How Zillow is discrediting Realtor database

How Zillow is discrediting the realtor database. This is kind of a big deal. I’m going to go ahead and show you exactly what’s going on here with Zillow. And if we follow along, you’re going to see some things that they have strategically done. They’re smart, like, really smart. They have great leadership. And the leadership might not always tell the truth, OK?

And they might give disinformation campaigns, but they have a real agenda in a way of doing things in their super impressive. So we’re going to go ahead and split the screen and show you how they are discrediting the realtor and discrediting their database specifically.

Let’s go ahead and take a look at that here for us.

And so here we are at the database and we’re looking at Zillow, and I’m going to show you really quickly if I go type first, go into the search bar and hit search in Frisco. What I’m going to see is there’s a bunch of dots that start to show up here, OK? And the amount of homes here is impressive. And specifically, I’ll show you what they’re doing over here with creating inventory when inventory doesn’t even exist.

So we’ll look over here in the hills of Kingswood and give you that as an example, that there are currently 10 homes available in the hills of Kingswood. And you’re like, Huh, that’s pretty interesting. I’d like to see all 10 of them. So we click inside here. And what we have is this is now the hills of Kingswood by grand homes, and this is pretty interesting.

So what they’re doing is they’re putting this together and they have what they’re calling buildable floor plans. So a buildable floor plan is not a property with an address, but rather it’s a combination of many different homes that you could put on specific home sites. So I’m going to go ahead and click on inside here, and they are naming the plan. So this is the Whitehall by grand homes and it’s a buildable plan. What you’ll see is there’s no address to this property, no address at all. But you can build it.

And then what they’re doing is creating this inventory, which showing you what the floor plan could look like. You could have any one of these exteriors and see what’s going on here and then down below. They have pictures of what the home would look like on the inside, and it’s a nice home. There’s no no issues with that in the least, right? But then what they’re doing is creating multiple listings that really don’t even exist for this property and for others.

So with the current market that we’re in, if you are looking for homes and your clients are out there looking and they go to a place like Zillow and they see, well, there’s this new home over here and there’s more new homes over here and there’s dots all over the place. Why am I not getting that? Well, the simple answer is because this home doesn’t exist. The address doesn’t even exist.

Zillow has an advertising campaign with these different builders, and the builders pay them a nominal fee to be listed here, and I believe it is about seven hundred dollars per community on a monthly basis that they pay to list these different properties. Then when they have these listed now, they create this inventory.

So if we take and look at the same exact thing on Realtor.com and we’re just going to use them, and if we look up and we type in Frisco, Texas, let me see if I can properly type here. Ok. And we pull up Frisco, Texas, and we go ahead and look at the same thing with the map view, what we’re going to see is over here.

We don’t have all of that going on with the hills of Kingswood. It doesn’t exist. They don’t have all these 10 other listings. They have just simply the amount they currently have in Zillow has all of this, plus others. Right. So that does create an issue that now all of a sudden, the realtor database is not like it kind of should be. And that’s where it creates a huge issue because when as soon as the realtors lose control of the database, which they effectively have here because Zillow says, here’s our list of homes, and here’s your list which list would you rather look at?

If you’re a consumer, would you rather look at a bigger list with more properties or one with the last properties in real quick? You’re going to see a market change to where people are looking over here for homes and asking why these don’t exist. So that’s why it’s extremely important to get involved and to show these things and to be part of your organization and get back. And that’s exactly what my lovely wife has been doing. So she’s been down in Austin, giving back and being involved in leadership.

But leadership important for you as the agent. And these are important things that she is bringing up and these are getting discussed and they’re seeing exactly how we can deal with that, how we can maybe have builders that list not just some of their homes on MLS, but maybe all of them or none of them.

Why are some listed and why are some not right? Why are people that are salespeople in the model homes? Why are the builders reps not licensed as realtors? Those are important questions and ones that we’re trying to get to the bottom of.

And thank you to Shawna for putting in the effort to accomplish that for us and to look out for our future within this industry to make sure that we have a level playing field and that we have a great database and we’re holding everybody to the same standards. Why would some people need to be licensed to practice real estate? Why others are not?

Why would they not have responsibilities such as care, custody, due diligence, loyalty, obedience? I don’t remember what the IRS like old cars and acronym. I don’t even know. I’m sorry. They took the test a long time ago and I forgot it all. So anyways, if you remember exactly the duties that you owe as a realtor to your clients, Chatman, now I’ll be impressed because I know I forgot them all.

Just do the right thing every day and it all works out. You don’t have to worry about that type of stuff. All right. That concludes us for the day. I’ll tell you some more things that I think Zillow is doing impressive in the very near future. Watch for it.

Episode Links

MLS , hills of Kingswood, Frisco, Zillow , Mike Acquisto , TNT 

Episode Recorded Live on YouTube 02.08.22

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