Zillow Will No Longer Let Strangers List Your Home For Sale


zillow-zaps-home-listing-feature1

You say tomato, I say tomahto. Let’s call the whole thing off! ~George & Ira Gershwin

Now, before Zillow’s David Gibbons comes by to argue semantics again, I have always opined that  allowing folks other than the homeowner or listing agent to “note” a home for sale on Zillow.com was the same as “advertising” it for sale– a violation of most MLS rules and, more important to me, a violation of the homeowner’s right to control the marketing and advertising of their home.  (some folks don’t want a For Sale sign on their lawn, real or virtual).  See Owners in Zillowland, We Want Out..  and accompanying commentary.

Well, Zillow has finally removed the feature and now ONLY the homeowner or their listing agent, may post a home for sale on Zillow.com.   Hooray for homeowner rights.

On Zillow Blog, Spencer Rascoff explained it this way:

…we included a feature to “tell us it’s for sale” – figuring that many conversations start around homes on the market, and if the home isn’t listed on Zillow then the community might want to notate that it’s for sale. Some brokers who didn’t like the feature argued that it allowed someone other than the listing agent to “advertise” the listing, which is a no-no. Our position was always that it is a conversation piece about that home, the type of thing that someone in the community would say to someone else – “hey did you see that the house down the street is for sale for $500,000?”

As I mentioned in a comment, there is a big difference between a coffee house remark about a neighbor’s home for sale and putting it on the internet to have a conversation.  It’s just not done by regular Janes.  The reality is agents do it to get buyers.  Some Realtors were openly advocating this “peeing on trees” strategy and Zillow never spoke out against it– “Hey, fellas, that’s an advertising “no-no”, don’t do it.”

I refuse to believe the brains behind Zillow didn’t think pros would “mark” other folks listings as bait to get clients.  Just look at the language they chose– they used terms like “mark” “note” “tell us” a house is for sale– carefully avoiding words like list, post, advertise— this went past a lawyer’s desk.  In any event, the feature is dead and real estate professionals will no longer get to pee on your home.

The Squeaky Wheel Gets The Grease

I had a conversation with David Gibbons on the subject and he told me the reasons for the features demise were twofold:

First and foremost, it was not being used– only about 4,300 homes were marked for sale by folks other than the owner or listing agent ( less than .1% of Zillow’s inventory– a mere bag of shells).  I suspect all 4,300 listings were put up by real estate agents and mortgage brokers looking to get a call and get a client.

Secondly, and this is the part that intrigued me,  a vocal minority of agents had made the same objections as I had– that the feature was advertising, plain and simple.

I asked David if he knew of any objections filed with local MLS against non-listing agents using the feature and he recalled only 2– in one the agent removed himself from the listing, in the other, it stayed.   It was never challenged in court.

I salute Zillow for removing the feature.  I only hope Zillow will listen to another vocal group— homeowners —and give them the right to opt-out of the zestimate & disable Q&A, especially when they claim and list their home for sale on Zillow– it might be an incentive for folks to claim their homes and list them on Zillow.   But I don’t think they have the vision, or the chavollies.

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  • This is good news but, I might argue, not far enough.

    I recently entered into a listing agreement and the home owner/seller went into Zillow to "claim" their home. They proceeded to add details about the home that were, er, not exactly 100% accurate. Some of this may be inadvertent because not everyone understands what all the various fields in Zillow mean. What it does mean is that regardless of the Realtor's responsibility to be bound to the Code of Ethics' charge to be honest and accurate in our advertising and marketing, the home owner/seller is not bound by the same Code and may veer away from the straight and narrow.

    Normally, this doesn't matter much until you come across a potential buyer that begins grilling the Realtor about this, that and the other that the potential buyer found on Zillow.

    This actually happened to me recently. I hadn't quite realized the home owner/seller had gone in and "claimed" their home and proceeded to add details.

    I suppose I can't be help liable for misrepresentation (I hope) but it's still a mine field when either the home owner/seller and the listing agent can make changes.
  • That's interesting, Ken. I never considered that possibility. No, IMO you are not liable for misrepresentations of your client, but it does put you in an awkward position. Trust can be lost quite easily if a buyer senses someone is trying to pull the wool over their eyes.

    Owners who are not selling should also consider that changing facts on their home to increase the zestimate may in fact increase their property taxes. http://tinyurl.com/csen4y
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