RISMedia to Release White Paper Investigating Industry ‘Disruptors’
Thousands of real estate professionals have spoken, and the vast majority have concluded that Zillow Instant Offers represents a negative addition to the real estate market for consumers, and another step towards Zillow’s alleged attempt to disintermediate brokers and agents and go directly to homebuyers and sellers.
According to an RISMedia Survey launched shortly after Zillow’s introduction of Instant Offers in two test markets—Orlando, Fla., and Las Vegas—nearly 87 percent of respondents consider the introduction of Zillow Instant Offers as a shift towards Zillow to become a real estate brokerage, a strategy that has been anticipated by many since Zillow’s formation in 2006.
Zillow Instant Offers allows home sellers to directly receive all-cash offers from a group of 15 large private investors, who are either licensed as brokers or use a third-party broker license. Offers will be managed by dotloop, which will connect the seller and the investor. While home sellers are encouraged to use a real estate agent to transact the deal, they are not required to do so. Zillow Premier Agents are looped in to prepare the CMAs in their respective markets.
“We have no intention of becoming a brokerage,” says Zillow in a statement to RISMedia. “We have always felt, and will continue to maintain, that agents are a crucial part of the real estate transaction and our goal is to find ways to continue to integrate them in the transaction process, even as the process continues to grow and evolve.”
“Whether it is Zillow’s intent or not, their actions speak louder than words,” counters Candace Adams, president and CEO of Berkshire Hathaway HomeServices New England Properties/New York Properties/Westchester Properties. “Licensing authorities and the courts will make the final judgment as to whether they are operating as a real estate ‘broker.’ What we call ‘traditional brokerage,’ in the sense of agents bringing buyers and sellers together, has already evolved to a professional model. The professional is the most important component of a transaction. Local knowledge and expertise as well as a solid skill set of a professional is critical to the transaction more than ever.”
In its forthcoming White Paper, “The Disruption of the Real Estate Industry: A Survival Guide,” RISMedia will provide the complete results of its Zillow Instant Offers survey, as well as research on the many new business models penetrating the real estate landscape, and strategies for evolving your business to compete. Pre-order your copy at a special discounted rate now.
Offering a counter perspective to the majority, Burke Smith, chief development and learning officer for the Realty ONE Group franchise, does not believe Instant Offers is an attempt by Zillow to become a brokerage.
“This is a gimmick, and if it creates a few extra deals for traditional agents while also shining a needed spotlight on NAR and the state associations to help drive more business to local real estate agents, then I’m all for it. I believe NAR’s new CEO is up …read more
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