Is Zillow stupid, or is the industry fooling itself?

Whoever is right at predicting where leads come from will determine who controls the marketplace
  • We certainly have a distinct line of demarcation: those betting on the Internet and those not.
  • According to NAR, homeseller leads from websites are just plain bleak, coming in at 4 percent.
  • Either both the portals and this subset of productive brokers are stupid or the industry is lying to itself about where leads are truly coming from.

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Zillow and News Corp each have $1 billion invested in the concept that there are soon to be enough homebuyer and seller leads on the Internet that they will make a substantial yearly profit from their investments. The National Association of Realtors (NAR), representing the mindset of the real estate industry, said 400 percent-plus return on their investment come from referrals and prior business dealings, not from websites. The entity that correctly predicts where leads will come from in the near future will determine who controls the marketplace. The numbers don't add up In a previous Inman article, Gary Keller discussed NAR’s 2015 homeseller and buyer survey, stating that 400 percent-plus return on their investment come from direct referrals or the buyer having done prior business with the agent. This same survey also states that only about a 30-percent return on their investment come from websites. According to the NAR survey slides, the homeseller leads from we...