Using the wisdom of the crowd to improve the condition assessment of residential real estate

Koch, D., Seiler, M. J. and Thaler, S. ORCID: https://orcid.org/0000-0001-7743-3451 (2025) Using the wisdom of the crowd to improve the condition assessment of residential real estate. Journal of Real Estate Research, 47 (3). pp. 411-434. ISSN 0896-5803 doi: 10.1080/08965803.2024.2352223

Abstract/Summary

The ”Wisdom of the Crowd” refers to the phenomenon where the average estimate of a group is superior to the estimate of any individual within the group, even if that individual is an expert and the others are not. When applied to real estate for the first time, it is demonstrated that a group of non-real estate professionals could arrive at a more accurate physical property categorization than a real estate expert. Importantly, this more accurate assessment of the physical condition can be achieved by merely viewing photos of the property. This appraisal trend makes the finding even more relevant to practical implementation.