The industry has been buzzing this month since real estate titan Zillow announced it acquired ShowingTime—and presumably its network of nearly 1 million agents and hundreds of multiple listing services—for $500 million. Since transforming into a brokerage last year, the tech giant has become a major competitor to brokers and agents throughout the nation, prompting many to adjust strategies and reassess business relationships.
“I think that brokers and agents have already shown some concern about this. Zillow is a competing broker now, and I don’t know that brokers and agents are comfortable with a single broker having control over the scheduling process. Imagine if, say, Keller Williams had purchased ShowingTime—would any other agents or brokers use it?” asked Joseph Rand, chief creative officer at Howard Hanna | Rand Realty in New City, N.Y. and executive director of Broker Public Portal.
Following Zillow’s entrance into the brokerage world, RISMedia conducted a survey of more than 2,000 real estate professionals and found that 87% considered Zillow’s foray into the brokerage space as a “negative” for the real estate industry at large, while only 3% said it was “positive.”
Kuba Jewgieniew, founder and president of Realty ONE Group, for one, admires the brand’s aggressive expansion to control the end-to-end experience for homebuyers by scaling its data capabilities and fintech solutions, and he notes that if Zillow didn’t do it now, someone else would by the end of the year.
The current rate of international money flowing into the U.S. real estate industry is “staggering,” he says, and everyone is racing for data-based solutions, including showing services. Jewgieniew notes that Zillow paid a very high premium for ShowingTime, but that inflated cost was almost immediately justified on Wall Street as its stock price soared to an all-time high market capitalization of $53.6 billion, which more than covers the amount of the transaction.
“Zillow wants to keep business in their ecosystem now,” Jewgieniew says, referencing other American brands Tesla and Amazon, which have successfully transitioned into broader business models. “Zillow began as a lead-generation company and has diversified into a data company. They are ahead of brokerages and title (firms) in terms of fintech. They are streamlining it and making it more efficient.”
Jewgieniew does, however, say there are approximately 2,000 tech-enabled tools available to real estate agents, and no one should be beholden to any one single application or function.
For instance, a new showing service called Local Showings is set to launch imminently, according to an announcement last week from Delta Media Group. The family-owned real estate brokerage technology firm is led by CEO and owner Michael Minard, who says its showing service is well over “90% complete.” He notes that Delta already works with MLSs that cover 97% of the properties sold in the U.S.
“We have been inundated with calls from real estate brokerage customers, non-customers and MLSs to build an independent system,” Minard says. “The industry needs a showing service that is not beholden to Wall Street.”
Additionally, another tool called SentriKey Showing ServiceTM will be available to all state and local REALTOR® boards whether or not SentriLock is their lockbox provider.
“Competition benefits consumers, whether we see that play out through the nation’s MLS system or with the numerous resources accessible to agents and their clients. Overall, we remain focused on finding new innovations that will ensure REALTORS® have every tool at their disposal to best serve clients and maximize efficiency,” says Bob Goldberg, CEO of the National Association of REALTORS®.
With ShowingTime now aligned with Zillow, some agents and brokers may look to cut ties with the company. According to broker/owner of RE/MAX Capital Realty, Kendall Bonner, mixed emotions surrounding the acquisition seem to stem from a lack of transparency on Zillow’s part.
“I think the overall industry response is mixed and confused, which is understandable. Clarity of mission and vision is key for any business,” says Bonner. “Our understanding of the mission and vision of Zillow is unclear; their words and their actions do not appear to be in alignment. They say that they acquired Showtime for R&D and to fix inefficiencies but fail to clarify where those inefficiencies exist. The reality appears that they are actually seeking valuable data, and what remains unclear, for some of us, is what they plan to do with that data.”
In a statement released earlier this month with news of the ShowingTime purchase, Errol Samuelson, chief industry development officer at Zillow Group, said, “ShowingTime will remain an open platform available to all industry participants, and we expect to grow ShowingTime’s engagement through all channels to ensure touring is easier for the industry and consumers.”
Andrew King is a contributing editor to RISMedia.
