Zillow adds new ‘Preview’ partners after ‘undeniable’ response
Days after launching, Zillow’s pre-market listings product has added 24 new partners in what CEO Jeremy Wacksman described as a “signal from the industry.”
Key points:
- On March 25, Zillow announced that 24 new firms have signed on to Preview, the home search giant’s new pre-market listings feature.
- These new partners’ interest in the product “shows we’re building something that aligns with where the market is headed,” Zillow CEO Jeremy Wacksman said.
- While Zillow has touted the benefits of Preview for these partners and consumers, some industry experts warn that large brokerages “will turn this into a recruiting weapon” — and smaller firms that haven’t signed on could lose out.
Portal giant Zillow seems to have found a popular product in its freshly released pre-market listings feature. As of March 25, an additional 24 real estate companies have signed on, bringing the total number of Preview partners to 29.
How we got here
Zillow Preview launched last week with Keller Williams, HomeServices of America, REMAX, Side and United Real Estate initially enlisted. The feature allows homebuyers to view and save homes clearly labeled as pre-market listings on Zillow — before those listings appear on the MLS — and request tours once they are live on the MLS.
Which companies have joined
Eight days after Zillow Preview was first unveiled, several high-profile luxury firms and others have now joined the program.
Those brokerages, brokerage networks and franchisors include: Engel & Völkers, Leading Real Estate Companies of the World, SERHANT, Samson Properties, Vanguard Properties, West USA Realty, Berkshire Hathaway HomeServices, 54 Realty, Bastion Realty, DASH Carolina, Dwelli, ehomes, Heather & Company Realty Group, Hester Group Realtors, Joe Stockdale Real Estate, Palm Paradise Realty Group, Pemberton Real Estate, Regal Realtors, Spyglass Realty, Levi Rodgers Real Estate Group, Move Real Estate, Stephen Cooley Real Estate, Navigate Realty and Works Real Estate.
An 'undeniable' industry reaction
"Zillow Preview was just announced, but the signal from the industry is undeniable," Zillow CEO Jeremy Wacksman said in a news release. "Brokerages and their agents want an early marketing option that's public, transparent and easy for consumers to find, not hidden behind a private gate. This level of early adoption shows we're building something that aligns with where the market is headed."
Zillow has said that while Preview was created to work within the MLS framework, brokers and agents are responsible for complying with their specific MLS's rules. Pre-market listings at firms that have signed on so far are expected to appear on Zillow and Trulia in April.
The draw for new partners
Engel & Völkers Americas President and CEO Stuart Siegel said his firm's stance is that complete market exposure for a listing typically provides the best outcomes for both buyers and sellers. However, "we recognize that in certain markets and client situations, a more tailored, pre-marketing approach may be appropriate," he added.
Paul Boomsma, CEO of LeadingRE, described the home search giant's broad reach as "an ideal complement to our extensive global network," and Vanguard Properties Founder and CEO James Nunemacher said Zillow Preview "expands opportunities for compliant, early-stage marketing that helps engage potential buyers sooner in the sales cycle."
A movement sweeps the industry
While Zillow says its partners and consumers have a lot to gain from Preview, not everyone stands to benefit quite so much — particularly smaller firms not included in the initial launch phases, according to industry expert Russ Cofano.
"Large firms will turn this into a recruiting weapon," Cofano wrote. "Smaller firms will have to defend against it without having the same toolset. The moment an agent loses a listing because a seller wants pre-market exposure on Zillow or Redfin, that agent will start asking whether their current brokerage is still giving them the best platform to compete. And while Zillow may eventually expand access to additional large firms, there is little reason to believe smaller independents will be first in line."
Zillow Preview is part of a larger industry shift toward pre-market listings that has been playing out in recent weeks. In late February, Compass and Rocket Companies announced a deal allowing Compass to display "Coming Soon" listings on Redfin, and Howard Hanna Real Estate unveiled its own "middle ground" pre-marketing strategy a couple of weeks later. A day after Zillow unveiled Preview, eXp Realty announced its own pre-market exposure deal with Homes.com, Realtor.com and ComeHome.com.
Meanwhile, Compass decided to drop the lawsuit it filed against Zillow last summer over the portal's Listing Access Standards after Zillow Preview was announced. The suit was dismissed without prejudice, which means Compass could file again at a later date.