Perception matters. Direction and rate of value increases in a neighbourhood matters. The perception of the neighbourhood affects the value of a particular property.
Zillow can affect that perception. It is making calls about entire neighbourhoods, not just one property that it has a declared interest in. It is acting as a supposed uninterested party (valuing the market overall) and an interested party (benefiting from the valuing of a particular property). That's the potential conflict of interest.
How much home buying do real estate agents engage in vs just acting as an agent, compared to Zillow (in relative terms)? I don't know, maybe it's similar...
Zillow can affect that perception. It is making calls about entire neighbourhoods, not just one property that it has a declared interest in. It is acting as a supposed uninterested party (valuing the market overall) and an interested party (benefiting from the valuing of a particular property). That's the potential conflict of interest.
How much home buying do real estate agents engage in vs just acting as an agent, compared to Zillow (in relative terms)? I don't know, maybe it's similar...