Zillow is Coming for Your Real Estate License


 
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Summary

With the threat of Zillow dominating real estate… how do you beat Zillow?

Here are 3 key strategies to winning vs. Zillow:

  1. Relationships. Give your clients the kind of Personalized Service that they will never get from a big corporation like Zillow. If you keep building Top-Of-Mind Awareness (TOMA), trust, and loyalty with your Personal Circle, they will choose you over Zillow.
  2. Fiduciary: You represent the seller’s best interest, while Zillow represents Zillow and will use Bait & Switch tactics to get the seller. 
  3. Guarantee of Expertise: With your 10-day selling system, you can sell their house for above market value vs. Zillow’s fair-market offer. At the same time that you launch your 10-day selling system, have the seller get Zillow’s best offer. If Zillow can beat your best offer, the seller can accept it and they owe you nothing. 

Four out of 5 times, you win and the client wins every time. And every time you beat Zillow, you can leverage that in your marketing to get future clients.

If you want to master the full system for mastering listings & beating Zillow, come join me for 3 days of live intensive virtual training at Agent Mastery Live 2021: Double Your Listing Power. Click here to learn more.

 

Full Transcript

Make no mistake about it, Zillow is coming for your real estate license. And this is not clickbait, this is not a trick, Zillow is coming for your real estate license. They have been preparing for years and years and years to make this big move. And this is Zillow’s big move.

Now I want you to understand, just to reassure you, they don’t care about your license personally, about your individual real estate license. They could care less about you. They could care less about what you’re going to do. Their goal is to take over the game. 

 

Zillow’s Game

So just to understand Zillow’s big move that they’ve been preparing for over a decade for this moment is simply this, their goal, their vision, is to become the Amazon of the real estate industry. To become the Amazon of real estate, that is their play. That’s what they’ve been planning on. That is what they are doing now. 

They want to become the one-stop shop for all things real estate, buyers, sellers, buying real estate, selling real estate, investing in real estate, financing real estate, refinancing real estate, the whole transaction. They want to control the entire game the way that Amazon controls retail sales. The retail sell space, amazon has taken that over now. And with that, Amazon has started reaching into all different other kinds of things like from Alexa and many other things.

 

The Evolution of Zillow

So here’s the deal, this is Zillow’s play. And they started out by just marketing houses. They started out, they came to us realtors and said, “Hey, we’ve got this great real estate website where we market your listings to buyers because we got great marketing. And man, this is what we’re going to do and we’re not going to charge you anything. Just give us the right to take your listings and market them. And we’ll do that.” And so what Zillow did is Zillow became the marketing platform for homes. It became the first stop for home buyers. And as they did that, it became a trusted information source for home buyers and for homeowners. So it became the first stop for buyers. 

And then it became the first stop for sellers, because then they introduce things like now we give you information about not only the buying process, we’ll give you information about your home. Your house is actually here on Zillow. You can come to our place and we’ll even tell you how much it’s worth with this fantastic product called a free Zestimate. And so not only then did they become the first stop for buyers, they became the first stop for sellers.

Now, what they wanted to do is they wanted to capture the client’s information. So they started capturing buyers information, the buyer leads, they’d come in and they’d capture them and then they started selling them back to us as realtors. We give them our listings for free, and then they sell us that the buyer leads that they captured off of our listings. 

We should’ve seen trouble coming. And we saw it too late because NAR with all of our complicity said, “Yes, here are our listings,” and we just gave away what some people have called the goose that lays the golden eggs. We gave away access to our proprietary information, to our listings, and when Zillow had that it was off to the races.

So first they marketed homes and they started becoming an information source for buyers and then became an information source for sellers. So now Zillow has become the first stop for sellers. And then they said, “How do we capture the homeowner’s information? We’ve got the buyers, we can get their information. How do we get the seller’s information?” 

