Productivity October 24, 2017

Positioning Your Value Proposition Against Zillow Instant Offers


By Tiana Baur, Content Marketing Manager

We’ve been talking a lot about Zillow Instant Offers. At some point, there will be buzz in your offices about them and your agents need to know how to clearly articulate their value. In our last post on this topic, we talked about what they potentially mean for real estate agents and how important it is to continue to provide comfort and trust to their clients. But what does that mean in tangible terms? How does one properly position themselves then? Providing value, client satisfaction, and being the trusted advisor to all clients is easier said than done.

To review, Instant Offers works like this: It connects homeowners with investors, helping them receive multiple offers based on their “home details and comparative sales.” All the homeowner has to do is answer some questions, submit some photos, and pick an offer from a verified investor. They then schedule a free home inspection and close on the date they choose. Simple, painless, virtually no work done by the homeowner. There is an option to use an agent, but the fact that homeowners don’t have to is the key.

Here’s how you can combat this and position your value proposition against it:

Have their back.

Agents need to keep doing what they’re good at. Show your prospects and clients that you care. That you’re human. That you’ll be with them every step of the way. Show them your unique knowledge of their neighborhood that you specialize in with articles and statistics and information that only you could know by working in the that area for a decade or even before Zillow existed. Agents are the experts.

If they’re thinking of using Instant Offers, show them why you’re worth it.

Instant Offers doesn’t answer phone calls at 2am when the home seller is crying and stressed because something unforeseen went wrong last minute during the transaction. Instant Offers doesn’t send a bottle of champagne to congratulate them on their great home sale. Instant Offers doesn’t promise to hold their hand from the very beginning, all the way until they’ve moved and settled into their new home. Instant Offers doesn’t care that the people who bought the home aren’t a right fit for the unique neighborhood’s culture. Agents do. Even if your prospect went this route, call them, check up on them, see how they’re doing. Chances are, they’ll regret their decision and realize they need to change their route.

Show you know more than an algorithm.

There are a lot of things an algorithm knows about people. Arguably, too much. But what they don’t know is that the house they’re trying to sell actually has more square footage than the neighbor’s house that sold last month, and because their view is only partially blocked, can actually make more than what Zillow Zestimates says it’s worth (which is wrong most of the time…ahem). The thing is, Zillow and these other websites are only as good as their data, which isn’t always accurate. Even an error margin of 8% (not uncommon with Zillow), means homeowners are missing out on money. The average listing fee is 6%, so even when it’s all said and done, you’d still be making more by going through an agent.

The bottom line.

Technology will continue to grow and evolve. Look at us. We’re a tech company that is changing the way the industry operates. The difference? We want to help the brokerage. Our entire business model is built around the purpose of making brokerages more profitable, by helping make their agents be more productive. Not all technology is out to eliminate agents from the real estate game. There will always be certain things in life that require a human element: Starting a family, comforting someone dear to you, and helping people find the right home to do both of those in.