HonestDoor, the most complete online source for property valuations, today announced the nationwide expansion of its free digital appraisal service for residential properties. With its Automated Valuation Model (AVM) now available at no cost to consumers in every Canadian province and territory – for almost every property*, including those that are not listed for sale – HonestDoor is now Canada’s largest publicly available online real estate database.
Having access to property values through HonestDoor provides consumers with an unbiased opinion, at no cost, on the value of their own property or any other property from coast to coast. The HonestDoor Price enables them to do their due diligence on a neighborhood of interest and make informed decisions on a potential property sale or purchase. In addition, property values are one of several factors that are used to determine an individual’s net worth, and HonestDoor is making this information easily accessible.
“Other online real estate platforms only provide estimated values on homes listed for sale, which represents a fraction of the overall property market in Canada. In contrast, HonestDoor provides digital appraisals on practically every home across the country – both listed and off-market,” says Daniel Belostotsky, co-founder and CEO of HonestDoor. “We are pleased to be offering this service so that Canadians now have the value of any property at their fingertips. Plus, they can also subscribe to receive a monthly update on a property’s HonestDoor Price.”
Factors that influence fluctuating home values
Like a credit score, home values fluctuate based on several variable factors. This includes monthly sales data on properties in every neighborhood, shifting trends around real estate supply and demand, assessment data, permits, and more. HonestDoor leverages real estate data, machine learning, data science, and a growing team of data analysts to provide estimated property values that are updated monthly.
HonestDoor also receives thousands of submissions each month from consumers with updated facts on their properties. Homeowners submit details on enhancements made to their properties as they provide additional data that HonestDoor may not already have – such as renovations that increase a property’s value but don’t require permits, including a new roof or windows, hardwood flooring, painting, landscaping, etc. These submissions not only improve HonestDoor’s valuation models but also ensure that property owners have the most up-to-date and accurate appraisal of their homes. HonestDoor has received more than 25,000 user submissions to date from homeowners.
“By enabling users to submit the information that may increase the value of their property, HonestDoor now has the most detailed and unique dataset in the Canadian real estate market,” says Belostotsky.
Will a renovation increase a property’s value?
As a value-added service, consumers can now also submit details on property enhancements under consideration and HonestDoor will provide free advice on whether or not a planned renovation is likely to improve the value of their property. For example, consumers can make an informed decision about updating their kitchen or finishing the basement in their home based on the impact the renovation will have on the property’s appraised value.
As several Canadian banks and financial services companies are currently using or piloting HonestDoor for their own digital appraisals, consumer-submitted updates will play an increasingly important role as consumers renegotiate their mortgages or look to secure additional financing based on the equity they have in their homes.
“While this national expansion positions HonestDoor as the largest publicly available real estate database for almost every residential property, our vision is to be the most trusted source for free real estate information in Canada,” says Belostotsky. “We are working towards achieving this vision by providing regularly updated property values in one seamless experience, and using machine learning along with consumer input to improve our models and increase the accuracy of our HonestDoor Price.”
Extending HonestDoor’s low median error rate for property valuations nationwide
HonestDoor has been the go-to digital appraisal resource for those living in Alberta since the service launched there in July 2019. HonestDoor then expanded access to its AVMs to British Columbia and Manitoba in July 2020. Based on ongoing updates to its valuation model and the availability of new data sources as it has entered new markets, HonestDoor’s median error rate for western Canada has continuously improved and is currently 5% in these three provinces.
HonestDoor currently has access to permit data in select markets across the country. The company is working to get this information in all markets since it provides valuable insights on situations that impact a home’s value, such as flood or fire remediation, structural support beam changes, and more. Access to this type of data in each market will further influence the accuracy of valuations provided by HonestDoor.