Comments on: Zillow’s new way to spite your neighbor http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/ Seattle's Leading Resource for Real Estate Information Sun, 21 Mar 2010 05:48:34 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: propertyhype.com » Zillow Crows, Redfin Stews? http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-45836 propertyhype.com » Zillow Crows, Redfin Stews? Wed, 13 Dec 2006 03:27:00 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-45836 [...] Also, you must read Greg’s bang-on analysis and Galen’s take on the new feature set too. [...] [...] Also, you must read Greg’s bang-on analysis and Galen’s take on the new feature set too. [...]

]]> By: Homefinders.com Blog » Blog Archive » ZILLOW http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-45281 Homefinders.com Blog » Blog Archive » ZILLOW Mon, 11 Dec 2006 22:01:41 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-45281 [...] Galen first mentioned it, (I think) on Rain City Guide.  Greg at Bloodhound examined the idea further. [...] [...] Galen first mentioned it, (I think) on Rain City Guide.  Greg at Bloodhound examined the idea further. [...]

]]> By: 360Digest » Zillow Talk http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44684 360Digest » Zillow Talk Sun, 10 Dec 2006 06:28:13 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44684 [...] HomeGain’s General Manager. Louis Cammarosano, says “free listings (are) a big threat to the MLS”. Elizabeth Rhodes says “with Zillow offering free advertising, pressure may be put on real-estate agents to cut commissions“. Annette Haddad of the LA Times writes, “Zillow was launched in February amid much hype about its potential to reshape the real estate transaction process into something more transparent and less costly.” With this turn of the screw Galen and Greg are having a field day predicting the end of the real estate industry as we know it. IT professionals and bubble bloggers alike are positively gleeful with the prospect of the real estate agents demise. [...] [...] HomeGain’s General Manager. Louis Cammarosano, says “free listings (are) a big threat to the MLS”. Elizabeth Rhodes says “with Zillow offering free advertising, pressure may be put on real-estate agents to cut commissions“. Annette Haddad of the LA Times writes, “Zillow was launched in February amid much hype about its potential to reshape the real estate transaction process into something more transparent and less costly.” With this turn of the screw Galen and Greg are having a field day predicting the end of the real estate industry as we know it. IT professionals and bubble bloggers alike are positively gleeful with the prospect of the real estate agents demise. [...]

]]> By: Jin Lee http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44060 Jin Lee Fri, 08 Dec 2006 17:58:29 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44060 Seems like everyone is pretty excited about the new Zillow features, but just wanted to make a few comments that no one else seems to be making... (as a sidenote, I love Zillow, use it several times a week and often include the Zestimates when sending listings to clients and friends, so I'm not trying to bash em) Condos and townhomes - Zillow, from my experience, hasn't been that great about placing condos and townhomes on a map, let alone valuing them. One guy down the street from me already listed his townhome listed on Zillow for $439K, Zillow says it's worth $380K. And on the flipside of that, there are these condos in Federal Way (called Liberty Lake) that should be worth around $69K to $79K each... Zillow has them valued at $120K and up. Except for one that was completely gutted and remodeled, the 1-bedrooms there have NEVER sold at that price. Not even close. Builders / New Constructions - I currently work with 2 builders on the Eastside. Neither are large enough to have their own "team" or "office" of agents, and both would rather pay me a reduced commission rather than listing homes themselves and dealing directly with buyers. Neither have that much web knowledge. Also, none of the homes they are currently building are on Zillow. Newer Homes - The home I currently live in (built 11/05) and my last condo are still not up on Zillow. My current home is a bunch of trees still. Even if I wanted to sell FSBO, I couldn't on Zillow. So as an agent who mostly sells newer construction, condos, and townhomes, I'm stuck using the ol' MLS and Craigslist (which by the way I hate to do anymore ever since Asset Realty started flooding the site). I'm curious to see how Zillow will address these issues in the future. Seems like everyone is pretty excited about the new Zillow features, but just wanted to make a few comments that no one else seems to be making… (as a sidenote, I love Zillow, use it several times a week and often include the Zestimates when sending listings to clients and friends, so I’m not trying to bash em)

Condos and townhomes – Zillow, from my experience, hasn’t been that great about placing condos and townhomes on a map, let alone valuing them. One guy down the street from me already listed his townhome listed on Zillow for $439K, Zillow says it’s worth $380K. And on the flipside of that, there are these condos in Federal Way (called Liberty Lake) that should be worth around $69K to $79K each… Zillow has them valued at $120K and up. Except for one that was completely gutted and remodeled, the 1-bedrooms there have NEVER sold at that price. Not even close.

