Zillow Unleashed... A Blizzard of Activity that Changes the Scoreboard Big Time!

Bob Haywood

McGraw Realtors - Owasso, OK

BobHaywood.com

Spotted Homes comment #120 - Zillow might be able to secure a nationwide MLS, but they won't hold it very long. Can you say Anti Trust lawsuit?

Dec 20, 2009 12:19 AM

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Mark Finchem

Long Realty Company - Oro Valley, AZ

Good discussion. I've found though, the accuracy of information, particularly Zestimates to be very poor. I end up having to reset the "expectations meter" for both sellers and buyers. For an advertising engine Zillow may be great, but until the .com can provide more complete and accurate information on home value I won't be a big fan. And pay for advertising a listing? I think if nothing else this may prod multiple listing services around the country to get with the program on SEO.

Dec 20, 2009 12:39 AM

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Craig Davidenko

SavannahRealEstate.com - Savannah, GA

Hey Realtors you need to wake up and stop being so self centered....who cares what you think about zestimates.....the fact is that the consumer traffic is higher on zillow than realtor.com......go get another designation your in complete denial!!!!

Dec 20, 2009 01:54 AM

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Dave Gibbs

Coldwell Banker M.M. Parrish Realtors - Gainesville, FL

Broker Assoc, e-PRO, ABR, Green

I have been working with and using Richard Barton's (also started the Expedia travel site) Zillow since it's inception in 2006. While the zestimate approach was ridiculous in terms of accuracy I chose to stay in touch with the new system and concept to see how it would evolve and to also answer customer questions that I knew would come up given the nature of what Barton was trying to do with an online presence that provided automated computer driven local property valuation.

In this four year long process I used the features provided by the system for enhancing property info that I also had listed for sale. The interest here was two-fold. 1.) Enhance my active listings to the greatest extent possible so that Buyer prospects may get the full benefit of accurate and complete information should they find the property and it fit their general criteria for a possible purchase. 2.) To provide the Zillow system itself (i.e. the database) more and accurate info (actual property features, listing price & final sale price). I looked at number 2 as a service to Zillow as it was quite apparent the Zillow system required augmentation for the purpose of accuracy.

I figured that if Zillow was "on it's game" they would refine and enhance to the point that Zillow may become something viable since it had captured the attention of the consuming public relative to valuation. Every novice residential property owner would like to know what their property is worth for all the various reasons.

To do otherwise on the part of Zillow (i.e. not enhance and refine toward better accuracy and a more robust offering) would be a folly and a disservice to the general public.

I track my leads and control my marketing expenditures with diligence. I have not ever received a viable lead off of Zillow. I did not stay in touch with the Zillow system for four years (feeding it data) because of lead generation, I did it to see what it might become in part with my assistance in feeding the database with accurate data as I had hoped other real estate professionals would also do the same.

I found it ironic to say the least when Zillow notified me on 12/18/09 (the day before Lola Audu's AR campaign on behalf of Zillow) to let me know that I would have to start paying to maintain property that I may have listed on the market for sale in my local area as "enhanced" (aka more complete data and accurate up to date property information).

I am not buying.

So much for Zillow.....

The Zillow claim to have topped realtor.com is flawed and inaccurate in the first place.

I don't think realtor.com is doing a very good either.

I also think that Saul Klein of RealTown is barking up the wrong tree. He is trying to do essentially the same thing Richard Barton is trying to do and used essentially the same approach (loss leader with something for free in the beginning). I didn't buy that either in the end after helping to build it up in the early stages and have nothing further to do with RealTown. ~Do you think they will ever get a clue?~

(they) are all self serving and short sighted as far as I am concerned. As the front-line real estate PROFESSIONAL on the ground it is apparent to me that my best interest (and that of the consuming public) is not being best served.

