Comments on: Just Plain Dumb http://seattlehousingbuzz.com/2006/10/just-plain-dumb a Seattle Real Estate Blog Thu, 11 Mar 2010 00:23:08 +0000 http://wordpress.org/?v=2.3.1 By: Ben http://seattlehousingbuzz.com/2006/10/just-plain-dumb#comment-2096 Ben Fri, 27 Oct 2006 17:23:21 +0000 http://seattlehousingbuzz.com/2006/10/just-plain-dumb#comment-2096 JD, thanks for your thoughtful comments. I agree the only valuations worth the paper they're printed on are those from qualified appraisers. My point, though, was Zillow is no better or no worse than any real estate agent providing a pricing opinion (without viewing the property in person). JD, thanks for your thoughtful comments. I agree the only valuations worth the paper they’re printed on are those from qualified appraisers. My point, though, was Zillow is no better or no worse than any real estate agent providing a pricing opinion (without viewing the property in person).

]]> By: JD Biggers http://seattlehousingbuzz.com/2006/10/just-plain-dumb#comment-2088 JD Biggers Fri, 27 Oct 2006 14:01:28 +0000 http://seattlehousingbuzz.com/2006/10/just-plain-dumb#comment-2088 Yes, there IS something wroung with it. People are under the MISTAKEN impression that anyone can offer an opinion. NOT TRUE. Anyone CAN proffer a PREFERENCE, but OPINIONS must be backsed by a reconciliation of factual data, which Zillow does NOT use. Proof of this are libel laws, which clearly state that a person or entity may NOT make a public statement that is not based on fact. Zillow and similar companies do this EVERY DAY, and it is dangerous. Zillow's estimate of only 73% being within 10% is exceptionally high and, again, misleading. In reality, the numbers should probably be reversed based on my experience (a true, professional real estate aprpaiser). I don't know how often I have to respond to idiot borrowers and lenders why my opinion of value is more than 40% diffferent from what they received from Zillow. My own home, according to Zillow, was "worth" TWICE as much I paid for it at the time, and three times that now, even though recent sales show it is worth little more than 15% more than what I purchased it for. Zillow takes average GROSS sale prices (not removing sales concessions), and applies them evenly across the board for an area, not taking into account tat a small quarter mile seciton may have 20 different markets, or that renovation status is significantly different, placing a home with its original 1970's kitchen flooring, and everything else on par with a home of equal size that is fully modernized or even NEW. HouseValues.com is no better. Of the last 5 of these Realtor (not qualified in ANY state following USPAP and FIRREA to offfer an opinion of value)-provided estimates of value (illegal in Arizona and 38 other states, they were so far off it was amazing. For example, the last one showed three sales f similar sized homes with sale prices between $120k and $130k, and two listings on the market for more than 180 days at $165k and estimated the value of the subject proeprty at $165k. Even TRUE AVMs, like one provided by Countrywide, lack all the analytical tools required for an accurate conclusion of value, evidencd by the fact thatthe last 100 or so of these that I have seen with a "confidence score" or more than 85% were more than 50% off from ACTUAL DATA FOLLOWING PROPER RECONCILIATION. RAw sales data and GLA are NOT the basis for an opinion. Estimates of value are an Appraisal by very definition and should only be performed by QUALIFIED APPRAISERS who have the skills and tools to take the raw data and turn it into something meaningful and develope a properly formed opinion of value. Yes, there IS something wroung with it.

People are under the MISTAKEN impression that anyone can offer an opinion. NOT TRUE. Anyone CAN proffer a PREFERENCE, but OPINIONS must be backsed by a reconciliation of factual data, which Zillow does NOT use. Proof of this are libel laws, which clearly state that a person or entity may NOT make a public statement that is not based on fact. Zillow and similar companies do this EVERY DAY, and it is dangerous.

Zillow’s estimate of only 73% being within 10% is exceptionally high and, again, misleading. In reality, the numbers should probably be reversed based on my experience (a true, professional real estate aprpaiser). I don’t know how often I have to respond to idiot borrowers and lenders why my opinion of value is more than 40% diffferent from what they received from Zillow. My own home, according to Zillow, was “worth” TWICE as much I paid for it at the time, and three times that now, even though recent sales show it is worth little more than 15% more than what I purchased it for. Zillow takes average GROSS sale prices (not removing sales concessions), and applies them evenly across the board for an area, not taking into account tat a small quarter mile seciton may have 20 different markets, or that renovation status is significantly different, placing a home with its original 1970’s kitchen flooring, and everything else on par with a home of equal size that is fully modernized or even NEW.

HouseValues.com is no better. Of the last 5 of these Realtor (not qualified in ANY state following USPAP and FIRREA to offfer an opinion of value)-provided estimates of value (illegal in Arizona and 38 other states, they were so far off it was amazing. For example, the last one showed three sales f similar sized homes with sale prices between $120k and $130k, and two listings on the market for more than 180 days at $165k and estimated the value of the subject proeprty at $165k.

Even TRUE AVMs, like one provided by Countrywide, lack all the analytical tools required for an accurate conclusion of value, evidencd by the fact thatthe last 100 or so of these that I have seen with a “confidence score” or more than 85% were more than 50% off from ACTUAL DATA FOLLOWING PROPER RECONCILIATION. RAw sales data and GLA are NOT the basis for an opinion.

Estimates of value are an Appraisal by very definition and should only be performed by QUALIFIED APPRAISERS who have the skills and tools to take the raw data and turn it into something meaningful and develope a properly formed opinion of value.

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