Note: This post was written in September but never published. We decided to post it because of a piece of Greg “gospel” we found in it. (it’s at the end).
One reason we think Zillow should post a conspicuous disclaimer on its Home Page is because real estate brokers providing a CMA are legally required to in at least 3 states. Zillow publishes zestimates for property in these states, but gets a free pass. Why? Because a AVM is not a CMA. So a computer data cruncher which gives a home value estimate is held to a lesser standard than a human being who visits a home and creates a CMA. Is every human OK with that? What should be the deciding test for free passes on disclaimers under the law? Is this Zillow’s loophole, a Zoophole?
After reading this Bloodhound Blog post, we started sniffing around ourselves to discover whether Zillow.com would be legally required to disclose, conspicuously on each zestimate and its home page, the same language some states require on the first page of each CMA, to wit, that “the analysis was not done in accordance with uniform standards of accepted professional appraisal practice“.
Based on our research, we believe Maryland, Pennsylvania, New Jersey (in largest print found on CMA) have this legal requirement.
Here are the pertinent legal requirements for CMA:
Under Maryland Law:
Under Pennsylvania law:
Under New Jersey law:
Although Zillow provides zestimates for houses in those states, there is no such disclosure on Zillow.com’s home page. If some consumer sues on this, then what? Maybe Zillow’s lawyers will have some splainin’ to do. Do yourself a favor Z and just slap that disclaimer up there. Or else we’ll have to post a “We told you so”. (We’d be easy on ya but the hound has a mean bite.)
Do you know of any other states with this legal requirement?
Here’s the faithful hound’s take on WHY such a disclaimer may be legally necessary:
