Zillow.com dodges bullet in Arizona: Amendment would permit consumer-oriented automated valuation models to operate without regulatory oversight
By: Greg Swann,
Phoenix Real Estate,
Post Archive,
RSS FeedPosted: Monday, April 23rd, 2007, 5:08 pm MST
Category: Disintermediation, Marketing, Real Estate, Technology, Zillow.com
From a press release from the office of Representative Michele Reagan:
Arizona homeowners can still access their “zestimates” with the preliminary approval Monday of a bill that bars the Arizona Board of Appraisal from torpedoing online businesses that provide property value estimates.An amendment sponsored by Rep. Michele Reagan to SB1291 allows web sites to offer free opinions regarding the value of real estate if it is not an actual appraisal. The bill impacts most notably Zillow.com, which provides free estimates of a property’s value.
“Companies like Zillow.com provide an easy way to get an idea of the value of a home anywhere in the country,” said Reagan, R-Scottsdale. “Government should not put the kibosh on such an informative online tool.”
The Arizona Board of Appraisal sent two cease and desist letters ordering Zillow.com to stop offering its free service in the state. The board is also considering suing the Seattle-based company despite its wide popularity in Arizona and around the nation. In addition, the board asked the Arizona attorney general to prosecute Zillow.com for offering “zestimates.”
“Zillow.com provides a valuable resource for Arizonans and an unelected board’s desire to hamper consumers’ efforts to get as much information as possible makes no sense,” Reagan, chairwoman of the House Commerce Committee, said. “Instead of protecting Arizonans, the Board of Appraisal wants to stifle access to valuable market information.”
The bill received initial approval Monday and is expected to get a vote on the House floor this week. The bill then goes back to the Senate for final consideration.
This is not over yet, but it’s movement in the right direction. If I can lay hands on it, I’ll post the link to the revised bill and highlight the change.
Further notice: The amendments are here: one, two and three. In addition to allowing for consumer-oriented AVMs, Reagan seems to have restored the balance of civilian oversight of the Arizona Board of Appraisal. For comparison: The proposed legislation prior to these amendments.
There are two changes to the language that stand out:
Page 3, between lines 41 and 42, insert:“9. AN INTERNET WEBSITE THAT GIVES A FREE OPINION AS TO THE VALUE OF REAL ESTATE IF THIS OPINION IS NOT REFERRED TO AS AN APPRAISAL.”
This creates an exemption in the law for consumer-oriented AVMs, as well as for sites that use pseudo-trading-floor models to predict values. Interestingly, the uninformed neighbors, the boys in the bar and all the idle chatterers will still be in violation of this law as amended.
Next:
Page 26, after line 14, insert:“Sec. 28. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.”
This means that it will take effect as soon as the Governor signs it, rather than in early June when all the non-emergency bills take effect. I’m reading this as a call-off-your-dogs memo to Arizona Attorney General Terry Goddard. And that much makes me think that Zillow.com may have been involved in the phone calls behind these amendments.
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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9 Comments so far
Very interesting. Thanks for following up…
[...] 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. [...]
Common sense at the state legislature – quick call the press…
Zillow wasn’t the only one on the phones…
[...] Hat tip to Greg for his late-evening post. [...]
> Zillow wasn’t the only one on the phones…
Say on. I’m all ears. I would love to know how all that worked out.
I think it will get changed again. The current wording is pretty bad. Anyone, including appraisers, could give a value estimate as long as it is in website form and they don’t call it an appraisal. This would allow the very people being regulated, appraisers, to bypass all regulation by simply calling it something else. Maybe I’m an idiot, but I see a problem.
The third read today FAILED!!
THIRD READ: DATE AYES NAYS NV EXC EMER AMEND RFE 2/3 VOTE RESULT
Vote Detail 04/24/07 32 22 6 0 Y Y FAILED
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/1r/bills/sb1291o.asp
I guess some others saw some problems with the amendment!!
[...] Zillow has been under fire in Arizona. See latest here, here and expert analysis here. [...]