Only 3% of real estate agents think Zillow’s purchase of ShowingTime is a good idea! 97% of real estate agents realize that Zillow will now have access to real estate data such as how many showing a property is getting and which agents are showing properties. This is way too much information for a competing brokerage to have. My MLS has a direct link to ShowingTime. Might be time to open up showing services to other venders.
I wouldn’t trust Zillow as far as I could throw them to be fair and do the right thing with The showing service.
I remain concerned because Zillow has already changed their practices regarding rental listings by forcing payment for lease listings. I manage residential real estate rentals and already have to pay for service in the MLS. With Zillow controlling many rental listing sites, it feels monopolistic.
Zillow, now a competing brokerage, will have access to all the showings´ feedbacks. Seems like a HUGE conflict of interest!
I think their is a lack of trust that agents have for Zillow based on past experience. I hope my broker drops ShowingTime.
Zillow is like the Amazon in our business. Contracts, restrictions, etc all expire. It’s business as usual – until it’s not. Watch this one; they’re a competitor and will always be our competition in their targeted price points. Any belief that there is an impenetrable firewall between MLS client data and the new ShowingTime in the Zillow O-Sphere is naive.
The monster is out of containment so this should be extremely concerning to Realtor members of our MLS.
How this was permitted to occur is as perplexing as the Facebook acquisition of Instagram.
Any essentially equivalent replacement for ShowingTime should be vigorously pursued immediately, if not sooner. Otherwise, serious consideration should be given to severing the MLS/ShowingTime relationship.
It’s important to remember that ShowingTime is a valuable convenience to MLS members, but it’s in no way a necessity. Accordingly, I, for one, will cease using ShowingTime forthwith.
The NAR should file a lawsuit against Zillow and petition the FTC and SEC to block their acquisition of ShowingTime.
I have never liked or trusted Zillow since they came on the real estate scene. I consistently advise my clients to please utilize my company website in their searches…mainly because Zillow so often presents incomplete or incorrect information. Luckily my company already has a showing system that we can use instead of showing time! Going forward, I would hope that the powers that be will be monitoring Zillow to ensure that Zillow is following the same rules/protocols/ethics that are already expected of Realtors!
What is even worse, is zillow also owns DotLoop. We have witnessed properties being reported as sold WITH THE SALE PRICE ON THE OFFER EXPOSED because an agent WROTE AN OFFER in DotLoop. They take it off if the property isn’t reported as Pending, but they are trying to be the first to report data, so they are using OUR contracts to get the info. I once had a Seller call me to ask if they sold their property to the low-baller who submitted an offer because it was posted on zillow. VERY dangerous. I don’t use DotLoop because I don’t want zillow to know what I’m doing. I suggest we all do the same thing! I think it’s silly to state we are confused about zillow’s intent. It’s quite clear!
Monopoly anyone? Unfair business practices by any other name smells like skunk. The opportunity for the individual to make money independently and under the steam of their efforts is being continually eroded under the guise of convenience provided by AI. Is it progress when the individual/agent has no choice but to “play ball” with the Goliath of Zillow and contribute to the eventual demise of their business?
Would you give a car jacker the keys to your car? Would you give a home invader the key to your front door? If the answer is NO to both these questions then what in the world is our leadership thinking when they allowed Zillow to join of Listing System and to buy the company that has direct access to all the data available about every listing in the system. MIBOR members are dying a slow and painful death at the hands of our misguided and inadequate leadership.
I don’t trust Zillow either, and I never liked them since day 1. Zillow acquiring ShowingTime definitely seems like a conflict of interest, and gives them way too much information and control. I’ve been selling real estate for 35 years. Zillow was created to generate leads by taking our MLS data, posting it on their site, then selling the leads back to agents. There was a huge lawsuit against Zillow years ago, but unfortunately, they were not stopped. I have not and will not do business with Zillow, and I will stop doing business with ShowingTime. We should all have the right and power to conduct our business the way we choose.
