Power of the Web :: ZILLOW Has An Entire Industry Frightened (Part I of II)

Real Estate Industry is feeling the impacts of a mature Web…Is resistance futile?

Your Edge in Real Estate - Zillow.comNewcomer, Zillow.com, has raised some eyebrows over at the National Association of Realtors (NAR). Under constant threat from emerging technologies, the NAR has dug in it’s heels in an effort to resist these changes. The Dept. of Justice (DOJ) has taken notice of these efforts this past year and responded with a scolding report. A case now pends in the federal court system that accuses the NAR of “anti-competitive” practices. Here is a summary of this new service (now Free in Beta) and a reaction from one of the NAR’s media mouthpieces:Zillow gets brokerage license – by Inman

Seattle-based Zillow, which raised $32 million in funding before launch, currently operates via an advertising model. The company displays Google AdSense ads alongside home data results [which include sales history for regions, individual homes, and a projection of their current value] and is selling banner ads on its site in two different positions. Advertisers can target their ads by ZIP code, with more target options opening up over time, according to Bohutinsky.

Real Estate Industry Owes Zillow Debt Of Thanks – by Realty Times editor Blanche Evans

Like comedians are mining Vice President Cheney’s hunting accident in which he peppered a 78-year-old lawyer with birdshot, real estate professionals are having a grand time ridiculing Zillow’s AVM.

This has publicized one of the many controversial issues that the NAR is dealing with; namely, How important it is that licensed brokerages provide a minimum level of service to customers? Too often with the NAR, it’s the customers that are almost entirely left out of the picture. As more companies emerge that take full advantage of the internet’s capabilities, the NAR will need to re-assess its age-old policies.
In Part II, I’ll explore more of these issues in detail, what this means for consumer’s pocketbooks and also look to what the future might hold for this industry in turmoil.

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