Sellsius real estate marketing blog

I do believe in open information for all parties involved in any real estate transaction, as long as it is accurate. Accurate CMAs often require human oversight due to the inability of the computer models to differentiate outliers that can affect price estimates. For example, a short sale of a house for $300K will bring all the comparable $400K houses around it down in price as well.

Vlad

You are TOTALLY RIGHT about access to information. That's great. We need to know the "facts". But zillow takes it a step further by taking those facts (which may be wrong), giving a range value & then picking a number in the middle & saying that's the estimated value---even if beds & baths are MISSING. Come on now. That's where the problem is. Think if a person gave you a report & left out your beds & baths & said: hey Vlad your house is worth X. I dont know what you'd say but Id say WTF you dont even know my beds & baths son. You didn't didn't even look at my house. How can I trust that number?

It's NOT the information Vlad, it's whether is 's correct & what you do with the info. Should I believe zillow knows what my home value is better than an appraiser or realtor who "comes to my house" & checks it out? It's that simple. You can go with zillow, most pros go with pros. We tell it like it is, but you dont have to believe us. It's your choice.


Secondly, Zillow as a "starting point" valuation tool is not a threat to anyone other than appraisers---their job is strictly valuation. How can it be a threat to real estate brokers, title companies & attorneys? Buying or selling a house has a beginning, a middle and an end. You can't negotiate, sign a contract, get a loan & close on a house armed with just a zestimate under your arm. You need people--professionals are best unless you know what you're doing. So I don't see the threat. Valuing property is not all a pro does---I think you know that.

Besides, no real estate broker or blogger I've read says don't use zillow.
They all seem to say there is something BETTER because number crunching a house value with public data is imperfect & can result in a value that's way way off. Plus there are unzilowable factors the computer does not pick up from the public data. You must realize this possiblility. Read the blog comments from people like steve olshin (aug 25 -elvis house valuation post).

And what's wrong with people saying one service is preferable to another. Free speech is still cool isn't it? Coke says it's better than Pepsi---do you write a letter to Pepsi & say hey stop picking on Coke? It's just normal business. Zillow is a big boy---they don't complain--in fact they have a blog just for that reason---to have people complain. So others choose to make their complaints somewhere else---like on a blog. What's the difference?

And you should know that public data is not 100% `accurate. I used to work for the government & I can tell you they make mistakes all the time. Have you never complained about your tax assessment being wrong? That's the info that goes into the zillow calculation.

Bottom Line: Ask yourself this: without looking first, would you sell your house to someone at the zestimate price? I think not.

I think much fuss over Zillow may have been do to yet another threat/competition. I think the Zillow Realtor combination could be great. Just take a look at Yahoo Prudential... If you read Zillow's “about” page, you will find out that goal was to provide information “accessible to every one”. My point is this, that if one of major Real Estate agencies would consider working with Zillow they can provide visitors with accurate data taken directly from MLS across the country. I just can't understand what is wrong about having all parties well informed? It seams though that some Realtors out there would rather keep their clients not so well informed. Is it a “control” issue? I say way to go Zillow!

Sandy,
The pool of responses was not Manhattan centric.

Re: tweaks

Data is what everyone wants, provided it is fresh, accurate & complete. Zillow will need a mechanism to insure the data they get meets these requirements AND a mechanism to correct errors. IF a seller has a property on the market and the zestimate is grossly inaccurate (lower) what can that owner do NOW? Will zillow re-zestimate if the seller requests it? how long will it take?

Even with accurate fresh & complete raw data, someone needs to interpret it vis-a-vis a particular property in a particluar market pool at a particular time. And someone needs to account for any unzillowables. Can zillow tweak the unzillowables? Or will that be where agents' & other pros step in?

-jf

Good question, guys.

Maybe I missed the description of your survey, but is this a Manhattan-centric pool of responses, or a broader market? I suspect that Zillow will have a much harder time with Manhattan than elsewhere (a direct comparison of a 15 year old 2 BR condo to a brand new 2 BR condo on the same block *might* look good to a computer...).

I also suspect that these folks have way too much money not to tweak and improve for at least another year or two. Zillow *will* be a fact of life. I plan to explain to buyers and sellers why I can do things that Zillow can't -- but if I am unsuccessful, I will feel like a dodo.

Zillow comparisons to actuals----that is a very good idea Jay.

The starting point is not what sells a house --it's the middle and the end. And for that agents are necessary. However, we do sense that the usurping of the start may mean that the agents CMA " foot in the door" marketing tool may be jeopardized by zillow.

What has been your experience with unzillowables?

Interesting. While the poll indicates solid numbers for the use os a real estate agent, it's still a little disturbing that a third of the respondents find Zillow a better starting point that an agent.

Zillow can provide some useful research fodder. And the Zestimates are getting closer for the Phoenix market.

I've already had both buyers and sellers ask me about Zillow. The best answer I've found is to show them Zestimates for recently sold houses and compare them to the actual sales price.

Size certainly does matter. What may also matter is when you decide to sell and a buyer comes armed with a zestimate and you have to explain why the zestimate is inaccurate.
Comps from a different city?

I love the way the zestimate for my own home involves the use of comps from a different city. I also get a kick out of the fact that my home is larger than the data shown on the Z site. When I adjust the square footage, by increasing it the zestimate remains the same. I can't figure the math they are using. When it comes to home values size really does matter.

jamie - sorry, but this really has nothing to do with this post. others may consider this spam.

-rdb.sellsius°

Tips for Being a Successful Landlord

In today’s apartment rental market there are several things that are “must do’s” for becoming a successful landlord. The reason you’re playing the real estate rental game is to have the check in your mailbox on the first of the month, right? Here are a few tips that can help you to achieve this with as little aggravation and frustration possible.

First and foremost is finding the right tenant to rent your apartment, house or other rental. This is the most important ingredient in the recipe. Checking the prospective tenant’s credit history to make sure they are paying their bills is one of the best ways you can screen. A tenant that pays their bills on time most likely will send you their rent on time. Establish a clear system on collecting rent, handling complaints from the tenant and how you will contact them if you need to gain access to the apartment.

Secondly, get all the important terms of the tenancy in writing. You have the option to have a basic rental agreement or draw up a formal lease. Whichever you decide, the important thing is to document the terms that you and the tenant agreed to. Clarify who is paying the utilities, the rental price and any other agreements made between you and your tenant.

It’s a good idea to stay on top of the repair and maintenance needs of your property. When you are notified of something that is broken or not working, repair it as soon as possible to prevent further damages. You may also lawfully enable the tenant to withhold rent, sue for injuries caused by defective conditions or move out without notice.

On a similar topic make sure you are carrying enough property and liability insurance to cover yourself in any situation. A well designed insurance program can protect your rental property from losses caused by everything from fire and storms to burglary, vandalism, and personal injury lawsuits.

I hope that this has been helpful to you. Just remember, as long as you follow these simple tips you will be on your way to a happy and fulfilling landlord future. Best of luck!

Eric Goldstein, associated with AllSpacsescom which Conveniently Connects All People with All Spaces in All Places, has been dedicated to the real estate rental market for over 8 years. He has assisted over 25,000 landlords with their renting needs. Any questions about renting apartments, houses or other rentals feel free to visit AllSpacescom or email him at EricAllSpacescom.