ZILLOW VS REAL ESTATE AGENT
How we are winning one business at a time
It’s utter insantiy. The “BIG BOYS” like Zillow (and others) are literally competing with their own customers (Real Estate Professionals and Investors)
In a recent video titled “Zillow Continues to Compete with Realtors” from the National Real Estate Post, I saw further confirmation of what I already knew what was happening.
Zillow is in the real estate game. They’ll wriggle around with the laws and the rules… But you can buy and sell a house directly with Zillow now… and I think you can even get a mortgage loan through them.
You can’t blame Zillow for Real Estate Professionals losing their power… You have to go back about to about the 1880’s or so.
When did The Real Estate Profession Lose it’s power?
You’ve heard the old saying… Information is power… That is true in real estate as well. The Real Estate profession gave up all it’s power about the same time that Multiple Listing services (the MLS) went digital. Prior to that, real estate was very much a local thing… With the local brokers actually having “books” of their current listings. If you wanted to know what was for sale… you typically had to actually go visit the broker, and physically look at what the available “listings” where… what was for sale. Back then you actually NEEDED the broker/agent because they had information that you did not have. They had the inventory. Once the internet gained popularity and the multiple listing services across the country became digital, Most of the MLS across the nation basically “sold out” their information to “big boys” like Zillow and Realtor.com. This once “proprietary” information that was only held by the local real estate brokers, was now easy to find by any consumer with a computer, and the need for a Real estate agent was lessened.
Now Real Estate Professionals PAY
Just to be listing on their websites… Sometimes agents even have to pay extra to be placed ON THEIR OWN LISTINGS… Which to me seems almost criminal… I mean after all isn’t that what the local Multiple Listing Service was supposed to do? But not any more. Zillow has different cost points depending on your situation and how many leads you want. So now agents are paying the local MLS a yearly fee, and the ones on Zillow are paying a lot of money… to be listed….Some pay much more to get “leads” from interested shoppers that happen by the site and want to know about a particular piece of property.
Now they are Competing DIRECTLY with their own customers
They are now competing with their own customers. Zillow (and others) are taking the money that they make from the thousands of real estate professionals, and they are reinvesting that money to actually go in direct competition with their own clients.
Zillow is now selling and buying homes, and is experimenting with lending as well.
Unsustainable business model.
This is an unsustainable business model.. Especially for those Real Estate Professionals that are paying Zillow as using them as a lead referral source. Why would you give a company money that is directly competing with you. For many the answer lies in the fact that they are getting leads from Zillow.
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For additional Resources Check out ‘ZILLOW CONTINUES TO COMPETE WITH REALTORS