And so they introduced this idea of an iBuyer with this product where they would make instant offers, which initially they were using a third party company, an independent investment group, to come in and they would make offers on these properties. People could sell their properties directly through Zillow to a third-party investor. And then Zillow goes like, “Wait a second. Why don’t we just become the buyer?” And so now they have this thing called Zillow offers and with Zillow offers, everything was unleashed.

 

A One-Stop Shop for Everything Real Estate

So now they started capturing the homeowner information. So now they’ve got the buyers, now they’re becoming the first top for sellers. Now this just recently, they acquired ShowingTime. And new for 2021, they have now begun to become a brokerage nationwide. If they are not a broker in your market yet, it’s just because they haven’t got there. So just like they did with the answer with the iBuyer platform with their Zillow offers that started out as instant offers, they just opened in one market and then they’ll expand to another market, to another market, to another market, to another market. And now they’ve acquired ShowingTime, which makes them where literally they can become the one-stop shop for everything real estate related, buyers and sellers.

In other words, your game, your business, they have completely interloper and said “This is now our field. You want to play here’s the rules,” and Zillow has now become the rule setter or the trendsetter and the standard for the real estate space. 

Now, if you’re thinking, “Well, I’m just going to go out there and I’m going to take Zillow head on.” Here’s the deal, my friends… Zillow has already won the game. They’ve already won it. Just like Amazon had already won the game long before many retailers were aware of it, they now completely set the agenda for how retail sales is done. Zillow is doing the same thing with the real estate industry.

So here’s the newest thing and I saw this about a month ago from one of the agents that I coach. They said, “Hey, by the way, you know that Zillow not only will they make a Zillow offer, they are now marketing that you can sell your home to Zillow for your Zestimate.” I’ve just got this, a picture, that was sent to me by one of my coaching members because I tried it. It’s not available where I live. But they are now marketing, “Sell your home to Zillow for your Zestimate”. 

So when you go on Zillow right now, and this is expanding, this is constantly evolving, guys. So as I’m shooting this video in March of 2021, whenever you see this video, the game is already changed because Zillow is consistently and constantly evolving and they are doing it at breakneck speed.

So wherever and whatever they’re doing one week, they’re split testing. They’re testing, what’s working in different markets and all of this, but this is one of the latest. Sell to Zillow for your Zestimate, qualifying homes getting a competitive cash offer. 

So it shows, the Zestimate on this particular property is $356,831 and they’re saying we’ll buy it for $356,900. And then it just says, get your offer. And all you gotta do is click on the link right there. And they’re going to say, are you the homeowner? Yes. We’ll start giving us your information and we’ll have a Zillow advisor contact you. We’ll do a CMA on your house and we’ll then submit you an offer, no obligation. You’re not required to do it.

 

The Zillow Takeover

Guys, Zillow is completely coming into the game of real estate and they don’t care if they can get you to click on this. And by the way, even when Zillow Offers is not available in your area yet, this is what it will say. Okay? This is what it says. It says, “Zillow Offers isn’t available for this home, but we can still help you sell.” And this is what it says, “Free, No obligation 15 minute phone consultation with a Zillow advisor.” Okay? 

This is happening right now, my friends. This is in real time. “Understand pricing and learn which repairs pay off, learn selling strategies that work for your timeframe.” And then it says, “Sell with confidence,” and they’ll give you three options. They don’t care whether you take their offer or not. They say we have an, A plan, a B plan and a C plan, you pick the one that works best for you. You can sell it to Zillow.

And by the way, in a lot of your markets now and a lot of the major cities around now, when you go and search from homes, a lot of the homes will show and it’ll say, “Zillow-owned home.” Which Zillow not only is the seller, they are the owner. They’re not only the marketer, they are the owner of the property. So they’re not only buying properties, they’re now selling their own properties. 

Again, Amazon real estate. They’re taking over every element of the real estate game. So they go like, “Hey, discover how Zillow Offers work, sell directly to Zillow. If you don’t want to do that, work with an agent. You can come to us and we’ll refer you to one of our agents.” 

