Zillow Accepting Real Estate Listings, Friend or Foe?

Finally...…Zillow doing what I believed they were going to do all along (see my winning comment on the Inman News Blog What is Zillow competition from 10 months ago).

So what will the impact be? Is this the beginning of the end for the traditional real estate model? Do we have a new MLS on the horizon?

First, I think real estate agents will flock to the opportunity of posting their real estate listings on the site but only once they see how Zillow presents them... this is key. Zillow was down at time of this writing, so I can't give you my opinion.

If the real estate agent feels they get clear advertising "credit" (i.e. name and contact info displayed or linked back to original listing) they will put up their listings by the thousands. Sellsius may be disappointed but generally agents will be very excited at this opportunity, especially if the Zestimate is higher than the actual asking price.

Real estate agents who receive inquiries from this advertising will spread the word about its success and continue to post listing...…further increasing actual real-time real estate inventory listing.

Since agents are independent contractors and impossible to herd together (except on commissions possibly?) their independence will lead to the death of traditional real estate model because real estate listings are the best "bait" possible to attract buyers.

The Zillow Impact.

As Zillow gets this listing data, they will constantly work to purify it as indicated by early reports where each listing must be updated weekly. Imagine the data they will be collecting that can be used to further fine-tune Zestimates, improving accuracy. Eventually people will be able to truly trust Zillow property value estimates.

With a clear picture of comparable sales, market conditions, average marketing times, etc.…buyers will feel more confident in making offers on a property. They will be less dependant on REALTORS for this advice. Less dependence on advice creates less perceived value, less value equals less cost.

This will be the true beginning of the end of traditional real estate model especially Buyers Agents. Why buyers agents? Simple, consumers will begin to understand that the cost of using a real estate agent is very real and built into the sales price. Redfin, Zip, Buyside Realty will make sure of this and capitalize on Zillow and the continue negative press from the DOJ against the NAR.

What Happens Now?

In 6 to 12 months, Zillow could become the MLS alternative and Realtor.com killer...… sorry Dustin. Bloodhound also seems to agree but goes further to include trulia, propsmart and others. Zillow can be a real estate brokers best friend or worst foe. Why? Real estate listings. Inventory is the best eyeball "bait" possible.

Once Zillow has the majority of the real estate eyeballs, which is what they claim to desire as "media / advertising" company…they also get control. Control to change how real estate is done in the future.

Time will tell but lets go back to my original Zillow guessing game and the one played on Inman as noted above What Will Zillow Do…Next?

What is your guess... what will Zillow Do? Who will they impact the most? Share your thoughts.