Neil Sharma
REP
Over the last few years, walk, transit, and even bike, scores have influenced real estate values, but another online platform is proving even more impactful.
MarketScore is a tool that determines property values by using complex algorithms. Whether users are looking to buy, sell or rent, by entering an address, square footage, postal code and price, a property’s value will instantly be provided.
In addition to proffering consumers with arguably the most accurate valuation on the market, MarketScore has proven useful among real estate sales agents. Kevin Gaston owned 10 Propertyguys.com franchises and used MarketScore religiously.
And in a market like Toronto’s, where sales have slowed and uncertainty has crept, Gaston says it’s become even more expedient.
“Right now in Toronto, it’s very difficult for people to put a price on their home,” he said. “There’s been a 40% decrease in home sales [year-over-year in March, according to TREB], and that’s a big part of the reason people’s homes aren’t worth what they were three years ago. Being able to look at your home in a different light, as opposed to just pricing in a good or bad neighbourhood, that’s what MarketScore does.
“It’s going to be really, really important in the future of real estate in Toronto, especially with mortgage rates going up again.”
As with most things technological, MarketScore’s users skew younger. According to the company’s chairman, one reason MarketScore has grown in popularity among millennial-aged users—especially those living in Toronto—is because buyer fatigue has set it.
“These buyers are tired of being out-bid and have given up—they look at the price of a home, servicing it and say ‘To hell with it,’” said Roman Fedchyshyn. “In any market, what’s useful to me is when I’m looking at a number of properties and I’m doing a comparison and where they’re priced, I can use this score to get an objective review. At MarketScore, we don’t care if you’re buying or not; we don’t make money on the sale, so we’re not biased in any way, shape or form. We’ll give you a lot of information on a whole lot of data we’ve accumulated and say this property is fairly priced, or a little low, or a little high.”
As markets like Toronto’s experience major swings, determining market value for properties can sometimes be a guessing game. Gaston says that doesn’t have to be the case.
“I used it for my buyers,” he said. “When I was with PropertyGuys, I used it thousands of times.”
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