Now right now in a lot of your markets, that’s still a premier agent. But Premier Agent is changing and I’ve talked to coaching members and agents from all over the United States and it’s different. One of them they’re like, “Oh, all of a sudden me becoming a premier agent, the price dropped tenfold, it’s like a 10th of what it used to be.” Right? But they’re not giving you leads anymore, but they will give you a referral and you can pay them the referral fee. And others are not doing that at all.

So in different markets, Zillow is doing different things. So they’re rolling this out… one market at a time. They’re changing things. They’re testing things. They’re trying things. So you can either sell it to Zillow, they’ll buy it from you or they’ll refer you to an agent or you can sell it yourself for free. So they’re giving homeowners, “Look, we don’t care what you do. One stop shop. And whichever one of those options, we got a plan for you.”

Now, here my friends is what you have to understand. Nearly 80% of all sellers only talk to one agent. They don’t interview around. They don’t check with competing agents. They don’t interview three agents or four agents. They don’t talk to Zillow and then talk to somebody else. Zillow knows that there is an 80% chance that a seller is only going to have one conversation with one party. Zillow wants to be that party because they know if I can get a homeowner to click this, get your offer. That once a homeowner starts going down this path, this is the only path they’re going to go down. 

And they’re going like, “Well, maybe we should talk to another agent,” but they don’t want to talk to another agent because it’s a pain in the neck. And people tend to follow the path of least resistance, so all Zillow is doing is saying we want to remove the resistance. We just want to do that to dominate the real estate market.

Now what we are seeing in some markets when Zillow is making these Zillow offers, some cases are coming in below market value. But in many cases, they are selling through the Zestimate, they are literally paying fair market value for a property. Now, I don’t have time to go into the dynamics of why they’re doing that and how they’re doing that but here’s what I will say. Their goal right now is not to make money, their goal is to gain market traction. Their goal is to dominate the real estate buzz, to dominate the real estate cycle. 

And because they have tons of venture capital, tons of money, backing them, their goal is to drive traditional real estate agents out of the game. They are coming after your real estate license. Now, again, if you ask them, they’re going, “No, no, no, no. We’re not trying to put you out of business.” No, not any more than Amazon is trying to put out the little mom and pop retail store. That’s not Amazon’s goal. Amazon’s goal is not to put anybody out of business. They’ll say their goal is just to dominate the space, which is Zillow’s too.

All right. Now, how do you respond to that? How can you beat Zillow at their game? Well, first be clear, you can’t beat them at their game. Their game is to become a technology platform, a one-stop for all things real estate, buyers and sellers. You cannot beat them at that game. They have already won. They own that space. Any more than if you have a retail shop, you’re trying to beat Amazon by creating your own Amazon. You don’t beat Amazon by competing in their space. Okay? You’re not going to beat Zillow by trying to compete in their space. 

 

3 Keys to Beating Zillow

So the question is, how do you beat Zillow? And yes, you can beat Zillow. I’m going to give you three extremely powerful steps, three advantages that you have, that if you learn how to leverage this you can do this. 

I’m also going to let you know that when you come to our training, Agent Mastery Live, and you go to agentmasterylive.com to find out about tickets and all of that. When you come train with me for three days at Agent Mastery Live, we are going to train you specifically in detail, these three things that I’m going to talk about. Exactly the systems, the entire system for how you can use these three keys to beat Zillow.

 

1. RELATIONSHIPS

Master and leverage relationships. The fact that you can win with personal relationships with homeowners, you got an edge because Zillow is never going to be personal. It’s always going to be technical. There is no relationship. What you have that they cannot compete with is trust and loyalty. 