Get Ready Agents, Brokers and Associations! They have been stealing our information for over a decade and the associations are letting them get away with it. Why is it Our LISTINGS are sold back to us from Zillow, Realtor, Etc. Who does this benefit? Wallstreet? Certainly not the agents trying to make a living. I see it now… The UBER Realtor…who can run the fastest for 1% commission and the list goes on whats taking place. WAKE UP MARR, NAR, Brokers!!!! Start fighting for the agents that are padding your pockets or they will soon be turned inside out.
I have always felt that Zillow is bad news, not to mention highly inaccurate and misleading in many cases. If I were an agent, I would not pay to participate nor would I have my listings on Zillow. Eventually, it will be the demise of Brokers as we know them today.
Stop using their service and confirm the showings yourself!
WHY have our MLSs not severed tied and given us another choice.
I hold the MLSs responsible for not representing our best interests.
Call Your MLS and demand an alternative
Complaining about Zillow does no good – go to your service provider that you pay! MLS !!
I met with Zillow when after it was newly created and was told they would never become a brokerage! They have continuously lied and I don’t trust them. I have pulled all my accounts from Zillow and now from Showing Time.
I am using the free service that our Boards offer for now. The only way to stop companies like this is to pull your accounts from them!
I for one am perplexed at how it an even be legal for Zillow to acquire Showing Time. It’s the most obvious conflict of interest that ever existed. They have essentially formed a monopoly in the real estate industry and I think it’s time companies joined together and filed suit. Until someone stands up to them, they’ll just continue to undermine all the hard work Realtors do to build relationship-based businesses. This absolutely sickens me.
In my opinion, if it weren’t for varying State RE Laws & varying State RE Contracts, Zillow would have already cut Agents right out of the equation by adding a “make an offer” button. I’m sure that’s the direction they’re headed in despite years & years of claiming they had no intention, and did not plan to ever become a Brokerage. Either they lied or were quite naïve about their future. You guess which one is correct. Any Agent paying or who has paid Zillow is/was hiring their own assassin on a layaway plan.
Right on Roberta! Before you know it all real estate will be conducted through technology, the future dumbing down of agents with little or know knowledge of how and where real estate brokerages came from! I emailed my local MLS asking if MLS is being compensated (paid) by Zillow, Realtor.com, Redfin, Trulia, etc. for using my listings??? I never received an answer…..
Having been a REALTOR for 34 years, I worked long, hard hours for many years to earn the trust of hundreds and hundreds of sellers and buyers. We have all seen Zillow stealing our information since Zillow began their web site. The only thing I can give Zillow credit for is coming up with a catchy name. Consumers remember that name and go there for information rather than to accurate sites like REALTOR.com or major brokerage sites like LongandFoster.com or ColdwellBanker.com. Zillow has never been inside of the houses, yet gives consumers their “Zestimate” of the price. That incorrect price influences the consumer incorrectly. OK, so Zillow has built its business on untrustworthy information. If the real estate industry is to be trusted, Zillow doesn’t belong in it. I don’t want Zillow to have the ability to tap into my information at Showing Time. And if they claim that they wouldn’t do that sort of thing, I wouldn’t believe them. I will strongly ask my broker to move away from using Showing Time as soon as possible. Any real estate agent with half of a brain should do the same.
Showing time is a valuable tool for Realtors. However, now there is a 3rd party who will have the requests for showing before the listing broker will have it. Just think of the many possibilities of using that information for Zillow Homes, Zillow buyers, etc. etc. Pay for leads programs will be used in many different ways for listings and buyers. Pretty scary.
I TOLD NAR. I was screaming about the stupidity of even using their website years before they went into our business. Years. God help us all. I guess no-one listens to a guy with 41 years in the biz
We have been told NOT to discuss it. This comes from our local Board:
Proceed with Caution – Antitrust
As competitors working together in a marketplace, it is important to remember your obligation to refrain from any activities or concerted actions that could be considered restraint of trade. In order to protect yourself and your brokerage from liability, do not participate in conversations that could be considered anti-trust
We are the owners of our listing data. Zillow has demonstrated to us that we have been asleep at the wheel. Having a tech company that is now a true brokerage company enter our MLS systems and take advantage of the IDX system was the final straw. No brokerage should have control over a platform like “Showing Time”. Remember Realtor.com was sold to News Corp as well as Realogy. I ask the leaders of our MLS systems to start advertising their portal sites in the best interests of their participants. We went from a single MLS system to a regional one with the OneKey MLS. It is time for us to take back control. Real Estate is specific to their respective markets. Charge a $100 dollar participant fee to build a war chest. Let’s just put in perspective $100x 50K participants= 5 Million! There is a reason to merge for scale. Now is the time for us to band together and do what’s best for our individual company’s!
