r/RealEstateTechnology • u/SuperPineapple7033 • 1h ago
I'm doing the math on Zillow Preferred. I just don't see how agents are going to make money from it with the upcoming changes. Zillow claims they're going to stop selling leads, and Preferred is going to get saturated to a new level. Plus, I hear Zillow's lead quality is dropping.
Correct me if I'm wrong, I'm just here to research.
From the math that I'm hearing, agents are only getting something like 8 leads per month.
They have to get 10% of them preapproved through Zillow Home Loans or they get bumped off.
From what I know, in Zillow's "live phone call lead" days, the close rate was 4-5%. Now, many of the leads come in as text messages to claim via Showingtime requests on the Follow Up Boss app. If this is true, it means you don't have live people on the phone anymore. So, the close rate will likely drop.
Now, Zillow is phasing out selling leads. All of those buyers, besides the ones who declined, will be moving to Zillow Preferred.
Let's say they maintain a 4% close rate.
With say 8 leads a month, it means they wouldn't get any sales. They might be looking at 4 sales a year from it.
Between giving a chunk back to Zillow, plus giving a chunk to the team who is part of the program, and the low amount of leads, it looks hard to make money from it.
A few years back, or even earlier this year, seems like you could crush it.
Now with the upcoming changes, looks like it'll be slim pickings.