The debate over listing ownership and distribution reached a fever pitch this week when Zillow debuted a premarketing platform aptly named Zillow Preview. Texas-based franchisor Keller Williams is the first in a group of brokerages to roll out the product to agents, and KW board chairman and co-founder Gary Keller said the goal is to respect sellers’ choices while maintaining market integrity.
“If this approach ultimately helps sellers build interest early, helps buyers find homes early, and respects the role of listing professionals, then it is a constructive step forward,” he said of Zillow’s premarketing system in an Inman editorial. “And I welcome that too.”
Jason Abrams |Credit: KWRI
Jason Abrams, head of industry and learning at KW, said the company’s affiliates have expressed early excitement about the option to sell listings coming soon on Zillow, even overcoming some difficult feelings among agents about the portal’s place in the industry.
“I think there are different views on Zillow, but one thing that remains the same is that everyone wants to be able to make their own choices,” he said. “And I think the reason this has been so overwhelmingly received is because we leave it up to local market center owners to decide with their agents whether this program is right for them. And we leave it up to each real estate agent and their seller to decide whether Preview is right for their bespoke marketing plan.”
“And no one should be upset by having more options,” he added. “I’ve gotten texts and emails from real estate agents outside of Keller Williams saying, ‘Oh my God, we need that program. How can I get involved? Do I have to join Keller? How does it work?'” When that starts happening, we know we’re on the right path. ”
The following conversation has been edited for length and clarity.
Inman: Let’s get started. This week, we shook up the industry with our Zillow Preview partnership. And one of the first questions that came to mind was why didn’t your team build its own platform similar to Howard Hanna’s HannaList? KW certainly has the resources to do so. Why was partnering with Zillow a better path?
ABRAMS: Well, thank you for asking the question. Once you and your sellers get to the point where you believe it makes sense to market your product in preview status, I think the next natural question is, “Why do it?” The reason for doing this is to get as much attention as possible before the property goes public. And you’ll ask, “What should I do?”
And the answer goes where the most consumers are looking. If you look at Zillow, they have 220 million visitors on a monthly basis. So I think it would be great for other companies to partner with No. 3, No. 4 or No. 5. [portal] Or the sum of all three. But it’s even better when you can partner with No. 1 to bring the most attention to your property.
Zillow worked on the preview for about six months. Where was KW involved in that process? What questions did your team ask about the platform and how it worked? Especially about making sure it was compliant with local MLS rules.
I don’t think there’s anything new about previews or upcoming listings. Looking back, Zillow tried that in 2014. Real estate agents have been doing this since the early days of MLS in the ’90s, and even before that.
We’ve always looked at all the marketing that real estate agents can do. As the conversation within the industry intensified, we may have listened, but we asked a simple question: “If a real estate agent wants showings as part of a marketing package with a seller, what is the single best way to provide showings while adhering to all MLS rules?” I think that’s a slightly different question than others are asking.
However, we believe that if you participate in membership in a network, you must follow that network’s rules. And we are passionate supporters of MLS and sellers and real estate agents making the best choices for their customers. The good news is, so does Zillow.
So Gary [Keller] He wrote an op-ed for Mr. Inman in which he cited the Compass-Redfin partnership and said, “The conversation is no longer about private listings. It’s about how listings are distributed.” With that in mind, what do you think are the key questions that franchisors, brokers, agents, and MLS leaders should think about and ask when it comes to how they distribute listings? Who do you think has the final say?
I think all of these conversations should be happening at the local level, including real estate agents and their agents. and [the answers] In the end it should always be [based] In the best interest of the buyer and seller. Second, if they are a member of the MLS, they should insist that the MLS enforce all rules equally for all brands. And third, if your MLS applies the rules equally to all brands, help create the rules to best serve your clients.
Staying with local MLS, there has been a lot of discussion about system integration. Whether it’s moving to a more compact system or not, I’m ditching the 25 MLS or national MLS figure proposed in ICNY.
How do you think the wave of pre-marketing partnerships will impact this conversation, and how exactly does KW think about what an MLS system should look like?
Frankly, I’m not sure that argument is new. We have already seen several MLSs that have become regional MLSs. Take Bright, for example.
And yes. And with MLSs applying all rules equally to all brands, I believe that most MLSs, when established, offer maximum flexibility to sellers and allow real estate agents to create marketing plans as they see fit.
And I believe that today’s MLS system works so well that the United States is the envy of the real estate industry when it comes to transparency in housing. Yeah. Real problems only arise when the rules are not applied equally and one group decides to stop playing by them.
Hmmm.
And here’s the good news. Rest assured that we believe MLS is fully aware of all of this and is working diligently to do the right thing.
Let’s talk about MLS, which applies all rules equally. How will the MLS be held accountable?
Frankly, I’m not sure. Since all of these MLSs are local and there are so many of them, I believe each one has its own accountability system. But I’d like to think they’re all working on that in the conference room as we speak. This will make the real estate industry even stronger.
Thank you for your candid answer. What role do you think intermediaries should play within this local responsibility system?
If you look at most of these MLSs, I think they have a board of directors or advisory committees made up of real estate agents and brokers. I think this is a great time for advocacy. There should be a wide range of opinions at the table. But all those voices should be asking for the same thing: a fair and balanced outcome.
Life is unfair, but everyone wants to be treated fairly.
Yes, things aren’t always fair. But how does that shape this overarching conversation the industry is having around listings, including who owns the data and who decides how it’s shared? Some talk about this as a zero-sum game. Some find a way for everyone to win. what about you?
I’m glad you asked. When consumers win, we all win. Therefore, it is often beneficial for home sellers to maximize the visibility of their properties. And homebuyers benefit from being able to see all available inventory. And if those groups benefit, real estate agents benefit as well. I love this system.
As long as the rules on the books apply equally to all brands, rules that are not meant to be enforced are removed, and everyone has a level playing field, it is without a doubt the greatest system on earth.
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