Why does the Redfin estimated price of a home jump up after it gets listed on there market?
I noticed the same... I think it might because the estimate might have views/favorites as a variable?
Free market shills
Redfin doesn’t have a “market”. They just list MLS listings on their website. The price probably “jumps” in SF/Seattle/etc when someone manually looks at the new listing, does an actual comp, then realizes that the house is going to sell for way more than their automated estimate was.
I spoke to a redfin agent their estimates aren't that great. So I was asking about one property that had an estimate but I studied quite a few and their estimate just keeps going down the longer it's up for sale.
From what I've heard, the listing price is a factor in the price estimate (fat finger price listings have commensurately increased the estimate)
Redfin has a conflict of interest in placing a price estimate due to the fact that they also employ sellers agents for their own listings. If the Redfin estimate influences you to offer more, then they make more money. Not sure how things run internally or if that conflict is handled by an internal policy.
List price is a new factor that gets included in the calculation that wasn’t there before. It doesn’t always jump. Agents can mark their listing to not show estimates and we respect that setting.
Thanks! Yeah, when we listed our home recently, the Redfin estimate jumped up significantly immediately after the listing. It increased a bit more within the next day or so of the listing.
I’ve seen estimate on the house went 10% up couple days after listing.
Probably because they want to entice you to sell home with a Redfin agent