Sellsius real estate marketing blog

Joe, I understand where you are going with this, but it's not a yes or no question. There is a lot more to this- transparency, accuracy, value, education, that run in all directions.

Educate me.

Zillow is a private site, yes? They are taking public information and using it? How can you opt out?

Every day we deal with people who look up stuff on the county auditor's site, R.com, what their cousin's neighbor said, and make their own guesstimates of value. Can our sellers opt out of that? We counter that misinformation with education and information. Have you never seen a tweet or a blog post by a consumer guessing what a home might be worth based on their own information gathering efforts? Can our sellers opt out of that?

Part of our job is to explain, educate, impart knowledge as to value. We are the experts. What's the difference between someone twittering a guesstimated value of their neighbor's home, and Zillow? Size matters I suppose? The perception of informed and uninformed?

Opt out of Zillow for advertising, yes. Opt out of a zestimate? Pondering.

Teri, roll all your concepts together and then answer yes or no--- if Zillow
could remove it, should a home seller have the right to opt out of a
misleading zestimate? Perhaps you ought consider this question too--- can a
misleading zestimate turn away a buyer?

A zestimate USES public data (and equations and secret sauce and stat men
toenails (allegedly)) but is NOT public data. The public data may be
incomplete, inaccurate or stale. There is also no physical examination of
the home to account for unzillowables. Thus, a zestimate is subject to
gross error.

Spencer Rascoff has admitted that inaccurate zestimates can be misleading.
For me, that is case closed for allowing an opt-out.

If it were on your website, knowingly leaving misleading information on a
client's listing is a breach of fiduciary duty and a breach of COE in my
opinion. I say it is your duty to go on record and demand Zillow remove
it. They're nice folks, as you say, so maybe they will. No harm in asking
right? Would YOU even ask?

Because you can't opt out of your neighbor's chatter (which is not
Googleable), does not mean Zillow should get a pass-- because it IS
possible for those intelligent Zillowites to remove a zestimate. Plus, more
folks go to Zillow or other online sites that have zestimates (maybe your
own website) than eavesdrop on your neighbor's chatter.

So, I ask you this: If your client's house for sale has a misleading
zesimate, would you support your client wanting to have it removed from
Zillow? Or would you say, "No, dear client, because I, as your agent, can
convince buyers who see the zestimate that it is misleading. A misleading
zestimate can do you no harm.

>So I guess the guy in his jammies is well served.

I suppose so. Currently I rep more buyers than sellers. They like Zillow.

I'm curious how often zestimates actually prevent a buyer from contacting an agent about a property.

I'm also curious how often sellers complain?

@Teri

Spencer Rascoff, an intelligent Zillow fellow, said, Yes, an inaccurate zestimate can be misleading.

And you said: "I don't want misleading info on my client's listing. Definitely not."

So, to the question: Do you support a home sellers right to opt out of a misleading zestimate? Your answer is....... (yes or no)

>Why a real estate agent would want misleading information on their client's
listing needs to explain professionalism to me.

Is that what you thought I said? or is that what I implied? eek.

Yeah, no. I don't want misleading info on my client's listing. Definitely not. OTOH, Zillow, Trulia, and whoever else are not going away, and people do look at those sites. So how do you make the best of it? That's what I'm thinking. How do I (and other Realtors) use their inaccurate information to educate? A big part of my job is to educate about all sorts of things, this is just one, and I always welcome the opportunity to educate. At this point in time, I can use Zillow's problems to point out the benefits of partnering with a live pro (me) from the 'hood (me again). As opposed to an information aggregator (them) who lives on the other side of the country (them again). Lemonade out of lemons, if you will. Keep on the sunny side, etc. But since you are not giggling, I doubt you see it that way...

"Zillow, Trulia, and whoever else are not going away, and people do look at
those sites."

But misleading zestimates CAN go away-- if you fight for the opt out,
instead of taking the "let the 'lemon' stand."

Fight for the seller opt out right and convey the message to your clients
(and future clients) that you support THEIR rights, not the makers of the
lemonade stands.

Fair question, Joe.

No one who contacts me via Zillow, assumes that Zillow has all the answers. People (those who contact me, fwiw) understand that it's an estimate, not expert advice, but they also seem to know that they can contact me to get better advice.

Zillow users want information from a variety of sources, and they want it from places other than the traditional (read: NAR) sources. Zillow meets that one need. Whatever else Zillow does or doesn't do, it never claims perfection, and it's pretty upfront about it's own faults. People accept that in a site like Zillow.

If Zillow's evil plot is to take over the world of real estate, they know, and the users who contact me via Zillow, know that they are a long way from accomplishing that.

I respectfully suggest that you are not giving Zillow users credit for being intelligent, thinking people.

*Truth stood on one side and Ease on the other; it has often been so*.
--Theodore Parker

Why a real estate agent would want misleading information on their client's
listing needs to explain professionalism to me. And I'm not giggling.

So I guess the guy in his jammies is well served.

Oh just for giggles:

I love zillow. It allows me the opportunity to educate, inform, show my expertise, when I get to explain why zillow is inaccurate and why there is no substitute for a information from a live real estate agent. Zillow helps me do my job. Thanks Zillow! Don't ever change.

@ Teri

So, if the fella in his jammies goes to Zillow.com at 1:00 am, sees your
listing with an inaccurate zestimate, is thereupon misled and passes it
over, how do you "educate, inform, show your expertise, and explain why
zillow is inaccurate?.... just for giggles.