~Do we suppose that NAR will ever get a clue?~

Dec 20, 2009 02:44 AM

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Anonymous

Thomas Preston

Its not a matter of being self centered my friend, One of the serious flaws with zillow is its mis information, This cost the clients and the Realtors money when the mis information interferes with conducting proper business. The comps they give are way off because the system doesnt take certain factors into account that it really has know way of gathering. In NYC for instance on one block top the next there can be 100,000 dollar price fluctuations. When these are not reported with accuracy it hurts all of us. for this reason I am so anti Zillow. Fine if you want to be number one so be it but at least provide a useful service. When a customer makes an offer and it gets rejected because it is too low ,I lose income, Due to mis information. Does zillow carry E and O insurance ? I would certainly advise my clients to seek legal council if they believe false information may have been the cause of them not being able to make a deal with a mis informed buyer that wont make a proper offer because of Zillows False advice. My recommendation is to start asking he low ball offers where they got the information that they based the offer on. If the say zillow print it out have then put in writing the offer and why they are making it and give it to your client. perhaps a lawyer will advise them to recover damages? Always ask the rational of why customers and clients do what they do, It is amazing how much you can learn. I do not visit the zillow website ,I remember when they first started after looking at the zestimates I decided this site was worthless to me. They seem to think that search engine optimization and advertising alone will boost them into the number 1 spot. Too bad they forgot about value and service. Stand uo for integrity and accurate information in our industry ,Make them perform or get out of the business. We as real estate professionals have that power. Just one more Thought , Did you ever wonder why they call Them zestimates instead of Estimates or comps or appraisals? I would guess thast the lawyers advised them to call them a word that has no meaning in the english language because they knew when starting that they could never provide accurate information and perhaps by some legal loophole they would not be accountable for damages if the call it a Zestimate.Keep the non professionals out of our business for our clients sake we As Realtors have a duty to keep things accurate and by using the services as they are provided now we would be derilect in our duties.. Force them to provide accuracy for the integrity of our industry.Happy holidays to all and best wishes for a prosperous new year.

Dec 20, 2009 02:52 AM

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#145

Anonymous

Thomas Preston

Its not a matter of being self centered my friend, One of the serious flaws with zillow is its mis information, This cost the clients and the Realtors money when the mis information interferes with conducting proper business. The comps they give are way off because the system doesnt take certain factors into account that it really has know way of gathering. In NYC for instance on one block top the next there can be 100,000 dollar price fluctuations. When these are not reported with accuracy it hurts all of us. for this reason I am so anti Zillow. Fine if you want to be number one so be it but at least provide a useful service. When a customer makes an offer and it gets rejected because it is too low ,I lose income, Due to mis information. Does zillow carry E and O insurance ? I would certainly advise my clients to seek legal council if they believe false information may have been the cause of them not being able to make a deal with a mis informed buyer that wont make a proper offer because of Zillows False advice. My recommendation is to start asking he low ball offers where they got the information that they based the offer on. If the say zillow print it out have then put in writing the offer and why they are making it and give it to your client. perhaps a lawyer will advise them to recover damages? Always ask the rational of why customers and clients do what they do, It is amazing how much you can learn. I do not visit the zillow website ,I remember when they first started after looking at the zestimates I decided this site was worthless to me. They seem to think that search engine optimization and advertising alone will boost them into the number 1 spot. Too bad they forgot about value and service. Stand uo for integrity and accurate information in our industry ,Make them perform or get out of the business. We as real estate professionals have that power. Just one more Thought , Did you ever wonder why they call Them zestimates instead of Estimates or comps or appraisals? I would guess thast the lawyers advised them to call them a word that has no meaning in the english language because they knew when starting that they could never provide accurate information and perhaps by some legal loophole they would not be accountable for damages if the call it a Zestimate.Keep the non professionals out of our business for our clients sake we As Realtors have a duty to keep things accurate and by using the services as they are provided now we would be derilect in our duties.. Force them to provide accuracy for the integrity of our industry.Happy holidays to all and best wishes for a prosperous new year.

Dec 20, 2009 02:52 AM

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#146

Andi Grant

310-508-4354 | FirstTimeHomeBuyerRealEstate.com - Los Angeles, CA

Helping 1st time buyers and home sellers in LA!

Lola - thank you so much for the great an informative post! Gives us something to think about as we approach 2010 with our new marketing plans and strategies.

*****THE DOG THAT BARKS THE LOUDEST GETS THE BONE*****

Period. Zillow and Google as someone stated are the the big dogs in the yard. Now what are we gonna do about it? The biggest dog isn't necessarily the smartest dog. I say we somehow use it to our advantage. I have a few ideas, but I guess that'll have to be a blog in and of itself.

Dave B. - I too have also been with Zillow since 2006 BUT I used it for a few listings and got nada. Also, if I had've heard "But Zillow says.." one more time when trying to reach a listing price with a seller. I was able to combat that by periodically printing out Zillow home prices and then the sold prices to the homes later. I was able to show hard proof of the HUGE disparity instead of sounding like a whining Realtor® scared of them. I would ask my seller if they wanted to sale their home at the right number or be a Zillow casualty? But now that Zillow has proven they are here to stay and not a fad real estate tool, we just have to learn how to work with them to our advantage.

Thanks Lola, I will definitely strategize on how to make it work for me because these companies are here to stay. I agree, the company to watch out for is definitely Google! Out of all the companies, I'd have to say they are a both a big and SMART dog.

