Stick with Zillow or cut ties? 'It's an MLS issue,' real estate leaders say
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10/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
CONNECT NOW
Stick with Zillow or cut ties? 'It's an MLS issue,'
real estate leaders say
Real estate leaders Courtney Poulos and Veronica Figueroa share their thoughts
on Zillow hiring agents and how multiple listing service regulations made it
possible
BY MARIAN MCPHERSON | Staff Writer
Today 10:06 A.M.
In September, Zillow dropped a bomb on the real estate industry.
The platform would be using its own salaried and licensed real estate agents to
handle Zillow Offers transactions in Atlanta, Phoenix, and Tucson, Arizona —
a move that upends one of the main benefits of Zillow’s Premier Agent
program.
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 1/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
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The reactions to the announcement were mixed, with some calling on fellow
agents and brokers to slice Zillow from their advertising budgets and others
maintaining their investment in Zillow remains worthwhile, despite the
company closing the door to Zillow Offers deals.
However, Figueroa Team Brokered by eXp Realty CEO Veronica Figueroa and
ACME Real Estate broker-owner Courtney Poulos told the Connect Now crowd
the question is no longer about staying with or cutting off Zillow — it’s about
challenging multiple listing services and associations to put the data back in
the hands of agents so they can properly compete.
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Stick with Zillow or cut ties? 'It's an MLS issue,' real estate leaders say
“I have a bone to pick,” Poulos said. “My problem stems from a decade ago. The
MLSs sold the beautiful pictures I spent so much money on and allowed
intruders to use them. We’ve given up in so many ways.”
Poulos, who’s used Zillow to advertise new listings, said MLSs and associations
squandered the opportunity to help brokers and agents compete with Zillow
and other massive tech platforms by placing data control in their hands.
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 2/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
Instead, she said, MLSs should’ve launched platforms
where agents could market to consumers directly with
branded content.
“Agents should have ownership over the data, the
branding, the leads, the photos,” Poulos said while noting
Courtney Poulos her MLS doesn’t allow agents to create branded tours but
allows Zillow to use agent’s photos to create branded
content. “Why do we have to play catch-up right now when we’re the ones
generating the listings?”
“It’s frustrating for the little guy,” she said while pointing to MLS and National
Association of Realtors’ regulations, such as Clear Cooperation. “You’d think
we’d have more control, but we don’t.”
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Figueroa, who test piloted Instant Offers and is the
current Zillow Offers broker partner in Orlando, said she
agreed with Poulos’ assessment that the issue is no longer
with Zillow, but with MLS’s stonewalling any progress
that could even the playing field for agents and brokers.
Veronica Figueroa However, instead of divesting from Zillow as Poulos
suggested, Figueroa said agents and brokers must learn
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 3/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
how to work within the current system, identify opportunities and diversify
their marketing and lead generation systems so they can withstand change.
“This is no longer a Zillow issue, it’s an MLS issue,” Figueroa said. “I’ve sat in
those MLS board meetings and it’s hard to effect change. That battle was lost a
long time ago.”
“But our business wasn’t solely built on Zillow,” she added in reference to the
flood of questions she’s received since the September announcement. “We
were prepared for this and we were willing to be that partner while they
continued to innovate.”
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“It makes business sense,” she added. “We were prepared and aware, and they
were really transparent with us.”
Poulos pushed back on Figueroa’s sentiments that it’s too late to even the
playing field for agents and brokers against Zillow and other tech behemoths.
The ACME broker-owner said agents must drill down on their value
proposition and keep challenging their MLSs and associations to place data
back in the hands of real estate professionals.
“It’s not too late,” Poulos said. “My value proposition is that it’s easy, with the
right broker, to not leave cash on the table. ”
“The onus is on us to say, ‘Why would you pocket list in a seller’s market?'” she
added. “If we cannot enforce some changes from the ground up, then the
battle is lost. You wouldn’t go to someone with the cheapest rate for surgery,
why would you do that with the sell of your house?”
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 4/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
She continued, “We still have value, and it’s up to us to enunciate our value.”
Although the battle for buyer attention may be over, Figueroa, Poulos, and
Warburg Realty President and Connect Now moderator Clelia Peters said
there’s still ground to be won when it comes to getting in front of sellers.
“We can’t stop them from becoming a brokerage,” Figueroa said while
mentioning she plans to continue working with Zillow. “They have the right to
hire agents to sell their homes.”
