Yes I work at Zillow, so yes I'm biased when I tell you about ways to use Zillow to advance your business. But if you'll put aside that obvious bias for a second, here's a suggestion of how you can build your business and help your buying clients via Zillow: look for houses via Make Me Move.

If you don't know about Make Me Move, it's a feature on Zillow that allows homeowners to post the price which would make them hand over the keys, even though their house isn't really for sale. Over 100,000 homeowners have posted Make Me Move prices so far, and our surveys tell us that about 10% of them get pinged by buyers. The average Make Me Move price is about 17% higher than the Zestimate, so typically these aren't crazy prices.

How can you use MMM to your advantage? If you're working with a buyer, remember to look at MMM homes on Zillow. The gem that your buyer has been searching for might be among them.

In my neighborhood of Madison Park Seattle (98112), for example, a search on Zillow shows 155 for sale listings (the red flags) and 197 MMM listings (the blue flags). If you zoom down to my more specific neighborhood, there are at least 10 MMM homes which are reasonably priced and should be in the consideration set of any serious buyer. You can ping the homeowner of a MMM listing through the website (FOR FREE) by email.

We've seen many agents across the country use this tactic for their buyers, but frankly not as many as I'd like or as many as I expected. I think there are three reasons why this hasn't become more standard for buyers agents:

1. Buyside agents think that the MMM homeowners might not be serious sellers so it's not a good use of their time.

While I agree MMM listings probably aren't quite as serious as true listings, these homeowners have nonetheless taken an overt action to enter a price that they say they'd sell for. I think these listings are much more serious than frivolous.

2. Buyside agents are possibly afraid that they won't get paid a commission from the seller.

Many MMM sellers are willing to pay a commission to an agent who brings them a buyer. 91% of MMM sellers answer either "yes" or "maybe" when asked if they'd pay a buyside commission.

3. Buyside agents think that they'll have to do more work because there's no listing agent on the other side.

I think this is a valid fear, but I'd counter with two points. First, remember that about half of MMM sellers say they will still retain a selling agent to get them through to closing. Second, that selling agent could be you! This is a good opportunity to try to double-side the transaction. 

While I'm a big believer in buyside agents trying to offer MMMs to their buying clients, I'd remind you please that it's not cool for sellside agents to ping MMMs to try to get them to list with you. That's spammy.

So the next time you're looking in your MLS for listings for a client, please remember to consider those little blue flags on Zillow. And remember that they're ONLY ON Zillow -- nowhere else.         

 

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32 Comments on A way for a buyer's agent to get an edge

NOV
28
2007
567,739 Points 95 Featured Posts Localism Sponsor Outside Blog Hit Router
Question ? I added the link from List Hub to Zillow, instead of all the listing showing up with the individual listing agent... it is me on all my office's listings. Trulia and the others show the listing agent. Can this be changed as I have already had a call from an agent who's clients called him. They wanted to know why Missy Caulk has my listing. LOL
6:06pm • #1
7 Featured Posts
Hi Spencer, that is something I had never thought of, so thank you for the idea.  I have approached owners for my buyers before, and this makes good sense. 
6:26pm • #2
NOV
29
2007
2 Featured Posts

Missy-

Hey, it's Drew from Zillow. 

Please send me an e-mail (drewm at zillow) with either the e-mail address of your account on Zillow or the addresses of the listings effected and I can look into this issue.

Thanks. 

10:42am • #3
190,738 Points Outside Blog
Seems like you have a responsive customer service team and attitude
8:32pm • #4
139,777 Points 9 Featured Posts Outside Blog
You seem to be thinking creatively at Zillow! Realtors need to embrace everything that can give them an edge!
9:14pm • #5
2 Featured Posts Hit Router

Spencer -- Thanks for the tip.  I do scour the MMM's (and newspaper classifieds, FSBO sites, etc) to make sure I'm seeing everything that might be available for my buyers, and I think any market change will certainly make it an even more attractive option, but right now price is often the problem.

Buyers are already in short supply and sellers are having to come to the table ready to do business if they want to sell their home -- which means pricing right.  In a market where correctly priced homes aren't moving, even 5% above market is a deal killer.  Saying that the average price is just 17% higher than the Zestimate is like saying the sun is easily within reach . . . because it's just a little bit past the moon.

