On January 4th I once again wrote about Zillow and it’s Zestimates – checking in with Zillow – saying “Like it or not, more home buyers and sellers are checking out Zillow’s Zestimates to help them come up with the right price for homes in the Catalina Foothills” etc., etc., and concluded, or predicted, that “As their technology becomes even more capable, and their database of home sales grows ever larger, Zillow will continue to sharpen their game. And as more younger buyers and sellers get into the real estate market it’s inevitable that the popularity and usefulness of online valuations will mushroom”.
And, coincidentally, that turned out to be a very timely posting. I wasn’t aware of it at the time but Zillow was, and is, in the process of severing its relationship with ListHub . ListHub is a big syndicator of home listings for MLSs and real estate brokerages across the country.
ListHub gathers listings from hundreds of MLSs and brokerages and distributes them, according to the MLS instructions, to the various public websites, including Zillow, Trulia, HomeFinder.com, HOMES.com and many others. Very similar to what a newspaper syndicator does when it distributes columns, comic strips and such to other newspapers across the country and around the world.
And apparently the break in the relationship between Zillow and ListHub is going to happen this April when their contract is up. And of course there’s a big brou ha-ha in the RE industry over the outcome of that break. (little did I know until today)
Some are betting that it’ll make Zillow even more powerful, because Zillow will then make direct deals with MLSs and brokerages, while others are sure that Zillow will suffer as a result of it.
If Zillow is not able to swing direct deals with the MLS or brokerages in a particular area it will cease to exist as we know it in those areas. And that includes here in Tucson. And I wonder how consumers will feel if Zillow.com is no longer available. Sellers listings will no longer appear on Zillow, but no more zestimates to contend with either. And buyers won’t be able to search for homes and see sold prices, zestimates and all the other fun and useful stuff that people love about Zillow.
It’s certainly true that there is more information available today to buyers and sellers. And some of it comes from real estate agents, real estate brokerages and maybe even from an MLS or two here and there across the country. But there’s also no doubt that when Zillow and other public sites appeared on the scene providing the kind of information that consumers wanted, but that had never before been available, that that’s what woke up the real estate industry that they’d better get off their butts and at least make an effort to appear as if they were better serving consumers.
Prior to Zillow and others the RE industry had no competition, hence, the status quo remained the status quo. And if nothing else you have to give Zillow credit for that. That is unless you’re in the ‘hate it’ camp, and don’t want consumers to have more information.
And given the coincidental timing, I have a nagging feeling that there may be a connection between the lapse in the Zillow contract and the sudden appearance here in Tucson of the new Data Distribution Guidelines which further restricts the flow of information available to consumers.
Here’s a link to one persons opinion regarding the Zillow/ListHub split, which I more or less agree with.
Love it or hate it, Zillow is here to stay
Be sure to read the comments, they’re mostly from Realtors and very illuminating.
I invite your opinions, comments, corrections, and anything else you would like to throw at me.
But please keep it clean.
see TheFoothillsToday.com
to find your Catalina Foothills Home
