With their ability to “control 60 percent of eyeballs,” Zillow and Trulia “are kind of like Boardwalk and Park Place with a big hotel on each,” Barbara Corcoran tells Stephanie Ruhle and Erik Schatzker, the hosts of Bloomberg TV’s “Market Makers.”
“In the end, what really happens to the brokerage communtiy, when (they land on) the guy who owns Boardwalk and Park Place? They get wiped out.”
Although Zillow and Trulia have the power to hike the rates they charge agents and brokers, they actually don’t want to wipe them out, Corcoran says.
“It’s a simpatico relationship,” says the former New York City broker-turned-TV personality. Zillow and Trulia “need the real estate broker to knock on the door, pitch the (seller), get the (listing) agreement signed, put it on the MLS, and the MLS giving it to Zulia.”
Ruhle and Schatzker can’t believe that Zillow and Trulia won’t eventually disrupt agents and brokers, or at least get them competing with each other by lowering their commissions, but Corcoran is adamant that the portals don’t threaten the traditional real estate business model.
“The broker who gets exclusive on a property, that’s still the way this game is played,” Corcoran says. Brokers can pop listings on all the websites, and “you still need someone to manage the egos and the negotiations.” Leave those things in the hands of homeowners, and “it doesn’t work out as well.” Source: bloomberg.com.