RealTown's RealTalk

This was on the thread of Tragic California story, but I couldn't figure out how to respond. I kept getting an error message when I tried to respond to the group via email, and couldn't find the thread with Saul's comment on it on the web. So here it is. Do with it what you will :-)

[From Saul]
"As for Zillow, I never said they w ere the bad guy for posting inaccurate information. My message is, if you think their information is inaccurate, there are paths to make it better, and paths to giving consumers alternatives, which to me, are better than just complaining about something and taking no action to improve the situation."

How much do you think we can actually change the way Zillow reports sold prices? I have a warning on my website about sites like these. I was pretty surprised when RealTown named Zillow as a preferred partner.

Judith Clausen, Exclusive Buyer Brokerage
Buyers Advantage Real Estate of Metro Denver
Web Site: www.Buyers-Advantage.net
Blog: Denver Real Estate Blogspot
Newsletter: Realty Times Update
303-587-3509 Direct
877-570-3471 Internet Fax
8680 E. Alameda Ave., #1606
Denver, CO 80247

Hi, Judith,

I work in the Commerce City-Brighton area.  I, too, have found many outrageously misleading prices on Zillow.  Why do I use it?  Because my sellers use it to find out what their property is worth "according to Zillow."  I have spoken with the Zillow people, and they seem interested in getting it right.  So, when I see a price that is "out there" I report it to them.  They do a little research and if they agree, they change it.  A house that sold for $300,000 in 2003, certainly isn't worth $320,000 today.  At least not in my market.

I think Zillow is a tool, just like any other we use.  It is an opinion of prices, and sometimes those prices are wrong, wrong, wrong!  Some of them are even underpriced.  (Even in this market)  So, if I find one, I simply tell Zillow.  Little by little, the areas where I work are becoming more realistic to today's pricing on Zillow.

I always include what Zillow has to say about pricing in my CMAs with an explanation as to why I believe that price is wrong.  If I have established my credentials with my seller, and they understand that Zillow is an engine, not a human being researching every price on the site, then they are more willing to see that the price they and Zillow had a in mind will keep the house on the market for many months (but not with this listing Realtor :-) without selling success).  In my CMAs, I use as much current data as is available (which isn't much), and then I resort to using older data, and explaining the drop in pices since that older sale occurred.

As to warning sellers about the fallacy of using Zillow, I have tried that and I should not have wasted my breath.  Instead, I just make sure that I have a concise pricing theory in my CMA that I can back up by facts.  And after all that, we get right back to, "the market place sets the market price."  The buyer and seller always decide what the market price is -- sooner or later.

Regards,

Tracy Howard
Broker/Owner
Prairie Star Realty
Commerce City, CO

One of the problems we found with Zillow is their feature that allows an agent to "claim" a listing. A local agent had "claimed" hundreds of listings which were not his. The public was then linked to him and his contact information. After a complaint to his broker he removed the "claims". Complaints to Zillow about the practice were ineffective.

In researching this we saw other listings that linked to statements like "I'm not a licensed agent but I can refer you to one". My advice is to check your listings periodically and make sure someone else isn't "squatting" on them.

Janet Houde, Broker

San Jose, CA

This statement has always confused me about Realtor Attitudes regarding Zillow.  Mind you it's statements like this that should tell you something about the integrity of ZILLOW and the pirates that operate in the back ground.

"In researching this we saw other listings that linked to statements like "I'm not a licensed agent but I can refer you to one". My advice is to check your listings periodically and make sure someone else isn't "squatting" on them".

