Effects of Zillow and Trulia

users with how sales prices have been trending where it matters - in their county, city, ZIP code

and neighborhood.

While Trulia is neither run by agents nor brokers, and claims to make money through advertising

rather than lead generation, ultimately the twin pillars that comprise its belief system are not too

far afield from that of Zillow.com:

• Looking for a home shouldn't be a miserable experience

• Information should be made freely and easily available to everyone

Access to information certainly can help a homebuyer make an informed decision. But if it isn't the

right information, or could easily be misinterpreted - and comes without disclaimers - is access to

it still a good thing?

The National Community Reinvestment Coalition, a Washington, D.C. based non-profit organization

that promotes equal access to credit and capital for underserved communities, doesn't think so.

In a 12-page complaint against Zillow.com filed with the Federal Trade Commission in October

2006, it says Zillow's "mechanism is highly inaccurate and misleading to consumers." The NRC

also notes - citing its own audit - that Zillow's "zestimates" are "off the mark" more than twothirds

of the time.

While Zillow does disclose the accuracy rates for major markets where it values homes (for

example, in the New York metropolitan area) it notes that just 52 percent of its estimates are

within 10 percent of a home's selling price, one of its worst accuracy rates. In the Seattle area, 73

percent of the company's estimates are within 10 percent of a selling price.

David Berenbaum, an executive vice president at the NRC who revealed his home's appraisal was

undervalued by Zillow by more than $30,000 said, "We are concerned about consumers relying on

the inaccurate information and getting into a bad loan." He also said low-income homeowners

have been targeted by predatory lenders who utilize the inaccurate information on Zillow to justify

their lending practices.

Still, as a real estate professional you know full well that the buying and selling of homes can and

never will be "commoditized." While certainly the appraisal aspect of the transaction needs to be

taken into consideration by all parties, it remains only a single step on the protracted journey of

bringing buyer and seller together.

In spite of "sell your own home" type enterprises, most homeowners have neither the time nor the

wherewithal to handle marketing their homes and attracting buyers. Even in 2008, to give a

property the highest chance to be sold, most people would recommend listing it in the Multiple

Listing service, a service that requires the assistance of a real estate pro.

Information on appraisals and valuation may indeed help both buyer and seller to come to terms.

In fact, it may have the intended effect of arming the buyer with more negotiating power to lower

prices while also helping to ensure that a seller is realistic in their expectations. As a real estate

professional, however, you want to caution buyers and sellers alike that a website, - whether it's

Zillow.com, Trulia.com or something else entirely - no matter how comprehensive and "marketsensitive"

it appears to be, will likely always have its limitations and fine print.

This article is for informational purposes only. Please refer to each respective website for the

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.