FPP stands for Frankly Price Predictor and it is the coolest new feature on FranklyMLS.com. So cool, it is patent pending.
The goal of FPP is to predict a home’s closing price, IF IT SOLD TODAY. Disclaimer: Please do NOT take it seriously. Consider it more like a TOY (at least for now).
FPP uses historic listing data (see below) to predict the price. It is NOT an AVM (which uses tax data and home data). Try a search for Arlington Condos.
An “AVM” is an Automated Valuation Model. The focus is on “value,” and it is for every home, listed or not.
Tools like Zillow’s Zestimate and Cyberhomes, use public data and recent sales. Many consider them wildly inaccurate. But heck, it makes for GREAT marketing! (Hats off to the Zillow team!). How “accurate” are they? In a Zillow report, the DC area is one of their most “accurate” areas, yet not even 50% of homes close within 5% of the Zestimate. So over 50% of $500k homes are off by over $25k!
Are Zestimates better than tax data, sure! Will we still show Zestimates on FranklyMLS? Sure. The more data the better, right? Is it better than a Realtor combing through comps, heck no (and they disclose that it is not a Realtor replacement).
How is FPP different than all those other “AVMs” or Automated Valuation Models are “value” estimators?
FPP quantifies what agents and homebuyers do today, use their GUT FEELING. It looks at the listing and based on multiple variables, it gives a prediction for what the home might sell for IF IT SOLD TODAY. (not if it sat for another 90 days).
What listing data might go into a FPP?
- Days on the Market (obviously a biggy)
- Number of price drops
- Listing completeness (ie fewer photo homes sell for less See Photoless? Save $15k post)
- Listing agent’s past performance (see FranklyCRA.com)
- Brokerage performance
- Short sale, vs regular sale, foreclosures, new home
- User data, ie. how you save and watch homes.
- And much more listing data including location (some places drop faster than others), price range (certain price points drop more than others) etc.
How will FPP be displayed in Spreadsheet mode? Can I turn it off?
Searches will now default to be sorted by the FPP price! Why? Because who wants to see a home listed at $538,000 with no price drops after 132 days, next to a new listing at $540,000? We all know the 132 home will sell for much less (if it sells), so why not put it lower on the list with the $480k group? Also for those searching up to $500k, they might never have seen the home. Until now.
Also for simplicity sake, I rounded the FPP number to the nearest $1,000. I have always hated talking in terms of $538,283. So now that I built my own pricing model, I can do it my way. Clear and easy so digesting 100 homes on a page is a breeze.
Yes. You can turn off the FPP sort by picking a sort option by List Price. Then it will remember your settings for future searches.
How will FPP be displayed in the full listing mode?
By the penny!
Yep, a real time dropping price$$$. Heck, the longer a home sits, the lower the price,
so why not reflect it in real time? Remember, this is a toy, and NOT to be taken so seriously as to effect how you offer on a home. That would be silly.
So what do you think? Useful? Wasteful?
Are you down with FPP?
p.s. Up next… soon you can enter in your work address and get real time distances to your work from each home for sale.