I would call this the exception that proves the rule.

I went looking for comps to answer your earlier question about any examples of where Zillow was accurate. I looked at a decent cross section and found less than 20% . The spread in one condo complex that is less than 3 years old for model match comps was $170k. Sounds like a broken toy to me.

I called one new client today to let him know about the discrepancy between the Zestimate and the actual comps and his response was “What the hell is Zillow?”. Another seller that goes on the market next week has a zestimate $100k high. I strongly suggested that we take advantage of this one. So other than using obvious inflated crappola to my advantage, can someone please tell me why I need Zillow?

Agree. But I saw a FSBO listed at $430,000 or so, side by side his “Zestimate” of $290,000!!! Whoa baby!! So no, I don’t think it will be obvious to everyone, without the agent’s knowledgeable direction and input.

“Writing off Zillow as “a toy” is not fair play.” I think that is a fair opinion to have of Zillow.

First, your personal experiences are real and I am not discounting them. Your experiences are a very small set of observations of the population of data points. You don’t have enough personal experiences to make up a relevant statistical sample of the population for statistical analysis.

Second, Zillow publishes statistical information about its data in the FAQs. http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm. I don’t know any number crunching professionals with a familiarity of statistics who have read Zillow’s FAQs and concluded the reporting to be accurate.

Cheers,
Michael P. Lindekugel
Financial Analyst
RE/MAX Commercial
Team Reba – RE/MAX Metro Realty, Inc

To sellers unfamiliar with Zillow, I’d explain it something like this:

Kelly Blue Book offering to publish an ad for your car right next to all the book values, FOR FREE! Of course, they are going to publish the Blue Book regardless, and buyers who read the Blue Book are going to see the book value regardless. Wouldn’t you want to let them know that your car is for sale, and take the opportunity to describe all of the special features on your car that make it worth more than the book value?

Zillow is going to let you do this for your house. [Pointing to the Zestimate for their home] we’re going to put all of the pretty pictures right here, and right over there we’re going to tell them all the great things about the house. [Maybe show them an example of a nice fully filled-out Zillow for-sale listing]

I would think any seller with half a brain would see that it’s only to their benefit to list the home, since buyers will see the low Zestimate whether or not they add their listing information. But if a seller said “no thanks please don’t market my home this way”, that is their choice and that would be fine.

Make sense? Am I still missing something?

Oh yeah, make sure they know the Zestimates get updated periodically (”just like the Blue Book…”) so they don’t go into shock when they log on a month later and it just dropped by 50 grand.

Hell, I was the first agent to try to get in there…so stop acting like I’m creating an “obstacle” in some “biased” fashion. The seller can’t say “yes” to Zillow without knowing that the “range price effect” is part of the decision process.

Running around in my towel with no contacts in…so not “picking on you” just rushed.

1. To me, it’s a stretch to say that listing a home for sale on Zillow is range pricing. The asking price is clearly displayed at the top of the page in big letters after the words “For Sale: “. The agent didn’t compute the Zestimate, Zillow did. If you’re saying that the agent is implicitly endorsing the Zestimate by listing the home there, I understand where you are coming from but don’t agree.
2. Yes, keeping sellers informed as to how and where their home is advertised, especially any venue they may find objectionable for any reason, is our job. I would explain to sellers the benefits of Zillow exposure and the fact that buyers will see the Zestimate whether or not we list the home on Zillow.
3. I agree with you that it’s ultimately up to the owner to authorize where a home is advertised. I expect most homeowners will see the benefits of putting the home on Zillow for free and want to be on there.

Personally, I can’t wait for Zestimates to come to Maine!

take care,
Franz

Writing off Zillow as “a toy” is not fair play.

I have seen cases where Zillow has been more accurate than both the agent and the appraiser. But no one talks about those “Spot ONS!” Well, I guess I just did.

I can’t “post” the spot ons that I know about yet, as they are pending sales. At least the ones I know for sure where Zillow was righter than anyone. I’ll give it 60 days or so and post the “spot ons”, and call it “the half FULL part of that glass”.

What you have just done, Michael, is what we call “pulling an Allan Dalton” , effective maybe…but not “fair play”.

P.S. Allan, not a criticism…you did a Fabulous Job! and you are absolutely entitled to take that shot. But agents and NAR and MLS systems are not entitled to that same shot and viewpoint. For you, it is good business. For licensed brokers and agents…it’s trying to shoot out the consumer’s options. Big difference.

“Ardell does raise one objection, that posting a home that is listed at higher than Zillow valuation is somehow a bad thing. I respect her opinion, but personally don’t see what the big deal is.”

My point is, that the OWNER should have at least SOME say in there. My point is that an agent shouldn’t list a house at $400,000, and out the other side of their mouth say “but I really think it’s only worth $370,000″, though we all know some who do that.

To some extent, posting on Zillow equates to that same scenario. Seller SAYS X…Zillow SAYS X, and the seller’s permission should be the minimum requirement to post that potential ambiguity.

At best it represents “range pricing” with the range being somewhere between Zillow’s Value and the Owner’s Asking price, and no agent should “range price” without the owner’s permission to do so.