I think our Attorneys at NAR should weigh in on the acquistion of BOTH Showingtime and DotLoop. At this point I am not sure either of those should be used anymore
Zillow has proven time after time, over and over again that they cannot be trusted. They say one thing and the opposite as a propaganda of disinformation.
Zillow for years and years have tried their best to pick the pockets of real estate agents. I never received royalty payments from Zillow from using my real estate photos or my narrative about properties giving the impressions to consumers that it came from them.
For years their strategy has been to steal eyeballs from our website and reselling our own listings back to agents.
The 800 lbs gorilla is conquering territory again.
It’s hard to take the comments in the article seriously. Certainly a lack of vision and industry insight. One is playing safe with the gorilla.
NAR and state associations better step up or the end is coming. Our biggest asset to Zillow is our data. MLS’s should cease providing this data to Zillow and what them struggle as buyers and renters pivot to Realtor.com and others.
Why would we give our data to Zillow? They are competitors. They are getting our data for free or in the case of rentals payment for rental listings. They sell leads back to us off our data. Now they have ShowingTime to monitor our activity. There is one time to end this and it is now. MLS’s must stop sharing data with Zillow.
I think that the best way is to go back to the basics, Showing Services are
good, but we can open doors for everybody too.
Thinking on dropping Showing time
Zillow is a wolf in Sheep’s clothing and literally biting the hand that has fed them. I have had agents try to use SHowingTime to show my listings and I call them personally and say I refuse to use SHowingTime because it is like Big Brother Zillow so pick up your phone and text or call me. I will say in my confidential remarks to not used ShowingTime. Reach out to your local MLS board and speak up folks.
The acquisition of Dotloop and Showing Time is just another nail in the coffin for independent brokerages to protect the data of their clients’ information. Has anyone thought one iota of how our clients feel about their data about sale or purchase of their homes makes them feel? This is not just about stealing other brokerages information on their clients. It’s about STEALING information about buyers and sellers who want their information protected. MLS and our leadership has done a grave disservice to not only realtors but our clients also. Zillow via dotloop and ShowingTime now has very private information about every buyer and seller uploaded into those systems.
Iam disappointed in our NAR & local boards who have let Zillow basically work to take over our industry. I refuse to use dot loop & now will sever my use of ShowingTime. I do think however if our industry leaders don’t step up with a national MLS system & establish our own partnerships with showing services, electronic signatures etc. Zillow will eventually take over the real estate industry and real estate agents will be a thing of the past.
I too fired Zillow years ago. The price of “leads” just kept going up and the quality of leads went down. In the beginning 2016, I was paying for leads and the business seemed too good to be true then suddenly my leads dropped off . I found out Zillow had raised the price for the zip code I was paying for and the BIG brokerages took control of that zip code. I feel it is so wrong for our business to be sold to companies like Zillow and we have to BUY back our leads. It is insane!
It’s simple don’t use Showingtime or any other showing service. Field all emails, texts, and calls yourself and sell the home.
Better yet, do not support or use showing time to start with if this is the case. From day one, I never trusted Zillow because they were promoting properties that was ” sold” months or year ago and show it as ” Active” so consumers will call them to inquire about the property. Once you call Zillow they will get the information of the caller and ” I got you ” they have your lead. I have had witnessed this many times with my clients.
How is this NOT a violation of Anti-trust laws? They ARE a Monopoly and that is clear to everyone -even SNL, which recently featured Zillow in a skit, on one of their episodes BECAUSE they are a monopoly that everyone recognizes.
NAR – it’s time for you to go to battle for US. FIGHT FOR OUR INDUSTRY – FOR US!