Zillow Faces More Competition As MLSs Tighten Control of Their Data

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1 REPORT Susan Jennings Kantari, Zillow Faces More As MLSs Tighten Control of Their Data Companies: MOVE, TRLA, Z October 30, 2013 Research Question: Will realtors dissatisfaction with Zillow as well as new consumer-facing efforts by local MLS sites and Realtor.com lead to Zillow s downfall? Summary of Findings Zillow Inc. (Z) is making efforts to improve real estate agents satisfaction with its services, but now it faces a new challenge: consumer-facing efforts by local MLS sites. Two industry specialists and an executive for a large real estate agency said MLSs have started to syndicate their data rather than to share it with Zillow and similar sites. Zillow s lack of data integrity, particularly in its Zestimates, was brought up by sources in all silos and prompted a few sources to avoid working with the site altogether. Thirteen of 16 sources who commented said Zillow lacks the ability to raise prices without creating a backlash among real estate agents. Zillow has increased its advertising efforts in the past six months, according to two sources with small real estate agencies, two with large firms, and one large agency executive. Sources believe this marketing outreach is meant to combat the perception that Zillow offers more value to consumers than to agents and brokers. Sources said Zillow is dispensable, continuing the theme from our April 16 report. The use of mobile in real estate is a growing trend. Trulia Inc. (TRLA) has gained more advertising dollars because of its superior mobile app, according to one executive for a large agency, one agent from a large firm, and one small agency source. Four sources said Redfin has become more popular during the past six months. Execs at Large Real Estate Agencies Real Estate Agents at Small Firms Real Estate Agents at Large Firms Industry Specialists, including from MLSs Z s Data Accuracy Z s Ability to Raise Prices Silo Summaries 1) EXECUTIVES AT LARGE REAL ESTATE AGENCIES Five of eight sources use Zillow at their firms. The remaining three do not use Zillow because of poor ; one of these three does not allot ad dollars to the company but lets his listings appear on its site. Satisfaction with Zillow s was ranked as 3 to 6 out of 10 (with 10 being very satisfied) for the five sources who commented. Sources were mixed in their rankings of Zillow compared with Trulia and Realtor.com. They said Zillow is dispensable and lacks the power to raise its prices. Four sources complained about inaccuracies in Zillow s data, particularly its Zestimates. 2) REAL ESTATE AGENTS AT SMALL FIRMS Five of nine sources advertise on Zillow three with basic subscription packages and two with a Premier package. Another source advertises on Trulia because of its superior mobile app. The remaining three do not subscribe to Zillow because of its poor and inaccurate data, particularly its Zestimates. On a scale of 1 to 10 (with 10 denoting very satisfactory ) Zillow received a rating of 0 to 1 from three sources, 3 to 6 from two sources, and a 7 from one source. Five sources who commented on Zillow s advertising rates said the company does not hold any pricing power over agents. 3) REAL ESTATE AGENTS AT LARGE FIRMS Eight of these 12 sources advertise through Zillow in varying degrees. The remaining three do not allot ad dollars to Zillow, including one whose listings still are posted on the site. Sources were mixed on their opinion of Zillow s, including two who said their declines when other brokers advertisements are added to their listings. One has reduced spending with Zillow in the past six months because of poor. Of the four who commented on Zillow s pricing power, two believe it has a little amount of room to raise prices but two said it lacks the influence to increase its rates. Three sources said Redfin is becoming more popular. Although four sources ranked Zillow higher than Realtor.com and Trulia, two others ranked Realtor.com ahead of Zillow. Two sources noted increased marketing from Zillow during the past six months. Six sources said the MLS is the best place for data. 4) INDUSTRY SPECIALISTS Two of these five sources reported a growing trend of MLSs discontinuing their data feeds to Zillow and similar sites. This issue is expected to be discussed at next month s National Association of Realtors meeting in San Francisco. 1

2 Zillow stated that its second-quarter revenue was $47 million, up from $27.8 million in 2012, thanks to its Marketplace (which doubled year to year) and Display (which grew 30%) categories. The company added a record high of 4,800 Premier agents during the second quarter. Zillow s plans to expand its audience are working, shown by the 66% year-to-year growth in unique users during May and driven by mobile devices that now represent 60% of the company s visits. Move Inc. s (MOVE) Realtor.com, one of Zillow s main competitors, voted in July to expand its listings to include data from sources that are not realtor-owned. This will allow the display of unlisted new homes, new-home communities and unlisted properties that are for rent. Zillow is seeing additional competition from MLSs, which are building their own consumer-facing websites through the Spring program and allowing consumers access to current and accurate MLS information. In Blueshift Research s April 16 report, nine of 10 sources all executives at large real estate firms viewed Zillow as dispensable given its lack of a unique offering amid a sea of industry players. Most sources said Zillow had no pricing power with real estate professionals. Three reported experiencing a decrease in their return on investment and a decline in leads when other brokers were added to their listings on Zillow. CURRENT RESEARCH In this next study, Blueshift Research assessed whether Zillow s business model is sustainable in the face of MLSs increasingly seeking control of their data and real estate agents dissatisfaction with Zillow s services. We employed our pattern mining approach to establish five independent silos, comprising 34 primary sources (including 11 repeat sources) and four relevant secondary sources focused on a lack of features on MLS websites, a regional MLS working directly with thirdparty sites, a challenger to Zillow in New York, and Zillow s upgrades to its site: 1) Executives at large real estate agencies (8) 2) Real estate agents at small firms (9) 3) Real estate agents at large firms (12) 4) Industry specialists (5) 5) Secondary sources (4) Next Steps Blueshift Research will monitor the number of MLSs pulling data feeds from Zillow and its competitors as well as MLSs consumer-facing sites. We also will check Zillow s pricing and advertising efforts to real estate agents. Silos 1) EXECUTIVES AT LARGE REAL ESTATE AGENCIES Five of eight sources use Zillow at their firms. The remaining three do not use Zillow because of poor ; one of these three does not allot ad dollars to the company but lets his listings appear on its site. Satisfaction with Zillow s was ranked as 3 to 6 out of 10 (with 10 being very satisfied) for the five sources who commented. Sources were mixed in their rankings of Zillow compared with Trulia and Realtor.com. They said Zillow is dispensable and lacks the power to raise its prices. Four sources complained about inaccuracies in Zillow s data, particularly its Zestimates. One source said a regional realty group is considering pulling its listings from Zillow and similar sites. Another has noticed more marketing from Zillow in the past several weeks. 2

