Update: Arizona vs. Zillow

After the State of Arizona issued a cease and desist to Zillow, there has been a flurry of activity in the AZ Legislature. Several bills have been introduced to allow these types of "guestimating" websites without licensing as appraisers. Arizona re-iterated that it would not allow Zillow to operate without proper licensing last week, but state representatives have written proposed legislation to allow them to operate without being considered appraisers.

I still have trouble with any state trying to validate Zillow and other sites like them as professional appraisers. Their sites continue to be very unreliable for placing proper values on real estate. States should ignore them and not give them any creedence because they really can be harmful to buyers and sellers of real estate, especially in markets with volatile pricing over the past few years.

My guess is that the legislature will be lobbied hard to allow them to continue operating without appraisal licenses.