Zillow is not a deadly threat to real estate brokers or agents. But we think it might sound the death knell for appraisers. Whether someone consults Zillow, their neighbor, postman, psychic or Ouijee board, on their journey to home ownership or sale, they will undoubtedly continue and end that long journey with the help of a professional. Valuation, which will always be estimated, is but one small step. It always was. There never was, nor could there ever be, a CMA or AVM that could market, inspect, stage, negotiate, or close a deal. Ever see a computer do an open house? It’s not a pretty sight.
Appraisers, on the other hand, are easily expendable by AVMs. Valuation is ALL appraisers do. It is their only role in the real estate transaction. Appraisers are already irrelevant to many refinanced loans. Soon they may be irrelevant for first loans, where the loan to AVM value is 65% or less. Appraisers are the ones destined to be the service providers and order checkers. They will be hired to go to the house to count beds and baths and measure square feet. They will walk around with forms and check boxes to make sure the AVM data is accurate and complete. Residential appraisers, not realtors, are the next profession facing extinction by our zestimation.
Yet, with so much to lose, the appraisal industry remains virtually silent, letting the real estate professional fight, unwittingly, for them. So, we say to real estate brokers and agents: fear not the beast called Zillow. It is the appraiser which is its natural prey. Just watch you don’t trip over the bodies.