3 KEY SILO FINDINGS - 5 of 8 sources represent firms that use Zillow; 3 have monthly firm-wide subscriptions. - 1 source said with Zillow was not strong enough source does not spend with Zillow because of the time wasted dispelling clients expectations from Zestimates. - 1 source lets his listings appear on Zillow but does not allot advertising dollars to the site. - Of the 5 sources who rated Zillow s, the range was 3 to 6 (with 10 being extremely positive ). - 2 of 5 sources believe Zillow has better than Realtor.com. - 2 rated Realtor.com above Zillow and Trulia. - 1 rated Trulia above Zillow. - 5 of 6 sources who commented said Zillow lacks the ability to raise prices on agents. - 1 said Zillow could raise prices 10% before creating an agent backlash. - No sources find Zillow indispensable. - 1 source named Redfin as a leading competitor. - 2 sources ranked Zillow above Realtor.com; 1 believing Realtor.com is losing ground to Zillow. - 3 sources ranked Realtor.com higher than Zillow. - 2 find Zillow equal to competitors for lead generation. - 4 sources complained about inaccuracies in Zillow s data, particularly in its Zestimates. - 1 source has heard a major Midwest realty group soon plans to withdraw its listings from sites like Zillow. - 1 source noted more marketing from Zillow in the past few weeks. 1. Executive and licensed real estate agent associate for a large Florida agency; repeat source This large agency has spent $5,150 per month on Zillow during the past six months. Zillow is running head-to-head with Realtor.com and Trulia in terms of effectiveness. Roughly 20% of this agency s leads come from Zillow, 20% from Trulia and 20% from Realtor.com; the remaining 40% stems from the corporate website and other outlets. The source does not believe Zillow can raise its prices too much since many other brokers already are pulling out. We pay for enhanced listing, branding and higher placement in property search results on Zillow. We pay for Zillow s services for increased lead numbers and added value in our listing presentations. Over the past six months, our spend on Zillow has remained the same. We have a flat rate: $5,150 a month. brokers are not added to our properties. Zillow holds a better return on investment per dollar spent over Realtor.com. In terms of Zillow vs. Trulia.com in terms of, it is too close to call. On a scale of 1 to 10, with 10 being the most satisfied, we rate Zillow a 6 in terms of. I am not really sure right now how much Zillow can raise its prices. Many brokers are pulling their syndication agreements as it is. Realtors dissatisfaction as well as competitors efforts will not lead to Zillow s downfall. In terms of the best online tool for real estate agents, it is a relatively close race between Realtor.com, Trulia and Zillow. We subscribe to all three. In terms of our agents leads, they come from the following sources: 20% Zillow; 20% Trulia; 20% Realtor.com; 20% corporate-owned website; 20% other syndication sites. 3

4 2. Vice president of a franchise with more than 3,000 offices worldwide Although the company subsidizes some advertising for its agents on Zillow, most do not buy additional products on their own. Zillow has a low. Hits from advertising on Trulia are relatively higher because of its superior mobile app. Meanwhile, Realtor.com is losing ground. Zestimates are misleading and inaccurate. This source has noticed increased marketing from Zillow in the past several weeks. Most of our agents don t buy additional products on Zillow or Trulia because our franchise offers a featured listings marketing package on all three sites: Zillow, Trulia and Realtor.com. I couldn t tell you the exact, but we have a software program that draws a weekly list of all the hits our properties get and from what sources, so we do know how the sites are performing. I know hits on Trulia are much higher than Zillow, which surprised me at first, but Trulia has a better mobile app and a lot of our clients use mobile. In terms of actionable leads, Zillow just didn t generate much. Hits on Trulia are much higher than Zillow, which surprised me at first, but Trulia has a better mobile app and a lot of our clients use mobile. Vice President, Franchise with 3,000+ Offices Worldwide Realtor.com was one of the largest listing sites in the beginning, but the other sites are becoming more and more competitive. They re all trying to make their platforms as user-friendly as possible. My impression is that Zillow really markets to the consumer, while Trulia and Realtor.com market to the agents. Zillow is one of the top listing websites, so I think we need to be a part of it. You need to be where the buyers are, but Zillow can be a little misleading to consumers, especially with the Zestimates. We have to interpret it for sellers. Our agents really don t like that other agents can buy advertising next to their listing on Zillow. It creates confusion among consumers about where they should go for more information on the property, but our agents won t pay money to remove those competing agents ads. In the last few weeks I ve been getting some calls from Zillow trying to get us to buy their ZIP-code based marketing plans. 3. Vice president of technology for a large real estate firm; repeat source This firm s advertising spending with Zillow has remained stable. Zillow far outpaces Realtor.com in terms of leads and traffic, though Zillow and Trulia are more neck-and-neck. The source prefers Trulia, largely because he knows the founders and believes Trulia offers a better user experience. He believes Zillow cannot afford to raise its advertising prices because brokers already want to cut spending on the site. Brokers hate Zillow but consumers love it, so Zillow s service remain a viable option. Zillow has been savvy enough to create a disruptive technology and is here to stay. We pay to promote our listings on Zillow s site. That gives us more visibility and branding. Zillow offers a better return on investment per dollar spent. Zillow and Trulia are two of the top referring sites, referring traffic and leads to our Internet business teams. Realtor.com has been less effective at that same thing, and they typically place below Zillow and Trulia. On a scale of 1 to 10, with 10 being the most satisfied in terms of on Zillow, I will go with 7 a weak 7. Most of our agents do not advertise on these sites, but the ones who do get something for it. Real estate brokers already want to reduce their spending on Zillow. I do not see how Zillow can raise their prices at all. They can get money from brokers because brokers feel they have to advertise. Vice President of Technology Large Real Estate Firm 4

5 Real estate brokers already want to reduce their spending on Zillow. I do not see how Zillow can raise their prices at all. They can get money from brokers because brokers feel they have to advertise. Brokers have never liked Zillow because they are a disruptive technology. Consumers, however, liked it and like going to these search sites that are well designed. When they are shopping for a property, this is where they go first. Zillow leveled the playing field and sold ads to other agents, so agents had to buy in. Industry organizations can never get their act together to compete with the private market. Zillow and Trulia trade places as offering the better, depending on what different programs they are offering. I would put them as on par. We go back and forth with the both of them. I do not like Realtor.com. They do not have a good consistent vision of how to represent their real estate industry online. They spend too much time trying to compete with Trulia and Zillow. Their pricing has been often exorbitant. It is easier for us to work with the Zillows and Trulias than the Realtor.coms. I am more of a Trulia fan because I generally believe they do a little better job from the user experience. The best online tool for real estate agents is their own website. There is a very large trade organization called Realty Alliance which claims to be planning to withdraw their listings from sites like [Zillow] very soon. Vice President of Technology Large Real Estate Firm Zillow is indispensable not because the agents and brokers need it but the consumers want it. What is driving the spend for brokers and agents is that clients use these sites and expect to see a full set of listings on these sites, whether they are a seller or a buyer. There is a very large trade organization called Realty Alliance which claims to be planning to withdraw their listings from sites like [Zillow] very soon. Realtors dissatisfaction with Zillow in addition to online competition will not lead to Zillow s downfall. If Zillow has been smart enough to build a business, a new disruptive technology, then they understand the space they are in well enough to have a long-term business plan. 4. Executive manager for Coldwell Banker Zillow cannot afford to raise prices because of competition from Realtor.com, which introduced its services with realtors in mind. The source s corporation maintains an account with Zillow for national listings, and spending has been flat during the past six months. Individual agents can choose to pay for Zillow at their own expense. Zillow and Realtor.com are the primary competitors in the online listings space, although the local MLS system generates more leads. Our agents can choose to pay for Zillow. We do participate through our corporation for national listings on Zillow. They are in the top five of real estate websites. Realtor.com is actually customized very nicely for agents. They re doing a great job in promoting the credibility of using a realtor. Zillow realized later in the game they could do better by attracting realtors. They have really transformed themselves in the last 12 months. Realtor.com offers better value. The MLS is our lifeline. That gives us far greater access to data than Zillow or Realtor.com. Executive Manager, Coldwell Banker As a consumer I would put it at a 7 [in terms of satisfaction]. As a managing broker I would give them a 5 or a 6. They didn t build a timely bridge to realtors when they rolled into the market. Realtor.com came out of the gate as a true partnership. Zillow was late to that game. I think at this time if there s an additional cost that would give pause. Agents will want to see what they re getting for the money. I don t think Zillow can afford to raise their prices. 5

