When it comes to selling or renting property online, Zillow is one of the first names that come to mind. With millions of users browsing through Zillow's listings monthly, it's a great place to get your property noticed.
But here’s the catch: the pricing structure is pretty confusing, especially for beginners. Read on to understand all you need to know about Zillow’s listing fees and a detailed analysis of all its competitors.
What is Zillow?
Zillow is an online real estate marketplace that connects buyers and sellers renters with property listings across the United States. Founded in 2006, it offers users options to browse various listings and view detailed market insights to make an informed decision.
Check out the main features that make Zillow a popular choice for users:
Zestimate: Zillow has an Automated Valuation Model (AVM) that estimates the current value of any home based on public data from county records, tax assessments, previous sales, etc. It works based on an algorithm that is continuously refined with each transaction, making it increasingly accurate over time.
3D Home Tours: Sellers can upload panoramic photos of the property. Zillow stitches the pictures together to give the potential homebuyer the walk-through experience from his or her computer screen. That's a huge advantage for a potential buyer who wants to get a feel for the property before calling by on physical visits.
Rental Manager: Landlords can manage everything right from screening tenants to collecting rents, in a single platform. That means they no longer need to waste time by switching between multiple tools.
MyAgent: Once a user selects an agent, they’ll see only that agent’s information when browsing Zillow listings. It’s a huge plus for buyers who want continuity in their search.
Cost of Listing on Zillow
Zillow doesn't offer a one-size-fits-all pricing solution for everyone. It really depends on how you use it. So, let's take a closer look at the pricing model for various types of users.
Homeowners
Luckily, homeowners can add their home listings with no fee attached. However, this is applicable only if they are not hiring a real estate agent. Owners can add up to nine photos and one video to attract buyers.
The reach of free listings is very limited, considering the large number of sellers on the platform. So, homeowners can opt to improve their listing visibility through paid add-ons. The cost varies by location but usually falls between $10 per day for listing at a premium level.
A commission would also be paid if they decide to use the services of a Zillow Premier Agent. Again, the exact rate is dependent upon their agreement with the agent.
Realtors
Realtors charge a monthly fee of about $200 in relatively less competitive markets but explode upwards in high-demand areas.
In addition to the monthly fee, the agents are also required to pay per lead generated through the website. This usually ranges from $20 to $100 per lead.
Some agents opt for a commission-based payment structure instead of fixed monthly fees. Check out the commission details of various markets here.
Rental Properties
The first rental property listed is free for the first 30 days. Afterward, landlords must pay a flat fee to keep the listing active.
For extended listings, the charges range between $5- $50 per week. Owners can either pay weekly or opt for a 90-day flat fee.
Comparative Analysis of Zillow's Main Competitors
Let’s have a quick look at how Zillow compares to some of its main competitors:
Competitor | Main Feature | Listing Fee | Target Audience |
---|---|---|---|
Opendoor | Instant cash offers on homes for quick sales | A service fee of 5% for each sale | Homeowners seeking quick sales |
Redfin | Full-service brokerage with lower commission rates | As low as 1% | Tech-savvy buyers and sellers |
ForSaleByOwner.com | Sell on your own without agent commissions | Free listing, but you can opt for a premium package that costs a one-time fee of $495. It comes with closing assistance from a licensed real estate advisor. | DIY sellers looking to save costs |
Offerpad | Similar instant cash offer model as Opendoor | No upfront fees. A 5% service fee and an estimated 1% closing fee. | Homeowners wanting convenience |
Advertising Options on Zillow
Even though Zillow has many potential buyers, you can’t just sit back and wait for reach to kick in. Most probably, you need to try out a combination of ad strategies to gain exposure. Check out some of the significant advertising options available for various users:
Premier Agent
If you are a real estate agent struggling with low property listing views, you can join the Premier Agent program. It promotes your listings on top of the feeds to gain more visibility. The pricing varies greatly depending on the area, ranging from hundreds to a few thousand dollars.
Featured Listings
Like agents, sellers can also boost the listing to the feeds for extra exposure. It is really helpful in highly-competitive markets. Rates are charged on a cost-per-click basis. You can expect between $50 and $200 per listing.
Promoted Communities
For a more targeted approach, you can promote the listing to specific neighborhoods through dedicated landing pages. Here also, rates depend on the communities that you aim to target and the campaign duration.
Video or banner Ads
You can run either banners or short video clips as ads to showcase your property to potential buyers. Campaign pricing depends on several factors like exposure, duration, location, etc.
Is Zillow’s Fee Worth It?
In a nutshell: Yes, for many people, Zillow’s fee is worth it—but it depends on your goals.
First of all, Zillow does have millions of visitors every month. That means your listing is likely to reach more people than on other platforms. Investing in this platform gives you access to a set of advanced features like Rental Manager that make your selling way easier. The ease of managing everything in one place can make the fee worthwhile.
When it comes to agents, Zillow’s Premier Agent program is a goldmine. It lets them connect directly with buyers interested in similar listings. Such a targeted approach could lead to better conversion and ROI.
That said, Zillow’s fee may not be required for everyone. If you are simply listing a property for exposure rather than immediate interest, you might not see the same level of return. For them, the free listing option itself is enough.
5 Proven Listing Strategies For Success
Pumping in dollars to Zillow won’t guarantee success. Check out some tips to optimize your property listing to make the most out of promoting it:
Use High-Quality Images: Invest time in taking clear and well-lit photos of your property. This way, you are not just exhibiting professionalism but can even use them to attract more customers by showcasing the positive notes.
Compelling Descriptions: Write engaging descriptions highlighting the property's best features and nearby amenities. Try to fine-tune location-relevant keywords that buyers are likely to type in.
Price it Right: Remember, overpricing can scare buyers away. So, conduct proper research to set data-backed, competitive pricing.
Utilize Zillow Features: Zillow has many attractive features, like 3D Home tours and featured listings, to help sellers. You can use them effectively to close the listings more easily.
Update the Listing: If you make any upgrades to the property, update the listing as soon as possible. A fresh listing keeps buyers engaged.
Frequently Asked Questions (FAQs)
1) Can I list my property on Zillow for free?
Yes. Homeowners can list their property for sale by owner (FSBO) at no charge. But if you want more exposure to the market, you would probably have to pay either for ads or premium features.
2) How do I track the performance of my listing on Zillow?
Zillow does have an in-built analytics dashboard that lets you track all your listing engagements in real time. You can assess the metrics over there to analyze the effectiveness of the listing.
3) What is the ‘Make Me Move’ feature on Zillow?
The 'Make Me Move' feature allows homeowners to list their property at a price they would accept to sell it. You can take this option if you want to attract buyers within a specified price range. Otherwise, Zillow's system might calculate your listing's Zestimate based on the available information.
4) Can I remove my listing from Zillow?
Closing a listing is fairly easy and does not involve much hassle. Go to the ‘listings’ section of your account and click on the option to ‘deactivate’ your listing.
5) What are the benefits of Zillow’s Premier Agent program?
Agents enrolled in the Premier Agent program can get access to exclusive leads on the platform. The best part is that they can even target the leads based on specific locations or demographics to make the process of conversion even more effortless. Agents can even place their services next to the listing to attract more inbound clients.
Conclusion
As you consider your next steps in real estate—be it selling or renting—Zillow remains an invaluable resource that connects you with millions of potential buyers every month. Yet, jumping onto the platform out of the blue does not seem like a good idea. Consulting a real estate expert can make your side safe and get the most out of the deal.
At One Team, we have a team of experienced agents to guide you through every step of the process, right from listing to closing. Get in touch with us today to get started!