Since Part I appeared, several folks wrote to ask how they could actually compete on an appointment when data from Zillow.com (or other such site) is presented by either the buyer or seller. Compete is a difficult word as it implies that these sites are really competitors for the real estate sales professional. Are they?

They are if the agent has not done his/her homework diligently. If the pro is not on top of the actual movement in his/her marketplaces he/she serves, then he/she has no ability to counter/confirm information that is on track, outdated, inaccurate or deceptive. The responsibility falls not to the consumer to dredge up information on the value of properties. It is his/her "job" to respond to highly effective marketing done by valuation sites; and they do so in droves.

Keep in mind that Zillow not only helps with valuations, it provides links to interesting real estate data, articles, blogs, trends, etc. In other words, it gathers information that is out there and then makes it available for the consumer in easy to access format. Hmm, sounds like just the kind of thing a successful Realtor® would want to do on his/her website all of the time.

Zillow and other similar sites are doing an exemplary job of raising consumers' interest and curiosity. The public loves shopping the Internet to assist them in finding or selling a home. California's 2006-2007 Real Estate Trends Report points out that:

• Internet buyers spend roughly three times longer than traditional buyers in contemplating a home purchase and in touring homes and neighborhoods before contacting a real estate agent.

• Internet buyers also spend, on average, about 2 weeks looking for homes with a real estate agent, versus 7 weeks for a traditional buyer.

• Internet buyers look at fewer homes with their real estate agent than traditional buyers; about 7 homes for Internet buyers and about 15 homes for traditional buyers.

• 96 percent of Internet buyers were either very satisfied or satisfied with the overall process of finding a home versus 66 percent of traditional buyers. On top of that, 97 percent of Internet buyers said that overall they were either very satisfied or satisfied with their agent versus 57 percent of traditional buyers. (Source: California Association of Realtors®)

While this is a report exclusively about California, the data translates well to other areas of the country. It's all good news. The consumer shops the Internet, gathers various information relative to listing/buying and then works with a sales professional in what turns out to be a more organized, pleasing-outcome process.

It seems that the way to intelligently "compete" with these sites is to join them in meeting the consumer where he/she is in the process and not where we would prefer. To accomplish that effectively, we have to address the issue of Internet searches at the first meeting/conversation with the prospect.

Here are questions that may be of help in formulating the initial conversation about searching real-estate specific sites:

1. Have you searched the Internet to find out information about the market, value of your present home or other properties?

2. If so, did you find that process helpful? In what ways?

3. Was there data on any site in particular that caused you to be curious or question anything?

4. If speaking with a seller who brings up a valuation site:

You looked at Zillow.com, is that correct? Do you feel the value of your home was accurate or not? Do you know where and how the site gets its data? Would you like to know more about how that works? Are you aware that it is highly unlikely that an appraiser would use the site to determine if a home is mortgage worthy and at what level?

Appraisers will take much more into consideration when evaluating the value of a home. Depending on the market conditions at the time of the appraisal, the appraiser will consider the number of homes listed, the number closed and the sales price, if the home was a distress sale, such as a foreclosure, and date of closing. In many markets appraisers, if they can avoid it, will not use comparable sales that are older than 90 days as the market is changing that quickly. Older sales are not representative of what is happening today.

In addition, at the time the comparable closed, the appraiser will often utilize the expertise of the listing broker to share information about the condition of the property. Condition is not considered when estimating property values on Zillow. What is used are the sales prices of closed homes and from those prices, estimates are determined for homes in the vicinity.

My job, as your market expert, is to be sure that data used to determine a probable marketing and sales price for your home is accurate day-to-day. When and if things change that directly effects your situation, I will be there to help you make well informed choices. Fair enough?

5. (Sellers and buyers) Would you like me to provide you with data on sales, listings and homes that expired so that you'll have data of your own? When and if a home that sold is one that I am familiar with, I will also tell you about the interior of the property and provide you with my opinion when requested (provided they are your client.)

I believe that the best time to handle an objection is before it comes up. Knowing that the consumer will seek out these sites and question his/her agent about the data they discover, there is no question as to the urgent nature of knowing and understanding how the sites work. Appreciate the value of these sites for the consumer and know the downsides. Remember, they are using Realtors® after they shop the Internet, and they are happy. We are doing things right everyday!