Zillow Rumors and Thoughts
Zillow has struggled over the years with the ability to post accurate data. In addition, Zillow has also struggled with getting updated data well after sites like Realtor.com… For example, Zillow is the last to post new listings, new price updates, etc… when compared to sites like Redfin or Realtor.com.
First question… Why? Zillow doesn’t have agreements with every MLS in the United States to pull data directly from the MLS feed. Realtor.com does… This results in Realtor.com being first to post updated data. In markets where Zillow doesn’t get the information automatically, they rely upon the agents to update the Zillow site. Agents always update the MLS before they update Zillow and many simply don’t update Zillow. The reason? Real Estate still starts and finishes with the MLS for 99% of all Realtors(R).
Second Question – Why does Zillow struggle to get accurate data in markets where they DO have agreements with the MLS? The answer here is a bit more complicated. Even if your MLS syndicates data to Zillow, an agent has to authorize and “opt in” to the Zillow sharing feed. Some agents choose not to do this and other agents just simply don’t know how to go about it.
So how is Zillow going to fix this problem? They really can’t do anything that is 100% guaranteed to fix the problem but they are certainly trying. After a few weeks of rumors, Zillow finally announced they will no longer allow an agent to post a single listing directly onto the Zillow website. (as of May 1st) All listings from agents posted on Zillow must come from the MLS. The thinking behind this is that if you force agents to submit data to Zillow through the MLS, the information will be much more timely and accurate. The negative… if you force agents to opt into the Zillow syndication feed from the MLS, will this cause friction b/w agents and Zillow?
What’s next for Zillow? Zillow has a serious problem with FSBO’s and they are searching for answers on how to fix this. The rumor floating around right now is that Zillow is going to simply ban FSBO’s from posting directly to the Zillow site. The reason is that FSBO’s are much more likely to post a listing for sale and then simply forget about it.. This results in all sorts of anger directed at Zillow. Look at it this way, you just bought a FSBO home and moved in… you notice people driving by your home, looking through your windows, and possibly even knocking on your door. You discover Zillow still shows the home you just bought active for sale b/c the previous owner never updated the Zillow website, you’re going to be very upset.
Could Zillow really ban FSBO’s? I find it very unlikely but understand the reason Zillow is considering this action. Not only would it clean up the data, it would possibly build a better relationship with Realtors b/c it gives Realtors one more advantage to convince a FSBO to list with that agent…. Meaning, if you want to post your home on Zillow, you have to employ the services of an agent. Again, I’d be surprised if this really develops but the rumor is definitely floating out there.
For what it’s worth, Zillow is publicly denying that their is any truth to the rumor of no longer accepting FSBO listings as of this morning. That said, FSBO’s are finding it harder than ever to post a listing on the Zillow site. For the last week, Zillow has been giving server errors to countless homeowners’ trying to post their listing. In addition, those that do get it listed are having to wait days for Zillow to approve the listing and post it live. Zillow’s response? They review every listing for legitimacy before allowing it to go live on the Zillow website. Zillow’s claims they are simply slammed with listings to review and this is causing the delay.