Since the housing market crash, there has been lots of discussion about shadow inventory. These are properties that are in bank foreclosure or pre-foreclosure that are making their way onto the market. Up until now, this inventory has been slowly released – perhaps strategically by banks who want to contain loss exposure – but more likely as a result of the slow process for foreclosure across America. The only thing slower than a bank’s decision making process is the US Court system.
Last week, Zillow – one of the three leading search portals in America began to display 1.2Million listings. As a result, the shadow inventory is no longer in the shadow.
What is interesting is that consumers are required to “sign in” to view these foreclosures in their area. I guess that this is Zillow’s version of a VOW.
Just for fun, I signed in and looked at a home that was in foreclosure – 1220 Montecito Ridge 93420.
I looked up the same property on REALTORS(r) Property Resource. The RVM on this property is $1,424, 000. The owner is the Reed family (information that you cannot get on Zillow) and they live in Santa Maria, CA (full mailing address is available in RPR).
I think that agents should be very grateful that Zillow has made this data available, for free. Consumers are likely to find these homes on Zillow then contact an agent for information. This is where RPR comes in – as a REALTOR(r), beginning tomorrow – you can look up that distressed property and possibly reach out to the owner for a short sale. RPR becomes available to all REALTORS(r) tomorrow. You can also find this information in REALIST, or iMapp, or LPS Tax.
It is not clear who is providing Zillow with this shadow inventory data. Could be CoreLogic, could be LPS, is probably both. It is also not clear to me who is getting access to all of the consumer registration data. Those buyer leads are more valuable than the listing data.
Perhaps the next horizon for broker websites will be the inclusion of Shadow inventory. The data is available for sale. There may be issues in many markets whereby brokers are not allowed to co-mingle MLS data with non-mls data. A separate search will be necessary to skirt this rule.