Builders / New Constructions – I currently work with 2 builders on the Eastside. Neither are large enough to have their own “team” or “office” of agents, and both would rather pay me a reduced commission rather than listing homes themselves and dealing directly with buyers. Neither have that much web knowledge. Also, none of the homes they are currently building are on Zillow.

Newer Homes – The home I currently live in (built 11/05) and my last condo are still not up on Zillow. My current home is a bunch of trees still. Even if I wanted to sell FSBO, I couldn’t on Zillow.

So as an agent who mostly sells newer construction, condos, and townhomes, I’m stuck using the ol’ MLS and Craigslist (which by the way I hate to do anymore ever since Asset Realty started flooding the site). I’m curious to see how Zillow will address these issues in the future.

]]> By: Zillow’s chicken and egg problem: the natural monopoly of the quaint MLS at Three Oceans Real Estate http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44034 Zillow’s chicken and egg problem: the natural monopoly of the quaint MLS at Three Oceans Real Estate Fri, 08 Dec 2006 16:17:29 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-44034 [...] Galen’s post nailed it on Zillow’s chicken and egg problem, the same problem that all new entrants into an established exchange’s terrain go through.  An exchange — a physical or virtual place where buyers and sellers meet — is a classic natural, self-propogating monopoly.  The reason you sell your pez dispensers on Ebay is because that’s where pez dispenser afficionados hang out, and they in turn congregate there because that’s where they expect to find pez dispenser sellers.  It’s a simple, elegant, and powerful system — and one that’s brutally difficult to fight against, as the odds are overwhelmingly in favor of the incumbent. [...] [...] Galen’s post nailed it on Zillow’s chicken and egg problem, the same problem that all new entrants into an established exchange’s terrain go through.  An exchange — a physical or virtual place where buyers and sellers meet — is a classic natural, self-propogating monopoly.  The reason you sell your pez dispensers on Ebay is because that’s where pez dispenser afficionados hang out, and they in turn congregate there because that’s where they expect to find pez dispenser sellers.  It’s a simple, elegant, and powerful system — and one that’s brutally difficult to fight against, as the odds are overwhelmingly in favor of the incumbent. [...]

]]> By: Will W http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43747 Will W Thu, 07 Dec 2006 23:05:42 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43747 It looks like Zillow has the potential to become the AutoTrader of RE listings - anyone can post a perpetual ad at an outrageous price hoping someone will come by and want to purchase their baby for as much as it's worth in their heart. Likewise, up to 50% of the autotrader listings don't even exist. The "sale inventory" numbers that Zillow provides could grossly overstate the numper of properties available for sale if it becomes choked with non-serious sellers and phantom homes. It looks like Zillow has the potential to become the AutoTrader of RE listings – anyone can post a perpetual ad at an outrageous price hoping someone will come by and want to purchase their baby for as much as it’s worth in their heart. Likewise, up to 50% of the autotrader listings don’t even exist. The “sale inventory” numbers that Zillow provides could grossly overstate the numper of properties available for sale if it becomes choked with non-serious sellers and phantom homes.

]]> By: Zilow This, Zillow That: Or, For the Love of Pete, Enough Already! at The Phoenix Real Estate Guy http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43733 Zilow This, Zillow That: Or, For the Love of Pete, Enough Already! at The Phoenix Real Estate Guy Thu, 07 Dec 2006 22:17:56 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43733 [...] And actually, I did intentionally plan to not write about Zillow’s news. I mean, why bother? Seems every real estate blogger on the planet is discussing it. What more could I possibly add? [...] [...] And actually, I did intentionally plan to not write about Zillow’s news. I mean, why bother? Seems every real estate blogger on the planet is discussing it. What more could I possibly add? [...]

]]> By: Galen http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43633 Galen Thu, 07 Dec 2006 18:21:15 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43633 Craig (Newmark), I used Cragslist as an example only because I know how vigilant you are about keeping scammers out (yet they still get in sometimes!). Craig (Blackmon), I am 1) glad we didn't invest a lot of time and money into that now (phew!) and 2) you have picked a great niche to prepare for the piecemeal-transaction future. Tim, I agree - that's a big if or at least a big when. I wouldn't recommend searching for a home exclusively on Zillow now or probably at any time in the next year - you would be missing a bunch of homes that are for sale! Zillow has done an admirable job of branding, but lots of people still haven't heard of them. Craig (Newmark), I used Cragslist as an example only because I know how vigilant you are about keeping scammers out (yet they still get in sometimes!).

