Phoenix Broker Challenges NAR to Put the Stops on Zillow’s Instant Offers “Integrated Experience” NOW

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Greg Hague is a Phoenix-based real estate broker and owner of Real Estate Mavericks. He is also an attorney. He is mad as hell at Zillow and “not going to take it anymore.” So Greg has started an on-line petition, that we are including here, in case you want to sign it. There are already A LOT of signatures, at this printing more than 12,000.

We told you about Zillow’s new “Instant Offers” program, an integrated experience which allows sellers to bypass Realtors completely and buy homes online. Certain homes. Instant Offers allows homeowners to receive all-cash offers on line from a group of 15 large investors along with a side-by-side comparative market analysis (CMA) from a local Zillow agent Zillow advertiser.

Many Realtors, like Greg, see the program as an attempt to push them aside, breaking many promises the company has made to steer clear of the transaction.

Though it’s a pilot program in Orlando and Las Vegas, many agents I talk to fear this is Zillow’s next huge march forward in taking real estate sales completely online, perhaps making the real estate agent obsolete. I spoke to Greg late last week, who says he predicted this two years ago:

“I read about Instant Offers and that was totally the last straw, ” ays Greg. “I believe that Instant Offers program has to be stopped. It has to be stopped in Orlando and Denver, it has to be stopped everywhere and the National Association of Realtors (NAR) had damn well better do something about it.”

This is, says Greg, not characteristic of him. He has never been in politics. While he thinks the Instant Offers trend may be putting agents out to pasture, he also thinks this is the worst thing that can happen to consumers. Why?

“Homeowners are getting ripped off, giving up 45% of their equity when they use Instant Offer,” says Greg. “Figure in the risk factors plus closing costs and the offers that are 13% to 18% below market value, which have to be that way in order for them to work on the flip side.”

Companies like Instant Offers and to some extent, Open Door, work by buying homes at highly discounted prices, because they have to generate a large profit to placate investors. Hague and others argue Instant Offers offers zero protection for consumers, who will see home equity dwindle to nearly nothing with such low-ball offers.

“First they charge agents to be on a platform where agents provide information, then they start the “Premiere Agents” program (allowing agents to place ads next to the actual agents’ listing),” says Greg. “Now they are taking a college education away from a kid. This is seriously hurting home sellers.”

This Zillow move damages both realtors and the public, says Greg, who says he is devoting his time to stopping Instant Offers. He plans to collect 100,000 signatures. He is going to print them out take them to NAR headquarters in Chicago and make a lot of noise.

“I’m going to keep on them until we kill Instant Offers,” says Greg,  “then with those 100,000 signatures, I’ll have a strong coalition to keep all eyes on Zillow. I will have real power to lobby NAR to keep Zillow in check.”

But NAR says anti-trust laws have tied their hands when it comes to putting Zillow in check. Indeed, government regulations preclude Realtors from having a monopoly on listings, as was settled back in the 2005 NAR/DOJ lawsuit. 

According to Inman, there is no way for NAR to keep Zillow in check:

But NAR has said in response what plenty of other Realtors already knew — these options are non-starters because they would be illegal under antitrust laws.

“[It] would be unlawful for NAR to discourage its members from using any product or service provider; such decisions must be made independently by brokers and agents,” NAR told Inman when asked if it would comply with a demand made in the “Stop Zillow” petition.

It added that its guidelines for multiple listing services (MLSs) give brokers and agents the flexibility to withhold listings from a third-party recipient. “But, again, they must make this decision independently,” NAR said.

“NAR cannot sponsor or encourage a boycott,” the trade group added in a blog post.

The organization knows from experience what can happen if it tries to knee-cap businesses.

In 2005, the U.S. Department of Justice (DOJ) sued NAR over industry attempts to curtail the content of property listings and control what companies could publish them. Tagged as anti-consumer by the DOJ, the case was settled in 2008.

Perhaps Realtors have more of a beef with U.S. anti-trust laws, i.e. government regulation, than NAR?

Bill Lublin, a broker-owner who has served on NAR’s Risk Management Committee, said that a U.S. Department of Justice (DOJ) investigation would cost associations and members “lots of time and money.”

“Our industry is competitive and Zillow is expert at exploiting that to obtain data feeds from agents, companies, offices and MLSs,” he said in the real estate Facebook group Inman Coast to Coast.

“It would take a firm resolve and the decision of a large group of brokerages not to use that particular portal to begin any sort of trend in the industry, and even then there will be those who see some perceived competitive advantage in remaining as providers of data.”

Of course, there is a vastly different mood in Washington, D.C. now and anti-regulation fever is spreading. Could that fever trickle down to NAR? And at what point does Zillow violate anti-trust laws itself?

“I’m not wanting to take Zillow out of business, or from leveraging their huge power that we gave them, but I want to stop them from online real estate transactions,” says Greg. “Zillow better think twice about taking the bread off the table of the Realtors who support them, and harming and damaging consumers.”

