Zillow Website Business Model – How Zillow Makes Money

Zillow is one of the worst things to happen to the real estate market since Dodd-Frank. Zillow is nothing more than a data mining and advertising platform for new real estate agents. They tried to be “real estate agents” and failed miserably because they don’t know real estate. They know data mining and how to sell your information to desperate agents that can not get business any other way.

Why You Should Really Vet Real Estate Agents That are Sent to You By Zillow

When a home buyer is looking at properties on Zillow they may think they are sending their information when the click the “more information” or “contact the real estate agent” to the listing agent. In truth you are sending your information to 3-10 real estate agents that are paying a lot of money, I mean A LOT of money to buy your personal information. I used Zillow the first year of my career until I realized how horrible their business practice was. That is why the second you click “more info” you are bombarded by real estate agents. Take Zillow Evergreen, Colorado for example. I shared buyer information with at least 3 other agents that are paying between $1500-$7000 per month for your data. I would get about 10 leads per month for that amount. That is why it was very important for me to make sure the buyer worked with me. I needed all 10 to at least look at properties for me to make the return on my investment I wanted.

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Most real estate agents that are experienced do not need to use Zillow. Zillow is more for the lazy Realtor that doesn’t know how to market or get referrals from doing a good job for their clients. If an agent is advertising on Zillow they are not good enough to get business any other way. Why else would they pay over $75,000 per year or more for your email address?

Let’s Talk Briefly About Zestimates

Do not use zestimates! Do not, Do Not, DO NOT use zestimates to price your home. Especially in unique areas like Evergreen Colorado. Unless the buyer is moving to a place that has 3 different floorplans with 100s of recent sales you should not use Zillow Zestimates. There is a reason why banks don’t use an algorithm to price homes. They use an experienced human. Markets like Evergreen Colorado can not be reduced to a simple square footage alogo. There are so many variables that go into pricing a home that unless you are at the property, you can never give an accurate estimate.

Zillow is Not the Consumer’s Friend

Zillow will take your information and sell it for top dollar to anyone willing to give them money. They are a despicable shady, slimy and underhanded company that hurts the customer, consumer and the real estate market as a whole.

(Almost) Any Agent Will Give You a Free Accurate Home Value

Most real estate agents will come our and give you a free CMA. That is when they come out and look at your home, go back to the office, find comps, adjust those comps and give a real value of your home. A seller should be skeptical of an agent that gives them a value over the phone without looking

Most real estate agents will come our and give you a free CMA. (comprehensive market analysis) if you ask,” she said. “We need to make sure that we can get the value of the home and to see how much we can get for it, so that we can get a sense of what our profit is going to be.” Many agents also offer an area walkthrough before listing their homes for sell so potential buyers can see what the house looks like in person without having to rely on pictures or video That is when they come out and look at your home, go back to the office, find comps, adjust those comps and give a real value of your home. A seller should be skeptical of an agent that gives them a value over the phone without looking at the home. That is what we are saying here. It is impossible to give the true value of a home without seeing the home in person. You should also respect a Realtor that won’t give you a price on the first phone call. The agent needs to see the entire property to give you a list price that is accurate.

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