6 The MLS is our lifeline. That gives us far greater access to data than Zillow or Realtor.com. We also have a national feed with Trulia. I know consumers will probably go to Zillow or Realtor.com over Trulia. The consumer just wants information. Whoever can provide that the fastest will wins. I think Realtor.com and Zillow are winning. 5. Executive at a large firm in Illinois; repeat source This realtor, who subscribes to Zillow s basic service, said no more than 2% of his company s leads come from Zillow and no more than 5% all online services combined, including Realtor.com and Trulia. He depends on the MLS and local print publications for most leads. Zillow benefits property buyers more than realtors. No online listing service could raise prices right now without losing subscribers. [We subscribe to] their standard service. It s not the Premier upgrade. We re using it mainly for the exposure. Zillow hasn t generated enough leads to justify buying their premium package. I d have to say Zillow [has better than Trulia], but that s not saying much. Trulia doesn t seem to offer a lot of value. I would give Zillow a 3 or 4 rating out of 10 for my satisfaction. They can t raise prices and expect to keep the subscribers they ve got. I could take it or leave it. If the price doesn t increase, we ll probably keep using it. Realtor.com is better [than Zillow], although not much better. The MLS is our main resource. And our website. We get a lot of leads from inquiries on our site. 6. Franchise CIO for an East Coast firm This source does not sponsor Zillow for his agents because of dissatisfaction with Zestimates. Instead, the firm buys enhanced listings on Realtor.com, which he considers realtor-supported. Still, consumers like Zillow s site. He has noted a major industry shift toward mobile sites in the past six months. We don t purchase anything from Zillow because we don t look at Zillow as our friend. We spend a lot of time trying to dispel the perception of their Zestimates, so we have a hard time parting with our money to Zillow. Zillow knows their Zestimates are inaccurate, but they don t care because it attracts traffic. We buy the enhanced listings on Realtor.com. We do have some agents who do buy Zillow products, and they re having transaction issues with them. Those clients from Zillow tend to be more problematic because there s no loyalty. It s purely a web-generated lead from a site with inaccurate information. Yet one might say the same thing about Internet leads in general. It s easy for us to support Realtor.com because it s a venue that s realtorsupported and there s no competing advertising. If Zillow were to get rid of the Zestimates, it would be more attractive marketing opportunity to us. We don t purchase anything from Zillow because we don t look at Zillow as our friend. We spend a lot of time trying to dispel the perception of their Zestimates, so we have a hard time parting with our money to Zillow. Zillow knows their Zestimates are inaccurate, but they don t care because it attracts traffic. Franchise CIO, East Coast Firm 6

7 Zillow is a catch 22: It s a great website but inaccurate. From a technology standpoint, it s a terrific website. They ve assembled an enormous collection of data on millions and millions of properties. Clients and prospective clients love it. Twice a year we analyze the levels of valuation accuracy on Zillow. We take 250 existing home properties and analyze them. We compare the market value after it s gone to settlement to Zillow s Zestimate. Zillow s gotten a little better over time but still only gets within 10% two-thirds of the time. If we had that performance, we d be out of business. At our annual marketing strategy meeting, we ll look at our general strategy for our entire mix of marketing. We will be moving the dial for less print and more online. Everything s on the table. In the past six months, the biggest shift has been to mobile. 7. President of a large Midwest real estate firm; repeat source This source does not pay for any services on Zillow or Trulia, and gets most of his business through his own website. His properties are automatically listed on Realtor.com, but he does not pay for that service either. He finds little value in any of these sites though Realtor.com offers some exposure. Zillow could afford to raise its prices by about 10% before seeing pushback from brokers and agents. Zillow is not interested in satisfying agents or brokers, and its Zestimates often fall below actual values. I do not pay for any services on Zillow. I learned way back that they were somewhere between us and the consumer. If I can go direct to the consumer, there is no need to use Zillow. We get our clients primarily from our website. We are also members of IDX and share with brokers in our marketplace. We are also on Realtor.com but do not pay for their services. Zillow can raise its prices maybe 10% before real estate brokers and agents reduce their spending on them. Because I do not put my listings on Zillow and do not have to pay for my listings on Realtor.com, I would say that Zillow and Realtor.com are equal. I do not see a huge difference. But Realtor.com holds better value for me. Realtor.com has more credibility. Zillow and Trulia, I equate to be identical. Neither Zillow nor Trulia offers value to me. Zillow is not needed at all by real estate brokers. I get more traffic locally. Our own broker site is the best online tool for us to advertise our listings. Unrest is growing with Zillow, and it will have an impact on them going forward. Their Zestimates are off. They are usually lower than the actual value, which puts the seller at a disadvantage President Large Real Estate Firm, Midwest Unrest is growing with Zillow, and it will have an impact on them going forward. They are not interested in the agent or the broker; it is about putting money in their pocket at the end of the day. They are not a real estate company; they are a marketing entity. Their estimates are inaccurate. You go on there and see that their Zestimates are off. They are usually lower than the actual value, which puts the seller at a disadvantage. 8. Franchise marketing director for a company with approximately 90,000 worldwide associates This source does not advertise via Zillow but finds it to be a valuable creator of leads for newer agents. Redfin is by far the most popular site in the area. One-hundred dollars per month is the threshold Zillow could charge agents. 7

