Introduction to the New Policy

This week, Zillow’s executive, Errol Samuelson, announced a significant shift in their policy regarding MLS-listed homes. If properties are not submitted to the MLS and subsequently published on Zillow within 24 hours of public marketing, these listings will be barred from appearing on the platform “for the life of the listing.” This decision raises alarms about the control Zillow aims to exert over real estate marketing practices.

The Impact of Delayed IDX Syndication

Traditionally, delayed IDX syndication has fallen under the guidelines set by the National Association of Realtors (NAR). However, Zillow’s new directive suggests that it is positioning itself as the arbiter of how real estate listings should be marketed. This move has sparked concerns that the company prioritizes its profit motives rather than the interests of consumers and real estate professionals.

The Problem with Lead Diversion

Critics argue that Zillow’s lead diversion tactics are detrimental to both agents and consumers. In focus group discussions, home sellers expressed their frustration upon realizing that clicking the “Contact Agent” button did not necessarily direct buyers to their listing agent. Many felt misled, as their properties were used as bait to attract buyers for other agents, thereby undermining their own marketing efforts.

Homes.com’s Agent-Friendly Model

In contrast to Zillow’s approach, Homes.com emphasizes an agent-friendly philosophy. They operate under the principle of “Your Listing, Your Lead,” ensuring that only the listing agent’s name and information appear on property listings. This ensures that consumer inquiries go directly to the appropriate agent, eliminating lead diversion and allowing agents to maintain credit for their listings.

The Misconception of Dual Agency Issues

Zillow’s claims regarding potential dual agency concerns linked to displaying listing agents’ information are considered misleading by industry experts. If such concerns were valid, they argue that Zillow should also limit agent information on other marketing materials, which highlights the absurdity of their stance.

Conclusion: The Changing Landscape of Real Estate Marketing

As more agents become aware of Zillow’s strategy, there is potential for a significant shift in how home listings are marketed. A growing number of real estate professionals may seek alternatives that provide better control over their listings and lead generation. Homes.com, for instance, has attracted over 110 million unique visitors monthly, demonstrating that consumers still have options when searching for properties.

In conclusion, agents should carefully consider the implications of listing their properties on platforms that may prioritize their profit over the interests of both agents and homeowners. As the industry evolves, ensuring that agents have control and respect in their marketing efforts will be critical.