Zillow has become an indispensable part of the home search process. Almost all buyers (95%) used at least one online shopping resource when looking for a home, and 62% of real estate web traffic goes to Zillow and its subsidiaries. With over 200 million people accessing Zillow in the last three months*, it's clearly the search engine of choice for most home buyers and sellers.
But as Zillow implements new listing access standards starting June 30th, it's important to understand both what these changes mean and how Zillow's business model shapes the platform you're using to make one of life's biggest decisions.
What's Actually Changing
Starting June 30th, Zillow will ban listings that don't align with their standards from being published on Zillow or Trulia for the life of the listing agreement. The policy requires that any home marketed to the public—whether through Instagram posts, yard signs, or brokerage websites—must be entered into the MLS within one business day.
Zillow uses a "three-strikes" approach where brokers receive warnings for their first two non-compliant listings before having their third non-compliant listing banned. The policy is being rolled out in phases, starting in large markets and expanding nationwide over the summer.
Redfin Joins the Movement: Just yesterday, Fox Business reported that Redfin is implementing similar restrictions, with CEO Glenn Kelman stating that the platform "will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS." Redfin's policy takes effect in September, making this a coordinated industry shift rather than an isolated Zillow decision.
The Business Reality Behind the Policy
While Zillow and Redfin position this as a move toward "transparency," it's worth understanding the business context. As reported by Fox Business yesterday, this represents a coordinated effort by major real estate platforms to control how listings are distributed. Zillow argues that a listing "marketed to any buyer should be marketed to every buyer" and that consumers "deserve fair access to listings without having to get access behind a velvet rope controlled by any one company."
However, Zillow, Inc. has a real estate broker license and generated $2.23 billion in revenue in 2024. 75% of Zillow's total revenue in 2023 came from its residential segment, which includes revenue from advertising, its Premier Agent program, and technology solutions. Over 60% of Zillow's revenue comes from its Premier Agent program, where agents pay to advertise and receive leads from the platform.
When private listing networks allow agents to market properties without going through these major platforms, it threatens Zillows core revenue models. The coordinated policy changes essentially ensure that Zillow, Redfin, and similar platforms maintain access to listing data and buyer leads that power their businesses.
What This Means for Your Home Search
Understanding Zillow's business model doesn't diminish its value—it just helps you use it more effectively. Here's what savvy buyers and sellers should know:
For Home Buyers
Zillow's Strengths:
- Comprehensive database with more than 130 million US homes
- Valuable market data and neighborhood insights
- User-friendly tools for initial research and comparison
What to Keep in Mind: When you fill out a contact form on Zillow, understand that your contact information is routed to a buyer agent for a fee—not the listing agent. This agent may have paid substantial fees for your information, which doesn't necessarily mean better service, but does create a financial dynamic you should be aware of.
Smart Usage Tips:
- Use Zillow for initial research and market understanding
- Take Zestimates as starting points, not definitive valuations
- When you're ready to seriously shop, reach out to me to better understand the property offering, street, neighborhood and value
- Research agents independently rather than relying on Zillow's referrals
For Home Sellers
Market Reality: 92% of sellers report using a real estate agent to assist them with the home buying/selling process, and most of these listings will appear on Zillow regardless of these policy changes. Its important to know that these new standards primarily affect specialized marketing strategies that some luxury and high-end markets have used.
Strategic Considerations: In luxury markets like Santa Barbara, sophisticated marketing strategies can create urgency and drive higher prices. A skilled agent knows when to use exclusive previews, how to time market entry for maximum impact, and how to leverage multiple platforms while maintaining the discretion many luxury sellers require. The new Zillow policies don't eliminate these strategies—they just require more expertise like mine to execute them effectively.
What's Still Allowed:
- Office exclusives, or off markets/pocket listings as they are commonly referred to
- "Coming soon" listings entered into MLS within one business day can be activated by Agent when Seller authorized
- Property previews on social media without specific details like price or address
- Privacy options within MLS systems I can share with you
Why Professional Representation Matters More Than Ever
While Zillow provides valuable market data, these policy changes highlight exactly why working with an experienced local agent becomes even more critical:
Market Expertise Beyond Algorithms: I understand nuances that no platform can capture—like why certain Santa Barbara neighborhoods command premium prices, or how seasonal patterns affect luxury market timing. This local intelligence often means the difference between finding the right property and missing opportunities.
Strategic Advantage: I know how to navigate policy changes and market shifts. When platforms change their rules, professional agents adapt their strategies to continue delivering maximum exposure for sellers and comprehensive access for buyers.
Relationship Benefits: While many active Buyers say their Agent was their most helpful resource, the value goes even deeper. I have established relationships with other agents, which can provide early access to properties and insider market knowledge that platforms simply cannot offer.
Using Zillow Wisely with Professional Guidance:
- Start with Zillow for market research, then leverage my expertise to interpret what the data means for your specific situation
- Use platform tools like price history and virtual tours as preliminary screening, knowing I can provide context that algorithms miss
- Understand that while many buyers find online tools helpful for deciding which homes to tour, I know which properties have potential beyond what shows online
The Professional Advantage
These coordinated policy changes from major platforms actually reinforce why working with an experienced agent becomes more valuable, not less. While platforms standardize their approach and limit marketing flexibility, professional agents adapt their strategies to deliver results regardless of platform limitations.
With both Zillow and Redfin implementing similar restrictions (Redfin's taking effect in September), the real estate landscape is shifting toward greater platform control. This makes local expertise and professional relationships even more critical for navigating the new environment successfully and without platform bias.
For Buyers: An experienced agent doesn't just help you find properties on Zillow—they know about listings before they hit the platform, understand which neighborhoods offer the best value, and can negotiate terms that protect your interests. They're also plugged into professional networks that provide access to off-market opportunities that platforms never see.
For Sellers: A sophisticated agent develops marketing strategies that work within platform requirements while maximizing your property's appeal. They understand how to stage for both virtual presentations and in-person showings, price strategically for your specific market segment, and leverage multiple marketing channels to reach qualified buyers.
The Research-to-Reality Gap: While 100% of home buyers used the internet to search for homes, only 52% actually bought a home they found online. This gap exists because successful real estate transactions require expertise that goes beyond what any platform can provide—market timing, negotiation skills, transaction management, and relationship capital that comes from years of professional practice. With major platforms now coordinating their policies, this professional expertise becomes even more essential for navigating the standardized digital landscape.
Moving Forward with Confidence
Zillow remains an invaluable resource for initial market research, but its greatest value comes when combined with professional expertise. The platform's comprehensive data and user-friendly interface make it an excellent starting point, but achieving your real estate goals requires the nuanced understanding that only comes from deep market experience.
The Winning Combination: The most successful clients use Zillow for preliminary research, then leverage professional expertise to interpret market data, identify opportunities, and execute strategies that platforms simply cannot provide. This approach maximizes the benefits of technology while ensuring access to the relationships, insights, and advocacy that drive exceptional results.
Your Next Steps: Whether you're beginning to explore the market or ready to make a move, the combination of comprehensive market research and expert local guidance consistently delivers superior outcomes. Platform changes come and go, but the fundamentals of successful real estate transactions—market knowledge, strategic thinking, and skilled representation—remain constant.
Bottom Line: Use every available tool—including Zillow—as part of a comprehensive approach guided by professional expertise. In an evolving marketplace where platforms and policies change, partnering with an experienced agent who understands both technology and traditional real estate principles ensures you're positioned for success regardless of industry shifts.