8 I do not purchase Zillow products individually and my company doesn t either, but a few of our agents purchase individually. I m a blogger and big into social media, and I get my Internet leads there. I do allow my listings to appear on Zillow. Zillow could raise their rates, but $100 a month is the threshold for agents for any one marketing program. Most people today are using Redfin; I d say 85% use it. The search and the way you can organize your listings are so easy. Zillow, Trulia and Realtor.com aren t the same. Realtor.com is so far behind in how they build their market share and how they communicate to the consumer. Zillow has held media events with the President [of the United States]; that says a lot to consumers. Our agents promote our franchise site to consumers over the others, but not all consumers will go with the agent s site. I ve never heard anyone be unsatisfied with Zillow. Agents complain about Zillow agent ads next to their listings but won t buy that space for themselves. Zillow confuses consumers because it leads them to believe they have all the information they need. The platform offers so much data, but the data is often wrong. For newer agents or agents that are stuck, Zillow is exactly the right thing to do. They provide value to the agent. Yet new agents are afraid to spend a little to make a lot. 2) REAL ESTATE AGENTS AT SMALL FIRMS Five of nine sources advertise on Zillow three with basic subscription packages and two with a Premier package. Another source advertises on Trulia because of its superior mobile app. The remaining three do not subscribe to Zillow because of its poor and inaccurate data, particularly its Zestimates. On a scale of 1 to 10 (with 10 denoting very satisfactory ) Zillow received a rating of 0 to 1 from three sources, 3 to 6 from two sources, and a 7 from one source. Five sources who commented on Zillow s advertising rates said the company does not hold any pricing power over agents. Sources were mixed in their ranking of Zillow compared with its competitors. Three consider Zillow to be dispensable. Two sources noted increased advertising from the company during the past six months. KEY SILO FINDINGS - 3 sources subscribe to Zillow s basic package while 2 subscribe to the Premier package. - 1 advertises on Trulia because of its superior mobile app. - 4 sources do not subscribe to Zillow, including 1 because of poor and 1 because of inaccurate data. 1 source does not advertise on competitors sites either. - 1 source ranked Zillow s a 7 out of sources ranked Zillow s 0 1 out of source ranked Zillow s 3 6 out of had no comment. - 5 sources who commented said Zillow cannot raise prices with its current offerings. - 3 sources ranked Realtor.com above Zillow, but 1 added that Zillow is better for consumers. - 3 sources ranked Zillow ahead of Realtor.com and Trulia. - 1 source ranked Trulia as the top website for real estate. - 3 sources ranked their own websites or local advertising resources as superior to Zillow, Realtor.com and Trulia. 8

9 - 1 source said the MLS is the best source for data. - 1 source said the site loses as it adds more agents to sidebar advertising. - 2 sources complained of Zestimates inaccuracy. - 3 sources who commented view Zillow as dispensable. - 2 sources noted increased advertising from Zillow in the past six months. - 2 source said Trulia has gained business because of its superior mobile app. 1. Owner of a Florida-based real estate brokerage This source will continue to use Zillow only because many clients also use the service. Zillow continues to post inaccurate listings and out-of-date information on properties. Realtor.com is his preferred online tool, second only to the local MLS. About 2% of his leads come from online sites. Many midsize and smaller realty offices would abandon Zillow if it were to raise its prices. [We subscribe to] just their basic package. [Our spend over the past six months has] been the same. Realtor.com is better [than Zillow for ], no question. Zillow [holds better than Trulia] because I think more people, more consumers anyway, are using it than Trulia. Maybe 2% of my leads come from online sources. I d give Zillow a 3 or 4 out of 10 for. I don t think [Zillow] can afford to raise prices. The MLS is still the way to go. When [other agents get added to our listing on Zillow] it means fewer leads. It s very frustrating. If you don t pay to be a Premier agent, Zillow lists other agents who do pay for a prominent listing. And they show up right alongside your property listing. [Zillow is] not a must-have. 2. Agent in Oregon, with 45 years of realty experience; repeat source This source signed up with Zillow this year, but has not seen an acceptable to date. She does not intend to buy Zillow s Premier service. Zillow s basic rates already are expensive relative to the value received; Zillow cannot raise prices without losing customers. [ I subscribe] to just their basic service. I haven t seen any return on my investment with Zillow. I m thinking of going over to the Realtor.com site. I d give Zillow a 1 or 2 out of 10 for. Our biggest comes from the monthly real estate book that s printed in our area. Also our website. If they raise prices, I think a lot of realtors will stop using them. I think they need to prove their value before they can charge more for it. [Zillow is] not indispensable. Without leads, I can t say it s even useful. If they raise prices, I think a lot of realtors will stop using them. I think they need to prove their value before they can charge more for it. Agent, Oregon 45 Years of Realty Experience 9

10 Some of our customers say they are using Zillow to do their research, so we re looking to get our name out in front of them. The MLS is the best online tool for real estate agents. 3. Owner of a small real estate firm in Utah This source has advertised on Zillow for three years and is dismayed that Zillow is targeting many more agents, meaning his performance numbers have dropped because of competition on the site. He finds Zillow to be much more valuable than Realtor.com, Trulia and other sites, but he is contemplating moving away from lead-generation websites. He considers Zillow dispensable. I pay Zillow to show up on other people s listings. I am a Premier agent on their site and have been for three years. I have kept my spending stable with Zillow over the past six months. I pay for Zillow s services to get leads. I also use Realtor.com, Trulia [Dominion Enterprises ] Homes.com, and pay for all of those services. When other brokers get added to my property listings on Zillow, my drops and I see fewer leads. Zillow offers a better per dollar spent over Realtor.com and Trulia, and that used to be by far. In the last year it has shrunk considerably. Zillow is changing a lot of things and becoming more like Trulia and Realtor.com, to my demise. A year ago Zillow ranked a 10-plus on a scale of 1 to 10 for. Now maybe it is more like a 7 in terms of satisfaction. Zillow is already pushing their luck right now with real estate brokers. In the past year they have considerably cut their value. They are adding a lot more real estate agents. I am spending $1,000 a month, so when they start cutting my numbers down, the performance has dropped by 60%. They still are ahead of Realtor.com and Trulia but nowhere near where they were before. Zillow is very dispensable. For someone like me who can afford to spend $1,000 a month, I made my money back so it is definitely worth it. Zillow is going in the direction of Realtor.com and Trulia, and that is not a winning situation. What they had was very, very successful and Zillow made their Premier agents very successful. But they are spending more time advertising to real estate agents than to home buyers. Maybe Zillow can right the ship before it sinks. I have been with them for three years so I could be slightly jaded. This was the neatest thing since sliced bread. Zillow offers a better per dollar spent over Realtor.com and Trulia, and that used to be by far. In the last year it has shrunk considerably. Zillow is changing a lot of things and becoming more like Trulia and Realtor.com, to my demise. Owner Small Real Estate Firm, Utah Realtor.com is about worthless as it gets, as is Trulia. Zillow helped me feed my family during the downturn, but for the last year I have not made nearly a good a living off of them. I find way, way, way more value on Zillow than on Realtor.com. Even now, with my productivity cut in half the last year on Zillow, it still is considerably better than Realtor.com. Zillow offers a better value than Trulia. Trulia is pretty much worthless. I pay money to Trulia just for bragging rights on my listings. I get no leads on Trulia, no leads out of Realtor.com. Nine and three-quarters out of 10 of my listings come from Zillow versus Trulia or other online sources. Zillow is the best online tool for real estate agents to advertise their listings. 4. Residential agent with a Minnesota firm This source is a Premier agent on Zillow and has both decreased and increased her spending over the past year. She gets one lead through Zillow for every 50 leads through Realtor.com. She continues to stay with Zillow simply to have a 10

