of hundreds of up-to-the-minute real estate market data points that predicts how quickly a home will sell at various prices.”

On a pragmatic level, agents could sit in front of sellers and estimate how long it would take to sell their home if they, for example, wanted to raise the asking price by $20,000 over the agent’s recommendation – or how fast it would sell if they dropped the asking price by a similar amount.

Homesnap says it “gives agents confidence in recommending price levels in a rapidly-changing real estate environment.”

Algorithms, however, are only as good as the math and data they use. While online home-value estimates continue to move closer to actual value, the range of estimates from companies such as Zillow and realtor.com show the diversity of results. Still, Sell Speed may fill an industry need.

Homesnap clients (Pro+ agents) will be able to add Sell Speed to any listing, “even if they’re not the listing agent.” Homesnap also suggest they use Sell Speed “as supporting evidence to prepare offers and facilitate negotiations.”

Homesnap says its agents can adjust a home’s price up to 30% in either direction of the list price or estimated home value.

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