Beware of ZILLOW!!!!

By
Real Estate Agent with Allison James Elite CA. BRE 01501699

  If you have a contract to purchase leads from Zillow, you  may want to re-evaluate what you are paying because  to industry analysts from Barclays report its their web  traffic is in a downward spiral.

 

 It’s been 5 months since Zillow bought Trulia for $2.5  billion in a “stock-for-stock” transaction.

 

 But the transition from 2 brands to 1 and increased  competition fromRealtor.comhave industry analysts  questioning the future of Zillow.

 

In a new report, Barclays (B) cites Zillow and Trulia’s slowing web traffic, as a reason for downgrading Zillow for the 2nd time in 3 months and lowering its (stock) price target from $90 to $70.

 

Barclays previously downgraded Zillow in April, citing slowing web traffic then as well.

 

According to the Barclays report, Zillow’s slowing web traffic growth is the result of “category saturation” and Realtor.com’s resurgence.

 

The combined traffic growth of Zillow Group’s 4 consumer brands (Zillow, Trulia, StreetEasy, and HotPads) – fell 33% year-over-year from the same time period last year, marking a new low for growth.

 

Analysts also point to the departure of Zillow CFO Chad Cohen, who announced earlier this month he intends to step down, creating more execution risk for Zillow in the back half of this year and in 2016 as well.

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Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Stefan Winter , Yes, at least 3 to 1 for Realtor.com, and nothing from Trullia. Although I do see at least 5 to 1 in favor of Zillow on Computer pop up adds and smart phone adds. This is an area Realtor.com could improve on.

Aug 01, 2015 03:15 AM #14
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Chris B Johnson - well, if Zillow traffic is low - as much as by 33% - it will not be fair for them to charge more!

When their traffic went up, they changed their pricing model from % share to clicks.

Aug 01, 2015 04:16 AM #15
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Praful Thakkar , maybe its time to rethink Zillow??

Aug 01, 2015 05:01 AM #16
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I will wait for future developments but for those who prematurely predicted game over when the merger was announced should remember the Time Warner-AOL merger thar was also game over. It turned out to be the wrong gameover since that merger also tanked.

Aug 01, 2015 05:06 AM #17
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Joe Pryor  I guess I am hoping, more than predicting. I just don't respect a business model that requires a Premier Agent to give, for free, the valuable MLS data to Zillow in order to join, then charges you for the free data you just gave them.

Aug 01, 2015 05:16 AM #18
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Chris, I do  not support monetarily or otherwise Zillow or Trulia. I didn't care for their business model even before some recent changes. When they say trust us it makes me even more wary. I don't think they will become a traditional brokerage like we are used to, but I do think they are potentially building an altenative model of a Zillow real estate agent group armed with tech like Dot Loop that is separate from NAR REALTORS®. It looks like vertical integration at this point to me.

Aug 01, 2015 05:31 AM #19
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Joe Pryor I agree, I don't trust any one who says "trust me" with out full disclosure. The MLS Associations seem to have the power, and right now, they are aligned with NAR. hope it stays that way!

Aug 01, 2015 05:43 AM #20
Rainmaker
1,558,046
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I can't stand the third party leach sites and the bigger they are . . . the harder they fall.  Can we say "Enron" boys and girls?  LOL

Aug 01, 2015 05:52 AM #21
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

YES Carla Muss-Jacobs, Principal Broker/Owner 

Aug 01, 2015 05:58 AM #22
Rainmaker
1,017,021
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Some MLS's dropped Zillow and Trulia altogether once Listhub ousted them back in April.  A big blow to the Zillow company. 

Aug 01, 2015 06:46 AM #23
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Rob Arnold , The more, the merrier!!

Aug 01, 2015 07:01 AM #24
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Thank you Pamela Seley, REALTOR®

 

Aug 01, 2015 08:56 AM #26
Rainmaker
307,291
Christina Sanchez Hood
Palo Alto, CA
#SiliconValleyHOODS | Inspired Living

Thanks for sharing this post.  I am truly looking at the heavy hitters who spend thousands of dollars on online advertising programs and can't help wonder what would happen if they worked their database the way they spend money on internet leads...

Aug 09, 2015 01:50 PM #27
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Very good pint Christina Sanchez Hood , kind of like the Los Angeles Unified School District!

 

Aug 10, 2015 07:53 AM #28
Anonymous
Allen Talbert

My complaint is about ZILLOW realtor reviews. Ever wonder about the 5 star ratings everyone seems to have on ZILLOW?? Simple.....ZILLOW returns your negative reviews unprinted and tells you "it doesn't fit ZILLOW standards". My ZILLOW approved realtor never contacted me again after the initial meeting. We lost one month .

Aug 24, 2015 09:34 AM #29
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Sorry to hear that Allen! 

Aug 24, 2015 10:21 AM #30
Rainmaker
1,483,071
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Zillow is not perfect but it is popular and powerful. I do not use it, but many buyers/sellers do trust it. The data they pull is good, but not their zestimate. 

Apr 02, 2016 05:19 PM #31
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

Thank  you Inna Ivchenko , They get their Data from us, and then charge us to us it.

Apr 03, 2016 08:48 AM #32
Rainer
7,597
Katherine Quesada
Berkshire Hathaway HomeServices - Covina, CA

We work with zillow leads and numerous listings they post are outdated, not for sale or sold years ago.  Very annoying to try and tap dance around the incorrect information with prospective clients.

May 13, 2016 07:36 AM #33
Rainmaker
533,468
Chris B Johnson REALTOR®
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

May 13, 2016 09:24 AM #34
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