How does Zillow make money? If you’re thinking about using Zillow to find the value of your Houston home, you might be wondering why the platform is free and how it’s able to make money.
In this post, our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team will explore how Zillow generates revenue. Then, we’ll discuss whether you should use the platform to find the value of your home, or whether you’re better off working with a realtor.
Key Takeaways:
- Zillow primarily generates revenue through advertising, though it also sells subscription services.
- Zillow’s largest source of revenue is its Premier Agent advertising program. Realtors and real estate brokerages use this program to place their name and branding on Zillow property listings for their area.
- Zillow Rental Manager sells advertising to landlords, individual property managers, and property management companies.
How Does Zillow Make Money?
Premier Agent Advertising
Zillow’s largest source of revenue is its Premier Agent advertising program. Realtors and real estate brokerages use this program to place their name and branding on Zillow property listings for their area. This allows them to be discovered by prospective clients and generate leads more easily. The Premier Agent program also allows realtors to take advantage of the Premier Agent branding. This means they can add key information to their profiles, including client reviews, past sales information, a bio, and more.
Zillow Rental Manager
Zillow Rental Manager sells advertising to landlords, individual property managers, and property management companies. With this platform, landlords and property managers can attract leads to their rental properties faster. Zillow Rental Manager also helps with screening tenants, leasing applications, and collecting rent payments. Zillow charges fees for all these features, generating substantial revenue from rental property owners.
Zillow Home Loans
Zillow offers mortgage services through its Zillow Home Loans platform, where users can compare mortgage rates, calculate mortgage payments, and connect with mortgage lenders. Zillow generates revenue through referral fees and by selling advertising space to mortgage lenders featured on the platform.
Zillow Group Data Services
Zillow is a subsidiary of Zillow Group, the larger parent company which owns several other real estate platforms. Another way Zillow makes money is by giving businesses, researchers, and real estate professionals access to its extensive real estate data and analytics through its Zillow Group Data Services division. These groups can pay a fee to access Zillow’s proprietary data sets, market insights, and analytics tools.
Why Does Zillow Collect This Information?
Zillow collects all this information to provide property listings that match your criteria, relevant data about the real estate market in your area, personalized ads, and other services.
It also enhances the overall user experience by helping Zillow understand user behavior. One way Zillow uses data to shape user experience is by sharing certain information, like your viewing history, with an assigned agent.
Through this method, Zillow is able to provide leads to the agents on its platform, which is one of the ways they earn money. At the same time, you benefit by connecting with an agent who can take care of your needs quickly.
However, Zillow only shares information with agents if you have a Zillow account and are browsing while logged in.
As with any platform that handles personal information, it’s a good idea to review Zillow’s privacy policy to understand how your data is used and protected and learn what options you have to control your personal information.
Should You Use Zillow to Find Your Houston Home Value?
If you’re considering selling your home and want to gauge its market value, using Zillow can be a good idea if you’re early on in the process. Zillow typically offers a rough idea of your home’s worth, which can help you make an initial budget and prepare for your sale.
However, it’s crucial not to rely on Zillow entirely, as it can’t take into account the unique features of your home that impact its market value. In addition, the platform can’t always keep up with the constant shifts in the housing market, so there’s a risk your home value estimate could be based on outdated data.
As you prepare to list your Houston home, it’s best to consult a realtor for a professional evaluation of its market value.
Realtors have access to current housing market data and possess comprehensive knowledge of the Houston housing market. This enables them to accurately determine your home’s value and avoid the pitfall of overpricing.
Find the Market Value of Your Houston Home Today
If you’re looking to find your home’s market value in Houston, contact Chris Schmidt and our team at Your Home Sold Guaranteed Realty - Chris Schmidt Team today. Our realtors have years of experience working in the Houston metropolitan area.
Our familiarity with the local market trends, as well as our legendary customer service, are why we’ve developed a reputation as the best realtor in Houston. We can easily help you find the value of your home, and if you decide you want to sell it, our unique Guaranteed Sale Program protects your interests and ensures a risk-free sale.
To learn more about getting a home valuation from our team, give us a call at 713-322-5604. You can also fill out the form on this page or send a message to [javascript protected email address].
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