For people to know that when you go to Zillow, you don’t know what you’re going to get. Okay? You’re going to get depersonalized service. You’re going to get some Zillow advisor that is somewhere in the world that we don’t know where they are, who they are, how good they are, the track record? Every time you call in, you’re probably going to talk to a different person because you can talk to somebody 24/7. 

But when you work with me, you know I got your back. You know you’ve got me and you know who’s working for you and you know that you have direct access to me, not some big corporation where you’re just a name. You’re not even a name and a face, you’re just an address. Okay? And you don’t know who you’re going to get. You don’t know what kind of quality service you’re going to get. With me, you’re going to get personal service.

 

2. FIDUCIARY

Okay? Number two, not only will you get the personal touch, but number two with me, you get fiduciary. Now that’s not the word necessarily you’d use with a seller. And that is you got, I got your back. You have somebody who is on your side representing your best interests, not their own best interest. Because as a real estate agent, an agent is somebody who acts on behalf of another. What is your highest responsibility? It is a fiduciary obligation, which means I represent you. I represent your best interests, not even my own best interest. See, I represent you. Zillow represents Zillow. Zillow’s representing their own best interest. And so when then we’ll buy your house, well, who’s whose best interest are they looking out for? They’re looking out for their own. So if you go to Zillow you’re talking to somebody who has their interests at heart, not yours. Okay?

When you work with me, you’re going to get no BS because here’s the game. When they say to you, “Hey, sell to Zillow for Year’s Estimate.” You know what this is? This is BS. It is Bait & Switch. Now always Bait & Switch? No, but here’s what’s going to happen. When you click in here and you go into, get your offer, they’re going to say, “Okay. Tell us about your property. Okay, cool. Now we’re going to have one of our advisors contact you and we’re going to send one of them out and they’re going to actually see your home. 

Then we’re going to actually look at the real comps and we’re going to do a full CMA. And based on that, we are going to give you an offer.” Will it be your estimate? Maybe, maybe not. But what the reality is, it’s Bait & Switch. They’re not going to give you an offer based on your Zestimate, they’re going to give you an offer based on your actual home and the comps on your home, which is basically based on what the market is saying… not what the Zestimate is saying. But again, they’re counting on the fact that once they get the homeowner to click on this button and get into this game, that the homeowner will continue on that course with them.

So with Zillow, you don’t know what you’re going to get. Okay? With me, you got me representing you. Zillow Offers is for Zillow’s benefit, they are not your friends. So the second thing is helping homeowners understand that with me, you got fiduciary. 

Now, all this looks good. And it’s like, “Okay. So I know you. You’re going to give me personal service. That’s nice. Okay. So you’re going to represent my interests, but Hey, what a Zillow offer is a great deal for me. What if they’ll pay me my Zestimate and what if I can win with that?” And friend, do not think that Zillow will not make legitimate offers. Okay? Zillow will make legitimate offers and in some cases it is going to be a good offer. 

And I’m talking to some agents who are saying that they’re seeing this happening right now with some of the homes they’re talking to homeowners. And they are actually offering, Zillow is actually offering, fair market value for these homes. Okay? Why? Well, we’re still under an appreciating market. They can hold onto it for a little bit. They got money. They can make sure repairs to it and they can probably sell it and break even. And they’re just trying to dominate the market.

So you’ve got to understand that relationships and fiduciary, that I got your back, I represent you rather than Zillow representing themselves, and you’ll know who you’re working with. All that’s a benefit. But where the rubber meets the road, can you get me something better? 

 

3. GUARANTEE OF EXPERTISE

And here is the third and biggest key to beating Zillow and that is an audacious promise of a guarantee. And here’s the guarantee, I will get you more money, period. I will get you more money in your pocket when you hire me, then if you accept a Zillow offer and I guarantee it. 

Now, how does that work? Well, I’m going to train this in detail at Agent Mastery Live. I’m going to train the whole system of how this works from beginning to end. Here on this video, I only have time just to give you kind of a sneak peek of how it works, but I’m going to give you the magic right here.

