Let me ask you a question to all the real estate experts in America. Do you want Zillow to become the definitive marketplace for housing in this country?
That’s the real question hidden in Zillow economist Misha Fisher’s response to my recent Inman op-ed. Understand what he is silently asking you to accept.
Throughout the article, Fisher effectively labels homes that aren’t listed on Zillow as “unlisted properties.” In Zillow’s view, homes sold through social media, email, brokerage websites, upcoming campaigns, and many other proven channels will be “private.” Hidden. It is kept away from the general public.
In a nutshell, his position is: If your listing is not on Zillow, it will be hidden. It’s a private matter. That’s completely false. And that is the basis of his entire argument.
This is a bold assumption that none of us voted for. Zillow is the definitive open marketplace, and Zillow’s policy, which can permanently ban listings from the site, is that a home is only considered “open” if it lands there within 24 hours of being sold elsewhere.
Who decided that? Not a home seller. Not a home buyer. They don’t hire Zillow. They hire us. They want the judgment of a real estate professional, not a portal. Zillow is a vendor. tool. It’s not the government, it’s not our industry associations.
The moment we accept that Off Zillow means hidden, we have given a third-party vendor the power to determine how every home in America is sold and how every home buyer in America is monetized.
The word “private”
I’ve said this for years, in my training, in my writing, and on every stage I’ve ever stood on. The word “private” has been weaponized. It is used as a synonym for “hidden from buyers” and is not what is meant by marketing homes away from the portal.
So my advice to all the brokerages and agents reading this is: Take the word “private” out of your marketing vocabulary.
I understand how that has trickled down. Sounds exclusive. Buyers want to be the first to walk through the door and feel like an insider, seeing something that the general public can’t see. That instinct is real, and that sells. But those same words are now being directed at us, and are being used by Zillow and those who align with it to paint professional marketing choices as despicable.
This didn’t happen overnight. The flexible agents we once had to show up in photos and write in descriptions have been removed to fit the business models of other companies, including Zillow. They use our list for free for their own benefit.
And the “rules” are carefully designed to increase that profit. For example, Zillow doesn’t allow the listing agent’s name, phone number, or broker’s name to appear in photos or descriptions, making buyers more likely to think that its “Contact Agent” button is going to an agent who knows the home.
Most people don’t realize that they are being transferred to the person who paid the guide fee – someone who has never set foot on the premises.
Fisher then lectures on transparency on behalf of Zillow.
The least transparent model in the industry
One of Fisher’s central arguments is transparency. He calls listings that don’t appear on major portals, especially Zillow, “information asymmetric machines.” This is likely a setup that favors the more informed party, the seller, at the expense of the buyer.
I don’t agree that transparency is important. What I don’t understand is how Zillow can be crowned champion.
See what Zillow shows buyers.
Days on Market All Price Reductions Offers are a guide to guide buyers to bid less than the asking price and estimate the odds that sellers will accept.
All of these tools give buyers a weapon against sellers.
Now let’s see what the seller gets in return. there is nothing.
How long has this buyer been shopping? How many offers have they already made? How many sellers have they turned down because the price was too low?
Zillow doesn’t show any of that to sellers.
That’s not transparency. It’s a magic mirror. And the companies that support it are the same companies that direct buyers to lead removal agents rather than professionals who are knowledgeable about housing. If anyone has built an information asymmetry machine, it’s Zillow.
Who is really adding costs?
Fisher also addressed the affordability crisis, proposing making housing “feel more scarce” while families struggle to buy.
The affordability crisis is real. It deserves its own article. But that’s not the fault of American home sellers, and as buyers face high interest rates, a dearth of new homes, and years of rapidly rising prices for existing homes, the seller’s right to pursue the highest possible price persists.
Is Zillow’s real message that sellers should lower their prices and market in a way that’s more favorable to buyers? It’s already doing a lot for them.
So ask yourself who is actually adding costs? Zillow gets between buyers and sellers and routes those buyers to agents who pay Zillow a referral fee. Agents typically charge their buyers a few thousand yen for viewing and purchasing the home.
Zillow makes hundreds of millions, even billions, of dollars from these referral deals. That money comes straight out of the cost of buying the house.
Companies that profit from installing toll booths between buyers and sellers are in no position to lecture our industry on affordability.
Things to remember
Fischer concludes by asking readers to remember “who drives and who gets hit.” I would urge American real estate professionals to listen to his advice and seriously consider it. Because Zillow wants to be the one driving, with the power to decide who gets hit.
Transparency, affordability and pro-consumer support are one thing. That’s another thing.
Jirou says so. It’s Jiro.
So I’ll leave you with one important question. Who do you want behind the wheel?
Greg Haig is an attorney, 50-year real estate veteran, and founder of 72SOLD, an Inc. 5000 fastest growing company. Ranked the No. 1 agent in the state and No. 19 in the nation by Realtor Magazine, he was recently named Director of Home Sales Strategy for Compass International Holdings, where he helped Century 21’s more than 100,000 agents grow market share and better serve America’s home sellers.
