Zillow.com is under attack again. This time it's the Arizona Board of Appraisal and the Arizona Legislature attempt what Greg Swan calls Rotarian Socialism. Greg, of course, thinks the whole thing is stupid and protectionist. Greg defines Rotarian Socialism:
It’s a protection racket — vicious, awful, evil crime — dressed up in Brooks Brothers suits.
We are apt to think of Communism as being Capitalism’s natural enemy, but there is another, perhaps more insidious foe to unfettered laissez faire. I call it Rotarian Socialism, just to give it a name. Rotarian Socialism is legislation written by and for the membership of a politically-powerful elite. Most of the criticisms you hear about Capitalism are in fact criticisms of Rotarian Socialism.
Roberta Murphy, an intelligent North County San Diego Realtor, reported about the protectionist agenda in Arizona on the Active Rain Real Estate Network. Keep one thing in mind. Zillow is a licensed real estate brokerage in the State of Arizona. A hockey game broke out in the comments section:
Amy Laws of Century 21: It's about time, other states need to join it.
Kristal Kraft of RE/MAX: What scares me is how so many people use the internet for facts
actually believe everything they read there is true. Gathering facts
this way is like getting all your news in the check out lane at the
grocery store. We all know The National Enquirer is a valid resource.
Jacob Morales of First Horizon Home Loans: This is very exciting and good news. I am happy to hear that my state is moving forward with this because i am fed up with consumers who use this as their only way to judge value.
Kelli Fronaberger of Bend River Realty: I think they should have to be accountable for what they print (disclosures or not) just like everyone else. I personally think "zestimates" are a crock and should be outlawed.
Ryan Monroe of Keller Williams: Great Zillow needs to be state supervised!
Zillow is state supervised; they have a real estate brokerage license in Arizona.
Chris Sylvada of Realty Executives (right here in Del Mar): I've heard this recently and was pleased since Zillo really just represents another challenge we have to over come when trying to help potential buyers see our listings really are priced accordingly. Many buyers seem to show up acting as if they "know it all" based on their faulty zillo report. Thanks for the good news!
Jim Crawford of RE/MAX: Very interesting post...that raises some very interesting questions. If people are stupid enough to sign a 100% no money down mortgage documents without reading what they are signing, or know the implications of the mortgage agreement, then they are stupid enough to believe what Zillow is providing is an appraisal! Keep up the good work Arizona!
John Wallof Century 21: I'm all for sticking it to that Z site; it will be interesting to see how this plays out or if other states will join in. I doubt they'll but them out of business though.
So why did I post this? Zillow.com is huge site in the real estate world. They are a destination place for people interested in real estate. Their unique proposition is that they offer an automated valuation model, formerly used and kept secret by lenders, as a free giveaway. They call it a Zestimate.
is the Zestimate accurate? No, not completely accurate. Contrary to industry belief, Zillow.com never said that God revealed home prices to them in an act of Divine Inspiration. Zillow.com calls it a starting point. It's for you, the consumer, to get educated and ask intelligent questions.
Consider Jay Thompson, The Phoenix Real Estate Guy's post:
I've said several times on this blog and commented on others that I have no fear of Zillow. And I don't. In fact, I love it when a client whips out a printout of a Zestimate. It's a golden opportunity to display my expertise. If I can't provide a better estimate of a home's market value than a bunch of code, then I'm in the wrong business
Confident Realtors and lenders know that you, the consumer, have a brain and intend to use it while you pay us the fees we earn. Many of us feel we're worth what you pay us. I just hope you do.