Dec 20, 2009 05:29 AM

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Mark Brace

Berkshire Hathaway HomeServices - Michigan Real Estate - Grand Rapids, MI

Grand Rapids, MI

Dang it Lola... I spent like an hour and half reading what everyone has to say, and lost track to what I was doing. It was good to see you at the Revival summit. I must say this is quite a topic of conversation. I can say that just like any business you need to adapt to change and embrace the change that makes you successful, and follow what the consumer wants... lets not end up like GM and play catch-up at the 11th hour. We as a industry need to think like Honda or Toyota and give the consumer what they want, or someone else will.

Dec 20, 2009 06:33 AM

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Linda Graves Arnold

Coldwell Banker Gundaker-St. Louis, MO - Chesterfield, MO

St. Louis Real Estate Pro - 314-422-2762 - Referr

In our area, we find that Zillow Zestimates are often wildly inaccurate - both high and low. Before a listing call, we make sure that we know the Zestimate for the home because we know that the seller has already looked. This way, we can discuss the Zestimate and why we think it is or is not accurate supplying appropriate comps. If you don't know the Zestimate on a potential listing shame on you. The seller will have looked. We always need to be one step ahead of the consumer.

Dec 20, 2009 08:30 AM

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Roy & Gail Barnhart & McKay

Barnhart & McKay Realty Advisors - Hudson, FL

Barnhart & McKay Home Selling Team

Zillow is a joke and consumers know it! I have had many customers straight up tell me they follow their home on Zillow, but they know the values are off. What's the Point?

Dec 21, 2009 02:03 AM

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Roy & Gail Barnhart & McKay

Barnhart & McKay Realty Advisors - Hudson, FL

Barnhart & McKay Home Selling Team

Zillow is a joke and consumers know it! I have had many customers straight up tell me they follow their home on Zillow, but they know the values are off. What's the Point?

Dec 21, 2009 02:03 AM

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Andrew Chong

Realm Real Estate Professionals - Houston, TX

Great post, and just in time. I'm evaluating upgrading my internet presence and have wondered about Zillow, Trulia and what value I can truly get from them. Our MLS in Houston is pretty awesome and feeds into realtor dot com, and KW LS feeds into Zillow. So, it's time to explore.

Dec 21, 2009 02:05 AM

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Anonymous

Leo Riordan

Ditto Ditto to Thomas Preston. I feel it's a disservice to our industry and our clients to keep advocating the use of Zillow. We are selling out our integrity and professionalism by promoting and worse yet advertising on their site. I am all for technology and the wonderful tools that have helped to promote my business, but don't quite get the reasoning behind realtors wanting to take "advantage" of this site other than exposure.

It's certainly not in our clients best interest to have them go to a site that distorts the value of their property. Misinformation given by the agents I would say is the exception, not the rule. It's scary to me when Zillow is quoted by the media as if it were some kind of expert on real estate. It's comparable to hearing the main stream media quoting the National Enquirer, or Star Magazine as their source of information.

Zillow may be a train racing down the tracks that can't be stopped, but I'm certainly not going to be on it.

Dec 21, 2009 09:11 AM

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#153

Mike Henderson

Your complete source for buying HUD homes - Littleton, CO

HUD Home Hub - 303-949-5848

It's really a fascinating post. What nobody has pointed out is what will this mean to the FSBO market? Now they have to pay? This should help a few more convert to listings.

Dec 21, 2009 11:17 AM

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thomas dineen

RE/MAX House Values 4 - Hackettstown, NJ

I have a highlighted listing on zillow for the last few months -- 0 response so far.....

Dec 26, 2009 01:12 AM

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Sara Bonert

Zillow - Atlanta, GA

Real Estate Internet Marketing

Mike (#156) - Correct, that FSBO will have to pay the $9.95 for 6 months of advertising fee. We do not take any FSBO automated feeds.

Thomas (#157) - I took a look at your account. You've never Featured your listings on our site, which is what the $9.95 rate would do, to give you a lift of traffic for your listing(s) in the search results. Also, your listings come to us via Visual Tour, so this change in fee structure doesn't directly affect you.

I do see that you did use our Showcase product (zip code targeted display advertising) and on it you advertise yourself, verses advertising listings. Of course, with this advertising space, you can use it however you'd like. But we found (and I think this is true regardless of the site or advertising medium) that you get a lot more calls when you advertising specific listings, verses branding campaigns. If you want calls, my advice would be to change the copy to market a 'just listed' or 'open house' or 'unique selling feature of a particular home'. Hope that helps!

