An Intel survey of real estate agents and brokerage leaders conducted in June surfaced broad support nationwide for steps taken by some local MLSs to threaten to cut off their listing feeds to Zillow.
But within each market, the appetite among agents for their local MLS to pick a similar fight was somewhat smaller.
To explore more closely what could happen if the fight were to expand to more markets, Intel sought out perspectives at ground zero of the dispute, receiving dozens of responses from agents in the greater Chicago and Nashville areas, where MLS feeds to Zillow were threatened to be cut off.
In all, 42 agents and 10 brokerage leaders in the affected markets shared their accounts with Intel on how the possibility of interruptions to listing access affected their clients and their businesses.
These stories offer a window into what could lie ahead if more MLSs were to follow.
Cracks under the surface
Generally, the group of agents from markets affected by threats to cut Zillow’s feed held similar attitudes to the rest of the nation at large.
- 74 percent of agent respondents in the affected markets sided with the MLSs in the dispute, compared to 71 percent in other markets.
Still, explicit support for Zillow was higher in the affected markets than elsewhere.
- 12 percent of agent respondents in the affected markets sided with Zillow over the MLSs, compared to 4 percent in markets without an active dispute.
With only a few dozen respondents from Chicagoland or Tennessee, this support for Zillow could be just noise. But it’s clear from their written accounts that as the drama played out near Chicago in particular, some brokerage professionals were unhappy with how Midwest Real Estate Data, the MLS there, handled the decision to cut off the feed.
A former Compass agent who works in Chicago said that their current brokerage moved quickly to negotiate a deal with Zillow independent of MRED.
“I do NOT support MREDs decision and sent them a letter with my concerns,” this agent wrote. “Our duty is to our clients and this move does NOT put clients first. And it feels as if MRED is carrying water for Compass who, again, is not putting their clients first.”
Another agent who is a member of both MRED and NorthWest Illinois Alliance of Realtors and has occasionally paid for leads from Zillow said that their listings continued to appear on the platform during the feed cut-off period.
But this agent, based in Marseilles, Illinois, said they still experienced friction with other agents and their buyer clients scheduling showings.
“Zillow says you can see a home anytime, but the buyers had agency agreements so I could not show them and they would scream and yell at me,” this agent wrote.
While these cases highlight some of the ways the cutoff did negatively impact agents, most of the written responses that Intel reviewed stated that the impact on their business was minimal.
One such agent from Burr Ridge, Illinois, whose response was generally representative of this group, concluded, “We don’t need Zillow.” Another from Sleepy Hollow said they “popped some popcorn” and watched it all play out.
- In all, 19 percent of agent respondents whose MLSs had threatened to cut off listing access said their clients had “frequently” asked about whether their listings were showing up on Zillow or other portals.
That share is more than twice as large as what was reported in non-affected markets.
- Still, 69 percent of affected agents said that their clients “never” or “rarely” asked about whether their listings were showing up on Zillow — virtually the same as what was reported in unaffected markets.
Where the effect of the listing cutoff did impact clients, however, anger was rarely directed toward the MLS that made the decision.
Sellers “blame the brokerage,” one agent from Lake Forest, Illinois, wrote, adding that “it is their general frustration that they are caught in a war that should not affect them. Sellers are angry.”
Methodology notes: This month’s Inman Intel Index survey ran from June 16-25 and received 536 responses. The entire Inman reader community was invited to participate, and a rotating, randomized selection of community members was prompted to participate by email. Users responded to a series of questions related to their self-identified corner of the real estate industry — including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. Results reflect the opinions of the engaged Inman community, which may not always match those of the broader real estate industry. This survey is conducted monthly.
