It is Zillow and their high-spending agents vs. everyone else now.
Zillow has a strategy to help accelerate the real estate industry’s evolution to the survival of the fittest. Zillow is looking to help the best real estate agents — the ones who can best capitalize on the leads that Zillow generates and will therefore pay the highest ad prices — to extend their domination.
“We are accelerating the broader trend across the real estate agent population of higher-producing agents gaining market share from those who are less productive,” Chief Executive Spencer Rascoff said on a November conference call with analysts.
The number of agents advertising on Zillow declined modestly in the third quarter to 89,147, but that was part of a planned shakeout. At the same time, the number of advertisers spending at least $5,000 per month rose 79% from a year ago, while average spending per agent rose 46%.
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