Will Zillow's Trulia acquisition end traditional real estate brokerage

By
Real Estate Broker/Owner with Richard Weisser Realty
https://activerain.com/droplet/4lbh

Zillow Trulia acquisition. The end is getting nearer for traditional real estate brokerage by Richard WeisserIt has been reported that Zillow is in advanced acquisition talks with rival Trulia. The current total value of Trulia shares is approximately two billion dollars.

But both sites are dependent on revenue generated by the sale of ads to real estate agents, mortgage brokers, and other ancillary real estate related businesses.

And if I may offer this theory; if an agent that is inclined to advertise on one site he or she is probably also willing to advertise on the other. Because of this overlap, there is not enough of additional revenue potential from a merging of customers to justify such a large purchase. Every dollar that can be sqeezed out of advertising has probably already been fully exploited.

That is, unless the potential goal NOT increased advertising revenue but instead is real estate brokerage. With Trulia out of the way there is nothing to stop Zillow from moving into the brokerage arena unhampered and unmolested.

Zillow’s current television commercials support this hypothesis. They scream brokerage!

But brokers have covered their ears and are chanting “la la la la la” and pretending it isn’t going to happen.

I can give you two billion reasons why I think it will!

 

Note: Also see 5 reasons for all real estate agents to start considering new careers.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Eileen Burns 07/25/2014 10:10 PM
Topic:
Real Estate Industry
Groups:
Realtors®
The Lounge at Active Rain
"Whacked"!!!
Diary of a Realtor
Bananatude
Tags:
trulia
zillow
zillow trulia merger

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Ambassador
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Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

If this merger takes place we should stop paying NAR dues as they failed to protect us.  I think local agents will still provide a much needed service but most consumers are already using Zillow and Trulia to search for homes.  Better be ready to adjust your business plan on the fly

Jul 27, 2014 06:11 AM #76
Rainmaker
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Barbara Calwhite
Keller Williams Realty of Southwest Missouri - Joplin, MO
417-438-7387 Specializing in Relocation

Very interesting comments about Z and T and also about NAR.  I really like knowing that it is optional in Georgia to belong to NAR.  I would like to see that happen in Missouri also and am going to bring that up.  I am lucky to be in the same office with next year's President of MAR so I don't have to go very far to find an ear!

Jul 27, 2014 07:15 AM #78
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Part of the new reality is that the mystique of the agent has evaporated. The consumer is now empowered with information that used to be dispensed solely at the discretion of the real estate intermediary.

Now, the consumer directs the real estate set, and the agent acts accordingly!

Jul 27, 2014 09:20 AM #79
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Richard, Of course that is what they are after. Any broker who thinks it will remain just the same as it is has their head in the sand.

Jul 27, 2014 12:00 PM #80
Rainmaker
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Dawn Brenengen
Dawn Brenengen - Trailwood Realty - Raleigh, NC
Sales and Management

Real estate sales continues to evolve, and it won't stop.  Who remembers pushing down hard on your pen as you write offers so it will show up on the bottom page?  Who remembers the MLS books where the agent was the gatekeeper of real estate listings? Now that everything is freely available on the Internet, agents have to be deal brokers, hand holders, and find other ways to add value to the transaction.  If you can't add value, you will be phased out.

Jul 27, 2014 02:39 PM #81
Rainmaker
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Bruce Hicks
Best Homes Hawaii - Honolulu, HI
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I do fully agree with you Richard.  There are some deep filled clouds on the horizon.  I heard a well known speaker talk a few years ago that technology made major changes every 5 years, then 3 years, then 1 year and recently that it is making major changes every 28 days.  I.e. Trulia's recent acquisitions of Active Rain and Market Leader.

Jul 27, 2014 06:03 PM #82
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Richard Weisser
Richard Weisser Realty - Newnan, GA
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Jul 27, 2014 11:34 PM #83
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Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

I got the email from Peter Flint, how awesome for them...

Jul 28, 2014 12:50 AM #84
Rainmaker
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Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Ken~ the deal needs to go through the process and get the proper approval.... I would hang out until its official, even though it does not look good...

Jul 28, 2014 03:00 AM #86
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Ken...

I would wait and see how it plays out, but I understand your feelings completely!

