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Is Zillow’s alleged pack of lies tricking brokers into giving up direct data feeds?

Zillow is allegedly calling brokers to let them know their listings aren’t showing up on Zillow, but ListHub says they have confirmation that Zillow already has the full feed…

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ListHub has sent out a letter to their MLS partners in response to concerned calls from brokers who have allegedly been contacted by Zillow, causing confusion. In the letter obtained by Realuoso, ListHub General Manager, Celeste Starchild states that brokers are being told that some of their listings are missing from Zillow, suggesting that a direct listing data feed could be provided to Zillow. The only problem is that ListHub says they have confirmed Zillow’s reception of said listings.

zillow letter

That’s one way to get broker feeds.

ListHub tells their MLS partners that they have tested “numerous examples of these cases” and found that not only were the listings submitted from ListHub to Zillow, but ListHub has confirmation of reception of the listings. They also found that the listings were in fact, not displayed on Zillow.

ListHub has notified Zillow and requested “prompt resolution,” and as of publication, Zillow has not responded to our request for comment.

The “unintended consequences”

In the letter to MLS partners, ListHub warns that there may be “unintended consequences” to brokers sending a direct feed to any publisher, including “disruption to consolidated reporting available through ListHub,” as well as disrupted lead management, disruption to their traffic routing, and “loss of the benefit of the protections that ListHub requires of publishers related to usage of listing content.”

The Northeast Florida MLS sent out an alert to members today, entitled “Don’t Be Deceived,” telling members that “these calls from Zillow are simply sales oriented,” adding that “They are offering additional services in exchange for getting your listing data direct from you, the broker, instead of via ListHub.”

This particular MLS is urging their members to have an attorney review any agreement they make with Zillow, and asserts that no one is required to put their listings on Zillow, calling it no more than an “internet marketing decision.” They close with a recommendation to use the reports on ListHub to best understand each real estate search site’s policies to determine which are best for business.

The takeaway

Now that Zillow and Trulia are joining forces, many in the industry are focused on the real estate search site. The real gold for them is to handicap ListHub, which is owned by Move, Inc. (which not so coincidentally operates realtor.com, Zillow/Trulia’s main competitor).

There has been a race to get brokers’ direct feeds for some time, but if this is how Zillow plans on doing it (confusing brokers or making false claims), the industry backlash might be more severe than they ever intended…

Lani is the Chief Operating Officer at The Real Daily and sister news outlet, The American Genius, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

Real Estate Corporate

This Zillow patent application is WILD, threatens entire real estate industry

(NEWS) Zillow has applied for another patent on their mission to outgun the entire real estate industry – will the government grant them yet another win?

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Zillow has added yet another crippling entry to their long list of patent grabs, this time focusing on a computation model that emphasizes 360-degree videos’ role in creating floor maps.

The patent, if granted, would give Zillow domain over the process of recording, analyzing, and presenting such videos in conjunction with real estate services.

The official title of the patent is “Generating Floor Maps For Buildings From Automated Analysis Of Visual Data Of The Buildings’ Interiors,” leaving little to the imagination: The respective processes of creating, analyzing, and sharing those floor maps all fall under the heading of the patent.

The patent also specifies “automated operations” in the abstract, implying that the method of capture all the way through analysis and sharing could be performed automatically via the aforementioned “computing devices.”

Zillow clearly intends to use the results of this process for both further development of their automation (“controlling navigation of devices”) and for customer use while viewing properties virtually (“display on client devices in corresponding GUIs”).

The videos themselves can be “continuous” in that they are recorded by a camera moving seamlessly through the house from room to room; similarly, the videos may be “acquired without obtaining any other information about a depth from the path to any surfaces in the house,” resulting in what one might identify as the modern equivalent of a virtual tour.

The end result of such a video, at least for clients, is the ability to view and control an uninterrupted sequence of movement through a property. At any given time, the client could theoretically pause and “look around” using the 360-degree controls; this process would, ultimately, simulate actual movement through the home.

Naturally, this patent is worrying for the same reason Zillow’s past patents have been problematic: It’s too broad.

360-degree video is an obvious choice for real estate services looking to create a virtual experience that is interchangeable with an in-person tour, and–between accessibility issues and social distancing protocols of the last year–it’s an increasingly necessary option for real estate providers who want to stay afloat.

If Zillow is able to secure this patent, competitors will have to find another way to create their virtual tours–one that, in the ever-tightening web of options not proprietary to Zillow, is sure to drive even the most loyal clients into Zillow’s patent-snatching arms.

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Real Estate Corporate

Zillow’s overly generic patent application is further proof they could be suing you soon

(REAL ESTATE) Zillow has been on a patent rampage in recent years, and this most recent application is so wildly generic, we would laugh, but the government has a track record of approving their every wish, making all other real estate sites vulnerable to lawsuits.

