I’ve been watching the Zillow / Trulia merger fairly close to see what is going to happen next. For those of you not in real estate, this is a big deal.
The National Association of Realtors, respective state and local associations have basically held the monopoly on real estate agents ability to market properties effectively. Since Zillow and Trulia combined blow Realtor.com out of the water, how long is it going to be before they start sending the message to real estate licensees that they don’t have to pay association dues to promote listings?
While this might seem like a good idea for agents in the beginning, in the long run will it cause more harm than good?
The National Association of Realtors (NAR) is one of the largest lobbying groups on Capitol Hill and yes while they fight hard to protect the position of the Realtor, they also do a lot of fighting for the benefit of homeowners. Without NAR, things like homeowner tax exemptions, non-recourse on short sales and big bank takeover of real estate would all look a lot different today.
Now that Rupert Murdoch’s News Corp has purchased Move Inc who operates Realtor.com, will that only strengthen Zillow’s position? It could quite possibly no longer be about the Realtor anymore but more about advertising dollars (it is already but more so). With Zillow’s dominance will
Rupert.com Realtor.com be able to catch back up? If not, it could signify the demise of the real estate associations.
Is that a good thing or bad thing and why?
Here’s a great video with Zillow CEO Spencer Rascoff