Wondering how Zillow makes money? As a popular online real estate marketplace, Zillow offers a wealth of information and tools that many find useful in their property journey. Whether you’re curious about your home’s value or searching for a new property, knowing Zillow’s business model can help you use the platform more effectively. 

In this blog post, Ocala real estate expert Scott Coldwell and the professionals at Your Home Sold Guaranteed Realty - Coldwell Real Estate Services will discuss how Zillow makes money.

Key Takeaways:

• Zillow’s primary revenue source is advertising, particularly through its Premier Agent program.
• The company also makes money through mortgage services, rental listings, and data and analytics services.
• While Zillow provides valuable tools, it’s crucial to consult local real estate professionals for accurate, personalized advice, especially when it comes to home valuations.

How Does Zillow Make Money?

Zillow’s Main Revenue Streams

Advertising is at the heart of Zillow’s business model. The company’s primary source of income comes from selling advertising space to real estate professionals, including agents, brokers, lenders, and property managers.

The most prominent of these advertising programs is the Premier Agent, which allows realtors to pay for featured placement in specific zip codes.

Scott Coldwell explains,

“When you see an agent prominently displayed on a Zillow listing, it’s important to understand that this placement is paid for. While these agents may be excellent professionals, their visibility on the platform is not necessarily an indicator of their expertise in your specific neighborhood or property type.”

Zillow’s advertising model is tiered, with pricing based on factors such as market competitiveness, listing type, and visibility. This means that in hot markets like certain areas of Ocala, advertising costs for real estate professionals can be significant.

Zillow Offers and Other Revenue Sources

Beyond advertising, Zillow has three other revenue streams:

• Mortgage Services: Zillow provides mortgage services and earns revenue through origination fees and interest. They also make money by referring buyers to partner lenders.
• Rental Listings: Property managers and landlords pay fees to list their rentals on Zillow’s platform.
• Data and Analytics: Zillow sells access to its real estate market data and analytics to various industry professionals.

What This Means for Ocala Homeowners and Buyers

Understanding how Zillow makes money can be useful context for Ocala residents using the platform. While Zillow provides many free services, such as property listings and their famous Zestimates, these are subsidized by the advertising and other revenue streams mentioned above.

Scott Coldwell advises,

“Zillow can be a great starting point for research, but it’s essential to approach the information with a critical eye. Zestimates, for instance, can vary in accuracy depending on the availability of data in a specific area. In Ocala, where we have a diverse range of properties from historic homes to new developments, these automated valuations may not always capture the nuances of our local market.”

For sellers considering using Zestimates, it’s recommended to only use it if you’re early on in the process. Otherwise, working with a realtor is the best way to get an accurate valuation.

Zestimates offers speed and convenience for users. However, the trade-off is a potentially inaccurate valuation that doesn’t take into account the unique features of your home.

The Importance of Local Expertise

While Zillow provides valuable tools and information, it’s not a substitute for local real estate expertise. Ocala’s real estate market has its own unique characteristics. It’s influenced by factors such as the equestrian industry, retirement communities, and local economic developments. These nuances are best understood by local real estate professionals who are immersed in the market daily.

When it comes to finding accurate comps (comparable properties) in your area, a local realtor can provide insights that go beyond what’s available on Zillow. They have access to the Multiple Listing Service (MLS) and can provide a Comparative Market Analysis (CMA) that takes into account:

• Recent sales of similar properties in your specific neighborhood
• Current market trends in Ocala
• The condition and unique features of your property
• Local zoning changes or upcoming developments that could impact property values

Moreover, a local realtor can provide personalized advice based on your specific situation, whether you’re buying, selling, or just curious about your home’s value.

For Ocala homeowners and potential buyers, combining Zillow’s resources with the expertise of local real estate professionals will provide the most comprehensive and accurate information for making informed decisions in the unique Ocala market.

Scott Coldwell is the Best Ocala Realtor to Find Your Home Value

At Your Home Sold Guaranteed Realty - Coldwell Real Estate Services, Scott Coldwell and our team can easily help you find how much your house is worth in today’s market. Our track record of success is proven through our data– on average, we sell homes 48% faster and for 2.4% more money than our competitors.

Plus, with our buyer and seller guarantees such as our Guaranteed Sale Program and Buyer Protection Plan, you can ensure a risk-free real estate experience.

Contact us today at 352-290-3512, send a message to [javascript protected email address], or use the form on this page to learn more about working with our team. Buying or selling a home doesn’t have to be stressful when you work with the best realtor in Ocala and all of North Central Florida!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!