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Zillow has, at this point, demonstrated an apt propensity for setting themselves up as future patent trolls and the U.S. Patent Office has been generous in granting their every last wish. It should come as no large surprise, then, that their latest endeavor to monopolize real estate searches comprises presentation of visual information by way of computation and other common factors – something that will further the real estate giant’s ubiquity in online markets.

The patent application itself describes, in detail, the practice of creating a three-dimensional model of a property, though a “2.5D representation” stipulation is also included in the patent.

The patent also mentions that the model may be “generated after the house is built” in order to display information about the inside of the property, and this generated model “may be displayed to a user of a client computing device in a displayed GUI with various user-selectable controls.”

Additionally, the patent describes the manner in which this model can be displayed, with references to a single, large pane that shows the interior of the house alongside smaller, “additional separate GUI pane(s)” that complement the information shown in the “first pane of the GUI.”

This attention to the use of “panes” and the order in which they are formatted has appeared in prior Zillow patents as well, the end result being a rapidly decreasing number of ways in which competing real estate sites can display similar information.

But the patent application doesn’t stop there.

The computational technology (referred to as “A system comprising: one or more hardware processors of one or more computing systems; and one or more memories with stored instructions”) is also mentioned, with explicit details regarding the process followed by the technology upon submission of a request by a user.

A key word in this section of the application is “automated” as it pertains to a search query.

Attempting to patent search engine automation does a better job of demonstrating just how generic this patent grab really is than perhaps anything else in the application.

Other key elements of the patent application include the ability to “navigate” through a property in a virtual model of the house or structure, simulated lighting as a part of the model, and more details about how this information is processed via mobile device.

Should Zillow manage to snag this patent, the results could be catastrophic for competing real estate sites, both search and brokerage.

Being able to show users an isometric model of a property while showcasing the floorplan is a highly convenient (and existing) feature of many real estate sites; by relegating it to Zillow and Zillow alone, those other sites will have to find new (and less-convenient) ways in which to showcase their properties, lest the Zillow patent troll sue them.

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Real Estate Corporate

Zillow prepares to face the music, real estate agents have had enough

(REAL ESTATE CORPORATE) Zillow has made enough of a rumble in real estate circles that some agencies are fighting back, alleging everything from deception to fully illegal conduct.

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Real estate agent shaking hands with couple over a For Sale sign marked sold from Zillow

Zillow has made headlines in the past few months, though not exactly for their charity work. Between patent trolling and general steamrolling of smaller real estate businesses, the multibillion-dollar company is well on its way to becoming a monopoly—and a couple of people have had enough, as evidenced by emerging lawsuits targeting Zillow.

One lawsuit, originating in Connecticut, comes both from and on behalf of realtors who are tired of not being represented in Zillow’s agent results. The lawsuit claims that clients are being redirected to agents who have inserted themselves into Zillow’s search results.

“A prohibitive majority of homebuyers — 80% or more — use Zillow in the process of looking for a home,” the lawsuit explains. “This market dominance gives defendant the power to tilt the real-world playing field in favor of its own favored customers. These are Premier Agents.”

Premier Agents are, as alleged by the lawsuit, agents who pay a fee to Zillow in order to “be associated with properties which they do not have a listing relationship with.” The lawsuit also alleges that the majority of people who use the website “are unaware that they are being funneled to agents who paid a fee to Zillow to cause this to happen.”

In other words, Zillow is taking payments from agents and, in turn, giving them priority over properties without giving users the chance to opt out—which is illegal.

And, interestingly enough, a second real estate agency—Real Estate Exchange, or REX—is suing Zillow for similar reasons, claiming that both Zillow and Trulia are exempting real estate agents who do not belong to the NAR from search results. The lawsuit alleges that, while non-NAR agents can be found on both websites, their listings have been “relegated to a ‘hidden tab’” to clear the way for NAR agents.

The Connecticut lawsuit also outlines further the process that Zillow uses for their Premier Agents: “a prospective buyer is drawn to the defendant’s [Zillow’s] website for its stated purpose of making it easier to find a home to buy, but it is not evident to the prospective buyer that defendant is more interested in connecting that consumer with a broker who has paid a fee to defendant.”

Meanwhile, REX’s lawsuit says that Zillow “recently joined NAR-affiliated MLSs and adopted their associational rules to conceal all non-MLS listings on Zillow’s heavily trafficked websites.” This led to the current complaint wherein “non-MLS listings [are] accessible only via a recessed, obscured, and deceptive tab that consumers do not see, and even professional real estate agents find deceiving.”

Both lawsuits clearly focus on the deception of customers, a failure to disclose this deception, abuse of either the MLS or customer trust in recommended real estate listings, and a general erosion of credibility on Zillow’s part. They also, in summary, allege that Zillow has not given all listings and connected realtors a fair shake in the process.

Zillow did respond to REX’s lawsuit, saying that the claims were “without merit” and declaring their intent to “vigorously defend ourselves against it.”

But if these lawsuits are successful, they could set a hopeful precedent for those looking to fight back against Zillow’s impropriety.

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