Particularly in my semi-rural market, Zestimates (no offense) are typically well off the mark to begin with -- tack on 17% (or 10% or 5%) and you're just not in a different ballpark, you're playing a different game altogether, one my buyers don't want to play.

With inventory levels where they are, I can't justify trying to sell my buyers on these properties when they have so much else to choose from that is far more accessible.

I do understand that MMM's are a different type of seller (ie. not motivated), and their price is just tossed out as bait to see if anyone will bite, and maybe they would "take an offer".  I have no concerns about trying to negotiate for my fee, or having to work both sides, or whatever.  I do have a concern however in working with properties in which I am likely to have to try to "haggle" (unsuccessfully), to knock anywhere from 10-30% or more off the top to make them viable or even competitive, on a home my buyers are now set on, and probably should have not have had shown to them to begin with.  This may work in "hot" markets, or very unique properties for high-end buyers, but not on a larger scale without sellers being more informed -- and realistic -- on prices.

Bottom line -- overpriced listings don't sell, whether listed in real estate, FSBO, on Zillow, or otherwise.

That said, I really love the concept and will continue to monitor for the odd property that does work, or the seller that is realistic, and as mentioned, especially in an improved local market and as the service itself gets more exposure and use.  I enjoy using Zillow and always like to see innovation at work, especially if it can help me in my business in any way.

Good luck and keep us posted with other tips . . .

 

9:27pm • #6
7 Featured Posts
You've gotten my attention. I'll have to go check this out to see what the deal is with my market.
9:36pm • #7
148,018 Points 3 Featured Posts Outside Blog
I LOVE technology, but WTF, the values on Zillow must be from Mars!
9:59pm • #8

Great tool!  I figured this out last week when I went on Zillow to check up on my farming area (new one for me).  The light bulb went on and thought "make me move" equals potential future listings.  I did have a few real good laughs at the few big dreamers out there.  

My fondness of Zillow is growing.  I'll admit, while I wasn't an initial fan of Zillow - because the estimates in the areas I worked in were so off, which was/is understandable as it's very rural and the homes/properties are very different within the neighborhood.  It's getting better, which I knew would/will happen as Zillow evolves.  I do love the estimate you have for my house! 

10:08pm • #9
That's thinking outside the box!  Zillow is very controversial here in Phoenix, but many are finding it a useful tool.
10:23pm • #10
236,750 Points 11 Featured Posts Localism Sponsor Outside Blog Hit Router

I am really starting to utilize Zillow and this is an area of great potential!! Great post!

10:28pm • #11
NOV
30
2007
9 Featured Posts Localism Sponsor

You know, I recenty heard Rich Barton (CEO and Chair of Zillow) speak in Las Vegas, and what he said was actually very useful to me in my marketing.  I got over my fear of Zillow in a hurry.  Whoever made that guy a CEO and Chairman?  His talent is wasted, he should be a salesman!  LOL!

He was actually an awesome speaker, and a very nice guy.  He did a short interview after the session for me. (I've posted a bit of it on my blog as well.)  He went into using Zillow as a buyer's agent a little bit, but not to the extent that you did, and from a totally differnt angle.  Nice job!  Keep the ideas coming!

3:28am • #12
254,994 Points 44 Featured Posts Outside Blog
Spencer, I've been spending a bit of time lately on Zillow, and I must say my *fear* seems to be dwindling away.  I also like the MMM feature.  It's really no different than when I spot a FSBO that seems to fit the criteria that my buyer clients have - I am not shy about knocking on their doors and talking to them. 
5:52am • #13
5 Featured Posts

MMM should just be grouped with the FSBOs.  Unless it's a very specific neighborhood, I wouldn't waste my time with either as there are far too many other homes on the market. 

However, if I did have a buyer that was interested in looking at these, I would certainly not discourage it.

