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Buying/Selling a Home ~Will Your Neighbors Know More Than They Should?

By
Real Estate Broker/Owner with Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

Imagine for a moment, a perfect world - one in which you had access to absolutely everything you need to know about the purchase of a potential new home.  And by everything, I mean exactly that.  Access to listing information, county data, mortgage history, neighborhood and demographic data, how much money your potential new neighbor made last year, if they had skipped a few payments on their mortgage note and even who they voted for.... By now, I know some of you are saying...Whoa...hang on Lola!

Let's face it, we are a voyeristic culture.  We love to snoop!  However, I daresay, that not many of us would be really happy if Facebook changed its algorithm to embrace total transparency; allowing people to know what you looked at on their pages while you were snooping ("I mean visiting") and how much time you spent viewing their stuff.  And then, what if Facebook used its vast database of knowledge of your actions online to make predictions about future behavior (including off-line decision) and made that information public?

Sounds far fetched?  Well, actually a modified version of this type of 'information aggregation' is well in the works for the real estate industry.  With billions of bytes of information now accessible through networks & databases on the web, it is possible to create fairly accurate personal profies and even more importantly to predict the potential actions and behavior patterns of people who own homes or who would like to.

While there are many potentially positive benefits for this type of information - some examples which would include (to name just a few):

1.  Smart technology to control the distribution of public resources like water, electricity 

2.  Enhanced security in tracking and dealing with crime

3.  More effective planning for future housing development

There are also real considerations; some of which are of real concern.  Zillow, which has become an important voice in the world of real estate is one of the leading aggregators of not only real estate information, but demographic and personal data as well.  In the interview with Spencer Rascoff, Zillow CEO below, he discusses the implications of data dissemination with regards to potential privacy issues and the relevant challenges of determining what to publish and when. In a world in which we know information can be easily manipulated to provide a perspective which many have perhaps presumed was the sole purview of their private world, this gives me pause.

A few notes of interest/concern which caught my attention as I listened were...

1.  The ability to provide information through Zillow of private property owners who allowed fracking on their properties. ( Although I am personally against fracking, I wonder...to what extent do people have the right to know what you do on your private property as long as you are not breaking the law?)

2.  The publishing of voting records in alignment with housing addresses and homeowner names - (Does knowledge of your voting record benefit the public good when it comes to housing information.  Could this type of data impact discrimination and further promote segregation and/or division?)

3.  Publishing of sex offender data for neighborhood/communities based on housing data

*The entire interview is worth a listen if you're a member of the real estate community, however if you want to short cut, I'd suggest you start listening around the 20 minute mark.

In closing, the need to know vs the right to privacy is a weighty debate.  One which warrants careful and deliberate discussion and above all transparency.  While Zillow is not currently sharing any of the information highlighted above, what's instructive to me is that not only could it do so fairly easily as it has the data feeds available to do so, but that Rascoff intimates that in his view, information is ultimately to be shared if available.  Something which I don't think is necessarily true or wise. 

Few would argue today, that free access of listing data to consumers is a bad thing even though it was very much resisted by the real estate community at first.  However, is it possible that there were and are some safeguards which we would be prudent to mind?  Sometimes the opening of Pandora's Box yields far more than we understood we had bargained for!

Comments(70)

John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

It is a absolute shame that Zillow and Trulia and even Realtor have such convoluted and completly wrong information.

When our privacy and "facts" are invaded/mined, it should at least reflect correct information.

Apr 21, 2014 11:15 AM
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

Lola  Interesting read...now to watch the video. I believe the only way privacy will ever return is if someone turns off the electricity!  Somewhere is a revolution in the making!

Apr 21, 2014 12:07 PM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Lola: I have to remember not to kill the messenger.  You are only reporting what has become common place.  Most citizens don't grasp the sever loss of privacy they are facilitating.

Apr 21, 2014 12:29 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

This is a scary thought..but how to stop the invasion of privacy? Thanks for a timely post.

Apr 21, 2014 12:31 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Lola, well, there is a big difference in Data and interpretation of data - and that's where consumers need professionals!

Apr 21, 2014 03:32 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

i am with Praful on this one....the interpretation of the data can slant the results

Apr 21, 2014 06:11 PM
Cheryl Johnson
Highland Park, CA

And then ... if we tie all the this in to the fact the our smart phones pretty open the door to broadcasting our physical location at times ... it does get unsettling.

And Lola, your responses , especially those in comment #36, are very thought-provoking too... thank you

Apr 21, 2014 09:26 PM
Melissa Brown
Helen Adams Realty - Charlotte, NC
Realtor - South Charlotte NC Homes for Sale

Great post, Lola, with lots of thought-provoking statements.  I find the vast dissemination of data unsettling as well.

Apr 21, 2014 11:34 PM
Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Data and Big Data, the present and future we live in.

Apr 21, 2014 11:43 PM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Over the years, many people have answered on line questionnaires, surveys, and simply entered the required information to qualify for shopping discounts and/or to sign up for websites.   Probably, at the time they were not considering / realizing the day would come - today - when all that information can be aggregated.      Thanks for the post!

Apr 22, 2014 12:17 AM
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

As we all see, the broad brush of data used by national sites can be way off and hurt some transactions.  However , the distribution on data on a mega scale is here and the genie is out of the bottle.

Apr 22, 2014 02:35 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I do not think we are going to put the Gennie Back into the bottle.  I am concerned about privacy issues.  

Apr 22, 2014 03:46 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It's just compiling of all public data that is already available & unfortunately stick it right to the roof of your house then broadcast it. How much info is too much already?

Apr 22, 2014 04:29 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Lola, I'm not sure I am a big fan of aggregated data and complete transparency. I am sure it cna be used for good, but it can also be used for bad.

Apr 22, 2014 12:17 PM
Bandele Oguntomilade, Top REALTOR
Bogun Realty and Luxury Homes - Woodland Hills, CA
Your Woodland Hills Real Estate Agent 818-825-6996

Congrats on your Featured Blog!  Keep up the good work.  Bandele

Apr 22, 2014 06:05 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

A thoughtful examination of a complicated matter, privacy.

Whether or not many have noticed, privacy went the way of Elvis decades ago.

Apr 26, 2014 11:02 PM
Jordan Gouger
Keller Williams Realty Inc. - Austin, TX
Helping you to achieve your housing goals!

There isn't such a thing as privacy anymore. If Zillow decides not to do anything with that data someone else will. It scary the amount of data that is publicly available.

Apr 29, 2014 05:15 AM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

I often wonderful the world our grandchildren will live in... Will there be such a thing as privacy of any kind?

Congrats on your feature . Beth

May 06, 2014 09:35 PM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Outstanding post congratulations on an excellent posting!

May 29, 2014 09:51 PM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

I feel that sometimes neighbors think they know more than they really do

May 29, 2014 09:57 PM