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Should you mention Zillow and Cyberhomes in your CMA & listing presentation?

By Pacita Dimacali

Real Estate Agent with Alain Pinel BRE 01367196

September 12, 2008 04:47 AM

I just listed a fixer home, and posted it on craigslist, using information I got from Zillow and Cyberhomes.

The local Alameda blogger saw it immediately. And although I got points for straight-talkin' the condition of the property, he zinged me (or realtors in general) for using Zillow zestimate in my craigslist/vflyer/postlet post.

And speaking of Zillow, after all the flak the big Z is getting from the real estate industry for their Zestimates(tm), I find it a bit rich that a Zestimate(tm) is not only mentioned in a listing, but ostensibly used to establish a "fair" list price by deducting $50K from that Zestimate(tm). And for what looks like a serious fixer, $648,000 ($350 / sqft) seems a bit high considering how easy it is to spend $150K on a house that size in that condition--which would bring the price up to a risky $430 / sqft.

My response was that since many people go to these sites, it seems an oversight not to mention them. Heck, when I went to the listing presentation, my sellers have already downloaded the Zillow zestimate. I came with an additional estimate from Cyberhomes.

Interestingly enough, Zillow's estimate is $697K (it's a moving target....)

And Cyberhomes estimate was $720K before I activated the listing. After the listing was posted, there was no estimate anymore, just charts for median price, etc.

In my opinion, we can refer to these sites as another resource, but there's no substitute for an in-depth comparable market analysis from a REALTOR.

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Brett Shaw

Coldwell Banker Kaiser - Carmel, IN

Brett Shaw from Cyberhomes:

Thanks again for the mention Pacita. I agree with you that you should mention them, especially if they have already gone onto the site to get information. I again want to stress that the estimate on Cyberhomes.com is just a starting point and that a local REALTOR should be consulted.

Once you activate a listing on Cyberhomes, the estimate is removed and the list price is shown. This list price will then be incorporated into the valuation model for other homes. We value a REALTOR's list price as the authority for the home's actual value. Over time, once many homes are bought and sold, the home valuation tool will be more accurate.

Using Cyberhomes as a resource goes beyond the AVM, though. The local information is plentiful and very informative.

Oct 06, 2008 02:36 AM

Peter Larson

Granite Bridge Homes - San Diego, CA

I was just shown Cyberhomes (by a home owner) when I was doing BPO photos for a loan remod for a bank that is trying to renegotiate the loan with the owner. I do like the site and it seems to be really well put together and fairly accurate given the market and fast declining prices. I, of course, have to handle the BPO with the tools that I have to arrive at a value for the bank. I am curious to see if in some cases this site may cause some unwarranted heartache for home owners given the havoc that Zillow has created for some listing presentations with internet savvy owners. What are your thoughts Brett and Pacita?

Nov 21, 2008 03:35 AM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Peter

The advantage of using both estimates is that I at least let the owners know that I am as much in tune online as they are in terms of resources to get comparable values. But I tell them that there is no substitute for local knowledge.

One of my friends is listing a home. The BPO was done (typically, a drive by), and based on that, the lender said it was worth $500K. What the BPO agent didn't see is that the house is a total wreck. And based on other contractor fixers we have in town in the immediate vicinity, the property is really only worth about $300K. That is a HUGE difference.

So I quote that as another example of the need for knowing one's market when preparing comps.

What I like about Zillow's estimate is that I can go back 10 years to show the market movement and appreciation, and compare the local trends with the state's and nation's

Nov 21, 2008 03:45 AM

Thanks! As for the BPO...they can be a disaster! I feel that the drive by BPOs are pretty much worthless. The interior BPO are much more accurate. A drive by also does not account for the fact that the home owner may take everything but the studs out of the house when they leave after being foreclosed on! It is a smart idea to show your clients that you are aware of the same resources that they are...good advice. Thanks for the input!

Nov 21, 2008 04:21 AM

Peter,

You're welcome. Good luck in your endeavors.

Nov 21, 2008 04:27 AM

Should you mention Zillow and Cyberhomes in your CMA & listing presentation?

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