Pros and Cons of Using Zillow for Real Estate Lead Generation in 2024

 

Is Zillow Premier Agent worth the hype?

Serious question.

Zillow is a pretty prominent player in the real estate marketplace. The tool provides a variety of tools specifically designed to assist professionals in lead generation, client engagement, and deal finalization.

 Zillow Premier Agent, in particular, sees industry-wide use.

It's worth noting, however, that not all tools are equal - some agents have expressed concerns about the high costs not quite aligning with the quality of leads generated.

In this guide, we aim to shed light on Zillow's role in real estate lead generation, exploring its advantages and disadvantages, and providing insights into how its potential can be fully harnessed for your business.

But first, a quick refresher on the rest of your lead gen toolkit if you’re serious about getting leads in 2024:

So is Zillow still lead generation powerhouse it’s made up to it? And if you’re not using it, should you go get it today? Let’s dive in.

Chapter 1Zillow Premier Agent: Features and Role in Lead Gen

Zillow Premier Agent is a platform that offers real estate professionals a somewhat distinctive opportunity to advertise their listings and establish a modicum of direct connection with potential clients.

It functions similarly to sites like Realtor.com; once you become a Zillow Premier Agent, your listings get priority visibility on Zillow and its partner platforms, Trulia and StreetEasy. 

This priority visibility can significantly increase the exposure of your listings.

This increase in exposure might moderately improve your chances of connecting with potential buyers and sellers, albeit not guaranteed.

But is Zillow Premier Agent All It’s Cranked Up to Be?

While Zillow Premier Agent does propose ways to generate leads, its effectiveness can vary greatly.

For example, while it offers you a platform to display their listings to a broad audience - which, with millions of users visiting Zillow each month, could potentially lead to an increased reach - the direct correlation between this increased reach and tangible results can be a bit of a grey area.

Zillow Premier Agent also introduces a range of tools intended to facilitate agents to connect with and nurture leads. These include a CRM system, automated email and text responses, and performance analytics. 

However, these tools are not a magic bullet. They require a certain level of skill and commitment to use effectively.

Albeit seemingly promising, these tools demand a degree of proficiency to effectively track leads, maintain follow-ups, and, hopefully, close more deals.

But as we’ll explore in the next section, just as Zillow comes with a number of benefits, using it also comes with its own set of challenges, such as a forced reliance on the portal’s branding, and the ever-present threat of competing agents trying to divert your leads.

 

Chapter 2The Pros of Using Zillow for Real Estate Lead Generation

Before that though, let's take a closer look on the reasons why you should be using Zillow.

With its vast reach and easy-to-use interface, it can serve as a fertile ground for lead generation. Here's how:

  1. The Bounty of High-Quality Leads Zillow has an expansive user base provides a steady stream of quality leads, folks who are actively looking to buy or sell property. Especially for larger brokerages aiming to grow, this influx of promising leads is a definite advantage.

  2. Plentiful Seller Leads Seller leads, often deemed the 'golden goose' of real estate, are abundant on Zillow. The platform's wide array of property listings and large user base offer a healthy volume of these prized leads. Through Zillow's Premier Agent program, you get the opportunity to exclusively connect with potential sellers, a significant advantage when looking to expand your portfolio of listings.

  3. Readiness for Transactions Zillow leads are often ready to transact within a shorter timeframe compared to leads from other online sources (in about 90 days). This speed to transaction is a key advantage for realtors seeking quick deal closures and higher turnover rates.

  4. User-Friendly Website and App Zillow's user-friendly design makes it a hit among users, expanding the pool of potential leads for real estate professionals. The intuitive interface, detailed property listings, and features like the Zestimate enhance the user experience, drawing in a wide audience. In 2022, Zillow averaged around 225 million monthly users.

  5. Impressive Conversion Potential Zillow's proven track record of high conversion rates makes it a valuable resource. Top teams and agents have reported conversion rates as high as 10%. For perspective, the average conversion rate hovers around 5%.

Zillow's vast user base and high conversion rates make it a powerful tool for real estate professionals. What’s not to love?