11 presence. Many calls coming from Zillow are from people looking for unrelated information. She also gets little value from Trulia. Overall, Zillow provides inaccurate data, is dispensable but offers a worthwhile mobile app. I am a Premier agent on Zillow. I own a ZIP code for their mobile app, so my name comes up a good percentage of the time in that ZIP code. I am also listed on the Zillow website. I pay a monthly fee. I pay for Zillow services for just luck. You never know. I want to have a presence, especially on their mobile app. Most people come to me on Realtor.com. On a scale of 1 to 10, with 10 being the most satisfied, I rank Zillow a 1 in terms of. My spending on Zillow has been up and down. I did a test about a year ago with Realtor.com, Trulia and Zillow to compare how they were performing. I put an equal amount of money with all three, and Zillow did not come out ahead. I decreased my spending with them, but then I had been doing so well in real estate in general that I decided to increase my spending on Zillow again. Zillow cannot raise prices much at all. I am giving them a second chance, but I am not sold at all that they are worth it. Zillow is not indispensable. I could take it or leave it. I am only advertising with them again, honestly, because I have had a really good year. There will be realtors who pay for Zillow just because of the sheer value. Realtors are finding good leads on there. If you have a listing on Realtor.com and do not have a paid service with them, you will not get the lead. Realtor.com without a doubt offers a better return on investment per dollar spent, over Zillow. I also pay for Realtor.com services. I find more value in Realtor.com versus Zillow, because the volume of leads I get from Realtor.com is unbelievable. And every single inquiry I get is someone actually trying to buy a house instead of one out of 10, instead of random inquiries. People use Zillow like Wikipedia. Realtor.com is directly linked to the MLS. The quality of data is better. With Zillow, you have to work harder for those leads, and when you are super busy, it is not worth it. I probably get 50 leads from Realtor.com for every one lead on Zillow. I spend a lot more on Realtor.com, but it s because I see unbelievable results. I do not think I am typical. Zillow offers a better than Trulia. I get nothing from Trulia. I did pay for Trulia and hardly received any responses. I find more value in Realtor.com versus Zillow, because the volume of leads I get from Realtor.com is unbelievable. And every single inquiry I get is someone actually trying to buy a house instead of one out of 10, instead of random inquiries. People use Zillow like Wikipedia. Realtor.com is directly linked to the MLS. The quality of data is better. Residential Agent Minnesota Firm I find more value in Zillow over Trulia. With Trulia I had the same upgraded service and I had no volume at all. At least with Zillow every now and then someone was calling. Redfin does not have a presence locally. As an advertiser, you can make updates to your listings and make them more accurate. But as a whole the information out there is really inaccurate. It can still be attractive to realtors as a lead generating service. The one strength Zillow has is the foreclosure information it provides. I received nine nuisance calls for every one real opportunity. That is why Zillow is kind of frustrating. And the other thing that realtors do not love is that leads on the site are not exclusive. 5. New Hampshire based realtor; repeat source This source uses Zillow s basic service but would consider an upgrade depending on Zillow s leads and pricing. About one in 10 leads comes from Zillow, but most still stem from the MLS and traditional print advertising. He considers Zillow a take-it-or-leave-it service. Its is about the same as other online advertising options: useful but not impressive. 11

12 We ve got the gold package. That s about $40 a month. It s not the best one they offer, but it s OK. Zillow and Realtor.com are about the same on. I think the difference is more consumers are using Zillow, so realtors want to be seen where the customers are looking. I would give Zillow a 6 on a 10-point scale [with 1 being no satisfaction in ]. We do get leads from the site, and it s good to have our name on a site that seems to draw a lot of consumers who are looking for property. Our spending on marketing has stayed the same. They probably could not raise prices in New Hampshire. We get 9% to 10% of our leads from Zillow and about 10% from print advertising. Most are coming from the MLS. We get 9% to 10% of our leads from Zillow. The MLS is our bread and butter. I might add other online services, but right now I don t see anything better than the MLS. Realtor, New Hampshire The MLS is our bread and butter. I might add other online services, but right now I don t see anything better than the MLS. Agents with the Premier Zillow accounts do get preferential listing on the site, but our lead volume has held pretty much constant. [Zillow is] not vital to the business. 6. Agent with a boutique firm specializing in mid-atlantic luxury properties This agent spends more on Trulia because of its superior mobile app. Zillow and online listing platforms are tools for agents and clients to find properties, but the inaccuracies are a hurdle to. I buy marketing on Trulia but not on Zillow. Trulia has a better mobile app than Zillow, and most of my clients use mobile. I buy the enhanced listing at $49 a month for more photos. We can put 30 professionals photos up on Trulia. It s worth it to get my name out there. In the last six months I ve seen the race heat up. I see Trulia and Zillow gobbling up other companies. There s a huge scramble to collect data and get information out there quickly. I used to buy marketing on Realtor.com, but I didn t get anything out of it except from lead generators and website companies wanting to market their stuff to me. Realtor.com has a fairly good mobile device, but I think consumers don t trust realtors or the realtor organization and think they re getting more unbiased information at third-party sites. I tell my clients, When you see a property online, send it to me and I ll get you the most accurate information from the MLS. I steer clients away from Zillow because their Zestimates are so inaccurate in my area. I buy marketing on Trulia but not on Zillow. Trulia has a better mobile app than Zillow, and most of my clients use mobile. I buy the enhanced listing at $49 a month for more photos. Agent, Boutique Firm Mid-Atlantic Luxury Properties Specialty My listings appear on Zillow because our MLS feeds them to 63 different listing sites, but I opt to not have the Zestimate appear next to my listing on Zillow. 12

