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The End of Zip Realty?

By Jim Paulson

Real Estate Agent with Progressive Realty (Boise Idaho) www.Progressive-Realty.info DB-17066

September 27, 2011 07:56 AM

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Anonymous

Tony Middleton

I am a long-term ZIP agent but there is alot of misinformation here. And I am surprised. We were switched from employees to ICs not solely because we were losing money, but rather because of the ominous lawsuit filed by the former Bakersfield, California agents who demanded minimum wage and the losing sense of doom at ZIP hq.

No, we have not been "bought out."

We did in fact receive a "salary" if you want to call it that....but it was a small monthly stipend. The advantage of being an employee was primarily a recruiting strategy....new agents in particular were attracted to the benefits--including health coverage--but more importantly the leads given out from the website and the small monthly stipend.....a huge incentive for newer agents in particular.

Redfin has employees just FYI and they pay their people a salary. I don't know how financially well they are doing, but they are smaller than ZIP.

Sep 27, 2011 03:58 PM

#26

Lisa Wetzel

RE/MAX Realty Affiliates - Carson City, NV

CDPE, SFR carsonvalleyland.com

Tony's comment is interesting! I've always been inependant and liked it. I just never really saw the benefit of any thing else!

Sep 27, 2011 04:22 PM

Evelyn Kennedy

Alain Pinel Realtors - Alameda, CA

Alameda, Real Estate, Alameda, CA

Jim:

I am sorry that Zip is having difficulties. The agents I dealt with in the pass have been very professional.

Sep 27, 2011 04:37 PM

Melissa Ostrom & Melville Capps Newton MA - The Mel and Mel Team

(617) 388-3151 | Century 21 Commonwealth - Newton, MA

California is very strict about its labor laws. The main thing here is that the agents were employees, and then Zip tried to convert them to independent contractors without changing the way Zip did business.

Melville Capps

Sep 27, 2011 04:47 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I don't delete comments unless they were spam. I appreciate all feedback except spam so #17 is conspicously missing now. :)

Sep 27, 2011 04:55 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I have been thinking that running a real estate company with employees actually does make sense as long as you had the right management team and systems. Think of how redundant many agents are trying to each keep track of different loan programs, price ranges, communities, etc. If you were large enough you could delegate tasks like we do to our assistants and office staff. Compensation is a difficult factor though when each person thinks they are the critical element and sees a larger commissoin check compared to their own.

I am glad a few ZIP agents chimed in for an "in house" perspective. We don't have either Redfin or Zip here in Idaho.

I will send an email to Michael (#22) about how he sold for Zip for didn't work for them. Maybe it was just a referral agreement? I know that is a growing model and one I am currently flirting with as well.

Sep 27, 2011 05:02 PM

Richard Bazinet /MBA, CRS, ABR

West USA Realty - Scottsdale, AZ

Phoenix Scottsdale. Sellers, Buyers & Relocations

Like Donna #7, I heard that their business model was or had changed - en route to becoming a referral brokerage rather than full service.

Sep 27, 2011 05:52 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I have worked for various franchises over my 20 year career including:

Realty World
Coldwell Banker
John L. Scott
RE/MAX

before starting Progressive Realty Corporation. When I started recruiting for this company, I realized how many other real estate models there were even in Boise, Idaho.

New company models will keep emerging and existing ones will keep morphing. The only that stays the same these days is that things change!

Sep 27, 2011 08:03 PM

Scot Draper

RE/MAX Executive Realty - Charlotte, NC

Broker/Realtor, ABR CDPE CIAS

Thanks for the post, I will definitely keep an eye out for more on this. I knew one agent that moved over to Zip. I don't know the details but he regretted that decision.

Sep 28, 2011 12:20 AM

Shelly Sierra

RE/MAX Trinity - Fort Worth, TX

I too will be following this story.. Very interested to see how this turns out.

Sep 28, 2011 01:49 AM

Mike Yeo

3:16 team REALTY - Frisco, TX

Yikes! This is going to be interesting and definitely something to follow along.

Sep 28, 2011 02:37 AM

Harry F. D'Elia III

RentVest - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is best to stay on the side of caution. It is a fine line. I will be following this one. Now, we all know states need money-

Sep 28, 2011 02:49 AM

Sherri Berry

Reliant Realty, Murfreesboro - Murfreesboro, TN

Murfreesboro TN Homes & Real Estate

Thanks for the post. I will definitely follow this story. I've read the comments but still don't understand why anyone who wants to be a realtor would go to zip.

Sep 28, 2011 03:36 AM

Morris Massre

Pembroke Pines, FL

Real Estate Instructor Broward County Florida

I never liked Zip anyway. Very non-traditional real estate to say the least.

Sep 28, 2011 04:06 AM

Carla Wade

Charlotte, NC

This could change things or it could simply go by as nothing. Worth keeping an eye on anyway. Thanks for the heads up!

Sep 28, 2011 10:15 AM

Rodney Mason

Guaranteed Rate NMLS# 2611 - Atlanta, GA

VP of Mortgage Lending - AL, FL, GA, SC, & TN

I'm sure there will be many real estate companies watching this one.

Sep 28, 2011 04:29 PM

Jamie Hennessey

Re/Max Champions - Rancho Cucamonga, CA

Thank you for sharing this valuable information. One to follow for sure!

Sep 28, 2011 07:52 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

If any of you hear updates on this, please post them here for others to follow as well. I will do the same. Thanks.

Sep 28, 2011 07:59 PM

Bob & Leilani Souza

Souza Realty 916.408.5500 - Roseville, CA

Greater Sacramento Area Homes, Land & Investments

Jim, as I scrolled down to read the comments, I found that Christine took my exact words in comment #26 - they need to pick one or the other! :)

Leilani

Oct 02, 2011 06:14 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I just went and tracked Zip Realty stock and realize I should have bought all I could when I posted this. The stock price has increased to $6.74 today from $1.65 the date of the original post. When Realogy bought 17,576,436 shares in their buyout, that works out to almost $90 million more than what they could have bought it for on the day I wrote the blog.

Jan 21, 2015 12:17 AM

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