Why You Should Avoid Zillow at All Costs
…and Trulia and Realtor.com and the like.
In a society obsessed with technology and social media, we are bombarded by loads of content on a daily basis. Anybody can post information online. Now more than ever, we have to constantly question where our information is coming from, and where we spend the majority of our time and money. We need to ask ourselves questions like, does the founder of this website have a motive for posting certain content? What is the real reason this website exists? And more to fully understand what companies we support and who has access to our personal information.
And before you start searching…
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Why You Should Avoid Zillow (and Similar Websites) At All Costs
In real estate, most websites exist to extract your contact information. They are giant traps created as lead machines for Realtors (the ones who pay anyway). Websites such as Zillow, Realtor.com and Trulia are all designed with the sole purpose of creating (weak) leads for Realtors, and in turn, revenue for the websites. At the same time, these are the exact sites where buyers begin their home search and where sellers look to find the value of their current home. This creates a variety of problems due to the false advertising and inaccurate data. And of all the online real estate databases, Zillow may be the very worst. It’s the most commonly used site despite the false advertising and information.
I was first introduced to Zillow leads when I left my previous real estate team. It was my first time working entirely on commission, and I was doing whatever I could to generate leads. An agent in my brokerage told me about the Zillow leads she paid for. She offered to share a few of them as she didn’t have enough time to contact all of them in a timely manner. It seemed so easy enough, so I agreed. The first Zillow lead email she forwarded me included the name, number and email address of somebody who was interested in a South Austin home. At the time, I didn’t realize how the Zillow lead system worked. So, I called this lead, ready to give them more information on the home, happy to help and excited to talk to a potential client.
The voice on the other end of the line sounded exhausted, “You’re the 20th Realtor to call me in the past hour. Please stop calling.” Not exactly the type of response I was hoping for when following up on these “hot leads”. I instantly felt guilty and apologized.
Here’s the thing: the potential buyer WAS interested in talking to somebody about the property and did inquire about it. However, he was not interested in receiving dozens of calls from multiple agents over the next week, which, unfortunately, was exactly what happened to him.
Zillow, and similar sites, create a lose-lose situation. The potential buyer is angry and overwhelmed, and the agent is paying too much money to compete with numerous agents. And if you’re not a serious buyer who is only on Zillow to browse through the home photos, this is especially annoying. During the timeline of these first searches, many buyers are in no way ready to transact on a property. You just wanted to browse cute homes and gauge prices in your area, for peets sake!
Now I’m sure some Realtors thrive using Zillow leads, but it puts a sour taste in my mouth. It’s not honest, and it’s not accurate. Who is winning here? Zillow.
so, What is the lowdown on Zillow and similar sites?
Let’s look at the following categories and go over why these sites aren’t where you should be looking when it comes to buying or selling your home!
Inaccurate information
My client found a home on Zillow, but the information was not up to date!
For buyers: Many of the homes listed on Zillow may not be for sale. For example, a client of mine was intrigued by a house they saw on Zillow (pictured). Zillow’s data showed the house was currently for sale, had been on the market for almost a month and was in the area and budget they wanted. What I found via the MLS is that the house had sold in three days a month prior and for over asking price.
Another way Zillow can provide inaccurate information is through the agent listed with the property. You would think this is the “listing agent” or the “seller’s agent”. Wrong. It’s usually attached to a paying Realtor client of Zillow. It’s misleading advertising, and it’s taking advantage of people. So instead of turning to a massive online real estate database like Zillow, turn to friends and family. A simple social media post asking for a great local Realtor will probably get you great results!
For sellers: Zestimates are Zillow’s algorithm-produced appraisals. They provide people with a basic estimate of what a particular property is worth. Are Zestimates ever accurate? Rarely. According to economist John Wake, the typical Zillow Zestimate error is $14,000. “You don’t know if it’s $14,000 too high or $14,000 too low. And it gets worse because HALF the time Zillow Zestimates are off by a lot more than $14,000”. How can they be accurate when there are so many factors to determine how much a house is worth? No two houses are the same which makes it impossible for a computer to determine it’s value.
Zillow uses a computer generated algorithm based on what has sold in the area, the square footage and the number of bedrooms. The basics. They don’t have inspectors checking out each property making sure their data is accurate. That’s the only way to determine a property’s worth. Yet, many sellers will only look to Zillow when they start thinking about putting their house on the market.
Unwanted Communication
If you enter your information into online real estate databases, expect your phone to start buzzing. A consumer’s information will potentially be shared with hundreds of agents. The house you were simply curious about has now caused you hours of annoying calls, texts, and emails from different Realtors. And, if an agent is persistent and can’t take a hint, this could last for months.
Finding a transparent Realtor is the best thing you can do! Make sure you search for the right Realtor to suit your needs.
If you’re working with a Realtor, they’ve probably set you up with a home search. I know it’s still tempting to look on Zillow. You may see homes that fit your exact criteria, and the price is great! But why hasn’t your Realtor sent you these?Unfortunately, the listing is probably not accurate or available at all. Realtors set you up with home searches which are directly from the MLS (Multiple Listings Service). The MLS will be the most up to date home search you can get, and it will come directly from a Realtor. With an MLS search set up via a Realtor, you will know the homes in your search will be on the market. Also, if you set up your search with a Realtor you’ve vetted, they will be the only one contacting you.
Q: But what if you’re merely curious and not ready to buy?
Here’s the thing… you don’t want to waste anyone’s time! But if you’re transparent with an agent, want to get set up with a home search, but aren’t interested in buying just yet - let them know!
Realtors work on commission, so I realize you may not want to waste their time. Most Realtors won’t mind helping you with a simple automatic home search. It takes almost no time! You’ll rarely get an agent saying no to such a simple request, and if you do, then they would never be the agent for you in the future anyways!
Realtors work in a competitive field and by going out of their way to help somebody now, they are slowly building a connection. Perhaps you’ll keep them in mind in the future, or have a friend you could send their way. If not? They’ve still wasted almost no time. Not to mention they’ve saved you the headache of sifting through false material and dodging a million sales calls!
So let’s get you on the right path…
Do you want to get set up with a home search and start considering buying in your area? We can help you! Whether you live in our home base of Austin or elsewhere, we can get you set up to peruse homes, whether it’s to buy now or just to get an idea what’s out there.
Are you already certain you want to buy a home within the next year, but want to educate yourself a little more first before you get started? Join us in Open House Homeschool: the #1 Nationwide course for first time buyers that are also interested in making their first home an investment!
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