Jul 28, 2014 03:16 AM #87
Rainmaker
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Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Ken~ I understand your position.... & I don't like what the future holds for the RE industry if and when this deal gets approved....

Jul 28, 2014 05:06 AM #89
Rainmaker
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Fulton Gaylord
Keller Williams Realty - Charlottesville, VA
1st-Time Home Buyer Realtor - Charlottesville, VA

WHY?

Why are we allowing access to our listings?

Imagine if we STOPPED it, today?

Then, we could build our one-stop consumer web portal, the way it SHOULD('ve) be(en) done at Realtor.com. WE would benefit from the insanely huge profits Zillow and Trulia are enjoying, (and derive at our expense). WE would no longer get those daily/weekly e-mails and calls telling us to buy this or that lead generator! All leads would come directly to us, no more middle man (woman).

I understand that in the beginning, we felt we needed the exposure that 3rd party sites could offer. We, and our association, felt professional 3rd party sites could do what we could not. Why do $7/hr work when as Realtors we could contract it out - leverage!

But now, it's time to completely rethink this arrangement. It's time that we consider stopping access to our listing inventory. I, for one, am SICK of witnessing the power games and profit mongering of these sites - all monies we could be using to build our Realtor brand and strengthen our community.

Please, start the discussion. Start to re-think WHY we really need to give up our listings. Let's explore the pros and cons. Until we do, we are relegated to watching from the sidelines as others profit from our work.

Jul 29, 2014 02:02 AM #93
Rainmaker
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David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Zillow purchase of Truliaa is done. Keller Williams Realty is well aware of the transaction and has taklen steps to protect agent inventory in the marketplace.

Jul 29, 2014 02:56 AM #94
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Richard - just for the record, you very well may have 2 billion theories of why Zillow will become a brokerage my friend, (and I can respect and appreciate your opionions and theories) but let me leave you and readers with just one simple fact. Zillow has no desire nor will we ever become a Brokerage or an MLS. Our primary focus has been and always will be to provide consumers with data and a starting point, then connect them through the web and mobile to local real estate pros.

Speculation and rumors will always surface and circulate but if you really want to know what we're up to, what we're doing, and how we plan on doing it, feel free to contact me anytime. You know my door is always open to you.

Jul 30, 2014 01:36 AM #96
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Brad...

Here's my problem then ... Zillow's television commercials depict start to finish real estate transactions without so much of a hint that there was anyone else involved.

To me that is setting the stage.

Zillow's landing page asks this question:

"Why shop for a home on Zillow?"

I would argue that question, combined with the display of Georgia properties would indeed constitute brokerage in Georgia, licensed or not!

NOWHERE on that page is it disclaimed that Zillow is NOT a broker.

NOWHERE on that page is it suggested that you could, should, or might need to involve a broker.

You can't SAY one thing and DO another.

 

Jul 30, 2014 02:34 AM #97
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Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

IMHO in Georgia ...

If you refer a buyer to an agent or broker for a fee you ARE practicing brokerage.

Jul 30, 2014 03:11 AM #98
Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

What is everyone afraid of?  What is the worst that can happen?  Realtors are still needed at street level.  Real estate will always be local and sales of it will need somebody on the ground at the site.  Be that person, and have some value.

Jul 30, 2014 07:20 AM #99
Rainmaker
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Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Clearly I'm on record saying "watch out for GodZillow"

Jul 30, 2014 07:28 AM #100
Rainmaker
20,717
Mary Stewart
Keller Williams Atlantic Partners/Southside - Jacksonville, FL

I am with Keller Williams but I do think that this is a""red flag" warning to beef up our local presence and usefulness to our prospective clients. How much service do we offer in finding financing, staging,and all the many other things that need to be done to bring the sale to closure?  The proccess just starts with finding the right home. I am very disappointed in the merger, but as a warrior, I will work through it or around it. W

Jul 30, 2014 07:39 PM #101
Rainmaker
107,477
Melissa Hailey
North Texas Top Team, REALTORS (Plano, Murphy, Wylie) - Plano, TX
Collin County Realtor-Lucas, Murphy, Plano, Parker

Still planning to be the best local resource for my buyers and sellers.....much like other major real estate related websites, they can't sell the house on-line.

Jul 31, 2014 04:42 AM #102
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