{"id":2866,"date":"2022-02-17T18:28:42","date_gmt":"2022-02-17T18:28:42","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/02\/17\/do-you-want-your-clients-using-zillows-housing-super-app\/"},"modified":"2025-03-13T02:40:21","modified_gmt":"2025-03-13T02:40:21","slug":"do-you-want-your-clients-using-zillows-housing-super-app","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/02\/17\/do-you-want-your-clients-using-zillows-housing-super-app\/","title":{"rendered":"Do you really want your clients using Zillow’s “housing super app”?"},"content":{"rendered":"\n

Our industry\u2019s time is now! It\u2019s time we seize back assets and relationships that have traditionally been ours. Exclusive relationships, listings, marketing rights, ancillary services and now the marketplace, or the \u2018ultimate housing super app<\/a>.\u2019<\/p>\n\n\n\n

In Zillow\u2019s<\/strong> quarterly earnings<\/a> call, the ambition was articulated to deliver a \u201chousing super app\u201d to connect consumers with partners (vendors) through integrated digital solutions. The real estate marketplace was further articulated as $300 billion in transactional fees.<\/p>\n\n\n\n

Zillow\u2019s 2025 fiscal target is $5 billion in revenue and 45% adjusted EBITDA or $2.25 billion. One and a half billion dollars of this revenue is to be generated by incremental fees paid by real estate professionals \u2013 the source of these fees are real estate commissions \u2013 traditionally YOUR<\/strong> real estate commissions.<\/p>\n\n\n\n

Please understand these are not net new revenues and EBITDA in our industry, this is a market share grab \u2013 traditionally OUR<\/strong> market share! Zillow is targeting to double its Premier Agent business which generally includes a 35% referral fee paid by the receiving broker \u2013 YOUR<\/strong> commissions.<\/p>\n\n\n\n

A marketplace for lead gen and core services<\/h4>\n\n\n\n

With respect to the \u201cultimate housing app,\u201d this will target lead generation for buyers and sellers plus ancillary services (e.g., mortgage, title, escrow, insurance etc.). Ancillary services are not new to a brokerage company or the consumer. What is new is the momentum towards technology – a marketplace – to elegantly stitch these services together for the consumer.<\/p>\n\n\n\n

Do you really want your clients using Zillow or any other competitor for this offering? This would be a monumental shift of market share of your services or from your professionals\u2019 influence and recommendations to clients to Zillow\u2019s \u2018housing super app.\u2019<\/p>\n\n\n\n

Direct to consumer marketing<\/h4>\n\n\n\n

The trend of financial services companies pursuing consumers direct versus through the real estate professional is very real and gathering significant momentum. Just reflect on the Super Bowl played at Sofi<\/strong> stadium and where Rocket Mortgage<\/strong> spent $20 million on two advertisements. Both companies have apps for consumers.<\/p>\n\n\n\n

Pick your technology providers carefully. There are a variety of offerings available \u2013 several that enable branding for you and your real estate professionals. Make sure you’re not using a competitor for your \u2018housing app.\u2019 Do your research, hire a trusted expert or a consultant with a deep understanding of the space.<\/p>\n\n\n\n

These are your clients, and your market share others are chasing. Be proactive and deliver to your clients the tools they want. Consumers will ultimately get exactly what they want, after all an entrepreneur will give it to them. If the technology or “housing super app” is not from you \u2013 it will be a gift given to your client by someone else.<\/p>\n\n\n\n

Mark McLaughlin was previously chief real estate strategist for Compass and is founder of McLaughlin Ventures, a real estate consulting company.<\/em><\/p>\n\n\n\n

This column does not necessarily reflect the opinion of RealTrends\u2019 editorial department and its owners.<\/em><\/p>\n\n\n\n

To contact the author of this story:
Mark McLaughlin at\u00a0mark@mclaughlin-ventures.com<\/a><\/p>\n\n\n\n

To contact the editor responsible for this story:
Tracey Velt at tvelt@realtrends.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Zillow recently announced it’s building a housing super app that will target lead gen and ancillary services. Do you want a competitor offering this?<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[2446],"class_list":["post-2866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nDo you really want your clients using Zillow's "housing super app"? - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Zillow announced it's building a housing super app that targets lead gen and core services. 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