Why does Big-Tech care about Real Estate?

Karl Miller
Published on February 15, 2021

Why does Big-Tech care about Real Estate?

There is a mindset among some agents in the real-estate industry of “just close the deal” or “find the lead, close the lead, forget about the lead”. That is unfortunately very present in the industry. We believe buying or selling a home is a BIG DEAL!

We’ve talked about the emotions that go into a decision like this and the dollar commitment that goes into buying or even selling a home. Most transactions, then when there is a loan, involve moving around thousands (or tens even hundreds of thousands) of dollars. When that much cash is involved in a point and time in someone’s life, there is emotion involved. Most times it is very exciting, but it can also be a very painful time in someone’s life too.

One of the top reasons people move is because of a “major life change”. In an ideal world it is towards something new, bigger, or better. Sometimes, however, it is from unfortunate circumstances. Regardless, the point in all of this is it is a BIG MOMENT in someone’s life. We recognize the need most people have to be of service and act as a trusted advisor vs an agent who is mostly concerned about closing their deal.

So, why is big tech entering real estate?

Las week Zillow bought Showing Time which is a service that schedules out … showing times. Why? they want leads. The company/person that controls the leads controls the market.

In the documentary “the social dilemma” a quote used was “If you are not paying for the product, you are the product”. Why is this a big deal in real estate?

In order to get scheduled through Zillow’s Showing Time, you have to pay thousands of dollars a month to be a “top agent” with Zillow – other companies do this as well, but we are talking specifically this real estate website today.

In 2019 over 6 million houses sold in the USA, how many leads were sold to agents in 2019? 100 million.

When a company like Zillow captures your information they sell that data to a brokerage and then require a very hefty referral fee 25%-40%. Why is this important? Your information is being sold, you don’t get a choice on what realtor will show you a home, and as a buyer you have less control over your experience.

Karl Miller Realty doesn’t personally participate in this madness, nor do some other Realtors in the area. We want to make sure that our buyers and sellers are protected. We want to make sure you have the best experience, team up with great local lenders, see homes that fit your budget and that are tailored to you.

So, why is Big Tech interested in Real Estate? They want to profit off of your information.

https://www.zillow.com/lynchburg-va/

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