Okay, here’s how it works. I will get you more money, period. Well, how are you going to do that? Well, when we get together, I will lay out exactly how it works that when you hire me, I will get you more money in your pocket guaranteed than Zillow, period. End of story. Okay? Can you prove that? Absolutely. When can we get together? So the first step is now I get a listing appointment. I’ve got to get into a conversation with them where they will hear you. 

Now, once they say, “Okay, I will hear you,” here’s how it works. You go down and you sit down with them in a listing presentation, and here’s the deal. You hire me. I am going to launch my exclusive 10 selling system. And with that, we’re going to get our best buyers in the market, we’re going to go to the best buyers in the market who will bring you the best offers. As we’re doing that simultaneously, if you want to, you reach out to Zillow and you apply for their Zillow Offer.

So we’re going to get our best offers in the first 10 days on the market and you’ll have the best offer from the best buyers in the market right there to pick. And then if you want, you can reach out to Zillow, have them bring their offer and the best offer I can bring you will beat Zillow’s offer in terms of how much money you will net in your pocket. And if I can’t beat it, if I can’t get you more money in your pocket, then you choose Zillow’s offer and I will not charge you anything. It’s that simple. 

Now, when you read the fine print, when you read the fine print of how Zillow offers work and how Zillow works. And even when you sell it with Zillow or sell it to Zillow, 80% of the time, no doubt, 80% or more of the time you will win and your client will win. You will be able to get them and net them more money in their pocket than they will do with Zillow.

But first you’ve got to be able to be bold enough to get the conversation going so you can get a listing employment with them so you can go in and explain to them how you do it with your 10-day home selling system (which we train at Agent Mastery Live), your 10 day selling system, and that you can get them a higher offer that will net them more money in their pocket after commissions and everything.

And here’s the beauty of it, every single time, you win and you will win four to five times. What if you lose one out of five times? You lose, but you got five listings you wouldn’t have got otherwise and four of them you’ve got to sell. Some of them you may double in, you will win. Okay? 

What if Zillow offer comes in and it’s better? Well, you got options now. I can look at it and go like, okay, they’re going to net the seller so many thousands of dollars more than I can do. I can negotiate my commission at that point in a way that will help the seller get more money from my offer. But at least I’m able to get into that conversation now because I was able to get the listing and give them the best of both worlds.

And understand my friend, the key here is this is better for the seller. It’s not just good for you, it’s not just a way for you to get business, it’s a way for you to protect the seller from losing money to Zillow, because you can actually get them a better result. Okay? 

Now, once you’ve done that, every single time you win, every single time you’re able to get a homeowner more money than Zillow could get I can now leverage that in my marketing and I can put the word out, okay? You want to get a record price for your home, you want more money than Zillow can get for you, talk to me. Anytime you compete with it, that, my friends, is the play and it is the way that you can beat Zillow and you can beat them every single time. Okay?

 

Your #1 Competitor

Zillow is likely going to be your number one competitor in the market going forward. The key is for you to learn how to beat Zillow, not at their game, but in the game of helping sellers get a better result. And when you get the listings, you also now control the inventory. When you have a home for sale, you now get buyers. All this stuff works because you’re able to make a better value proposition with personal relationships, representing their best interests and being able to guarantee that you will help them get more money in their pocket.

Now, if you want all the details, the entire system of how to do this, including the 10-day selling system and everything, come join me at Agent Mastery Live. Go to agentmasterylive.com for all the details and I will hopefully see you there. 

In the meantime, if you liked this video, give it a thumbs up. If you’ve got questions, if you want to challenge anything that I said here, if you want to rebut me, put your comments down below. If you don’t like it, go ahead and give me a thumbs down but at least in the comments, tell me why. And then make sure you have subscribed to my channel, if you haven’t done that, for more training videos coming out every week.

Play to win. Always expect yes.[/vc_column_text][/vc_column][/vc_row]

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