It's surprising how much absurdity has come from social media about Zillow's big announcement last week. Sad to say, much of the ridiculousness is coming from inside our own industry.
Today, Massive Agent Podcast Host Dustin Brohm recaps, some of the theories arising from Zillow's exit from the iBuyer business. He reminds us, as real estate professionals it's imperative that we take this rare opportunity to educate our clients about the benefits of working with a local expert, and not spread rumors about unlikely catastrophes.
Dustin suggests we ask ourselves some thought provoking questions like, "How well do we understand the economics of our industry?" and, "Why are we spreading fear about Zillow crashing the housing market?" He also dives into a bit of mindset talk as we consider Zillow's willingness to take a risk and invest in their business. Are we willing to do the same?
It's easy to judge the person (or company) that took a big risk and failed. Instead of spewing negativity all over social media, perhaps we should glean some lessons from their mistakes, respect their effort and use that knowledge to grow ourselves and our business.
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Is Zillow About to Crash the Housing Market?
I am sure you've heard of the rumors going around the real estate industry right now. Last week, it was announced that Zillow would face huge losses and sell their inventory of over 7,000 houses. This announcement sparked controversy and rumors that it would crash the housing market. Who is responsible for spreading those rumors? Real estate agents who love to pretend they know what they're talking about when clearly, they don't.
So, let's go over the facts, shall we? Yes, Zillow has 7,000 homes that they need to sell, no that does not mean they will all go on the market today. Densely populated counties like Salt Lake County, for example, sell about 1700 homes a month alone. In 2020 there were 6.5 million homes sold across the United States, and by the end of 2021, that number is projected to be over 7 million. With that logic, do you still think 7,000 homes, no matter how they're priced, will do anything to the housing market? What I think happened was one person mentioned that, and everyone else took it and RAN without any question of its validity. Stop. Use your brains, guys.
As a professional in the real estate industry, consumers are looking to you to have knowledge and expertise that they do not possess, so it is VITAL that you do not spread misinformation. It is your responsibility to make sure you're using deductive reasoning and common sense. You do not need to be an economist to understand that Zillow pulling out of the iBuyer business will not crash the housing market.
So, why does it matter if you're wrong? You are a real estate professional, and I imagine that means you would want people to hire you for your expertise. But then you don't even understand the basics that surround the housing market? If I were a seller with common sense, that would be a red flag, and I would not want to work with you to sell my home.
Zillow is not dumb, don't underestimate them. We only see what we see. This is a company with so much data, money, and brilliant people; you don't think they are already working on what's next? By selling all of these homes, they will get even more data to see where they can make more money. They have so many different ways to earn revenue. Is this truly a loss, or is it a means to gain even more?
This is a chance for you to be the professional and to educate consumers. If you do this in a way that belittles something or someone else, people will see through that. Zillow made an educated business move. They probably did not execute it the way they should have, but they are out there taking significant risks to create an even more profitable future. How many of you listening to this won't even risk $100 investing into your marketing, education, etc. I see it all the time; it is so easy to make fun of someone who takes a risk and fails when you are still in the same spot you were three years ago.
Are you somebody who is just talking shit on others because you are too afraid of taking risks and failing? If you aren't growing, you're dying. You are standing still, and I can't think of anything worse. There is so much opportunity for growth out there, and a lot of you guys are taking those chances, but a lot of you aren't. A lot of you guys are still listening to this show, and you are still broke. You are waiting for me to say something that makes you want to take action while mocking that you need first to build the foundation inside your head.
Hopefully, by listening to this show, you get some tips to help you grow, level up your thinking, and build the foundation you need to have a successful life.