“[However], sellers are still choosing to work with agents and go the
traditional route,” she added. Often times when we see people choose the
iBuying route, it’s because of a life-changing situation. Lean into the
conversation with sellers.”
Figueroa said agents and brokers must drill down on their market knowledge
and expertise to win business since sellers and buyers are always looking for a
skilled guide.
“If you can do that, you’re going to continue to do great,” she said.
On the other hand, Poulos urged agents and brokers to continue fighting MLSs
for the right to “market directly” to consumers while researching other
iBuying options that enable consumers to sell quickly without leaving money
on the table.
“I appreciate the competition,” Poulos said. “But right now, our job is to get
between the consumer who has no idea about the system of real estate and
these platforms.”
“Let consumers see me as they see Zillow,” she said. “Why are we pretending
people can’t see? We can market to them first.”
“We can say, ‘Here’s a better option, here’s a different option where you don’t
have to leave money on the table,'” she added while mentioning HomeLight
and other iBuying platforms. “Remember, Zillow wouldn’t be making these
offers if they couldn’t make money off of you.”
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 5/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
Although they disagreed on Zillow’s place in their business moving forward,
both leaders said real estate professionals must get involved with their MLSs
and push for changes that give agents and brokers some leverage against large
corporations.
“We can’t be constantly defensive,” Poulos said. “You have to get involved and
put pressure on our leadership. The more power our MLS and associations give
us, the better we can compete with Zillow and these huge conglomerates.”
Email Marian McPherson
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Victor Lund
It would have been great to get the perspective from an MLS exec for this artilce. MLSs serve their
members by syndicating listings where directed by the participant (broker) and/or subscriber
(agent). Some of these statements about the MLS are uninformed. Participants begged the MLSs
to help out with syndicaion - and MLSs did more for creating data license agreements than anyone
thought imaginable. Any problem that a broker or agent has with Zillow needs to be solved by
looking in the mirror. Zillow was built on data provided by brokers and agents - not the MLS.
Like · Reply · 4 · 4h
Athens Broker
NAR should have already won this battle. Such a disappointment. How is Zillow going to be able to
follow advertizing rules and regulations when they join the mls and keep their current model. They
have never had any oversight and had no rules to follow. Are they going to continue sticking signs
of the highest bidder on everyone elses listings? Is all the content going to be unbranded like the
mls requires?
Like · Reply · 2 · 4h
Marcus Vanzant
We as agents and brokers can still have a huge impact on Zillow. If we immediately stopped paying
for leads, Zillows only source of revenue other than VC funds would stop. Then, refusing to share
our data through the MLS would cause Zillow to have to spend their finances like we all do and join
every assoc or MLS they want to be a part of, thus evening the playing field. Let's see how willing
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 6/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
y y p , g p y g g
they are to spend when their revenue dries up and cost go up along with it? We need to stop acting
helpless and listening to those in our industry who have a vested interest in Zillow.
Like · Reply · 5 · 3h
Brandon Hoffman
They say the battle is lost. I say the war could still be won. All the MLS would have to do is take
back control of the data. All they need is a backbone and the ability to sustain short term criticism
from the consumer. But I wouldn't hold my breath for that to happen. Too many people in leadership
positions were too shortsighted, at a minimum.
Instead we are letting Z, T, R and others milk the cow for free, and then they get to sell the milk
back to us.
Like · Reply · 3 · 3h · Edited
Ryan Thomas
This has always been a frustration of mine. Even when I was new, I didn't understand why Zillow
and other platforms built their business on our data, then sell us the leads they gather from our
data. It just doesn't make any sense. We need large MLS' like Bright around the country that will
collaberate with one main stream website and cut our the rest. Let's see how zillow does with just
their own listings and FSBO's
Like · Reply · 2 · 3h
Jim Weix
With the 2 MLSs that I belong to, brokers and agents have the option of sharing their listings with
Zillow, Trulia, and Realtor.com. The problem is, if your listings are not on these sites, your clients
will quickly complain.
That, plus the fact that Zillow allows FSBO listings, make Zillow the #1 site that buyers use. It is
also the best site for agents to use if they want to know what is actually for sale. I'm also seeing
more real estate agents skipping the MLS and Realtor designation, as they can list and sell
properties quite effectively without the MLS or NAR.
