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.
I still think there is more to come from zillow. The rumor we hear, being in their back yard, is that a new product is about to be launched.
A rumor like a tumor grows.
Whether right or wrong - who knows?
I just repeated one, oh oh.
Perhaps they should announce it
on the Sellsius Show.
The Zillow National MLS?
Sellsius - it’s David G from Zillow.
I just have to call B/S on this post. To extend the analogy; have you ever seen a computer visit a house, measure its square footage or even drive by a property? Me either! To suggest that Zillow is competitive to appraisals is clearly incorrect. Don’t make me start quoting from our help pages …
In fact, the contrary is actually true; I often hear from homeowners whose Zestimate was a gental reminder to GET an appraisal — usually it is for the purpose of considering re-financing a mortgage.
Lar -
Very poetic.
Zillow definitely could try their hand at a national MLS, but I think it would be dumb for the following mathematical reason:
a = probability of success in launching a national MLS
b = $ to be made in doing so
c = probability of success in having a nationwide real-estate-related advertising site
d = $ to be made in doing so
ab > cd
david g from zillow - “To suggest that Zillow is competitive to appraisals is clearly incorrect.”
then will zillow remove “home appraisal” from it’s meta tags?
Sellsius -
I’ve addressed your question earlier on the post discussing Zillow’s SEO strategy. Staying on topic here: do you understand my comment or do you really think that appraisers don’t leave their desks to do their job?
david - it’s a simple yes or no answer. i guess your answer is NO to removing “home appraisal” from your meta tags.
David-
Have you read the Fitch decision? It paves the way for the demise of the appraiser in the real estate transaction in favor of AVMs. All the bank will need do is verify AVM data and/or fill in any critical data it may lack & to make sure the house is really there. Appraisers will be replaced by AVM fact-checkers.
The bank will charge consumers (at a nice markup) for the AVM they buy cheap. Perhaps you need to visit some appraiser forums to appreciate the decimation in that profession.
Fitch decision here:
http://tinyurl.com/m2ros
PS The analogy of a computer doing an open house was in jest–get it?