Zillow ... Friend or Foe?

Have you ever taken a moment to look up your home on Zillow and see your Zestimate? If you haven't, I encourage you to check it out—it's quite fascinating! Sometimes the values can be a bit off, either too high or too low, but one thing's for sure: they're not always spot-on. These estimates are churned out by an algorithm that looks at square footage and recent sales in your area, but it misses out on considering things like schools, the condition of your home, and those lovely views. Yet, many buyers take these figures as gospel. So, in essence, Zillow is putting out numbers that impact your home's value—without asking you first!

Now, a little background on Zillow: they are a for-profit company that buys listing data from local real estate multiple listing services, or MLS for short. They then put this information on an app or website, showing you what they decide you should see. They also make money by creating catchy content to generate leads, which they sell to realtors who pay for them. Their big claim is to offer a one-stop shop for buyers to see all available homes. But here's the catch—they control how the information is displayed, and homeowners like you have no say in it. They might, for example, say your home is in a flood zone (even if it’s not), which can hurt your chances on the market. If the information is wrong, there’s not much you can do. They hold the data!

So, here's the big question: should a third-party site have the power to decide how your home is marketed, or should that decision be yours? Across the country, Zillow's way of doing business is being challenged by brokerages that are choosing to create strategic marketing plans for their clients, including launching homes without using Zillow first.

As always, I want to be upfront with you—Compass is one of those brokerages. I truly believe that as a seller or owner, you should have the freedom to choose (with guidance from your trusted Realtor) how your home is marketed. Why should a company that doesn’t have your financial interests at heart dictate how you sell your home? If you want to test the waters a little without affecting your days on market, shouldn’t that be your choice? Unfortunately, Zillow doesn’t see it that way. They want the data because it’s their only way to make money.

There's a lot of talk about this in the real estate world, and there's definitely more to discuss. I’d love to chat with anyone who’s interested in this topic. Feel free to text me, and let's grab a coffee to chat more about it!