13 7. Real estate agent in Texas This source discontinued her Zillow account about a year ago because of unsatisfactory. She said Zillow is not a good value for agents but is useful to consumers. Trulia is about equally useful as a consumer service. She was paying nearly $500 per year for Zillow s service. I don t use it anymore. I didn t find it very helpful. The just wasn t there. I was paying about $480 a year and just wasn t seeing any business from that expense. I didn t get any truly useful leads when I had Zillow. I can t imagine how they could raise prices and not see a drop-off in users. Realtor.com is better, more useful as a tool for real estate agents. I think Zillow is good for consumers looking for basic information. MLS is still the best. 8. Real estate agent in California; repeat source This source does not advertise on Zillow, Trulia, Realtor.com or any other similar listing service. She uses Zillow, however, to check property estimates and locations. She believes Realtor.com offers a better since it is tied directly into the MLS. Her own website is her top marketing tool. Her area is economically depressed and has a housing shortage, so many agents cannot afford to advertise on these online sites. Zillow has called her numerous times hoping to gain her business, and she said she would be willing to discuss its services. Still, she considers Zillow to be dispensable. I do not belong to Zillow and pay for zero services with them. They must be hurting because they have called me five times in the last month wanting me to sign up. I use Zillow to look at values. I have used the site but don t pay for services. It is definitely a tough market out there. There is a shortage of houses, big time. There are no new projects being built. I had three clients, and I could not get any of them a house. I showed 15 to 25 houses and put bids on 10 to 12 houses and did not get any of them. If it was a good market, I would definitely join Zillow Builders are starting to build again, and Bank of America is holding back foreclosed houses. I myself have not seen it, but the economics and the MLS say it is picking up. The No. 1 online tool for me to advertise my listings is my own website. When I am working, I belong to more than one MLS. I could do without Zillow. Realtors dissatisfaction with Zillow and online competition will not lead to Zillow s downfall. Right now I think they are here to stay. They are pretty popular. Zillow has started calling me recently. I think a lot of realtors do not really know what their services are; I know I do not. I would like to talk with them about what their costs are and what they offer. 13

14 9. Real estate agent in Beverly Hills; repeat source This source does not pay for services on Zillow or other sites like Realtor.com and Trulia because she believes they are rife with inaccuracies. Realtors instead can rely on their own websites and the MLS. Realtors do not need to pay higher prices, should Zillow implement them. I do not pay for services on Zillow. Zillow s client dissatisfaction as well as competition could lead to Zillow s downfall. I think realtors will jump ship because they do not have to pay the higher prices. I do not pay for services on any similar online sites, because I do not think they are accurate. Zillow is not, for sure. The best online tool for real estate agents to advertise listings is the MLS. I think we could do it on our own without Zillow being there, through the MLS and our websites. Zillow is inaccurate. In one case, the house was worth $1.8 million, and Zillow put $3.9 million. I do not know where they are getting their information. 3) REAL ESTATE AGENTS AT LARGE FIRMS Eight of these 12 sources advertise through Zillow in varying degrees. The remaining three do not allot ad dollars to Zillow, including one whose listings still are posted on the site. Sources were mixed on their opinion of Zillow s, including two who said their declines when other brokers advertisements are added to their listings. One has reduced spending with Zillow in the past six months because of poor. Of the four who commented on Zillow s pricing power, two believe it has a little amount of room to raise prices but two said it lacks the influence to increase its rates. Three sources said Redfin is becoming more popular. Although four sources ranked Zillow higher than Realtor.com and Trulia, two others ranked Realtor.com ahead of Zillow. Two sources noted increased marketing from Zillow during the past six months. Six sources said the MLS is the best place for data. KEY SILO FINDINGS - 8 of 12 sources pay for various levels of packages on Zillow. - 3 do not use Zillow. - 1 allows listings to appear on Zillow but does not pay for extra advertising. - Sources were mixed on value they find from Zillow. - 3 sources experienced poor with Zillow. 2 see better from Realtor.com. - 1 sources rate Zillow a 5 6 on a 10-point scale for and see about 10% of leads come from Zillow. - 5 sources rate Zillow highly for. One sees a $4.40 return on every dollar spent. One reported tenfold. - 2 said drops when other brokers information is added to their listings. - 2 sources had no comment on. - 2 sources believe Zillow has a little room to raise prices. - 2 sources believe Zillow has no pricing power. - 1 source has reduced spending on Zillow by a third in the past six months because of poor. - 7 sources had no comment on pricing power or were unsure of Zillow s ability to raise prices. - 3 sources said Redfin has become more popular. 14

15 - 6 sources said the MLS is the best source for data. - 3 sources ranked Realtor.com as superior to Zillow. - 2 refers clients to their own websites. - 4 sources ranked Zillow above Realtor.com and Trulia. 1 believes Zillow has overcome Realtor.com. - 2 sources have been receiving more marketing from Zillow over the past six months. - 5 sources voiced dismay over data inaccuracies on Zillow, particularly Zestimates, but 1 source said its data integrity has improved during the past six months. - No sources view Zillow as indispensable, though 2 said it has value among consumers. - 1 source likes the realtor testimonials feature. 1. Coldwell Banker agent After investing in online marketing with Zillow, Trulia and Realtor.com, this agent experienced very little. He refers his clients to his own website, which feeds data off the MLS. He believes Realtor.com is losing ground to Zillow and Trulia, but has the best data integrity. He has noticed more aggressive advertising attempts from Zillow during the past six months. With our Zillow package our franchise gets multiple photos plus a company logo, and we get to customize the text. The actual is hard to tell; it s cheap enough, but I rarely get a call from it. I used to invest heavily on all of the listing sites before I joined Coldwell Banker. Since I stopped, I don t see any difference. I m selling just as many houses as I used to and spending a lot less on marketing. I do local advertising. I subscribe to the $10 a month Zillow enhancement package that our brokerage negotiated for the office, which is about 10 times less than buying it myself. When I hold an open house, I ask people where they heard about the listing; they say either Zillow or Trulia usually not Realtor.com. Realtor.com seems to be losing ground to Zillow and Trulia. Maybe it s not being marketed effectively. Realtor.com has gotten tough at data integrity, and the others are following suit. I recommend clients use my site over all the others because the data comes right from the MLS. Once the consumer realizes that the MLS has the most accurate data, they stop using the others. Zillow has good name recognition and seems to be where a lot of people who are just starting to look are. When they become more serious about buying, they move on to a local realtor site. Over the last six months I ve noticed that Zillow is a lot more aggressive in trying to generate business from agents. I get a lot of s about new marketing opportunities there. I used to invest heavily on all of the listing sites before I joined Coldwell Banker. Since I stopped, I don t see any difference. I m selling just as many houses as I used to and spending a lot less on marketing. I do local advertising. Coldwell Banker Agent Zillow seem to be finally paying attention to data integrity. There was a lot of broken data feeds, a lot of inactive listings, but now they ve gotten a lot better at cleaning that up. Coldwell Banker Agent Another change recently is that Zillow seem to be finally paying attention to data integrity. There was a lot of broken data feeds, a lot of inactive listings, but now they ve gotten a lot better at cleaning that up. 15

