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Some of the other web site features are:
Some of the other web site features are:
* Zillow Mortgage Marketplace: This service is aimed at changing the way Americans shop for mortgages called[http://www.zillow.com/mortgage/ Zillow Mortgage Marketplace]. Borrowers can use Zillow Mortgage Marketplace to get custom loan quotes without revealing personally identifying information, such as Social Security numbers and phone numbers. Borrowers reveal their identities only after contacting the lender of their choice. For mortgage companies, the anonymous leads come free of charge; they can make a bid based on information provided by the borrower, such as salary, assets, credit score, and the type of loan. Lenders can browse borrower requests and see competing quotes from other brokers before making a bid<ref>http://www.businessweek.com/lifestyle/content/apr2008/bw2008043_948040.htm?chan=top+news_top+news+index_businessweek+exclusives </ref>. Zillow verifies every lender's identity, employment and broker license. Each lender has a public profile on the site with contact information, an e-mail link and ratings submitted by borrowers who contacted them<ref>http://www.dailynewstribune.com/business/x1059924552</ref> According to a summary of Zillow Mortgage Marketplace<ref>http://www.inman.com/buyers-sellers/columnists/berniceross/zillows-hottest-new-tools-real-estate?page=0%2C0</ref> written by Bernice Ross from Inman News on May 25, 2009, Zillow has an online loan application process providing many features, including that, buyers can remain anonymous, an average of 15 quotes and what Zillow calls an "apples-to-apples comparison". Both traditional and online lenders normally require extensive information before they will give the buyer a rate quote. Since buyers want to avoid being solicited by a number of lenders, many are reluctant to reveal their identity. Furthermore, buyers are justifiably concerned that multiple inquiries will harm their credit report. In contrast, Zillow gathers enough information to create a legitimate loan quote. They do not, however, require the buyer to provide their name, address, phone number, e-mail address or Social Security number. The buyer remains anonymous until he or she is ready to contact the lender. This also eliminates the hassle of unwanted e-mails and phone calls from multiple lenders. The LendingTree model provides the borrower with four quotes. Zillow provides an unlimited number of loan quotes from thousands of competing lenders. In fact, the typical borrower on Zillow receives 15 loan quotes. Each lender sees the other competing bids. This means great savings for the borrower. One of the most difficult aspects for consumers is choosing which combination of rates and fees is best for their situation. Zillow requires all participating lenders to divulge their rates plus all fees. This allows buyers to do accurate comparisons. Their system also allows borrowers to filter various loans by rate, fees, monthly payment, annual percentage rate (APR), lender rating, and distance to the lender.
* Zillow Mortgage Marketplace: This service is aimed at changing the way Americans shop for mortgages called[http://www.zillow.com/mortgage/ Zillow Mortgage Marketplace]. Borrowers can use Zillow Mortgage Marketplace to get custom loan quotes without revealing personally identifying information, such as Social Security numbers and phone numbers. Borrowers reveal their identities only after contacting the lender of their choice. For mortgage companies, the anonymous leads come free of charge; they can make a bid based on information provided by the borrower, such as salary, assets, credit score, and the type of loan. Lenders can browse borrower requests and see competing quotes from other brokers before making a bid<ref>http://www.businessweek.com/lifestyle/content/apr2008/bw2008043_948040.htm?chan=top+news_top+news+index_businessweek+exclusives </ref>. Zillow verifies every lender's identity, employment and broker license. Each lender has a public profile on the site with contact information, an e-mail link and ratings submitted by borrowers who contacted them<ref>http://www.dailynewstribune.com/business/x1059924552</ref> According to a summary of Zillow Mortgage Marketplace<ref>http://www.inman.com/buyers-sellers/columnists/berniceross/zillows-hottest-new-tools-real-estate?page=0%2C0</ref> Zillow requires all participating lenders to divulge their rates plus all fees. This allows buyers to do accurate comparisons. Their system also allows borrowers to filter various loans by rate, fees, monthly payment, annual percentage rate (APR), lender rating, and distance to the lender.
* Zillow iPhone: This is a free [http://www.zillow.com/iphone/ Zillow.com iPhone application]. Utilizing the iPhone's GPS functionality, the app pinpoints a user's location and shows nearby homes on interactive aerial maps. The app also shows estimated home values, historical property records, for-sale listings and photos. Zillow's app also offers data on 95 percent of the homes in the country -- which means iPhone touting users can look up the estimate value of a home or peruse interior photos of their neighbors' for sale pad as they walk, drive or boat around the neighborhood<ref>http://www.techflash.com/venture/Zillow_unveils_iPhone_app_43857317.html</ref>. In some neighborhoods you can find homes where owners have posted [http://www.zillow.com/postings/MakeMeMove.htm Make Me Move] prices. These are often sky-high numbers aimed at house coveters who can’t wait for it to hit the market<ref>http://www.nytimes.com/2009/05/07/technology/personaltech/07smart.html </ref>. The new application is available at the Apple App store.
* Zillow iPhone: This is a free [http://www.zillow.com/iphone/ Zillow.com iPhone application]. Utilizing the iPhone's GPS functionality, the app pinpoints a user's location and shows nearby homes on interactive aerial maps. The app also shows estimated home values, historical property records, for-sale listings and photos. Zillow's app also offers data on 95 percent of the homes in the country -- which means iPhone touting users can look up the estimate value of a home or peruse interior photos of their neighbors' for sale pad as they walk, drive or boat around the neighborhood<ref>http://www.techflash.com/venture/Zillow_unveils_iPhone_app_43857317.html</ref>. In some neighborhoods you can find homes where owners have posted [http://www.zillow.com/postings/MakeMeMove.htm Make Me Move] prices. These are often sky-high numbers aimed at house coveters who can’t wait for it to hit the market<ref>http://www.nytimes.com/2009/05/07/technology/personaltech/07smart.html </ref>. The new application is available at the Apple App store.
* Zillow Advice: [http://www.zillow.com/advice/ Zillow Advice] allows people to ask real estate questions online and get answers from the Web site's community of experts <ref>http://blog.seattlepi.com/realestatenews/archives/156907.asp</ref>. Zillow Advice, linked through a tab on Zillow's homepage, lets users tag questions by topic or geographic area. Users can tag questions by state, city or neighborhood; search questions and discussions by key word; and can note the "best answer" they get. Experts whose answers are frequently voted the best earn points towards a "Local Expert" badge. Professionals also can subscribe to specific locations or topics in their area of expertise, getting email or RSS feed notifications of new questions. Answers link to users' free Zillow profile page.
* Zillow Advice: [http://www.zillow.com/advice/ Zillow Advice] allows people to ask real estate questions online and get answers from the Web site's community of experts <ref>http://blog.seattlepi.com/realestatenews/archives/156907.asp</ref>. Zillow Advice, linked through a tab on Zillow's homepage, lets users tag questions by topic or geographic area. Users can tag questions by state, city or neighborhood; search questions and discussions by key word; and can note the "best answer" they get. Experts whose answers are frequently voted the best earn points towards a "Local Expert" badge. Professionals also can subscribe to specific locations or topics in their area of expertise, getting email or RSS feed notifications of new questions. Answers link to users' free Zillow profile page.

