What ZILLOW Must Do With Their Resources? | Jared Jones
Guys, if you just focus on your niche and your craft, you're going to be just fine. Like travel agents didn't really go completely extinct. I mean, who books million-dollar vacations for us now, you know, there's tons of those Expedia. Doesn't get all the million-dollar vacation bookings. There's got to be, you know, a cruise specialist you ever heard of them. All you want to do is focus on producing valuing good services. And Phil is never going to take your business. They're never going to get it. That's giving all your data to Zillow. I'm going to go back to paper files because the dollar is dangerous. We really should go back to call desks at the office and setting appointments. Cause shelling time is going to be infiltrated by the Russians. Everybody real estate market is going to be fine. You need realtors in any market. How do people get in to see how really, you know, I of just kicking the door down and my friend, they're not out to compete with us. Are you stupid?
They're a partner in the business. Have you ever heard of VXP Hey there Jared Jones Jones group real estate today, I'm going to walk you through Zillow's annihilation of the real estate industry and what you need to know about it? In all reality, I'm actually going to take you through a series of steps of what I would do. If I were Zillow. Imagine you have Zillow's resources right now. What would you do with the real estate industry today? That's what we're talking about. So the number one thing I would do an obvious is I would link showing time to my website, super easy, right? Obviously, you can go on there. Buyers are shopping for a home. They click the button and then people can actually set up showings for these houses. Number two, guess what? Showing time is actually not a buyer resource, as much as a seller resource.
Think about that. You imagine this Zillow gets licensed in all 50 States around four months ago and then decides, well, we've got this amazing website. We've got a lot of infrastructure for receiving calls, speaking to buyers, pursuing buyers, but what else do we need? They need a ground game. That's right. Zillow, lax, ground game. And that's the major problem that we've got to solve as we're Zillow, right? And so if you are thinking that you need to create a system where you can get people into the market to help buyers and sellers with real estate. When you think of showing the time, showing time is really a seller tool to make it easier for the seller. Communicate with the buyer, particularly with the agents. Now Zillow has amazing resources, right? They've got obviously their own technology resources, their engineering teams. They've got a back into internet technology.
That's probably vast yet being four months into this game where they're actually licensed in all 50 States. They've decided that it's faster to acquire showing time for $500 million and then simply build their own system. This tells me that Zillow is coming fast for the seller side of the business because if Zillow is going to get into the seller side of the business, they're going to need the resources to do it. Now think about what showing time is agents showing time is really bolted on to a lot of them unless it's throughout the country, isn't it? You're in the MLS. You go log in, you click the button, you set up the showing from MLS. If I were Zillow, I would stay bolted onto the MLS just long enough to take it down and become the analysis. And here's what I'm saying. If I were Zillow, I would basically exist with the MLS and the IDX feeds long enough to have all that traffic diverted to me before I could become the premier place of market dominance for all listings to start from in my world.
As Zillow, MLS is an inferior, ridiculous strangler of a child compared to the showcase of what buyers can see on Zillow. Zillow is way better, vastly superior, much easier to use more products, football, and beneficial for the buyer to be shopping for Oman, these puny MLS tools, right? So in the end, I'm going to want to cave that system in and really kind of not have it there as an option to be in front of me because in the end, it may not even be there. So what I'm going to do is I'm going to purchase the tool so that a tool that's bolted on the MLS will not stop me from when I'm actually going to run the market from my own database, leverage separately from the MOS. But however, one thing I do need to do first is I need to leverage all the cooperation of all the realtors to stay strong in the marketplace.
I'm going to basically use all the cooperation agents, putting their data into the system, feeding it into Zillow, the IDEXX feeds, and I'm gonna leverage it long enough to take down that system. Okay. And here's what I mean. If agents refuse to cooperate with one another, if they decided, Hey, we're going to get off of our local platform. For instance, here in Orlando, you disband, you create your own separate independent MLS that does not have a feed that goes into the large technology firms like Zillow, like realtor.com and the like, and you then market your own properties. You basically have your own control of your own data, proprietary control, priority access to that inventory. Those listings come to the agent direct you then topple Zillow, because Zillow at that point would only have new construction available for sale by owners on their website. But because I have the cooperation of all the boards working together, I'm going to use it to crush them.
