“We receive listing and buyer referrals directly from Zillow’s Premier Broker concierge services. These leads have been scrubbed and vetted before they are directly handed off to you.” Source: Sonoma County RE/MAX Marketplace, Zillow Premier Broker participant.
Nothing says consumer focus like being “scrubbed, vetted and handed off” to a random broker willing to pay 25%-40% referral fees. Zillow Group still declines to state the exact broker-to-broker referral fees amounts it collects since it began to do so in September 2018, nor does it disclose a real estate license number on its index page.
Zillow Offers is effectively sold on a 1% success rate of something entirely different.
The Big Question is why choose to pay some middle-man broker $10 Billion in commission kickbacks in the middle of a housing affordability crisis?
This is the real dilemma for all real estate market participants in 2019. The industry is now deeply divided — competitive tendencies vs consumers being “sold as leads.”
I see it as the beginning of end in pay-to-play broker mentality simply because nobody wants to be “sold,” “scrubbed,” or “vetted” when buying or selling the largest asset and a symbol of prosperity — our home.