Posted on 03/19/2024 1:24:52 PM PDT by where's_the_Outrage?
Since its founding nearly two decades ago, Zillow has revolutionized the way Americans buy, rent, sell — and fantasize — about housing in the US.
But a settlement that breaks the grip of powerful real estate agents could trigger a range of problems for the platform already suffering from declining traffic in an increasingly competitive housing market.
The company’s stock has dropped nearly 13% since Friday’s $418 million settlement between the National Association of Realtors and groups of home sellers which ended the standard 6% commission for Realtors. It’s a sign that investors fear the settlement could have seismic effects through the housing industry, changing everything from how much Americans pay to buy and sell homes to the income of those in the industry and even the technology underpinning it.
Zillow made this point itself in its annual report last month, when the company warned that, “if agent commissions are meaningfully impacted, it could reduce the marketing budgets of real estate partners or reduce the number of real estate partners participating in the industry, which could adversely affect our financial condition and results of operations.”
(Excerpt) Read more at msn.com ...
The biggest problem I’ve seen with Zillow is picking out bad comparable sales. My brother’s house was somehow matched with a piece of commercial property that had sold about a mile away. Suddenly Zillow said his quarter million dollar house was worth two million. Also I have the sense that it is boosting prices anyway to get more eyes on it.
So bad news if you’re a Zillow investor or a RE agent.
But wouldn’t be a bit of good news for buyers and sellers, as they probably split the little more money that buyers have for their shop.
Someone please explain how the _buyer_ agent commission incentivizes that agent in the right direction.
Zillow is good in many states, however some states, like Montana where I live are Non Disclosure states — meaning home, property commercial business sales prices are private and it is illegal for any bank, brokerage, RE agent, appraiser, title company or state or county treasurer to disclose sales pricing.
Zillow does not join the MLS so they have to guess at values for home prices.
Example:
My neighbors put their home on the market for $875,000. Realtor.com had the listing published as did Zillow both for the listing price — $875,000.
The house sold (my neighbor told me personally so I can share) quickly for $950,000.
It will take a few years before Realtor.com to estimate a value on the home on their website due to the non disclosure rules.
After the sale Zillow estimated it’s value at $30% less than the sales price...
I do want to emphasize that I’m not anti Zillow...just some places it’s less accurate.
Counties should not be allowed access to MLS.
Zillow has an old description of my house in their site. We added about 500 sq feet to the kitchen and created an addition where the old porch used to be.
Boy, are they going to be surprised when the house sells for 20% higher than they project it will.
zillow is a broker in most states ...
Zillow.com tries to run rentals and takes over vetting and not good for the smallholder
Because our state is Non Disclosure the county treasurer is required by law to know the sales price so they join the MLS - it’s not expensive...
They — and Realtor.com — both have our home described incorrectly...
Our home is 1,080 sq. ft. 2 bedroom 3 bath 2 car garage...
It’s described as 1 bedroom, 2 bath 3 car garage...
Zillow estimates it at 20% less than Realtor.com.
Since we built it in ‘95 it has never been on the market... go figure.
Probably sold to some Californian moving north. My daughter in Missoula can’t afford to buy there.
I worked in real estate sales from 1984-2010 (Colorado). There was no “standard commission”. I charged fees that moved all over the place depending on the clients, the type of property, the advertising agreement for the listing, whether multiple deals were involved, and other factors. Fees ranged from 1% to 10% depending on the deal(s). I had many repeat/multiple repeat customers.
Hmmm... Are you parking a car on one of your bathrooms?
A 40 to 50 percent correction is looming.
“Hmmm... Are you parking a car on one of your bathrooms?”
I occasionally sit in the garage bathroom and look at the cars!
“Probably sold to some Californian moving north. My daughter in Missoula can’t afford to buy there.”
Actually the folks that sold the house were from Oregon — our new neighbors are fourth gen. Montanans (like me) however they are from Eastern Montana.
Property IS expensive these days...
What is the point of non-disclosure if the county is allowed to pull the actual sale price?
> can’t wait
I don’t make the laws...but I do know them.
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