And at that time I'm good at showing time on my own side, I don't need it bolted onto the Melissa and then use it for myself, which is honestly probably could buy it for a discount later on, right? Zillow. I wouldn't buy it now. Why would we crush the MLS? And then showing time has no buyers for it. The data is obviously important. So Zillow purchasing, showing time shows me that they want to speed to that result. They want to get that system in full use of Zillow and they want it fast. They don't want to have to bolt on a product, create inside of Zillow, a platform that gathers and communicates between sellers and buyers and communicates feedback, and has a call office apparatus behind setting up showings. It's a ready-to-go system. That's what was the low season? The other thing that I would do if I resist is I would bolt dot loop onto Zillow.
So I would make it easier for buyers and sellers to communicate through Zillow, to buy homes directly on the same platform. So with that loop added onto Zillow's platform with showing the time, then I would have all the contract platforms right there for buyers and sellers actually make offers to one another. You would say, well, there's no real estate involved. If I resell, I'd have a little office suite of attorneys that are available on chat that cause we can commute meet with the customers all throughout the 50 States. And they can go ahead and make sure that, Hey, fill this out, but this steer, you have any questions we can answer them. And then what do you need anybody else for? The next thing that I would do, if I were resilient was I would keep the agents in the marketplace overly concerned that my number one danger was data.
That's what I would do. I would have everybody in the marketplace scared to death. You showing time scared of death use dilute because all the Zillow pledges, a large threat to me as a real estate agent is my data. But in the meantime, you know what I really do. I keep them all concerned over that. I make sure that the cooperation stays in place. So I'm leveraging all the listing volume coming to me. And then I would start a network of putting tons and tons of those agents on salaries. I would use Zillow, my current platform. I cherry-pick the best buyers right out of my system. And then I would sell the last remaining buyers that I don't even really want to. The last few arbiters actually are using Zillow and I would continue to migrate all realtors off my current plan. Now the next critical, important step that I would take if I were Zillow is I would amass listings as fast as possible.
Now stay with me. This is more complicated than you think Zillow has to keep the agent asleep or has to keep the data. The agents preoccupied with data abuse. And if doing that, they stay cooperating and they keep giving listings and feed them to Zillow because Zillow really only needs that until they become the linchpin for listing volume originating out of their brand. Because here's the deal. Zillow is not just the threat of real estate agents. Those are threats who other large tech companies that are already in the real estate space like Redfin, Rex homes, Rex home exchange Zillow. Yeah. I believe we'll probably compete with all of us. Okay. And more than likely try and get into the investment of building bundles of programs and offers to take all of these people offline. If I reveal this exactly what I would do, number one, I would make listings on my site more usable, more.
User-friendly easier to see. I would bury other agents' results further down the index in Zillow. So I'm the number one home search brand. If you're going to pull your listings and your homeowner going to hire an agent, sell your house. Zillow is also going to do the same thing. And we're going to give you more tools, more resources if you list with us. And we're also going to have you higher up index and search so that people on this highly searched website see our homes. First. Now, as Zillow early on, I would sell that option to listing agents. So charge them and put your house on our site. We're going to make you pay a feat to compete and have a higher brand. And so Zillow still makes money on agents most likely on the listing side, because they've been charging them to get some of these higher premium features, the other, I don't want to pay for it, whatever.
