Nov 15 | Posted by Barry

There's been a lot of hubbub over Zoocasa's recent launch of their instant home appraisal system called Zoopraisals through their website (www.zoocasa.com). For those unfamiliar, Zoocasa is an online search engine for Canadian homes. Some have heralded their Zoopraisal system as a tool to circumnavigate the traditional realtor authorities, while others label it a gimmick. Before I offer my two cents, plug in your house and see what figure Zoocasa generates.

Backed by Rogers Communications Inc., the site determines its estimates from data pooled from Central Settlement Services, a property valuation service that has done millions of appraisals across Canada, as well as statistics from most recent census in 2006 and recent housing assessments updated into the system. At first glance, their sourcing methods might rouse some confidentiality issues, but Zoocasa contends that their valuations are based off of similar properties in a neighborhood and not any specific report for an individual property. So, the big question becomes: is a Zoopraisal accurate?

The system is designed for simplicity. It only lets you input your address, the type of dwelling, number of bedrooms, number of washrooms, dwelling square footage, lot square footage and year built. This inherent ambiguity means it doesn’t fully account for the micro-distinctions within a neighborhood such as proximity to noisy streets, parks, schools or shopping areas. As well, it won’t factor in unique features or quality home upgrades such as new floors, room additions, LEED compliance improvements or granite countertops in the kitchen. After all, these nuances are the real differentiators when pinpointing true value.

Zoopraisals appears to be better suited for new homes in homogenous suburban developments instead of established areas within the city. Just to be sure, I used the results from a dozen recent sales from different neighborhoods around Central Toronto to try it out. From the results, Zoocasa doesn’t appear to be sufficiently accurate for anyone planning to sell their home. Additionally, the more expensive the residence and neighborhood, the less data Zoocasa has to work with, thus the more inaccurate the estimate becomes.

Take it with a grain of salt. At best, Zoocasa offers a ballpark figure, helping you decide whether buying or selling is feasible in a given timeframe as well as nullifying any trepidation over certain neighborhood averages. Don’t be discouraged if an estimate comes in a tad low and don't be overly excited if the estimate comes in way above what you were expecting. (One of my clients got a Zoocasa estimate that was almost double the price he just paid for his home!)

Even though Zoocasa refutes the gossip of it being a ‘usurp the industry’ device, I foresee this website evolving into a rigorously precise system as time goes by. Regardless, there’s just no substitute for a real evaluation performed by a property valuation expert. Our years of experience can’t be outdone by a finicky online appraisal. Moreover, realtors are up-to-date on regional trends to inform you of where the market is headed, not just where it is at the present.

In the end, Zoocasa another tool in your arsenal to weigh your options before you contact a real estate agent. So, try out your own Zoopraisal for fun, and when you want to get serious, you know who to call!