16 2. Howard Hanna real estate professional on the East Coast This source pays for Zillow s ad services and for Realtor.com, and said Zillow offers a better, has a bigger following, and is more user-friendly. The site focuses on testimonials and recommendations, which she likes. Roughly 75% of her leads come from Zillow. Still, she would not spend more on Zillow and would figure out ways to reduce her spending if the site were to raise its rates. She criticizes Zillow for not updating data in a timely manner. I pay for Zillow s advertising services, Premier listings. I also have a big percentage of a certain ZIP code, and I pay for that. I pay for Zillow s services for visibility and market share. I also pay for Realtor.com. I have cut back quite a bit on Trulia. I have increased my spending on Zillow just slightly over the past six months. I picked up another small percentage of one of my ZIP codes. Zillow to me works the best out of any of them. I have not increased or decreased my spending on Realtor.com, but honestly do not get as much from them. When other brokers get added to my property listings on Zillow, my drops and I see fewer leads. On a scale of 1 10, with 10 being the most satisfied, I rank Zillow an 8 in terms of. Zillow holds a better per dollar spent over Realtor.com and Trulia. I would not personally spend any more on Zillow.... I am paying around $200 a month with them. If they raised their prices, I would probably cut back on a program if they raise their prices. I am in a few different programs, which might be redundant anyway. How indispensable Zillow is for real estate brokers depends on your whole marketing platform. I do not know that it is indispensable. I know many agents do not use them at all. It is very necessary for me as I have built my platform on testimonials and past sales, and that happens to be one site that weighs heavily on that. You could not do without the MLS. I know people who conduct their business without Zillow but could not do it without the MLS. Zillow s following is bigger. They have a bigger audience, and they are more user-friendly. Their visibility is stronger and they weigh heavily on testimonials and recommendations. Probably 75% of my leads come from Zillow. Zillow needs to start updating their information more. That is one thing that I am dissatisfied with. The people who are hardcore Zillow clients base all of their info on Zillow s latest information, and Zillow s latest info is sometimes a year or so behind. They are still advertising things that have been sold six months to a year before. That is probably my biggest bone of contention with them. 3. Key Realty agent in the Midwest This source pays for lead generation services on Zillow but does not pay to advertise on Trulia and Realtor.com. Her spending on Zillow has remained stable because of her budget. She believes Zillow is not poised to fall. Her with Zillow is good but does drop when other brokers are added to her property listings on the site. I pay for lead generator services on Zillow. I do not pay for services on Trulia and Realtor.com at this time. My spending on Zillow has remained stable due to my budget. When other brokers get added to my property on Zillow, my return on investment drops. On a scale of 1 10, with 10 being the most satisfied, I rate Zillow a 7 in terms of. In terms of how much Zillow can afford to raise prices without real estate brokers reducing their spend on them, not much. 16

17 I do not believe realtors dissatisfaction and competition will lead to Zillow s downfall. Zillow is the best online tool for real estate agents to advertise their listings. 4. William E. Wood and Associates realtor This source has been listing on Zillow for more than two years and has been an agent for 21 years. She had been paying $123 per month for the premium service, but has since downgraded to the basic service. Zillow generates less than 10% of her sales leads, and few of those leads are qualified buyers. Zillow cannot afford to raise prices. Property undervaluation is an ongoing problem. Properties are often listed well below actual market value on Zillow, which causes customer confusion and wastes time. We ve switched to the base service. We had the Premier package, but it wasn t producing results for us. We re not seeing anything from Zillow, so I doubt other brokers are getting anything either. I would give Zillow a 1 on a 10-point scale [with 1 being lowest satisfaction]. [Our spending] has gone down by at least a third. Just Zillow. Our spending We ve switched to the base service. We had the Premier package, but it wasn t producing results for us. Realtor on traditional media has been about the same. We still get 20% of our leads from traditional marketing avenues like the printed real estate magazines. And the MLS, of course. Zillow will lose business if they raise their prices. There are too many options. I don t know that we re going to keep using them. Realtor.com is better [for per dollar spent]. The MLS is our best tool [for advertising]. [Zillow] not indispensable at all. I haven t really seen any advantage with it. There is some value to being on Zillow from a marketing standpoint. Consumers use it, and we obviously want to be seen by prospective home buyers. 5. Northeast Kansas real estate agent; repeat source Zillow could raise prices by 5% for each of its three service tiers without losing a significant number of subscribers. Although Zillow offers good value, this source still depends on the local MLS and print advertising for most of his leads. He has not seen his drop when other brokers are added to his Zillow listings. I ve got their silver package, the basic service. Realtor.com is more useful for agents. Consumers seem to start their research on Zillow before calling an agent. I d say Zillow [holds a better than Trulia] only because I don t know a lot of people using Trulia. Probably one out of 10 leads come from Zillow. I would give Zillow a 5 or 6 on a 10-point scale [with 1 being no satisfaction]. We haven t changed our marketing spend in the last six months. It s not a must-have. It s one more way to connect with home buyers. If you are looking for a home to buy, Zillow is a good tool. It has a really easy-to-use interface. Real Estate Agent, Northeast Kansas 17

18 We still promote ourselves on the MLS more than any other place, online or print. It s not a must-have. It s one more way to connect with home buyers. If you are looking for a home to buy, Zillow is a good tool. It has a really easy-to-use interface. 6. RE/MAX real estate agent This source advertises with Zillow and Realtor.com but not Trulia. Overall, Realtor.com generates more leads, but Zillow is a close second. He ranked Zillow s an 8 on a scale of 1 to 10. He believes Realtor.com is more popular with those 40 years and older, while the younger generation likes Zillow for its mobile app and other features. Realtor.com may be feeling more pressure from Zillow, which has come on strong in the past two years and likely will be around for awhile. However, he would stop using Zillow s service if its pricing increased. Zillow needs to improve its Zestimates. I am a Premier agent with Zillow for my area. When somebody is searching on Zillow and looking for anything in my area, my name is one of eight agents that comes up with the potential referral. Zillow will send me a text message that has the person s phone number and name. When I get a text, I respond immediately. My spending with Zillow has stayed about the same [during the past six months]. All of my listings go on Realtor.com as well, where I have an enhanced package, basically the most expensive package you can buy. And I also have several different things that I am doing through Realtor.com that produces leads for me. I spend a lot of money with them. I am on Trulia not as an advertiser but all of my listings are on Trulia. I get a few leads from Trulia, but I do not like their system. And some of what I get from them is junk wrong addresses and wrong phone numbers. What Zillow does is guarantee so many impressions a month. I have not yet been able to figure out whether I am getting the guaranteed amount or not, but I do not want a million contacts. I just want a few that will be good leads. Right now both Zillow and Realtor.com are productive for me, but I am spending more money on Realtor.com. I am trying to blend my marketing to reach the younger generation, with my Facebook page, Zillow and Realtor.com. The average agent spends nothing on Realtor.com. I also use Homes.com. On a scale of 1 to 10, with 10 being the most satisfied, I rank Zillow an 8 in terms of return on investment. I pay for Zillow s services because I know that there is value-added. If Zillow raises their prices, I will not be with them and they do not want to lose somebody like me. Just like Realtor.com does not want to lose me. The marketing representative I have with Realtor.com is looking for something that could be coming down the pike that could benefit me. If Zillow raises their prices, I will not be with them and they do not want to lose somebody like me. RE/MAX Real Estate Agent Zillow is a new thing. A couple years ago Zillow was nothing, and they have been coming on strong. Right now Realtor.com is probably nervous about Zillow. RE/MAX Real Estate Agent Zillow is gaining momentum, and I do not see the level of dissatisfaction that would cause them to have a challenge in staying in business. If anything, they are going to continue to find new and better ways to market what they are doing. Realtor.com will have to do something to stay on an even playing field with Zillow. Zillow is a new thing. A couple years ago Zillow was nothing, and they have been coming on strong. Right now Realtor.com is probably nervous about Zillow. Realtor.com has a different mission. I still think there are more people looking on Realtor.com than on Zillow, but it is starting to even out a bit more. Realtor.com is the main go-to site. It might be for the 40-and-above crowd. 18

