Since 2006, Zillow has grown to become a dominating force in the real estate industry. Millions each year seek out this platform to buy a home, rent an apartment, or list their property for sale. If you are wanting to list your property for sale on Zillow and are wondering if they charge a fee for a for sale by owner listing, we can help. We researched this company so that you'll know for sure what it will cost.
Zillow does not charge any fee for a for sale by owner listing. The platform makes listing your property for sale an easy task.
Now that we know that Zillow does not charge a fee for a for sale by owner listing, we'll take a look at how to list your property for sale on this platform. You might also be wondering how Zillow generates revenue or if a real estate agent will negotiate for you. For the answers to these questions and more, read ahead in this post to see what our research has uncovered.
Listing Your Property For Sale On Zillow
Zillow offers a lot of helpful tips and tricks if you are considering putting your property up for sale on their platform. Some of them are common sense, like doing a thorough cleaning inside and out and making sure that you have a plan for any pets that are on the property.
Prepare Your Home For Sale
But before you upload your property information to Zillow, the company also encourages you to get a professional appraisal of the value of your property. When it's clean and properly staged, get professional photos taken of the interior and exterior.
These professional photos will go a long way in making your home look appealing to prospective buyers. Once these items are checked off your list, you will be ready to list with Zillow.
List The Home For Sale By Owner On Zillow By Property Address
You will first enter the property address into the requested field. Zillow will ask for verification of the property by showing it to you on a bird's eye view map. If it's correct, move on. If not, they'll let you submit a correction.
Next, you'll be taken to a page that asks for all the details. You will be asked to enter your asking price, which should be close to your appraisal price.
Below that, there will be a place for you to upload all of the photos that your photographer took of your property. Professionally done photos look so much better, especially when it comes to real estate.
Know All Of The Details Of Your Property Before Listing
Next, you'll enter the pertinent details of the property. How many bedrooms and bathrooms it has, the square footage, the lot size, etc. will all be entered into the required fields. Be sure that the information you enter is accurate. If you don't have that information handy, don't proceed until you do.
You'll be able to list scheduled open house information towards the end of this page. There will also be a field where you can enter all the things you enjoy about the property, relative historic information, or any other details you think might attract a buyer.
Enter your contact information into the last field, and you're ready to hit the "Post for sale by owner" button at the bottom of the screen. Congrats! Your home is now listed for sale by owner. It will take at least 72 hours to be officially posted, as Zillow will need time to verify the information you submitted.
How Does Zillow Make Money?
Earlier in this post, we stated that Zillow does not collect any money from you for listing your home for sale by owner. As with any company, Zillow must be making money in some way. Though it's a free platform to use as a consumer, Zillow does have several solid sources of revenue that keep the company profitable.
Here are the largest drivers of revenue for Zillow along with their most recent financial information. As you'll soon see, Zillow is generating a lot of revenue!
Fees Collected From Real Estate Agents
Anyone in real estate can create a seller profile on the Zillow platform for free. But Zillow offers the opportunity for an enhanced profile for agents. These upgrades will require fees from the agent and are the single biggest source of Zillow's revenue stream each year.
Zillow states that enhanced profiles are a great marketing tool for agents, giving them the opportunity to be much more visible to prospective buyers. The platform claims that those who elect to upgrade to this paid profile enhancement close twice as many sales as those who only use the basic, free profile.
In 2020, Zillow made more than $1.04 billion in revenue from this source of income alone.
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Selling Mortgages In The Secondary Market
Zillow also makes money by acting as a lending agent for certain buyers on the platform. Those who qualify can get Zillow to finance their home, with Zillow making a bit of money on fees paid at the closing.
But Zillow does not retain the property. The company actively sells the note on the secondary mortgage market, relieving Zillow from the risks associated with possible foreclosures. Zillow makes a bit more money selling the notes and eliminates themselves from risk.
Zillow was able to generate more than $174 million from this tactic in 2020.
Advertising Sales
Peruse Zillow for long and you're sure to notice some advertising. Like any website or digital platform, Zillow charges fees to those who want to advertise on their domain. The advertising revenue Zillow generated in 2020 exceeded $400 million.
Listing Fees From Property Owners
A smaller form of revenue comes from fees collected from property managers and landlords. To list property for rent on the platform, a $9.99 weekly fee is collected.
Though not their strongest stream of revenue, considering that there are millions of homes listed for rent at any given time on Zillow, you can see why Zillow charges it.
Do Realtors Negotiate For You?
There are several major advantages of going through a real estate agent. Whether you are the buyer or the seller, having a trained and educated professional at your side throughout the entire process is invaluable.
Considering that a home is the single biggest investment that most people have, taking advantage of a pro is an important consideration.
Along with navigating all the headaches of marketing the property, drawing up legal contracts, and closing procedures, a real estate agent will work to negotiate on your behalf. If you are buying or selling, any and all offers/considerations will be relayed from the other party through your agent.
Though you will always have the final word, the agent is there to negotiate on your behalf, using their expertise and your wants/needs as a guideline. If you take advantage of the services they provide, the buying or selling experience will be much smoother.
Final Thoughts
Zillow remains a free online platform for listing your home for sale. Though many of their services are offered free of charge, Zillow generates substantial revenue from advertising sales, enhanced real estate agent profiles, and selling mortgages in the secondary market.
Using Zillow in conjunction with a real estate professional makes buying or selling property a much easier experience. We hope this post on Zillow answered all of your questions. For more helpful information, we suggest reading the following posts:
Lots Of Views And Saves On Zillow But No Showings – What To Do?