Dec 29, 2009 08:35 AM

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Anonymous

Bill Schallmo (Firstteam Estates)

Great dialog regarding the "Zillow" syndrome! Here in the OC, we rarely have a seller or buyer that gives Zillow much credibility as I believe agents in our area have done a great job enlightening their clients' about how off the mark they can be. With the number of custom homes in the Newport Beach area, Zillow gets confused when a 7,000 sf estate sits next to a 600 sf scraper. The average price per sf is completely unreliable because they look at closed sales numbers and not on actual capital investment.

If we all remember that Zillow is just a marketing company looking for advertisers and has no resemblance to a professional real estate organization, they shouldn't hold any more credibility than the neighbor that thinks his home is worth way more than the market will accept.

We used our own proprietary system that automatically imports all the local MLS data for active, sold and pending sales. We then create a graphical representation that blows "Zillow" out of the water. As the consumer becomes more educated, it's our job to become more innovative and look for trends that will have an effect on our ability to bring value to our market.

Every agent will need to have a "factual" based rebuttal to Zillow's valuations in their individual farms area.

Dec 29, 2009 09:40 AM

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#157

Anonymous

Bill Schallmo (Firstteam Estates)

Great dialog regarding the "Zillow" syndrome! Here in the OC, we rarely have a seller or buyer that gives Zillow much credibility as I believe agents in our area have done a great job enlightening their clients' about how off the mark they can be. With the number of custom homes in the Newport Beach area, Zillow gets confused when a 7,000 sf estate sits next to a 600 sf scraper. The average price per sf is completely unreliable because they look at closed sales numbers and not on actual capital investment.

If we all remember that Zillow is just a marketing company looking for advertisers and has no resemblance to a professional real estate organization, they shouldn't hold any more credibility than the neighbor that thinks his home is worth way more than the market will accept.

We used our own proprietary system that automatically imports all the local MLS data for active, sold and pending sales. We then create a graphical representation that blows "Zillow" out of the water. As the consumer becomes more educated, it's our job to become more innovative and look for trends that will have an effect on our ability to bring value to our market.

Every agent will need to have a "factual" based rebuttal to Zillow's valuations in their individual farms area.

Dec 29, 2009 09:40 AM

Like

#158

Anonymous

Bill Schallmo (Firstteam Estates)

Great dialog regarding the "Zillow" syndrome! Here in the OC, we rarely have a seller or buyer that gives Zillow much credibility as I believe agents in our area have done a great job enlightening their clients' about how off the mark they can be. With the number of custom homes in the Newport Beach area, Zillow gets confused when a 7,000 sf estate sits next to a 600 sf scraper. The average price per sf is completely unreliable because they look at closed sales numbers and not on actual capital investment.

If we all remember that Zillow is just a marketing company looking for advertisers and has no resemblance to a professional real estate organization, they shouldn't hold any more credibility than the neighbor that thinks his home is worth way more than the market will accept.

We used our own proprietary system that automatically imports all the local MLS data for active, sold and pending sales. We then create a graphical representation that blows "Zillow" out of the water. As the consumer becomes more educated, it's our job to become more innovative and look for trends that will have an effect on our ability to bring value to our market.

Every agent will need to have a "factual" based rebuttal to Zillow's valuations in their individual farms area.

Dec 29, 2009 09:41 AM

Like

#159

Anonymous

Bill Schallmo (Firstteam Estates)

Great dialog regarding the "Zillow" syndrome! Here in the OC, we rarely have a seller or buyer that gives Zillow much credibility as I believe agents in our area have done a great job enlightening their clients' about how off the mark they can be. With the number of custom homes in the Newport Beach area, Zillow gets confused when a 7,000 sf estate sits next to a 600 sf scraper. The average price per sf is completely unreliable because they look at closed sales numbers and not on actual capital investment.

If we all remember that Zillow is just a marketing company looking for advertisers and has no resemblance to a professional real estate organization, they shouldn't hold any more credibility than the neighbor that thinks his home is worth way more than the market will accept.

We used our own proprietary system that automatically imports all the local MLS data for active, sold and pending sales. We then create a graphical representation that blows "Zillow" out of the water. As the consumer becomes more educated, it's our job to become more innovative and look for trends that will have an effect on our ability to bring value to our market.

Every agent will need to have a "factual" based rebuttal to Zillow's valuations in their individual farms area.

Dec 29, 2009 09:41 AM

Like

#160

Zillow Unleashed... A Blizzard of Activity that Changes the Scoreboard Big Time!

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