Arizona Republic: Realtors side with Zillow.com
By: Greg Swann,
Phoenix Real Estate,
Post Archive,
RSS FeedPosted: Saturday, April 21st, 2007, 11:26 pm MST
Category: Blogging, Disintermediation, Real Estate, Technology, Zillow.com
The Phoenix RE.net is heard from in a big way in an article that will appear in Sunday’s Arizona Republic about the State of Arizona’s attempts to stifle Zillow.com. Writes reporter Peter Corbett:
A state agency’s efforts to stop Zillow.com from offering property-value estimates in Arizona are drawing criticism from some Realtors who think regulators are overstepping their authority.The critics also are targeting an Arizona Board of Appraisal reform bill they fear will muzzle anyone from offering an opinion about property values unless he or she is a licensed appraiser, Realtor or attorney.
Phoenix real estate broker Greg Swann said that the legislation, Senate Bill 1291, is narrowly written to block Zillow from offering its estimates.
It also could affect other online services from offering property-value estimates using what are called automated valuation models, he said.
“This is legislation to stop progress,” said Swann, adding that state regulators are being Luddites in trying to halt the advance of Internet commerce.
The Arizona House is expected to consider the bill on Monday, said Deborah Pearson, director of Arizona Board of Appraisal.
The legislation is not aimed at Zillow but rather is intended to update statutes that have not changed since 1991, Pearson said.
Realtor Swann of www.BloodhoundRealty.com, said that the bill is so tightly written that two neighbors talking to each other about a neighbor’s property technically would be in violation of the law.
Pearson said exemptions in the law would permit neighbors to talk about property values.
It may be that she thinks this to be the case, but the language of the legislation is very precise:
“Appraisal” or “real estate appraisal” means any of the following: (A) The act or process of developing an opinion of value. (B) An opinion of value. (C) Pertaining to appraising and related functions such as appraisal practice or appraisal services.
This is very clear. Any opinion of value brought forth by anyone not explicitly exempted by the law would be a violation of that law. To capture Zillow.com and other Automated Valuation Models, they had to write the law so broadly that it effectively outlaws all “unofficial” opinions of value.
Corbett continues:
The controversy about appraisals erupted in the wake of the state’s efforts to stifle Zillow. The Board of Appraisal, in June and November of 2006, sent cease-and-desist letters to Seattle-based Zillow, ordering it to stop offering its property-value estimates, which have made it one of the most popular real estate Web sites since its launch in February 2006.The board said that Zillow cannot offer opinions of value without having an appraiser license.
Zillow continues to offer its estimates in Arizona, and nationwide.
Zillow.com’s President Lloyd Frink is quoted denying that the web site’s “Zestimates” are appraisals.
Corbett also spoke with Jay Thompson, The Phoenix Real Estate Guy:
Several critics, including Jay Thompson, a Realtor in Mesa, said that Zillow has been singled out even though other services, such as www.realestateabc.com, also offer property-value estimates online.[...]Thompson of Century 21 Aware Realty said people understand that the Zillow estimates do not take into account all the variables that affect property values.
“They’re not trying to take the place of appraisers,” he said. “They don’t know if your neighbor’s house is painted purple or his dog barks all night.”
The Board of Appraisal ought to have more important things to worry about other than online appraisals, Thompson said.
Obviously, I’m grateful to Peter Corbett and to the Republic for digging deeper into this story, but it’s probably too late. This bill is going for its third reading before the Arizona House on Monday. If it passes by a two-thirds majority, it will go to Governor Janet Napalitano for signing. It seems fairly likely that Zillow.com will have to prevail in court to shoot this nonsense down.
Both the Republic and state regulators persist in telling us there is massive loan fraud in Arizona. If that is true, it cannot have been effected without the connivance of corrupt appraisers — not AVMs, the moist and fleshy kind. So, in preference to investigating that, this is what the Board of Appraisal is wasting its time on. You could almost dismiss it as a smokescreen, were it not for the vast wealth that will be wasted clearing away all this smoke…
Further notice: Jay Thompson: “In the Eyes of the Arizona Board of Appraisal, Zillow Stands Alone”, NARblog.
