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And You Thought Zillow Caused a Ruckus???

By
Managing Real Estate Broker with San Diego Previews Real Estate CA BRE# 01101958

Zillow and AVVO PuzzleIt seems nobody is immune from the power of the internet—or the inevitability of progress.

Now it's time for Realtors and Active Rainer's to enjoy a turn of the tables. I am chuckling--sorta....

Zillow rattled the real estate industry (and many homeowners) with last year’s unveiling of its near-instant online real estate valuations.The complaints came primarily from Realtors who feared the public would come to rely on Zillow Zestimates for home valuations—and from homeowners whose property values were decimated by the Zestimates. After all, Zillow has no way of knowing about property upgrades or negatives. It bases its valuation on comparative sales in the neighborhood.

Now attorneys may get to wrestle with a similar online competitor called AVVO, whose business model has not yet been revealed.  

Their current Googled mission statement is mysterious enough to keep us all wondering: 

Avvo: Helping Consumers Navigate the Legal Industry (providing) law resources and consumer tools to help people make informed decisions about legal services and navigate legal business.

As interesting as the similarities in the two companies might be, the familiarities are almost more interesting. Seattle Post-Intelligencer’s  great blogger John Cook reveals the relationship between the founders of each company in his blog. According to Cook, AVVO CEO Mark Britton and Zillow’s CEO Rich Barton both worked at Expedia. They left the online travel company at different times, but took similar extended sojourns in Italy after leaving their jobs. Both returned to Seattle with industry-shaking ideas.

Now these two friends are linked by more than their history. It appears Barton iserves on Britton’s AVVO Board of Directors—and that Barton even helped come up with the AVVO name, which is taken from the Italian avvocato (ie lawyer). And the business model for this legalistic site is just as secretly shrouded and discussed as Zillow’s before its online debut. Could this be a searchable legal site, a rating service for attorneys, or perhaps even a “bid for service” model? The mystery surrounding this venture is great—and is likely also part of the marketing buzz and plan.

Forgive the pun, but it appears the bar is being raised in online ventures.

 

San Diego Real Estate

 

Randal Keberlein
Weichert Realtors, Precision - Kenosha, WI
I want to see the lawyers battle this one out!  Very interesting.
Apr 19, 2007 02:16 PM
Elaine Reese, REALTOR® in central Ohio
Real Living HER, Powell Ohio - Powell, OH
Now THIS could be fun to watch. Dare we repeat what some of the lawyers say about us - that it will benefit the public as they need to be more competitive - and that their fees will/should be reduced. Hey, Virginia, there really is a Santa Claus.
Apr 19, 2007 02:35 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
With lawyers involved this will certainly provide some entertainment, can't wait for the launch.
Apr 19, 2007 02:37 PM
John Cilladi
Keller Williams Real Estate - Exton, PA
REALTOR, EcoBroker, e-PRO
Let the games begin!
Apr 19, 2007 02:49 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate

Boy Roberta...for awhile I thougt you were another supporter of Zillow and first said "I thought I was going to make it through the week without reading another post about how great Zillow is!"  Thanks for not joining the support Zillow campaign.  I can write a book about what Zillow is a failure.  Thanks for bringing this new proposal to our attention.  I don't think we have seen the tip of the ice berg when it comes to web companies that claim to have all the answers.  Thanks and have a great evening.

Apr 19, 2007 02:49 PM
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
I wonder how many frivolous law suits can be filed to delay the website opening?   This could be great.   The only other thing on the subject I have to say is    "Denny Crain"
Apr 19, 2007 02:55 PM
. .
San Diego, CA
Bid for service? The lawyer version have "Name That Tune"? I doubt I'll see any of my stable of legal eagles nesting there.
Apr 19, 2007 03:03 PM
Roberta Murphy
San Diego Previews Real Estate - Carlsbad, CA
Carlsbad Real Estate and Homes

Brad Patschkowski: Thank you!

Gary: Me, too...as long as it isn't between Realtors:-D

Randal Keberlein, Elaine Reese, Jennifer Fivelsdal, John Ciladi, Chris Lengquist: I have already reserved a front row seat for this battle and possible bidding war (tee hee!).

George Tallabas: I am fairly neutral about Zillow and have not yet determined whether they are friend or foe. My guess is they'll follow the money and Realtor's advertising dollars.

Apr 19, 2007 03:10 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Roberta...Here is my book on Zillow...LOL   First, I started posting my listings on Zillow about 6 months ago and after 5 months there was only one link to my site from Zillow...my own.  Since January of this year I have sold 14 properties directly from Craigs List.   Secondly, property values are going up in Seattle 3-10% depending on the area.  Home values are declining around the same percentage in Detroit about the same percentage.  This are only two cities in a HUGE country. How can one company keep up with every city, USA and give accurate information?  I also don't see sellers wanting to share private information with Zillow or any other company.  I rest my case :-)
Apr 19, 2007 03:52 PM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Roberta,

Thanks for sharing.  Online ventures?  Seems like everyone is trying to make buck online one way or another, some good, some not.  Guess time will tell on this one.

Apr 19, 2007 04:05 PM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

George,

Don't advertise on Zillow and don't participate in the community they're building there.  I hate sci-fi movies but I haven't tried to legislate their extinction; I just change the channel. 

Apr 19, 2007 04:15 PM
Jason Vombaur
Keller Williams - Vancouver, WA
I love it when I go to clients house and they want to show me the zillow printouts they did.  Most the time they are not even in the same ball park.  A person must look at the home, market to decide the price.
Apr 19, 2007 04:23 PM
Ryan Hukill - Edmond
405home @ ERA Courtyard - Edmond, OK
Realtor, Team Lead
It'll be interesting to see how this one shakes out. Thanks for sharing!
Apr 19, 2007 04:38 PM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

My educational background is in economics and one thing that economics teach us is that if a company, entity or industry is receiving excess profits that the market will react, driving prices (and therefore profits) down.

However, when one door shuts, another one opens...competition is a good thang!

 

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc. 

Apr 19, 2007 07:01 PM
Laurie Manny
Long Beach CA Real Estate - Long Beach, CA
Thanks Roberta, I needed a really good laugh today!  It's going to be fun watching them squirm.
Apr 19, 2007 07:24 PM
Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC
Well, how interesting!  I wonder how the business model will work. 
Apr 19, 2007 11:33 PM
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
May be it's instant legal advice. The legal advice will be as good as the zestimates....LOL.
Apr 20, 2007 01:21 AM
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Darn interesting. 

And you certainly got the conversation going on your latest Zillow blog....

Apr 20, 2007 02:38 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
I love it.  What's good for the goose...
Apr 20, 2007 06:16 AM
Patrick Harfst
Realty Executives - Phoenix AZ - Gilbert, AZ
Good for Z-low to go after the legal industry... Now maybe they'll get to spend some of their money in court, fighting the lawyers... That is a fight I'd pay to watch!
Apr 20, 2007 09:14 AM