"What about freedom of information and the public's right to know (the value or estimated value of a home)?

What about First ammendment rights? Freedom of speech? Freedom Of Information Act and state/local public access laws?"

Deceptive advertising laws do not conflict with the public's right to know (they dont have a right to be misled) or the First Amendment-- actually the "right to know" is the foundation of the First Amendment, NOT the speaker's right to speak.

Sold data, if true, should not be banned. Nor should any truthful facts that do not infringe on privacy (like the seller/buyer social security numbers).

Whether an inaccurate zestimate is misleading for being too high or too low does not matter-- it should be removed. If the homeowner had opt out right & a homeowner would leave a misleading high zestimate on the home that is deceptive IMO. But I do not believe an agent, who represents most homeowners, would let it stand. That's a big difference and IMO would actually help Z on for sale homes-- the listing agents would nix the crappy misleading zestimates and the ones that remain would be more reliable.

But all that happens if a homewoner/listing agent gets an opt out right is speculation. But the foundation is sound-- owners have the right to remove misleading info from a home-- Spencer Rascoff admitted an inaccurate zestimate can be misleading-- so, IMO, that is grounds for its removal.

"Sometimes we just have to have confidence in free markets to make smart collective decisions; rewarding company's that offer great services and punishing the rest"

So, based on the above statement, if your house was listed for sale for $500K, and I held a sign on the sidewalk during your open house that read "Zillow.com has estimated the value of this home, at $420,000" and that zestimate was dead wrong, would that be OK with you?

Why reward a company when it does "bad service" and punish home sellers?

@JFsellsius - Your point is well taken. But let me play devil's advocate;

Tell me, what is the process for verifying ownership and removing a property from the website (pretend you are zillow)? I mean, should they just remove any property where someone claims "they own it"? Is that susceptible to manipulation?

What about freedom of information and the public's right to know (the value or estimated value of a home)?

What about fist ammendment rights? Freedom of speech? Freedom Of Information Act and state/local public access laws?

What about offering transparency to consumers and potential purchasers of real estate, into local real estate markets/transaction data, sold data? Should that be banned? I mean, that's what they're trying to do, right? The AVM is a culmination of market transparency via sold/market data. In theory, this is an important element in creating an efficient market.

And finally, what about the fact that sellers that get low Zestimates that don't support their sale price are much more likely to have their home delisted or their zestimate removed. But those that get favorable Zestimates will leave them, further distorting reality for unassuming buyers. Perhaps Zillow willl be (MORE) incented to over inflate all property prices to retain seller listings or addresses, their bread and butter.
Regulation is a slippery slope. I don't think we can legislate our way around every issue. Sometimes we just have to have confidence in free markets to make smart collective decisions; rewarding company's that offer great services and punishing the rest.

I'm going to go out on a limb here and say that a misleading Zestimate can hurt or benefit a seller or buyer depending on whether the inaccuracy is to the high or low side of the "market" price, or what someone eventually pays for the property. The Zestimate has a psychological effect on everyone who views it, regardless of how much trust they put into it or how experienced they are... As an owner, I've seen my home drastically over Zestimated back in 2007 and I saw it plumet below reason just 6 months ago. Today I received an email saying my home appreciated 10% in the last month! Zestimates are notoriously volatile and rarely does a home sell within 5% of its Zestimate, an indication of real accuracy. But that would make for an interesting analysis.
@joelcarson - keep on selling brother!

Thoughtful comment. The seller must have the right to remove misleading information.

It seems we're forced to spend almost more time trying to figure out and stay on top of new technology than actually buying and selling real estate! Guess that's the game. Guess that's why I really love it. Thanks for the assistance.

Good information. Zillow, once in awhile comes close, but you just cannot rely on this for market value. But on the up side - there is good information on the site. I guess just use discretion and caution and do your comps.

Zillow has not agreed to allow home sellers the same right to opt out on Zillow.com and that's not going to change.

They may have no choice.

Opting out sounds great. Zillow estimates are just too far off of reality and it confuses and angers clients.

-Tyler

If Zillow is so confident its zestimates add value to the seller, why doesn't it offer an opt out? No one will take it if it means they lose value. Let the market decide. Why the fear?

I just found out that our MLS is developing their OWN AVM! I'm trying to find out more details now and will post info as it comes in. Thanks for your continued efforts on this front!

Okey Dokey All signed and tweeted. Let's hope you're not pissin' into the wind.

Thanks Ken. We shall see if my shoes get wet. But relief may be worth it.

MLS are giving home sellers the right to opt out of AVMs on online listings. It makes logical sense, since inaccurate zestimates can be misleading and NO MISLEADING information should be on a listing. Period.

Zillow has not agreed, as far as I know, to allow home sellers the same right to opt out on Zillow.com. Methinks this is a mistake, an insult to homeowners, and an arrogance unbefitting an admitted "first step" value made with public data that may 1. inaccurate 2. incomplete or 3. stale (and no physical examination of the home)

I thought the Kelly Blue Book inspired zestimate showed a fundamental misunderstanding & non-appreciation of the uniqueness of property-- the unzillowables . But the snubbing of owners by refusing an opt out is truly Barton's folly, IMO.

There is now a field in my MLS listing input screen to opt in or out of AVMs. When I first saw this and called the tech people at our MLS - they couldn't answer the question of what would be done with this opt-in-or-out choice and just gave me the definition of AVM.

I'm thinking that it may be passed along the MLS IDX feeds to the Truzilliofins so a list price would override any automated value? For my sellers, I'm checking the opt-out box.