This week has been an extremely big week in the changing environment of real estate. Not only did Zillow announce they would be hiring agents, they also announced they were able to get better MLS access than anyone ever. How did we get here and where is this going? The thing to note is that for a long time people have been speculating but no one really knows, not even their employees.
Agents For Zillow
For those of you who were unaware, you read this correctly. Zillow is deploying agents soon. Hold your horses this is not in every state and not as massive as it seems YET. The way Zillow is currently wording it is that they are going to be salaried employees and will only be doing the listing side of the transaction and only on Zillow owned Offers homes. The Zillow Offers program is an iBuying platform located in several states. Zillow has assured the world of agents that these are the only homes they will work as agents on and that they will pay co-broker fees to buyer’s agents. The next question is will they offer real commission or will they go discount on us?
Zillow Offers See Growth Potential
The iBuyer industry has been rising for several years now but is at a more pivotal point this year due to OpenDoor announcing an IPO. This is going to launch those in the industry into record high stock pricing and a change in landscape. In my opinion this means a lot of the little players in this game will be booted out by both Zillow and OpenDoor. While people are really starting to like the idea of the quick sale people are learning that this is an expensive way to sell a home. While the market is heavy to the sellers side these programs struggle to find profit but soon when the market shifts they will be positioned to act like the raven they are.
Through relations with Realtor and MLS Zillow was able to finagle the bagel and get the best of all of our data. This means they have consolidated the sources down to several hundred, down from the thousands that were needed before. Since they have done this Zillow itself will change both for premier and regular consumer users. Some states will have more change than others depending on the local MLS IDX rules. This is a developing story with more to come in the future that also means Zillow must list all their homes on MLS.
Where Do We Go NOW
NOW is the time to take action and group up as agents, brokers, lenders, and so on. This is not a place where we say only people who currently work with Zillow should pay attention. It also is not the time to just go firing Zillow. Pay attention to your ROI, watch and learn, and start building your business to be ready. If you want to join the movement to protect our industry join our group https://www.facebook.com/groups/zillowpremier .Thank you so much for reading today and make sure to check out our Podcast Real Facts on Real Estate. Leave any questions or comments in the feed.