DelPrete: Zillow hiring agents is the megatrend you can't afford to ignore

Dated: October 9 2020

Views: 258

Most of the largest real estate disruptors are moving toward hiring agents for new brokerage services — that's nearly $35B in enterprise value pushing in this direction.

This post has been republished with permission from Mike DelPrete.

Zillow recently announced that it was hiring its own agent employees to service its iBuyer business. At face value, the news is a relatively small shift, but it’s a clear reminder of several megatrends occurring in real estate tech.

An unsurprising move

If Zillow’s announcement caught you by surprise, you haven’t been paying close enough attention. For years, real estate portals around the world — including Zillow — have been moving closer to and getting involved in more of the transaction.

Zillow’s move is a logical next step in this journey. Bringing agents in-house, as opposed to relying on a network of partners, moves Zillow closer to consumers and closer to the transaction. This megatrend — which has been slowly occurring for years — is covered at length in my 2018 Global Real Estate Portal Report.

Ignore at your own risk

With this latest news, some are suggesting that traditional agents fundamentally ignore it and focus on their own business. In other words, don’t worry about the competition — in this case, Zillow — and just focus on providing the best service possible to your customers and clients.

That strategy is only half right. Ignoring what Zillow is doing brings its own peril; just ask travel agents and video store owners (both industries that Rich Barton has had a hand in disrupting).

For the traditional industry, sitting still is not an option. To quote my State of the Industry presentation from January 2020:

“The industry is moving so slow you can look around and think nothing is changing (or get caught up in the hype and think everything is changing). That’s why now – more than ever before – is the time to stay informed, understand the scope of change, and react appropriately.” – Mike DelPrete

Blog author image

Richard Eimers

I have been a Florida Licensed Realtor for over 24 years, have SOLD more than $550,000,000 worth of every kind of real estate from Pensacola to Destin to 30A and Panama City Beach. With over 20 years....

Latest Blog Posts

How to help clients play their cards right in today's market

With the current low-inventory market and the overall uncertainty, an agent's job has never been more important. Here's how to guide buyers and sellers while keeping their stress levels low.With

Read More

WEEK IN REVIEW OCTOBER 19 TO 26, 2020

Please see the graphs included, the 1st graph shows the sales activity by the week going back to March 20th. And shows the week over week percent of change of new listings, pending and sold

Read More

What Will Homes Look Like in a Post-Pandemic World?

What Will Homes Look Like in a Post-Pandemic World?3 Takeaways: Buyers are mainly interested in single-family homes with more square footage.Wellness-centric amenities that combat the spread of the

Read More

WEEK IN REVIEW OCTOBER 12 TO OCTOBER 18, 2020

We all have our real estate expectations on the line and all we really see are national data ad we are supposed to figure out how the national data applies to our local properties. I will tell you

Read More