Revision as of 19:15, 23 December 2009

Zillow.com
File:Zillow.png
Type of site
Real estate
Available inEnglish
OwnerRich Barton, Lloyd Frink
Created byRich Barton, Lloyd Frink
URLhttp://www.zillow.com/
CommercialYes
RegistrationOptional

Zillow.com is an online real estate database that was founded in 2005 by Rich Barton and Lloyd Frink, former Microsoft executives and founders of Expedia. The website uses a proprietary algorithm called the "Zestimate" to appraise property values based on undisclosed factors. Sellers can use Zillow as a marketing tool by appraising their properties, posting property information such as improvements and access to major roads; and comparing nearby property value appraisals.

Business model

Zillow has stated that it is a media company that generates revenue by selling advertising on the Web site[1].In April 2009, Zillow announced a partnership to lend its real estate search engine to the Web sites of more than 180 United States newspapers as a part of the Zillow Newspaper Consortium. Zillow shares advertising revenue from the co-branded sites with the newspapers and extends its reach into local markets.[2] The website currently tracks over 90 million valuations throughout the United States [3]. Although Zillow is ranked in the top 300 U.S. sites in terms of traffic by Alexa [4], it has encountered controversy over appraisal licensing violations in some states[5] and inaccuracies and inconsistencies of its Zestimate appraisal algorithm [6]. At its peak, Zillow was visited by nearly nine million users per month[7]. Of those users, 90% own a home and 2/3 are looking to buy or sell within the next two years. Over 50 million U.S. homes have been viewed on Zillow. In some cities more than 90% of all homes that exist have been viewed on Zillow-- San Francisco, Los Angeles, Boston and Seattle. Over 10 million users have claimed and edited property information on the site.[8]

Website features

Zillow has data on over 90 million homes across the United States, not just those homes currently for sale. In addition to giving value estimates of homes, it offers several features including value changes of each home in a given time frame (such as 1, 5, or 10 years), aerial views of homes, and prices of comparable homes in the area. Where it can access appropriate public data, it also provides basic information on a given home, such as square footage and the number of bedrooms and bathrooms. Users can also get current estimates of homes if there was a significant change made, such as a recently remodeled kitchen. Zillow provides an application programming interface (API) and developer support network.[9][10][11]

