Markets
Z

Zillow Is Cutting Real Estate Agents Out From Its iBuying Program

Real estate information provider Zillow Group (NASDAQ: Z)(NASDAQ: ZG) announced today that it is streamlining the home-selling process of its Zillow Offers service by moving the program in-house.

It said that beginning in January, home sellers in select markets will use licensed Zillow employees to complete the transaction, and then when Zillow sells the property, its own employees will list it for sale.

For sale side in a frame

Image source: Getty Images.

Although Zillow has long denied it wants to become a real estate brokerage, the changes to its iBuying program mean it is doing just that.

Previously, Zillow worked with local real estate agents to complete both ends of the transaction, but now it will instead use its own employees who are licensed real estate agents.

The real estate industry has feared Zillow was trying to supplant it, moving from simply telling homeowners how much their house is worth on the market to actually doing the buying and selling.

Zillow contends passing off the homeowner to an outside agent before bringing the transaction back inside is confusing for home sellers, but the company's chief industry development officer Errol Samuelson insisted to its real estate partners in a video posted to YouTube that it won't be poaching their agents. It will only be Zillow employees working on the iBuying side, not out in the market.

Samuelson also said Zillow will change how it gets the information that is displayed on the site, going from thousands of different sources to the Multiple Listing Service (MLS) Internet Data Exchange that the industry itself uses.

To do so, Zillow will join the MLS and the National Association of Realtors, and promises all agent listings will appear on both Zillow and its Trulia subsidiary as a result. It is also offering homebuilders the chance to have their inventory listed as well. 

10 stocks we like better than Zillow Group (C shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Zillow Group (C shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of August 1, 2020

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

Z ZG

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More