6:34am • #15
288,637 Points 52 Featured Posts Localism Sponsor Outside Blog Hit Router
If you have an exclusive buyer agency agreement with your buyers, getting paid if they buy a Zillow "MMM" home.
7:41am • #16
Hardly any MMM homes in my area. We tend to be behind the curve in internet trends, both the realtors and the sellers and buyers. But this is a great tool.
8:26am • #17
4 Featured Posts
I must admit that Zillow has taken quite a beating from real estate professionals since it came to be but it is refreshing to hear a voice from you and a helping voice at that!  This is a good idea, although I don't know if I will implement it or not, but a good idea none-the-less.
9:30am • #18
243,178 Points 9 Featured Posts Localism Sponsor Outside Blog
I post my listings on Zillow, but I've never investigated the MMM properties.  I'll do that today.  Thanks for putting the suggestion in front of my face this morning!
9:35am • #19
I've got an account on Zillow but didn't know about these features. Thanks for bringing it up. I'll have to cruise around the site more.
9:43am • #20
6 Featured Posts
Thanks for sharing the new features Zillow has.  But I'm afraid I'm with Trent Cluley on this one..."Saying that the average price is just 17% higher than the Zestimate is like saying the sun is easily within reach . . . because it's just a little bit past the moon."  Priceless!!
11:33am • #21
2 Featured Posts

Spencer,

Great idea for agents working with buyers.  I still think Zillow has issues with the value estimates but I really like the MMM tool. 

2:07pm • #22
105,186 Points 8 Featured Posts Localism Sponsor Hit Router
I love Zillow and the MMM owners go on my neighborhood prospecting list.  I find Zillow is a great resource and truly appreciate you guys!
2:12pm • #23
178,378 Points 2 Featured Posts Localism Sponsor Outside Blog
I too have issues with your zestimates but will consider you suggestion.
3:27pm • #24
6 Featured Posts Localism Sponsor
I have advertised on there and seen some web hits, but I will check out the MMM as you suggested. I also feel the zestimates are a bit out of whack, and make it tough on a listing presentation sometimes.
5:28pm • #25
great post. i just subscribed to your blog adn look forward to getting to know zillow more than i currently know it. also, i mainly list homes. how can zillow help me out with getting properties sold? thanks, trevor
5:48pm • #26
I love Zillow.  I liked reading your post.  I have gotten useful information from your discussions board and contributed to a few blogs.  I personally have made some friends on Zillow.  Thanks....  Kelly
7:20pm • #27
2 Featured Posts

Trevor - advertising your listings on zillow is FREE. You can learn more here - http://www.zillow.com/postings/Postings.htm

Also, EZ Ads is a paid option on Zillow to advertise your services to a very targeted audience (can target only people looking at homes in your zip codes). Using your past "sold homes" is one way you can target potential sellers in your area who might be looking for a listing agent to sell their home. Here's a Zillow Blog post you might find interesting.

Kelly-

Glad to hear you're enjoying, and making friends on, Zillow! 

8:03pm • #28
343,194 Points Outside Blog
Interesting about the MMMs. Will have to check this out more.
11:28pm • #29
183,024 Points 31 Featured Posts Outside Blog Hit Router

The very name "Make Me Move" demonstrates the flaw w/ this system. Seller's post unrealistic numbers....you know, the "well, if someone was willing to pay me "x", I'd move tomorrow". How often does that happen? In eighteen years, I've seen it once!

I do love to get on Zillow though because it inevitably gives me a chuckle. EVERY TIME.

I came across the MMM concept a few months ago while following up on some "Zillow Comps" an agent in my office had asked me about after going on a listing presentation. There was a blue flag on the map, and after clicking on it, I saw it was a "make me move" price. After following up, I realized this seller must not want to move until 2050 because it's probably going to take that long for the market to appreciate to the value he's requesting.

Pie in the sky. While it's  possible realistic sellers will post their properties on Zillow, I've yet to find a single one in my market area.

Colleen Fischesser

11:32pm • #30
DEC
01
2007
1 Featured Post Outside Blog Hit Router
Spencer - I agree with Colleen and Trent. Specially since our market turned from huge appreciation to balanced about 5 months ago. My neighbor and good friend is still on MMM at about 40K over fair market value. He doesn't want to sell or move, just thought it would be fun to put it out into the air. I think it is great you're out there.... Being in Seattle area, we always get to talk about that in our listing presentations... plus you get lots of hits and I have used zillow ads effectively... List and Sell (well that's what we do, you guys zist or zell???) Gary www.RentonHomeFinder.com
2:31am • #31
DEC
03
2007
4 Featured Posts
I view the MMM's as just another opportunity. Call it an online "help wanted sign".
3:58pm • #32

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Spencer Rascoff

Seattle, WA

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