In December 2006, Zillow launched three new pieces of functionality: allowing users to post homes for sale and set a "Make Me Move" price (an informal way to pre-market a home), as well as a real estate wiki. In 2007, Zillow teamed with Microsoft to offer Bird's Eye View, a feature in Microsoft Virtual Earth, that shows (in certain areas) clearer aerial photographs taken from airplanes rather than conventional satellite imagery. Zillow uses this functionality for entertainment-focused features on famous homes.[12]

As a part of its API, Zillow assigns a numerical integer to each of the 92 million homes in its database, which is plainly visible as CGI parameters to the URLs to individual entries on its website. The identifier is not obfuscated and is assigned in sequence for each house or condo on the side of a street. Zillow reports on individual units, such as providing street address, latitude and longitude. When integrated with the features of a typical online reverse telephone directory and wiki-mapping services such as WikiMapia, it allows for nationwide "seating assignments" of U.S. neighborhoods for each house that has a listed phone number with a real human name.[citation needed] Zillow also releases a quarterly Homeowner Confidence Survey[13]. The survey is conducted by Harris Interactive and measures homeowners' perceptions about home value changes of their own home and the local market.

Some of the other web site features are:

  • Zillow Mortgage Marketplace: This service is aimed at changing the way Americans shop for mortgages calledZillow Mortgage Marketplace. Borrowers can use Zillow Mortgage Marketplace to get custom loan quotes without revealing personally identifying information, such as Social Security numbers and phone numbers. Borrowers reveal their identities only after contacting the lender of their choice. For mortgage companies, the anonymous leads come free of charge; they can make a bid based on information provided by the borrower, such as salary, assets, credit score, and the type of loan. Lenders can browse borrower requests and see competing quotes from other brokers before making a bid[14]. Zillow verifies every lender's identity, employment and broker license. Each lender has a public profile on the site with contact information, an e-mail link and ratings submitted by borrowers who contacted them[15] According to a summary of Zillow Mortgage Marketplace[16] Zillow requires all participating lenders to divulge their rates plus all fees. This allows buyers to do accurate comparisons. Their system also allows borrowers to filter various loans by rate, fees, monthly payment, annual percentage rate (APR), lender rating, and distance to the lender.
  • Zillow iPhone: This is a free Zillow.com iPhone application. Utilizing the iPhone's GPS functionality, the app pinpoints a user's location and shows nearby homes on interactive aerial maps. The app also shows estimated home values, historical property records, for-sale listings and photos. Zillow's app also offers data on 95 percent of the homes in the country -- which means iPhone touting users can look up the estimate value of a home or peruse interior photos of their neighbors' for sale pad as they walk, drive or boat around the neighborhood[17]. In some neighborhoods you can find homes where owners have posted Make Me Move prices. These are often sky-high numbers aimed at house coveters who can’t wait for it to hit the market[18]. The new application is available at the Apple App store.
  • Zillow Advice: Zillow Advice allows people to ask real estate questions online and get answers from the Web site's community of experts [19]. Zillow Advice, linked through a tab on Zillow's homepage, lets users tag questions by topic or geographic area. Users can tag questions by state, city or neighborhood; search questions and discussions by key word; and can note the "best answer" they get. Experts whose answers are frequently voted the best earn points towards a "Local Expert" badge. Professionals also can subscribe to specific locations or topics in their area of expertise, getting email or RSS feed notifications of new questions. Answers link to users' free Zillow profile page.
  • Zillow Discussions and Home Q&A already allow broader discussion topics or home-specific questions and answers.
  • Zillow Blog: Maintained by the employees of Zillow, the Zillow Blog reports on everything from real estate industry market trends, home value information, mortgages, and celebrity real estate.
  • Real Estate Market Reports: Zillow produces home value reports for the nation and over 160 metropolitan statistical areas. The reports identify market trends including, but not limited to: five and 10-year annualized change, negative equity[20], short sales and foreclosure transactions.[21]

Zestimate

Zillow determines an estimate for a house, which it refers to as "Zestimate", based on a range of publicly available information, including sales of comparable houses in a neighborhood.[22] Zestimate does not take into consideration home-specific factors like recent remodeling, although there is an option to update the information for a particular home. The accuracy of the Zestimate varies by location depending on how much information is publicly available, but Zillow allows users to check the accuracy of Zestimates in their own region against actual sales.[23] In many U.S. states, information on the transfer prices of real estate is readily available and accessible by the general public and is not exclusively held in realtors' databases.[24][25]

Critique of Zestimate Accuracy

In 2007, The Wall Street Journal studied the accuracy of Zillow's estimates and found that they are "often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible."[26]

According to Fortune, "Zillow has Zestimated the value of 57 percent of U.S. housing stock, but only 65 percent of that could be considered 'accurate' - by its definition, within 10 percent of the actual selling price. And even that accuracy isn't equally distributed" [27]. Fortune cites the state of Louisiana as an example, where "the site is just about worthless" [28].

