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 Read more