And this is what we call an "approved" VENDOR?  Give me a break!  Have we completely lost our ever lovin' minds or what??  Can't anybody see what is happening here?  If this isn't the epitome of manipulation I don't know what is.  Maybe this is why I OPT-OUT when I input my listings into the MLS!  If people are interested in in my listings they can contact me through the sign when they drive by. I have nothing to hide.  Maybe this is why my percentage of "in house" sales are so good?  I've seen people who are not licensed sell through advertising from the WWW.  Doesn't anybody get it yet, there are no rules on the WWW.  Who needs a license to advertise and market on the WWW?  NOBODY!  There are so many Real Estate Models from people who are marketers and web pirates on the WWW.  Didn't any of you guys and gals learn anything through your E-Pro Coarse?  The least you could have done is learn how the web works and how piracy is king on the web.

@Judith – “How much do you think we can actually change the way Zillow reports sold prices?”

SOLD data:  If a company wants to send us a feed of SOLD data, we’ll accept it (ex. Real Living is doing this).  In fact, a company could send us a couple years of worth of back-sold data and we would post it online.  We give the originating data source attribution on the listing.  We call this our Virtual Sold Sign program, like getting to keep your sign in the yard forever!  There is no cost to this program.  Any data sent gets posted to the site and also factored into the Zestimate formula. 

FOR SALE data: Giving us a feed of for sale data makes the system smarter as well.  It updates the basic core data of the home, and considers the sales price in the Zestimate formula.  Also when we have FOR SALE data, we replace the For Sale price with the Zestimate in the search results and on the map and at the top of the listing with the For Sale price, giving the Agent’s price more exposure and a higher priority than our number. 

A home record (not for sale or recently sold): A home owner can come in and write to the site and update anything about the home (ie, the number of bedrooms from 3 to 4).  Any home owner edits get factors into the Zestimate.  Also, the home owner can create an “owner’s estimate”. 

@Tracy – It may also help you to use our “What is a Zestimate” link http://www.zillow.com/howto/Zestimate.htm, where we explain that the Zestimate is not an appraisal but a starting point; and the Accuracy Chart we post online http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm, where you can drill down to see the margins of err in your specific county.  Both of these links can be found on our homepage.

@Janet - "I'm not a licensed agent but I can refer you to one"- please feel free to forward me things like this directly and I can have people look into it (sarab@zillow.com).  Also, if you see questionable things on the site, there is usually at least one “flag this content” button on the page, so feel free to use it.  Our customer service teams looks at every one of them.  To your other point, please note the Listing Agent will always trump any contact information on the page.  If you tell us something is for sale, this report for sale functionality goes away. 

Lindy is responding below to this:

Janet Houde, Broker Said:One of the problems we found with Zillow is their feature that allows an agent to "claim" a listing. A local agent had "claimed" hundreds of listings which were not his. The public was then linked to him and his contact information. After a complaint to his broker he removed the "claims". Complaints to Zillow about the practice were ineffective.In researching this we saw other listings that linked to statements like "I'm not a licensed agent but I can refer you to one". My advice is to check your listings periodically and make sure someone else isn't "squatting" on them.

*******************************************************************
Good Advice Janet! Someone claiming the listings as "their own" without permission would be a violation of the COE.The non-licensed agent should be referred to the state real estate board for offering real estate services without a license (presumably they are taking a fee).
Yvette Chisholm
########################################################

Janet & Yvette.... I feel like you are both missing the point, or perhaps I am just a broken record... (Okay the unlicensed agent, that's a whole separate issue, and kind of a no-brainer...)
But the part about Zillow ALLOWING people to claim listings, which then REQUIRES the rightful listing agent TO PARTICIPATE ON THE ZILLOW SITE, by reclaiming their own listings. It is a way to FORCE the listing agents to participate.
Zillow thinks that is okay.
IC/RealTalk/eProTalk/tres amigos evidently think that is okay, too.
Perhaps I am too picky?
I should merely be thankful for the extra nationwide exposure for my listings?
I don't think so.

OTOH... I am not threatened by Zillow... I can use it to my best advantage, and "roll my eyes" when needed, just as I do with R.com.... but I do RESENT being forced to claim my listings, and it should ALREADY show me(us) as the listing agent. 

Lindy in Houston