Month: August 2018

Zillow Service Fees Passed On To Customers

Many real estate industries and agents use Zillow to show properties that are on sale. One of the major reasons why its so popular is because its online and mobile tools are for free. But it’s not free if the homebuyer or home seller is paying for it through a transaction

Real estate professionals are charged a 5-6% selling fee to advertise on Zillow and produce very few leads.  Real estate agents can only charge a commission rate which is paid to the brokerage at the close of escrow. But an agent competing against other agents for your business can only be so aggressive with the commission rates if they have to shoulder so much more advertising costs. While the internet gives an agent access to the world, that access comes at a steep cost that can rival the old fashioned printed ads.

 Not too long ago, Zillow launched an online property managing tool that enhances a landlord-renter relationship. In order to obtain this Zillow Renter Manager service, you must fill an online application that charges a $29 dollar fee. This rental application will allow a seller to get a tenant background check and a comprehensive credit report. This tool can also allow renters to apply to multiple properties at the same time.

 There is value in Zillow’s services, but it is recommend to take some of more pertinent information with a grain of salt.

 Up Next: Zillow Intends to Replace Real Estate Agents

Sources: 1, 2, 3, 4, 5, 6, 7, 8

 

 

Zillow. Its the go-to website for people interested in buying or selling a house to do their research. And why wouldn’t they use it? Its the most popular site for such data.

But is it accurate?

Ask any agent and most will tell you Zillow is not. It’s a strong statement loaded with truth.

But how?

Zestimates are inaccurate.

If you’re a seller wondering how much your property is going for, you’ll most likely consult with Zillow before trying to contact a real estate professional.

We tend to forget that a property’s worth is determined by how much a buyer is willing to pay and not by how much Zillow markets it for. For example, let’s say Zillow says your house is worth $800,000, but if many months pass and your property hasn’t sold, that’s probably because your property is marked too high.

Here’s the thing, Zillow bases their information on comparable sales. Zestimates stand for property value estimates. Zillow’s CEO, Spencer Rascoff, admitted that these Zestimates have a “median error rate” of about 8%. This is a high error rate! Let’s say a house was $500,000. Its disparity would be about $40,000, which is a lot of money for an error rate.

Stay tuned for Why Agents Don’t Trust Zillow and Neither Should You! -Part 2.

Sources: 1, 2, 3, 4