The internet has opened up a world of possibilities. You can do your shopping online. You can do your banking and taxes online. You can reconnect with old friends. And it’s not surprising that almost every industry is trying to get a leg-up when it comes to the online marketplace. It’s all about convenience, and real estate is no exception. Many e-commerce real estate companies have turned to the internet to handle house buying, selling, and advertising processes. Zillow offers exactly that. But should you use it? What are the disadvantages? We’ve got the lowdown on why we frequently don’t recommend using Zillow, particularly in Aiea, Hawaii, and why we recommend turning to a traditional real estate agent instead. Let’s dive in!
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What is Zillow? | How Does Zillow Make Money? | Traditional Realtors and Zillow | Why is a Traditional Realtor Better? | A Traditional Realtor is the Answer
What is Zillow?
Located in Seattle, Zillow claims to be the leading online real estate rental and marketplace. Since launching in 2006, they aim to provide data to all their customers and hope to connect them to local professionals who can help. And they aren’t just for homebuyers or sellers. They also help prospective renters find rental homes or apartments. Zillow further claims to handle the entire process from start to finish including financing, remodeling, and more. They also offer Zestimates for home values and rent. It sounds pretty good, but again, we’re going to take a much closer look.
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How Does Zillow Make Money?
Surprisingly, Zillow is actually free to use. But this means that the company has to look to other methods to make money. In truth, nothing in this world is free. Zillow makes money through various revenue streams including iBuying, Advertisements, and Premium Realtor Services.
Essentially, iBuying includes the processes involved in buying and selling real estate. It makes it easy by having the whole process online. And it means a lot can be done all in one place.
Mainly, Zillow’s advertising goes to property management companies. In fact, these companies use this advertising space to prioritize their listings for potential buyers. They further sell ad space to insurance, mortgage, telecommunications, and other companies that may benefit from the audience that views Zillow’s online domain.
In terms of Premier Realtor Services, Zillow offers realtors a place on their website which comes with customized designs, MLS search, and the option to buy ad space on Zillow so that their listings will be viewed more frequently and so that they will be recommended more often. When a person viewing the Zillow site wants to team up with a specific realtor, Zillow allows them to connect.
The Differences Between Traditional Realtors and Zillow
Zillow sounds and looks great. It screams convenience. And in theory, it should be easy to use and convenient. Yet, there are some obvious issues with using Zillow and choosing it over a traditional realtor. Using Zillow in Aiea is no exception to this.
When it comes to working with a traditional realtor, you connect with them and build a relationship with them. You have a whole face-to-face consultation meeting (or meetings) to ensure your needs and desires are clearly laid out. It also comes down to the experience. It’s personalized. You get to view homes in person. And you know exactly what you’ll be buying or renting.
On Zillow, a main problem has arisen that sometimes the listings and price points aren’t the most accurate. The truth of the matter lies in the fact that the company doesn’t have access to real appraisals. Thus, the estimates are frequently incorrect.
Zillow has furthered been criticized for the confusion it causes its users. For instance, Zillow sometimes promotes a realtor and attaches them to a specific listing, but they don’t know anything about that listing. It creates confusion for both the users and realtors. And it can be especially frustrating for users who want to know more or view a home.
Another downside? The leads sent to realtors on Zillow tend to be low quality, especially when compared to the cost associated with joining Zillow. Users sometimes get overwhelmed, as well, by realtors reaching out to help since their information gets shared with hundreds of agents on the site. But when you meet a realtor in person, you aren’t bombarded nor are you overwhelmed. It makes the process smoother and easier overall.
iBuyer reportedly further comes with an array of problems. In real life, you can negotiate pricing and closing terms. With iBuyer, it’s pretty much set. The option of possibly getting a better price virtually doesn’t exist with iBuyer. Yet, an in-person realtor will take care of all of this for you and also help you negotiate the deal if necessary.
Lastly, Zillow has been said to have listings posted that aren’t available anymore. This, again, creates confusion and spreads misinformation. It leads to frustrated clients. A traditional realtor, on the other hand, has accurate information and likely won’t tell you about a listing that is no longer available. In fact, a realtor simply turns to the MLS system and they are able to get up-to-date info on all the listings. That way, you won’t find a home you love, only to find out it is no longer for sale.
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Why is a Traditional Realtor Better?
A traditional realtor is frequently better due to the overall experience. Zillow leaves something to be desired and can lead you feeling more frustrated and burnt out than actually feeling like you are making headway in your buying or selling process.
A professional and traditional realtor is motivated. They make their income off of commission. Thus, they want to find a home that’s going to make you happy and that you’ll actually buy and want to live in. They also depend a lot on referrals so they’ll also be motivated to understand your needs and wants and do their best. They want you to refer them to your family and friends, so they want you to walk away happy and satisfied.
Further, a realtor with various years of experience knows way more than what you’ll get out of Zillow. They might know more specific things about the area you’re interested in. They might be better equipped to negotiate prices. They also know what’s an option and what likely isn’t when working with your budget.
And then, a traditional realtor is also great for those wanting to sell their home, especially if you want to do so quickly. They have connections that will get the job done. For example, they could bring in pro stagers and photographers to make your house look great. They also know where to advertise to get your house to sell. And while you can advertise on Zillow, the leads often aren’t the best. It may end up being a more painstaking task than you intended. You’ll also be more likely to get a better return on your investment by using a traditional realtor.
Plus, a realtor will look after all the details. They’ve studied, trained, and have experience in doing so. They’re the expert, meaning you won’t have to worry about a thing. They will also set up showings and help stage your home, and more. There are so many more benefits in having a real person buying or selling your home, instead of using Zillow.
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A Traditional Realtor is the Answer
Aiea, Oahu is a popular place to live and settle down or even temporarily relocate to. With a ton of wonderful homes for sale, you’ll want to make sure you're doing it right. In a place that many call paradise, you won’t want an extra headache added to the buying or selling process. And unfortunately, Zillow doesn’t work in the best interest of the buyer or seller. They say they are easy and free to use, but there is fine print beneath all of this hype. And previous clients agree. One of the main reasons for using Zillow is Zestimates. Yet, this is completely inaccurate at times.
Overall, these gaps create unnecessary stress and anxiety through an already somewhat stressful process. Stick to the real-life pros and go with a traditional realtor. You’ll get a better experience and all the tips and tricks that you wouldn’t get online. Traditional realtors aren’t going anywhere anytime soon, and there’s a good reason for it. It’s just better, and you get more value than an online platform has yet to offer.