Wondering how Zillow makes money? If you’re thinking about using the platform to calculate your home’s value, you might be wondering how Zillow is able to generate revenue.

In this post, Barb Schlinker and our Colorado Springs real estate experts at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will share four ways Zillow makes money. We’ll also discuss whether or not it’s the right choice to help you find out how much your property is worth in the current market.

Key Takeaways:

• Zillow’s Premier Agent advertising program is the platform’s primary revenue source. This program lets realtors and brokerages feature their names and branding directly on Zillow property listings in their local area. 
• Zillow Rental Manager offers advertising services and tools to landlords, individual property managers, and property management companies.
• Zillow is only one subsidiary of the parent company Zillow Group, which has another revenue stream from Zillow Group Data Services. This service offers businesses, researchers, and real estate professionals access to the company’s extensive real estate data and analytics tools for a fee. 

How Does Zillow Make Money?

Zillow has four different methods of making money:

• Premier Agent Advertising: Zillow’s Premier Agent advertising program is the platform’s primary revenue source. This program lets realtors and brokerages feature their names and branding directly on Zillow property listings in their local area. It also gives realtors the benefit of enhanced branding on their Zillow profiles.
• Zillow Rental Manager: Zillow Rental Manager offers advertising services and tools to landlords, individual property managers, and property management companies. This platform helps them attract leads to their rental properties and manage tenants more efficiently. 
• Zillow Home Loans: Zillow earns money from its Zillow Home Loans platform, which allows users to compare mortgage rates, calculate payments, and connect with lenders. This service generates revenue through referral fees and by selling advertising space to featured mortgage lenders.
• Zillow Group Data Services: Zillow is only one subsidiary of the parent company Zillow Group, which has another revenue stream from Zillow Group Data Services. This service offers businesses, researchers, and real estate professionals access to the company’s extensive real estate data and analytics tools for a fee. 

Should You Use Zillow or Work with a Colorado Springs Realtor?

The Colorado Springs housing market is a fast-paced real estate market, so it’s crucial to work with a realtor who’s in touch with the latest trends. 

Ultimately, a real estate professional is the best way to find out how much your home is worth because they work on the ground in the local area and it’s their job to understand the latest market conditions.

This doesn’t mean you should avoid Zillow entirely. Zillow can be helpful if you’re early on in the buying or selling process, or are just a curious homeowner wanting a rough idea of your home’s value.

However, Zillow isn’t a reliable method because its estimates are determined through an algorithm. Algorithms have significant limitations when it comes to estimating property value, since they’re only as good as the data available to them. They also can’t take into account the unique characteristics of your home that may impact its valuation.

Work with Barb Schlinker to Find the Market Value of Your Home

If you want to learn the value of your Colorado Springs home, it’s best to consult a realtor for a professional evaluation. At Your Home Sold Guaranteed Realty - Barb Has the Buyers Team, Barb Schlinker has been in the real estate business for 30+ years. 

After all this time in the industry, we’re deeply familiar with home prices in the Colorado Springs metropolitan area and constantly monitor pricing trends. This makes us well-equipped to find the market valuation for any property.

Plus, we offer unique buyer and seller guarantees that make working with us risk-free. To learn more about working with us or getting a home valuation, call 719-301-1802 or fill out the form on this page. 

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!