›

Ardell vs. Zillow

The_TimThe_Tim
edited April 2007 in Seattle Real Estate
Probably the funniest thing I've read all week:
ARDELL wrote:
To me it's real simple, and I have personally told the people at Zillow how I feel about it. The Zestimate should pop up a RANGE of value. PERIOD! It is THAT simple.
...
It's one thing to not want the Realtor Organization to cast aspersions at new business models. It's quite another to not expect State Laws to protect their citizens, from broad monetary damage, on their constituents' most valuable asset.
Zillow is "causing broad monetary damage"?!? Hilarious!

If I had more time I'd open a website where you could type in an address, and it would randomly assign a value (to the penny) to the home in question.

You see, there's this interesting concept that we have in this country called "free speech." Perhaps you've heard of it? If I want to tell anyone who asks how much I think any given home is worth, so what?

Everyone's entitled to an opinion. Even stupid opinions like "Zillow should be banned."

Comments

  • bilirubenbiliruben
    Read the comments. Zillow dropped her home's value 100K. Now she's really pissed!
  • Puget SounderPuget Sounder
    Gems:

    "AND...MY HOUSE went DOWN OVER A HUNDRED GRAND SINCE I LAST LOOKED!!!

    Not good enough Biliruben. Sucks! See...home owners DO NOT like to see their home value go down a hundred thousand dollars, and then that erroneous value plastered all over the internet.

    Totally sucks. I like the info as to tax records etc that the site provides. But this Zestimate is for the birds and has to GO!!

    Hey Beitey! Can I sue them for dropping my home value! I'm ticked. "

    Diamond:

    "Let's say all the agents go away, NAR gets squashed by the DOJ, eveybody starts buying online from Redfin using Zillow Zestimates."
  • twistjustytwistjusty
    Zillow does give a price range!

    I admit I had to laugh :oops: when a former coworker's house in Magnolia, which he paid $1.1 million for (helps to have a rich wife!) was Zillowed at $770,000! And I laugh just as hard when Zillow overvalues my home. It's like a Magic 8-ball: who can take it seriously?
  • Ex-IzzyEx-Izzy
    I think Zillow is more intuitive than a Magic-8 ball. It looks deep into your heart and then calculates the exact figure that will both amaze and amuse. For instance, it tags the house we sold last fall with "Recently Sold," shows what it actually sold for and then Zestimates a cheerful 120K higher.
  • mike2mike2
    I'd be freaking out too if I was 2 months away from needing to sell or re-fi and my house was listing for less than I paid.
  • kpomkpom
    Remember, RE people don't think that the First Amendment gives you the right to say anything that might depress property values. (Writing puff pieces extolling RE is perfectly proper, of course.)

    There was also a great rant at that thread at RCG from a RE agent complaining about Zillow's house price estimates:

    "Property is not the same as a stock, book, or car. These are people's homes, businesses, and dreams for the future. The fact you chose to attack those basic principles of the American Way of Life for a few dirty dollars is reprehensible.
    Gordon [i.e. Zillow], you are free to pursue your dreams also. That freedom ends when it damages others. I see today you are not above doing damage."

    On the other hand, in a different thread, you can see why Ardell might be a little bit touchy:

    "I love my house. It is one of the joys of my life. The value could go down and I've considered that, since I haven't owned it long, and bought it in truly peak market times. "

    Wow - not only does she work in RE, but she bought a house at the peak of the market. Good luck with that...
  • lesserseattlelesserseattle
    It's not as simple as a First Amendment thing. The appraisal field is heavily regulated and has been since the S&L collapse in the 80s. It is regulated at the federal level via FIRREA and the OCC with enforcement and licensure the responsibility of the states. RCW 18.140.020 goes into this in much more detail.
  • kpomkpom
    Actually, I do think that it is as simple as a First Amendment thing.

    Obviously, if a bank is relying on an appraisal to lend money, and the appraisal is being used as the basis of a transaction, then all the regulations kick in. (Not that the appraisal industry has covered itself in glory in the recent price run-up.)

    However, merely expressing an opinion about the value of a house (or expressing an opinion about the value of every house in Seattle) I think is squarely protected by the First Amendment.

    Or are you saying that if I walk into the house down the street that some people are trying to flip for $480,000, and I say "This house isn't worth more than $250,000", that I am somehow subject to regulation as an appraiser?
  • The_TimThe_Tim
    kpom wrote:
    Actually, I do think that it is as simple as a First Amendment thing.

    Obviously, if a bank is relying on an appraisal to lend money, and the appraisal is being used as the basis of a transaction, then all the regulations kick in.
    Exactly. I think you hit the nail on the head there. Regulations make sense when you're talking about the lending aspect. What Zillow does is no different than your walking down the street analogy.

    I believe any court would agree.
  • AwaySoonerAwaySooner
    Another thing is professional appraisers are paid for the service they provide, they have the obligation to consumers proving accurate information. Zillow provide the "zestimate" as free service. You don't pay them to come up with the number.
  • kpomkpom
    An interesting article on this in the Arizona Republic yesterday at:

    http://www.azcentral.com/arizonarepubli ... w0422.html

    "Realtor Swann of www. BloodhoundRealty.com, said that the bill is so tightly written that two neighbors talking to each other about a neighbor's property technically would be in violation of the law.

    Pearson said exemptions in the law would permit neighbors to talk about property values.

    The controversy about appraisals erupted in the wake of the state's efforts to stifle Zillow. The Board of Appraisal, in June and November of 2006, sent cease-and-desist letters to Seattle-based Zillow, ordering it to stop offering its property-value estimates, which have made it one of the most popular real estate Web sites since its launch in February 2006.

    The board said that Zillow cannot offer opinions of value without having an appraiser license.

    Zillow continues to offer its estimates in Arizona, and nationwide.

    "We strongly believe that providing 'zestimates' in Arizona is completely legal, and in fact an important public service, given that (they) are the result of our automated valuation model, and are not a formal appraisal," Zillow President Lloyd Frink said."

    Commentary at:

    http://www.bloodhoundrealty.com/BloodhoundBlog/?p=1329
  • MatthewMatthew
    Zillow by KO, round 1.
Sign In or Register to comment.