More:
- Arizona Board of Appraisal to Zillow.com: In your Zestimation, does this posturing make us look stupid?
- Zillow.com at the Dawn of the Age of Abundance: Working for free is not a crime, trying to forbid it is…
- “Zillow’s Arizona valuations questioned since the beginning”
- Idle chatter of idle neighbors to be outlawed in Arizona: Appraiser’s job protection act passes Arizona State Senate
- Protecting whom? There are no complaining parties in Arizona’s quest to outlaw free consumer-oriented home evaluations
- Zillow.com notes: Fear and Ludditism, advertising, a better farming strategy and more
- Arizona Republic: Realtors side with Zillow.com
- KTAR Radio on Arizona’s attempts to stifle Zillow.com
- Zillow.com dodges bullet in Arizona: Amendment would permit consumer-oriented automated valuation models to operate without regulatory oversight
- Arizona appraisal bill, amended to permit AVMs such as Zillow.com to operate in state, fails to pass
- Waxed Fruit Hegemony: Taking over the world one random media appearance at a time
- Waxed Fruit Hegemony: The Director’s Cut
- What this state needs is more public ridicule! Arizona House to reconsider Zillow.com-proofed bill on Monday
- Are you an appraisal scofflaw? Are you sure you know what your client is doing with that Broker Price Opinion?
- State vs. Zillow.com will be a lengthy bout
- East Valley Tribune slams Board of Appraisal over Zillow.com censorship, endorses Reagan amendments to SB 1291
- The Zillow.com persecution: Why it matters to all of us
- Arizona appraisal bill, amended to allow web sites like Zillow.com to operate, passes House, returned to Senate
- “Here’s a better idea: How about abolishing the state Board of Appraisal?”
- Zillow.com exemption: Arizona State Senate gives itself a frank appraisal, elects to seek out other feet in which to shoot itself
- Zillow.com off the hook in Arizona?: “State rethinks crackdown on online home appraisals”
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Related posts:8 Comments so far
[...] I’m not going to go into this in depth as both Greg and Jay already have done so, but it appears some at the Republic have woken up to the reality that there are some of us are providing fairly in-depth coverage of the real estate market. The Republic tackled the Arizona Board of Appraisal vs. Zillow silliness this morning. [...]
[...] With any luck, the work done by Greg Swann in “hounding” the Arizona Republic about the imminent passage of S.B.1291 will at least give you pause that you might use for reflection. Do you really want to pass a law that in all likelihood will cost Arizona’s taxpayers hundreds of thousands of dollars in legal fees? [...]
Seems like Realtors are backing the right dog in this fight (assuming your comments and those of other Realtors sited in your article represent the consensus view.)
It would be a step in the right direction to see the National Association of Realtors to adopt a similar outlook. Embracing change and riding the wave of technology is the key to remaining relevant - by all counts it would seem that the NAR is wedded to defending yesterday’s business model and using legal maneuvers to block the forces of competition.
Glad the Republic picked up your opinions. I hope your voice is heard.
Just curious, based on the current legislation in place and the proposed legislation what wording would you change in the proposed legislation?
> Just curious, based on the current legislation in place and the proposed legislation what wording would you change in the proposed legislation?
I don’t play the reform game. Crime is evil. There is awful crime and less-awful crime, but there is no normal circumstance in which any crime should be preferred to its absence. Don’t try to “fix” the law to make it less-awful. Repeal it.
Not sure which thread you want this in, but it’s making the rounds around the US…
From the Florida Realtors page…
http://www.floridarealtors.org/NewsAndEvents/n3-042307.cfm
[...] SB1291, mentioned here and there over the past few days has been amended — with some common sense for a change. Greg Swann sums up the recent activity well, no point in rehashing it here. [...]
Zofficial …
Zillow…