Craig (Blackmon), I am 1) glad we didn’t invest a lot of time and money into that now (phew!) and 2) you have picked a great niche to prepare for the piecemeal-transaction future.

Tim, I agree – that’s a big if or at least a big when. I wouldn’t recommend searching for a home exclusively on Zillow now or probably at any time in the next year – you would be missing a bunch of homes that are for sale! Zillow has done an admirable job of branding, but lots of people still haven’t heard of them.

]]> By: Tim http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43627 Tim Thu, 07 Dec 2006 18:11:47 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43627 Galen, With this revelation, I think that as time goes on, people will utilize Zillow as one of their top tier considerations in marketing their home. As more and more successful stories circulate regarding home sales, the more powerful the pull may be. I tend to agree with you that it may be one fewer thing that consumers need (listing agent) IF this starts to gain traction--and that's a big IF. The idea of consumers choosing specific tasks related to the transaction is very real. Our office does close for sale by owner transactions and in all cases one of the parties (buyer or seller) contacted escrow to close the transaction. If placing a home on Zillow results in a sale without a traditional listing agent involved, I wonder how consumers on both sides of the transaction will treat the 3% listing savings for a seller--more flexibility in negotiation or...? Interesting times. John L Scott placed sold information on their website to try to neutralize Zillow and now that Zillow is open for listing data, both traditional listings and FSBO's side by side, how will the real estate firms react--let FSBO's into the NWMLS or on their own sites? Galen,

With this revelation, I think that as time goes on, people will utilize Zillow as one of their top tier considerations in marketing their home. As more and more successful stories circulate regarding home sales, the more powerful the pull may be. I tend to agree with you that it may be one fewer thing that consumers need (listing agent) IF this starts to gain traction–and that’s a big IF.

The idea of consumers choosing specific tasks related to the transaction is very real. Our office does close for sale by owner transactions and in all cases one of the parties (buyer or seller) contacted escrow to close the transaction.

If placing a home on Zillow results in a sale without a traditional listing agent involved, I wonder how consumers on both sides of the transaction will treat the 3% listing savings for a seller–more flexibility in negotiation or…?

Interesting times. John L Scott placed sold information on their website to try to neutralize Zillow and now that Zillow is open for listing data, both traditional listings and FSBO’s side by side, how will the real estate firms react–let FSBO’s into the NWMLS or on their own sites?

]]> By: Craig Blackmon http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43620 Craig Blackmon Thu, 07 Dec 2006 18:05:10 +0000 http://raincityguide.com/2006/12/07/zillows-new-way-to-spite-your-neighbor/#comment-43620 Galen, you may recall our conversation some time ago about creating a web site that gathered all FSBO data from the many FSBO web sites and posted it in one location, thus offering a true alternative to the MLS (i.e. a forum where large numbers of buyers and sellers could exchange information without agreeing to pay a 3+% commission to agents). I agree, I like Zillow's chances of reaching "critical mass" in this regard. As for Zillow making the lives of agents more difficult, you neglect to mention the most important point of all: Not only can sellers save the $500 on a flat fee MLS listing, they also save on the 2-3% they would otherwise have to offer a buyer's agent. Thus, unlike the flat fee MLS model, which only undercuts one half of an agent's business model, Zillow and its ilk threaten to blow up the entire agent-based system. Pearl Harbor Day, indeed. Galen, you may recall our conversation some time ago about creating a web site that gathered all FSBO data from the many FSBO web sites and posted it in one location, thus offering a true alternative to the MLS (i.e. a forum where large numbers of buyers and sellers could exchange information without agreeing to pay a 3+% commission to agents). I agree, I like Zillow’s chances of reaching “critical mass” in this regard. As for Zillow making the lives of agents more difficult, you neglect to mention the most important point of all: Not only can sellers save the $500 on a flat fee MLS listing, they also save on the 2-3% they would otherwise have to offer a buyer’s agent. Thus, unlike the flat fee MLS model, which only undercuts one half of an agent’s business model, Zillow and its ilk threaten to blow up the entire agent-based system. Pearl Harbor Day, indeed.

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