But the other thing that I, I think Zillow's going to do, and if I resell, I would compete with the entire marketplace using the same tools that technology companies are using. And that is Redfin. Well actually, if you buy a home with them, they will reduce a fee on the listing side, save you a lot of money. Then they go ahead. And I think even the rebate percentage of the purchase side directs homes does the exact same thing where they actually have a little bit different structure where they take your home. They don't put it on the multiple listing service. It doesn't go on the board. There's no buyer fee offered. It's only 2% to list. However, you're not on realtor.com and you're not on any of the board sites. I believe Zillow's going to bundle both of those products together. So they're going to create an amazing program to actually have your property listed and syndicated all over the web, including all the other real estate agencies' websites.
But I also believe they're going to build an off-brand product. That's like a, for sale by owner basically, but it's, it's actually a broker-assisted listing, but it's not going to be in the board. They're probably going to charge 2% as Rex does, and they'll actually list the home most likely just on Zillow alone. And that'll probably be a real future of their brand product is one list just on Zillow featured above the full high prominence, better than the other realtors with a much lower cost. And then keep in mind, they're going to help you go buy another house. They're probably going to give rebates on that type of stuff. They're going to help you get financing. They're going to also work on your insurance. They're also going to sell your home products for services of fees, of building, remodeling your house, or doing all these kinds of things under one roof for far less than the average cost a realtor can provide it right now, right?
Stack the cool reduce the cost, increase the value. That's what I believe. If I, if that's what I would do next. That's most likely what they're working on. And at the same time, if that were to take place, you're gonna end up collapsing. A lot of these competing companies wouldn't surprise me. If they went and bought out Rex homes, they ended up purchasing some of these other lateral tech products. And in the end, Zillow, if they can garner 60, 70, 80% of the market share away from the rest of the industry, you don't have an MLS anymore. You're going to have a need for it. The only thing going to be left with is a 20, 30% margin of business, which I believe Zillow's goal. If it were me, I would be running bundles and products that actually can cater to a large 70 per 78% of marketplace goes in that one channel, everybody that has need of selling their home, they all can fit in that channel. They all want to fit in that channel. They all want to save seven, eight, 10, $15,000 on the cost yet get more cool value, right? And the end you have what's left, right, is I don't think Zillow will try and build products that take every single aspect of the market. There's going to be a side market. You know, a lot of these realtors online that are saying things like,
Well, you know, the travel agency isn't completely dead, right? Like there's, there are some travel agents that book billion-dollar vacations for people, right? Like how many of them,
Those are actually really necessary, right? Million-dollar vacations. I mean, what is that the 1%,
You know, so, you know, in the same thing, real
Estate, I think Zillow will probably end up taking away a huge percentage of the available economy, and really kind of relegating most agents to the peripheral. Okay. So you're gonna have a lot of agents probably end up working as a low employee because the demand is going to change. They're going to become the source of business. And then at the same time that outside forces a business availability pie that's left to eat that Zillow isn't consuming already is going to be what becomes the artists and agents are the ones that do very specialty niche type products. That's what everybody, you know, you have all these people on these Facebook groups that are chatting about this are basically talking about we'll differentiate yourself and blah, blah, blah. Then, what they're not understanding is what's going to be left on that concept of differentiating and niching and all that is a very small piece of the pie.
And that will be very much relegated to very few agents. It's all it needs to be serving that level of business. And that will become what is left of what we call the artists and level of business or the business that is very craft-oriented skill-based real estate. As we know it, I think that's where it would end up. And if I resell, I'd be, this is my pie and you guys can eat out there and I don't even care and they will probably leave it. but that will probably be where it ends up. And even that business will probably look different in terms of cost structure and all that kind of stuff. The other thing that I see happening as a result, when the fringe businesses out here, the outside, there's not gonna be any need for franchises, franchises, and, uh, larger companies are agent-based companies. And when the agent basis small, those companies are no longer necessary. Then, the agent, the largest agent base in the country will probably be Zillow. And they're probably employed by Zillow, not in independent contractors. And the larger outside business that has left outside of Zillow is going to be no franchise. So if you're in one of these companies, it's got profit sharing and all that, you better clean up, sell those stocks. It'd be my advice and I'm not giving you stock advice. but I think the end is near.
So does Zillow
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