However, your success with Zillow leads will depend on factors such as your market, budget, lead follow-up strategy, and reputation on Zillow.

It is important to constantly evaluate your return on investment and adjust your strategy accordingly.

It’s also important to set your expectations accordingly. While conversion rate is high for the most part, some agents have reported that Zillow leads can be unresponsive or difficult to convert. This might call for a more stringent follow up strategy for the most part.

 

Chapter 3Cons of Using Zillow for Real Estate Lead Generation

While Zillow offers several advantages, it also has its share of drawbacks. Here are some of the key cons to consider:

The Steep Price Tag of Leads

The cost of pulling in leads through Zillow might knock you back on your heels. This platform doesn't come cheap. In fact, it might even seem excessive, especially for those of you managing a smaller operation or limited marketing budget.

For instance, the Zillow Premier Agent program could run you thousands per month, depending on market competition. And for Zillow Flex partners? There's a catch.

You might dodge an upfront cost, but you're still shelling out 20% to 35% of your commission. You need to carefully weigh if the cost matches the quantity and quality of leads generated.

The Slow Creep of Rising Costs

Zillow's cost trend isn't on a downhill slope. Over the years, Zillow's pricing has consistently climbed, making it a potentially unstable choice for long-term lead generation.

You may face more and more hurdles to securing a positive return on investment as costs rise. This rising tide is a clear call for you to evaluate the cost-effectiveness of Zillow leads and consider if other lead generation strategies offer a better return.

Shareholders Before Clients

Zillow's business model might put you, the client, in a tight spot. As a publicly traded company, Zillow's first duty is to its shareholders.

This could sometimes mean decisions that favor Zillow's bottom line over your needs or interests. For instance, Zillow has been known to prioritize more profitable programs, even if it means severing existing client relationships.

This potential fickleness could be a major concern if you're relying heavily on Zillow for lead generation.

Branding on the Backseat

Working with Zillow, your branding takes a hit.

All your marketing is funneled under the Zillow brand, not yours. Although the exposure could be beneficial, it's important for you to consider the impact on your unique brand identity.

In real estate, a distinct brand can be a major asset. You should weigh Zillow's extensive reach against the potential setback to your personal branding.

It's crucial to consider the long-term implications. The rising costs, potential impact on your brand, and the company's primary obligation to its shareholders may pose challenges.

As a real estate professional, it's essential to balance the immediate benefits with these potential drawbacks and consider if other lead generation strategies might offer a better return on investment in the long run.

 

Should You Go All In OnZillow

That’s a complicated question.

Despite its shortcomings, Zillow remains a significant player in real estate lead generation. Its expansive network and user-friendly interface provide real estate professionals with unparalleled opportunities to engage with potential clients.

But jumping headfirst into using Zillow for lead generation without careful consideration of how its benefits and challenges can impact your bottom line is ill-advised.

Assessing the potential long-term return on investment and considering alternative lead generation strategies that might better suit your needs is crucial.

Our honest opinion?

The real estate world is as diverse as the properties on sale. No magic formula or universal solution exists. Success hinges on identifying a combination of strategies that align with your specific business needs. 

Whether you opt for Zillow or chart a new path, the objective remains consistent: engage with potential clients, nurture relationships, and close deals.

In navigating this continuously shifting terrain, it's important to remain adaptable and receptive to new ideas. The real estate sector is notoriously unpredictable, and our lead generation strategies must evolve correspondingly.

With an adaptable, informed approach, you can maintain success in this dynamic industry.

It's paramount to use it with a clear understanding of its costs and potential returns, and to have a robust system for managing and nurturing leads. With the right approach, Zillow can transform from a mere tool to a substantial asset in your lead generation toolbox.

Technology might not be your forte as a real estate professional, but it shouldn't deter you. With some crucial adjustments and the right tools, technology can propel your business growth and give you an edge over competitors.

Interested in becoming a Zillow Premier Agent? Here’s a great video to show you more …

About the Author

Aaron “Kiwi” Franklin

Head of Growth