How Will Online Home Value Sites Affect Appraisers?

Zillow, RealEstate ABCValues, and other online home valuation tools are starting to resonate with lenders, brokers, and consumers. Of course, anytime that people are talking about home values, appraisers want to be in the picture! So naturally, Dave Biggers, CEO of a la mode, inc. asks . . . . "How can appraisers benefit from it?"

The following is from Dave's discussion on the WinTOTAL Users Group email forum:

Zillow is free and will remain so. Its business model is to get advertising revenue (like/with Google), and also referral fees from Realtors (like HouseValues.com, HomeGain.com, etc.). It seems like Zillow is a threat to traditional AVMs (depriving AVMs of getting the pre-appraisal checks), which is good. It also seems like it's a good/bad thing for Realtors (taking a chunk of the fee, but passing a lead). It would appear that it could be good in that it will decrease "comp checks" requests, which seem to be roundly hated among appraisers.

If I were an appraiser, I'd link to Zillow on my website [click here] as a resource for clients to get comp checks without bugging me. ("The more that go to Zillow, the less money AVMs make, and they're going after my bread and butter.") But most importantly, it seems like the same hook of getting homeowners to use it to decide to contact a Realtor would also work to get them to occasionally think "Maybe I need a real appraisal". I'm curious how you all [appraisers] view it.

• Is Zillow a threat, or an opportunity?
• Would you check Zillow for your own benefit while doing an appraisal?
• Would you send clients to it who ask for comp checks?
• Would you advertise on it for full appraisal services?
• If they eventually solicit appraisers the way they do Realtors (referral fee), how would you view that? It's interesting, certainly. Dave Biggers Chairman a la mode, inc.

Read Dave's full comments - click here. Appraisal