In October 2006, the National Community Reinvestment Coalition filed a complaint with the Federal Trade Commission[29] stating that Zillow was "intentionally misleading consumers and real-estate professionals to rely upon the accuracy of its valuation services despite the full knowledge of the company officials that their valuation Automated Valuation Model (AVM) mechanism is highly inaccurate and misleading." In a letter dated May 4, 2007, the FTC elected not to investigate this complaint, which was later withdrawn by the NCRC.[citation needed]

Real estate brokers state the site does not give an accurate reflection and that other factors must be taken into consideration in buying or selling a home.[citation needed] Realtors with specific market knowledge are more likely to know specific factors affecting the sale of a home such as the overall condition of the home, room flow, landscaping, views, traffic noise, and privacy. These factors have been called unzillowables, a term coined in the real estate blogosphere.[30][verification needed] The industry fear arises from the possibility that increasing numbers of users will trust internet-based valuation companies like Zillow to give good "ballpark" figures. As such, such sites may become a source of competition for real estate agents who, in many jurisdictions, may previously have had exclusive control of this information.[citation needed]

Zillow.com has an unsatisfactory rating with the Better Business Bureau for Alaska, Oregon, and western Washington.[31]

References

  1. ^ http://www.zillow.com/corp/HowZillowMakesMoney.htm
  2. ^ http://bits.blogs.nytimes.com/2009/04/01/newspapers-begin-to-use-zillow/
  3. ^ http://money.cnn.com/magazines/fortune/fortune_archive/2007/02/19/8400262/index.htm
  4. ^ http://www.alexa.com/siteinfo/zillow.com
  5. ^ http://www.azcentral.com/arizonarepublic/business/articles/0414biz-zillow0414.html
  6. ^ http://www.businessweek.com/the_thread/hotproperty/archives/2006/11/an_appraisers_t.html
  7. ^ http://www.techflash.com/venture/Zillowcom_tops_startup_list_42753492.html
  8. ^ "Zillow.com". Alexa Internet. Retrieved 2009-04-16.
  9. ^ "Zillow.com Launches Beta Real Estate Site: Valuations and Data on More Than 60 Million Homes in U.S", RISMedia.com
  10. ^ Interview with Zillow's CFO, Spencer Rascoff, Podtech.net
  11. ^ Interview with the Zillow development team, Podtech
  12. ^ "Famous TV Homes"
  13. ^ http://www.reuters.com/article/businessNews/idUSN1339409420090514?feedType=RSS&feedName=businessNews
  14. ^ http://www.businessweek.com/lifestyle/content/apr2008/bw2008043_948040.htm?chan=top+news_top+news+index_businessweek+exclusives
  15. ^ http://www.dailynewstribune.com/business/x1059924552
  16. ^ http://www.inman.com/buyers-sellers/columnists/berniceross/zillows-hottest-new-tools-real-estate?page=0%2C0
  17. ^ http://www.techflash.com/venture/Zillow_unveils_iPhone_app_43857317.html
  18. ^ http://www.nytimes.com/2009/05/07/technology/personaltech/07smart.html
  19. ^ http://blog.seattlepi.com/realestatenews/archives/156907.asp
  20. ^ http://blogs.wsj.com/developments/2009/05/06/affluent-homeowners-underwater-and-sinking-fast/
  21. ^ Zillow Real Estate Market Reports
  22. ^ "What's a Zestimate"; the term defined on Zillow.com
  23. ^ "Data Coverage and Zestimate Accuracy" from the Zillow.com site
  24. ^ Maryland tax assessment database allowing searches of all property transfers
  25. ^ video, produced by Zillow, explaining the Zestimate 2009-05-19
  26. ^ Hagerty, James R. "How Good Are Zillow's Estimates?", Wall Street Journal, 2007-02-14. Retrieved on 2009-02-25.
  27. ^ http://money.cnn.com/magazines/fortune/fortune_archive/2007/02/19/8400262/index3.htm
  28. ^ http://money.cnn.com/magazines/fortune/fortune_archive/2007/02/19/8400262/index3.htm
  29. ^ "Federal Trade Commission Complaint"
  30. ^ "Unzillowable, To Coin a Phrase, Sellsius Real Estate Blog"
  31. ^ BBB Reliability Report for Zillow.com
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