Booli, the challenger on the Swedish residential listing market, is once again pushing the the limits of end user experience when introducing 'market price' functionality. ('Zestimates' is a verb from Zillow in the US.)
The new functionality
The user is able to see (after two 'warnings' on how it works) the 'market value approximation' directly in the listings.
How it works
The service actually provides two different values.
Värderobot (translation 'ValueRobot')
The value is calculated through a AVM (Automated Value Model) from the Swedish company Ljungqvist Information AB. The input to the model is a large number of comparable sales that is combined with data from each unique listing regarding parameters like location, size, monthly payment and so on.
Mäklarindikatorn (translation 'AgentIndikator')
More of 'Mechanical Turk' approach letting agents not involved in the listing have a say about the value. The coverage for this service is much more limited.
When displaying a listing there is new page showing both values (if they exists).
I think this is a great move from Booli. It will create buzz and increase traffic. There has for a long time been a topic on the Swedish market (especially in Stockholm) regarding the low 'listing price' on objects. This will give more input to the analyze done by the buyer.
However, AVMs also have a negative side to it, it's just an approximation and not an appraisal (external valuation) for the specific object. Read more on the topic of AVM downside here, here and here. Booli really tries to make the users aware of this. There is not one, but two, warnings you have to 'click through' in order to active this service.