Misleading Article From Zillow

[Julio E. Sune Jr. (FL)]

http://www.zillow.com/blog/misconceptions-about-real-estate-186739/

[Misconception: My home’s value is whatever the appraiser says it is

The market value of a home is determined by what willing and able buyers and sellers agree on in an open market and arm’s length transaction.

Other than that, a homeowner or would-be seller can only rely on a recent appraisal for a bank refinance.

It’s helpful to understand that a home’s appraised value typically comes in below the market value. Factors such as views, finishes, fixtures or neighborhood specifications can affect your home’s appraisal.]

 

[Tim The Enchanter]

Misconception #6.

Zillow is useful, relevant, reliable, not utterly worthless.

 

[J Grant]

Misconception: You don’t need a real estate agent to buy a home now that all the information is online

Number one point in the article, slanted of course to make people think they still need RE agents ( they don't esp in a good market). Imo within a decade RE agents as we know their function now may be obsolete except for high end homes or special situations. All that is needed is a listing service (with many online now), and a company can pay people $10 an hour to hold an open house or drive buyers around.

I have to hand it to RE brokers and NAR...they spend a lot of time planting articles and blogs online and in the media, I suppose it costs $ we need to do more of that but we are not oriented toward self promotion a failing on appraisers' part.

 

[ucbruin]

Don't you think the entire "home purchase process" from sales/mortgage financing/appraising/valuation services/etc. will change within a couple of decades?

Think about it, back in the 60s futurists were predicting the rise of computers. It didn't happen in the 70s, started to appear in the late 80s, became popular in the 90s and then in 2000s explosive exponential growth.

In a few decades homes will be "smart" and there won't be a need for a home inspector....just plug in the handheld computer and the house will tell you what's wrong. Just like a car.

I agree you, major changes within a decade....

 

[J Grant]

Good point, many things will change.

What will happen to people when so many jobs become replaced by technology or change to low paid work vs high paid work....an economic and social catastrophe ? Unless voluntary we reduce human reproduction because with few jobs available what will the future generations be doing?

 

[J Grant]

Back to Zillow...it is interesting that virtually every media/internet article that mentions appraisals are never written by an appraiser. We as a group excpt for appraisal institute have no PR, a big zero and the AI produces erudite articles the public would never read and are not meant for public support of appraisers or to explain to them what an appraisal is.

Rather than trying to form a union (dead end) appraisers should elect a PR team and donate yearly as NAR does for a presence online and planting media articles meant for the public.

 

[jay trotta]

Everything is circular; No need for Agents / No need for Appraiser's / No Need for Builders ?? IMO, so called "hand holding" in the RE business has slid away, but at some point someone will want an Agent with them to point out the items of interest. How to structure a contract ? Options for funding ? Home Inspectors ? Referral business ?
Eliminating Total Human contact is not creative and lacks options/interactions.

 

[J Grant]

I agree there is a need, or want for human interaction (and hope it continues into the future for all of our sake) but is pointing out items of interest, aka hand holding and explaining a contract worth 6% of a homes' purchase price?

Well trained non commissioned people could fulfill that function at a much lower cost which would make houses more affordable.

 

[J Grant]

Compare the small cost of an appraisal ( $500 avg to consumers) vs the large cost of a RE commission to see the impact on a house price. A 300k house, RE appraisal $500, RE commission at 6%, $18,000. While technically the seller "pays" for it, in fact it is really the buyer who pays, because the house costs 18k more to buyer as seller gets to minus the commission from his funds at closing.

Among the many other advantages RE brokers have is to get their fees rolled into closing funded money. If a house sells 2 times in 10 years, that means its price has been swollen by 12% to cover the RE sale commissions.

 

[form1025]

All this calls to mind "Rocket Mortgage"by Quicken Loans