Homeowners who enter their property address into an online valuation tool often receive conflicting estimates.\u00a0<\/p>\n
Read more Ariana Madix Shares Tribute to Late ‘Love Island USA’ Producer James Barker<\/a><\/p>\n The same property can produce sharply different estimates across Zillow, Redfin, and Realtor.com, depending on each platform\u2019s methodology and data inputs.<\/p>\n A century after becoming a trusted name in car pricing, the brand is entering residential real estate<\/a> and taking direct aim at the tools homeowners already rely on.<\/p>\n Kelley Blue Book has launched Kelley Blue Book Homes, a residential valuation platform live in 10 states that promises neighborhood-level price estimates within 24 hours, HousingWire reported<\/a>.\u00a0<\/p>\n KBB Homes claims accuracy within 3% of a final sale price, a target that would beat the off-market estimates most homeowners see from existing automated tools.<\/p>\n The platform is a joint venture between appraisal technology firm True Footage and Cox Enterprises, which owns the Kelley Blue Book brand.\u00a0<\/p>\n Cox Enterprises\u2019 Socium Ventures led True Footage\u2019s $40 million Series C funding round in April 2026 to bankroll the expansion.<\/p>\n Homeowners enter property details and upload condition photos, then receive a report with a low-to-high value range within about 24 hours.\u00a0<\/p>\n True Footage\u2019s proprietary TrueTracts software powers the valuation by incorporating neighborhood-level pricing trends and property-specific renovation data, Mortgage Professional America noted<\/a>.<\/p>\n The output is classified as a broker price opinion, not a licensed appraisal under the Uniform Standards of Professional Appraisal Practice, which limits how the estimate can be used in a formal transaction.<\/p>\n Zillow\u2019s lead-generation model charges agents a success fee of up to 40% of their commission on closed deals, Inman reported<\/a>.\u00a0<\/p>\n KBB Homes instead charges agents a monthly subscription fee that scales with coverage, allowing them to purchase marketing rights for 25%, 50%, or 100% of a ZIP code\u2019s incoming seller leads.<\/p>\n \u201cAgents are just sick and tired of that model. It\u2019s extractive. 40% is a lot,\u201d John Liss, CEO of True Footage, an appraisal company that is driving the KBB Homes expansion, told Inman. \u201cFor high-performing agents, it\u2019s giving up too much for the work that the agents are doing.\u201d<\/p>\n The company also screens agents on closed sales volume, average days on market, and sale-to-list ratios before granting access, HousingWire reported.\u00a0<\/p>\n KBB Homes has said the vetting is designed to ensure that the agent named on a consumer\u2019s valuation report is chosen on performance data rather than at random.<\/p>\n In early test markets, more than 17% of homeowners who received a valuation report were listed on the multiple listing service (MLS) within 90 days, according to KBB Homes\u2019 launch announcement<\/a>.\u00a0<\/p>\n Read more ‘Love Island USA’ Finale Changes Prize Money Rule With Surprise Twist<\/a><\/p>\n Stephen Brobeck, Senior Fellow at the Consumer Policy Center and former Executive Director of the Consumer Federation of America, said in a February 2026 CPC report<\/a> that commission-based referral fees charged by platforms like Zillow discourage agents from negotiating lower rates for consumers.<\/p>\n \u201cAn agent required to pay 40% of their commission to a referral company, and another portion to their broker, has a strong incentive not to negotiate down a 3% commission,\u201d said Brobeck.<\/p>\n The platform launched in Arizona, California, Colorado, Florida, North Carolina, Nevada, Oregon, Texas, Utah, and Washington, with lead distribution set to begin Aug. 1.\u00a0<\/p>\n Liss told HousingWire<\/a> the company plans to add 10 more states in the fall and go nationwide during the first quarter of 2027.<\/p>\n Zillow\u2019s<\/a> Zestimate, the most recognized online estimator, carries a median error rate of 7.22% for off-market properties, according to Zillow\u2019s accuracy data<\/a>.\u00a0<\/p>\n Sacramento-based appraiser Ryan Lundquist, who runs the Sacramento Appraisal Blog, has argued<\/a> that the Zestimate tends to chase the list price once a home is listed.\u00a0<\/p>\n Zillow\u2019s methodology page confirms that its on-market accuracy figure is measured against the last Zestimate shown before the home goes pending, not the original figure a homeowner saw months earlier.\u00a0<\/p>\n Because the Zestimate shifts toward the listing price once a home hits the market, published accuracy figures reflect a number that has already absorbed real-time data.<\/p>\n Sean Keene, an Oregon agent with nearly two decades of experience, has cautioned that automated tools miss details that swing a home\u2019s value, comparing the problem to the wide range of apple varieties and prices at a grocery store, HomeLight reported<\/a>.<\/p>\n Zillow launched its Zestimate in 2006 and later tried buying homes directly through Zillow Offers, which the board voted to wind down on November 2, 2021, after the home-flipping business lost roughly $881 million that year, according to Zillow\u2019s Q4 2021 earnings release and 2021 10-K<\/a>.\u00a0<\/p>\n Opendoor<\/a> purchased 36,908 homes in 2021 at the peak of its iBuying model, but that figure fell to 8,241 in 2025, Opendoor\u2019s annual financial disclosures<\/a> filed with the SEC<\/a> showed.\u00a0<\/p>\n KBB Homes has not yet reported accuracy or conversion data outside its early test markets, and independent verification will only be possible once the platform expands nationwide.<\/p>\n Online valuation tools operate with different methodologies, data sources, and margins of error, and appraisers such as Lundquist and Keene have cautioned that no single automated estimate captures the property-specific details that determine a home\u2019s actual sale price.<\/p>\n The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.<\/i><\/p>\n