Like · Reply · 1 · 2h
Worthy Homes
Correct. But there's nothing wrong with funnelling all that online traffic from Zillow and
Realtor.crap back to you, the listing agent. The Seller hired you, not some hack operator
on Zillow to handle the buyer trafffic. The MLS is a failing system because it's just a listing
database, we're building a MARKETPLACE for Realtors to transact online direct to
consumer. Interested Jim? Join us online @ www.worthroom.com. We'd love to feature
your next listing too!
Like · Reply · 49m
Kurt Buehler
The issue as I understand it is that we are not the client of the MLS"s their stockholders are. Zillow
and other third party vendorshave gone in and wined and dined the executives of the major MLS'd
and flashed money to get a contract signed providing the data to them without any knowledge of
the agents who's work product that data is. Zillow becoming a broker might just level a playing field
but we must gain control to all vendors the use of our data. My thought is that we restrict the data to
the active properties only and all pictures and data once sold are property of the Broker. If you
st… See More
Like · Reply · 1 · 2h
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Worthy Homes
If you are an MLS member paying your dues like us, we are their customer. And they are
selling our listing data to endeless third parties for profit. Only way to fight back is to stop
giving them your content. In CA, we are now limiting the content we give to our MLS and
instead inviting everyone (agents and consumers) to join our marketplace online @
worthroom.com where we control and brand our own unique listing content. People don't
make offers on Zillow. I can't see your offer status on Zillow or Redfin or even MLS. Our
site you can since we're presenting and sharing offers online rather than sending by
private email. Join us, happy to automate your contract in your area. It takes time, but it's
worth it! Transparency builds trust! ;)
Like · Reply · 40m · Edited
Frank Reali
Since Zillow is licensed in just about every state, if not every state and is joining MLS' all over the
country there will be no way to keep your listings off Zillow without stopping your feeds to IDX
which would take your listings off just about every website. Learning how to leverage everything
about yourself, your brokerage and your relationships will allow for more winning opportunities.
Like · Reply · 2h
Worthy Homes
Well said Frank!
Like · Reply · 39m
John Leonardi
It is painfully obvious from the comments in the article and comments below that a) there is a
plethora of inaccurate information and b) a misunderstanding of what and how MLSs operate.
Firstly, NAR, their Directors (Brokers) and the industry owned a great site - Realtor.com and had
the opportunity 15+ years ago to develop Realtor.com into a Zillowesque type company. However,
the Directors decided to tie the hands of the team running Realtor.com with a myriad of restrictions.
As such, Realtor.com was not as effective as it should have been in delivering data and other
information that consume… See More
Like · Reply · 1 · 1h
Worthy Homes
This is a bit inaccurate. The MLSs sell and license your data to anyone willing to pay for it.
All you have to do is join the MLS and be a member. So Redfin or Zillow pay to join the
MLS, and then they pay to access all your data. Selling the leads back to Realtors! This is
the SCAM, and this is wrong! As the owner of my listing content, as the broker, our content
should NOT be sold and rebranded and repurposed to endless third parties. That's not why
I joined the MLS nearly two decades ago. But I hear you. We join MLS to share info across
a network. Well, I join Facebook to share inf… See More
Like · Reply · 20m · Edited
Worthy Homes
The MLSs make hundreds of millions of dollars on private membership dues and selling Realtor
listing data to endless third parties for profit. The only way this changes is if Realtors ditch the MLS
database and list on public MARKETPLACE where we can serve and sell to consumers directly.
Join us and list for free @ www.worthroom.com. With a hanful of listings, we've already captured
over 10,000 customers away from Zillow and realtor.com!
Read more about us on Inman: https://www.inman.com/.../bid-buy-sell-in-a-transparent.../
Like · Reply · 59m · Edited
https://www.inman.com/2020/10/20/stick-with-zillow-or-cut-ties-its-an-mls-issue-real-estate-leaders-say/ 8/1010/20/2020 Stick With Zillow Or Cut Ties? 'It's An MLS Issue,' Real Estate Leaders Say - Inman
Kenneth Jenny
As an industry we really need to begin to face the realities we have created.
First reality. Zillow entered the business asa consumer-first company, need I say more?
Second reality. While we backed the MLS industry's then 750 plus MLSs, Zillow broke down the
artificial geographic Association and MLS barriers we set as an industry and provided one place to
search the entire Country for properties.
Third reality. Since the Trex freely roamed the countryside we have not advanced what we do or
how we do it. Open houses, lock boxes, random showings of listings by buyer's agents that know
ze… See More
Like · Reply · 39m
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