Realtor Survey Results: The “Wisdom of Crowds” in Home Valuation

Western Realty Class | Presented by Tom Boice, Value Able Appraisals

Understanding What Realtors Believe Adds Value

During a recent Western Realty training session in Las Vegas, I asked a simple question:

How closely do Realtors’ perceptions of contributory value align with the data appraisers study every day?

To find out, I surveyed agents on several common features and location factors that influence value. The responses revealed that—more often than not—Realtors’ collective judgment matches the results of formal appraisal analysis remarkably well.

Key Survey Highlights

🚗 Backing to a Freeway

Agents estimated a 10 % reduction in value.
Appraisal studies show that’s quite accurate; typical paired-sales analyses fall in the same range.

🛏 Two-Bedroom vs. Three-Bedroom Homes

Realtors predicted about a 6 % discount for a two-bedroom.
Appraiser data generally supports that number, varying from roughly 1 % – 9 % depending on the neighborhood.

🏠 One-Story vs. Two-Story Homes

Survey respondents favored one-story homes by ≈ 10 %, again closely mirroring statistical results from recent market studies.

🏢 First-Floor vs. Second-Floor Condos

Most agents believed upper units sell for more, but appraisal research often shows ground-floor condos bring a small premium because of easier access and no stairs.

🌳 Corner Lots

Realtors expected a ≈ 5 % increase for corner locations.
Appraisers typically find only minor differences, but the direction of adjustment is correct.

🛠 Investor Renovations

Agents suggested a 15 % premium for updated homes.
Actual resale data sometimes shows 20–40 % gains, especially after full cosmetic and functional remodels.

💰 Seller Concessions

Consensus: no direct impact on value—and they’re right.
Concessions affect contract terms, not the property’s physical characteristics.

🏡 Modern vs. Traditional Design

Realtors gave modern homes a ≈ 5 % edge, consistent with prior studies when style differences can be isolated.

🏞 Homes Facing a Neighborhood Park

Agents estimated a 5 % positive adjustment; appraisal data supports a similar modest premium for park proximity.

The “Wisdom of Crowds” in Action

When analyzing the group responses, one pattern stood out: collective Realtor opinion often aligns surprisingly well with quantitative appraisal research.

This echoes the concept of the wisdom of crowds—the idea that the average judgment of many informed participants can be as accurate, or more accurate, than a single expert’s estimate. The principle was popularized by James Surowiecki’s 2004 book The Wisdom of Crowds, building on observations dating back to 1907, when Francis Galton discovered that a crowd’s average guess of an ox’s weight was nearly perfect.

Why It Matters

For appraisers and agents alike, understanding how market participants perceive value helps ensure:

• More accurate pricing and listing strategies
• Better communication between agents, appraisers, and clients
• Stronger confidence in market-supported adjustments

Closing Thoughts

At Value Able Appraisals, we believe good valuation work combines data + insight + collaboration.
The market’s collective experience—our “crowd wisdom”—is a valuable check against pure theory.