Zillow says Americans know more about the Kardashians than about real estate, is that true?

Americans know more about celebrity love lives, the NFL and the Kardashians than about real estate basics.

Zillow created an online quiz that asked questions about both real estate and popular culture, including the NFL. Here is a link if you are interested.

(In case you are wondering, I passed the real estate section with a score of 4).

After making this point, they then list 5 things you need to do to be educated. Now, did their advice help customers, hurt them, or just confuse things more?

1. Buyers should start with a mortgage calculator and Zillow's affordability tools.

My rating: Fail!

Zillow's calculators are interesting, but before you get an answer you will have to give enough information so that 3rd parties that Zillows sells your information to can call and email and text you. In my experience, no customer appreciates all the attention this generates.

2. See if you qualify for down payment assistance. 

My rating: Fail!

First, only a small number of buyers will qualify for such assistance. Second, most lenders do not even know about down payment assistance programs. Finally, such programs, while well intended, are often so cumbersome as to make the process waste for the buyer or even detrimental in holding up the escrow process. There are a small number of lenders in a small number of areas that offer programs of value, but typically the best professional real estate agents will know those programs and offer them to their clients.

3. Find an agent you trust. 

Zillow's agent finder tool helps buyers find the best agent to fit their specific needs. Buyers can read reviews of top-rated real estate agents in their area and reach out to them directly through the tool.

My rating: Fail!

This is, obviously, self-serving. On the one hand, Zillow is telling agents to shop for an agent, but then pushes them to agents that either advertise with them (pay to play) or at least comply with Zillow's program. Further, the vast majority of agents in the reviews NEVER work with agents but instead delegate them to less experienced and less knowledgeable agents in their employ. In my experience, most customers are better served to ask friends and family for a referral of an agent that has been able to serve them and see if that is the experience they want.

4. Get pre-approved for a mortgage — not just prequalified. 

My rating: Neutral. 

Yes, of course, getting fully preapproved is the most important action a buyer can take to prepare for the process. Yet, in my experience, the best loan officers are NOT on Zillow's platform.

5. Shop around for a lender. 

My rating: Approve as to action, but FAIL as to timing

It is important to compare rates, but you want to compare apples to oranges, and you want to compare a ripe apple to a ripe apple, not a rotten apple. I would recommend the strategy of in the beginning shop for service, then at the time of the loan locking shop to verify you got a great rate.

The problem with shopping before you have a home lined up is that a lender knows they can promise almost anything at a rate and won't be held accountable, so when the buyer selects the "best rate" they are often selecting the biggest or most bold liar and are often disappointed when its time to close. Additionally, the lowest price lender often will not help the buyer get the home in a competitive environment. Instead, what I recommend is to find a lender that will work with the buyer and their agent to help sell the listing agent to choose their offer, then when the contract is accepted and the time comes to start the loan compare the rates at that time to make sure you got a competitive rate. Too many lenders select an online lender that does not help them get into escrow, and too often when it's time to deliver the anonymous online lender disappears when they cannot deliver the competitive rate they promised.

In conclusion, Zillow was built on a reputation for bringing the best data and information to the real estate market. The book "Zillow Talk," written by their founder, Spencer Rascoff, is a masterful work on the data conflicts in the real estate industry. However, their website often gives confusing or wrong information, and in this case, their advice is as much help on learning about the Kardashians and the NFL as it is about successfully buying a home.

How can I help you? Call, text, or email me.
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