19 Younger people have Zillow apps on iphones and are using that app to get instant info, pictures of properties, and they may not even be on market. I find more value in Zillow versus Trulia. I do not pay attention to Trulia. If we had 10 leads, maybe right now four would come from Zillow, five from Realtor.com and one from Trulia. If I had to choose right now, the No. 1 online tool is Realtor.com, and the No. 2 online tool is Zillow. With my own house, I go on Zillow and look at the value and it is so far off it is unbelievable, not even close. It is the credibility with their system that I believe hurts Zillow. I have a very good business Facebook page and I have tabs on there that will link directly to Zillow. I do not think many agents are doing it. Today Zillow has 14 testimonials on me that they are using. All of those rate me. They have to get it directly from either a buyer or seller that I have worked with in the past. The younger people are taking their cell phones and clicking on the Zillow app, and it brings something up, and if they click on it and my name pops up. 7. RE/MAX real estate agent This source bought ZIP codes on Zillow and has had $4.40 of for every dollar spent. She found on Realtor.com and Trulia to be disappointing. She appreciates Zillow s customer service, marketing option menus, and agent review feature. Zillow could raise prices if it were to allow options for co-sponsoring ads. I got out of real estate industry during the downturn in the market. When I wanted to get back in, I went to a class where the speaker said the fastest way to get up and running again was with Zillow. I m not very good at prospecting on my own, so I tried Zillow first in I bought a sampling of ZIP codes for six months, and it paid off. Now I buy dozens of ZIP codes at 100%. I hold onto these ZIP codes like Monopoly pieces. To make Zillow work, you have to change how you do business. You have to mold your business around Zillow. Zillow s open 24/7, and you have to respond to leads instantly. I now spend about $5,500 a month on Zillow, and my is $4.40 for every dollar spent. I know a lot of people drop out of Zillow because they re not getting the results. But you have to work on it. You have to get reviews, and they re not easy to get. I m up to 35 reviews, and it makes a huge difference. It builds credibility. The prices could go up as long as there are backdoor ways to save money, like the new co-sponsoring ads with lenders. I ll keep paying for it as long as it s producing. Zillow has removed my exclusivity on the ZIP codes I buy. I only get the first 1,000 leads; then someone else gets the rest. RE/MAX real estate agent I love that Zillow is always coming up with new marketing plans. Now I can co-market with up to three mortgage people, and that lowers the costs for me. Having lenders help pay is huge. But now Zillow has removed my exclusivity on the ZIP codes I buy. I only get the first 1,000 leads; then someone else gets the rest. I tried Realtor.com and Trulia. I didn t get anything out of Realtor.com at $200 a month. I was with Trulia for the mobile leads: If I bought 50 or more in a ZIP code, they d give me the computer leads as well. I was told they were solid leads ready to buy but they weren t. I ve had a lot of problem lately with renters on Zillow. Now, about 10% of my leads are renters, not buyers. Renters are not worth the work. My Zillow rep is fantastic. He helps me plan and find the right mix of marketing. Their brand is valuable. I like the Make Me Move Price feature on Zillow, and I don t have much problem with the Zestimates. Zillow says Zestimates are a starting point, and I tell clients it could be a 20% swing in either direction. 19

20 8. Regional director of a state trade association and managing broker of a large agency This source s large agency pays to advertise on Realtor.com but does work with Zillow or Trulia. His main criticism of Zillow is the Zestimates, which he says are inaccurate. He questions how Zillow can survive given that so much information on the Web is free and that agents are continually dismayed by its inaccurate information and its aggressive advertising efforts. Mobile apps are becoming increasingly popular among agents and consumers. We pay a monthly fee to be on Realtor.com, but we do not pay anything for Zillow or Trulia. But our listings are on Zillow, and we encourage our agents to go to Zillow and create a free account. The people who ask me about Zillow are the newer agents who do not know any better. In my experience, you tend to not have the experienced group working with Zillow. Realtor.com holds a better per dollar spent than Zillow. Trulia holds a better than Zillow. We have had agents pay for ZIP codes on Zillow, and it never really returned an investment for them. My agents get leads locally. Realtor.com produces the highest amount of leads in the national arena. It could be the name. We do get some Trulia leads. One or two out of 10 leads come from Zillow. Zillow has a bad [reputation] because of the Zestimate. It is inaccurate. We have to do that whole mindset change regarding estimates with our customers. Realtor.com has more value to real estate brokers because it is partly own by the realtor organization, of which all of our agents are members. What I hear from my team is that Zillow calls them all the time to try to sell them an ad spot. The agents just feel like these companies are taking money from them using their own listings. It is our information. Regional Director, State Trade Assn.& Managing Broker of a Large Agency Dissatisfaction with Zillow and online competition could ultimately lead to Zillow s downfall. What I hear from my team is that Zillow calls them all the time to try to sell them an ad spot. The agents just feel like these companies are taking money from them using their own listings. It is our information. I see a big change of people going to mobile technology, so any app that works correctly with mapping features, maybe photos, would be key as a good online tool. Realtor.com has that, Trulia has that, and our company has its own app. 9. Lead agent with a brokerage group affiliated with Keller Williams Realty Instead of Zillow, this source uses an in-house referral system and local advertising. Zestimates often are inaccurate and can create anxiety among clients. Does not use Zillow. Uses an in-house referral system. One thing that would get me to buy into Zillow and all the others is if they worked on a referral fee basis. I d happily pay a 15% to 20% referral fee to Zillow for a lead that actually worked out. My marketing dollars are spent in local advertising now although I spend a fraction of what I used to before the bottom fell out of the real estate market. As a Keller Williams franchise we get WolfNet, a customized property search website, for free. I have tried the marketing products from Zillow, Home.com, JustListed.com, HouseValues.com and Realtor.com, but I ve had no verifiable evidence that I ve gotten anything from them. I d bleed out $200 to $400 a month. 20