HonestDoor, a Canada-based online property valuation source, today announced the nationwide expansion of its free digital appraisal service, according to a press release.
This means the company’s Automated Valuation Model (AVM) is now available for free to consumers in every Canadian province and territory, and includes almost every property. This includes those residences not listed for sale, and makes HonestDoor the largest publicly available online real estate database in Canada.
Launched in 2019 in Alberta, HonestDoor says this expansion provides consumers with an “unbiased opinion, at no cost, on the value of their own property or any other property from coast to coast.” This expansion follows the company’s recent $2.2 million seed round led by Luge Capital, when it stated plans to begin testing its model in U.S. markets.
HonestDoor also noted that users can sign up to receive monthly updates on a property’s “HonestDoor Price”, and can update their own property details to ensure the valuation takes renovations and other elements into account.
“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,” stated Daniel Belostotsky, co-founder and CEO of HonestDoor, in the release.
“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,” Belostotsky said.
This white paper will explore lenders’ key challenges presented by the legacy appraisal process, the hidden gaps affecting turn times, and how appraisal technology solves these gaps to improve efficiency and profitability.
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Similar to credit scores, HonestDoor uses several variables to determine their valuations, with the company saying property values are estimated by leveraging real estate data, machine learning, data science and its team of data analysts to provide property values.
The company also said it receives thousands of submission each month from consumers with updated facts on properties, such as renovations that do not require permits, and uses these details to provide more accurate and up-to-date home appraisals.
“By enabling users to submit information that may increase the value of their property, HonestDoor now has the most detailed and unique dataset in the Canadian real estate market,” Belostotsky said.
HonestDoor noted that its median error rate for western Canada, where it originally launched, has continuously improved and is currently 5% in Alberta, British Columbia and Manitoba. The company attributes this to permit data access in select markets across the country, and stated plans to gain this information in all markets to further improve its product.
HonestDoor does have competition up north, with Toronto-based proptech Properly also recently raising $44 million in July 2021 for its online home valuation software.
In other recent proptech news, Zego unveiled a new partnership with Flex to offer flexible rental payments. AppFolio also launched a new integration marketplace to offer centralized third-party property management services.