In his Inman column, Zillow Chief Business Officer Greg Schwartz says the company always encourages consumers to work with agents. 

“Seventy percent of our revenue is from working with more than 80,000 agents, teams and brokers who advertise with Zillow Group,” 

Zillow also reports that Instant Offer is generating significant consumer interest, and at least one agent received a new listing. It has offered no information or stats on how many “Instant Offers” have been accepted and resulted in sales. He says the company comes in peace:

I promise you it’s not because of haste, idealism or lack of care. It’s because we believe change isn’t to be feared but rather directed. We believe we are at the tipping point of an enormous wave of consumer-driven change — again — and we intend to navigate it successfully in cooperation with our agent, broker and MLS partners.

A movement which we call “Integrated Experiences” is sweeping industries, and real estate is no exception. People are looking for easier, less stressful and more integrated experiences — experiences that provide transparency and control, and leverage technology to enable great outcomes. I’m not talking about technology for technology’s sake — I’m talking about responding to real consumer wants.  We must, and will, address real consumer wants.

We’ve all watched with interest over the last decade as startups focused on disrupting the real estate transaction launch, and then subsequently fail. But something different is happening in the last couple years.

Silicon Valley has recently invested $1.05 billion into the notion that the real estate transaction will be disrupted by serving sellers in a more streamlined and non-traditional fashion.





Candy Evans

A real estate muckraker, Candy Evans is one of the nation’s leading real estate reporters. She is also the North Texas real estate editor for, CultureMap Dallas, Modern Luxury Dallas, & the Katy Trail Weekly. Candy has written for Joel Kotkin’s The New Geography, Inman Real Estate News, plus a host of national sites. Constantly breaking celebrity real estate news, she scooped former president George W. Bush's Dallas home in 2008. She is the founder and publisher of her signature, and, devoted to the vacation home market. Her verticals have won many awards, including Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations. Candy holds an active Texas real estate license but does not sell. She is on the Board of Directors of Braemar Hotels & Resorts (BHR).

Reader Interactions


  1. Jeff Nunn says

    Agents need to stop buying leads from Zillow today and Brokers need to stop sending listings to Zillow today too. Period. End. of . Discussion. Agents and Brokers are funding their own demise.

  2. Carlo Gobba says

    At this point NAR Sold us out long ago and doesn’t even own (The way I understand it) and I saw this coming Long ago with Zillow. It’s going to take Dave Liniger and Gary Keller to pull out of Zillow completely and promote their own brokerages listings (Being the top two major brands.) 2 Founders can put a major whoppin to Zillow right now in an instant!

  3. Yevette Jessen says

    Instant offers, dot loop, etc., are just ways Zillow is nudging the realtor out of the transaction. I have said this from the beginning. Zillow is not your friend, realtors! Premier agents and your lender partners are funding your own demise. I don’t blame Zillow. They are brilliant. Wish I had thought of such a program first. You give me your listings, I’ll sell them back to you in the form of “leads”. Please join the movement to put a stop to this craziness! Sign the petition at If you don’t intend to do this, you may want to practice the phrase, “would you like to supersize that for just $1. more”? Those jobs will still be there.

  4. Kevin McGovern says

    Zillow instant offers could also be a prelude to having Zillow Agents. These agents will be discounting or rebating the Realtor commission if not eliminating most Realtors. I will go to and sign.

  5. Stephen Lewis says

    As I sit hear and ready this article I can only think about why I got involved in Real Estate and who I’m doing it for, my family. Technology is good for some things but let’s be real it’s not for every things. That personal touch of doing the right thing the right way is paramount and it’s not based on the click of an InstantOffer button. There becomes a point where you have to draw the line and this is it. I will stop using Zillow on all my listing. Hell Zillow hasn’t made me any money. They are helping other people get paid off of my hard work. Real Estate is a sacrificing lifestyle we embarked on where great service come first.

    Dallas, TX

  6. Lakewood says

    Real estate agents will be obsolete. From my own experiences and from asking friends and family only one person I asked had an agent bring them a house. The prices ranged from 350k up to 900K so budget did not seem to be a factor. With online listings buyers do all the work on finding homes and the agent just becomes somebody to unlock a door. Forgive me but I think a 3 percent commission for unlocking some doors is a bit much.

  7. Aaron Layman Properties says

    The Instant Offers program only exacerbates the bifurcation of a housing market that is already suffering from distortions of fundamental end-user demand. We already have too much investor activity in U.S. housing markets. Do we want to create rental Armageddon in every city in America? Zillow is effectively encouraging more investor activity, which could take affordable inventory off the market where little currently exists.

    Zillow’s actions don’t match the message they are selling to agents and the public, and Realtors should wake up to the monster they are feeding. Anybody who doesn’t see their end game has their head in the sand.

  8. Don Schoeller says

    I have been complaining to Zillow’s CEO Spencer for years about their practices that don’t benefit the
    average agent however it’s obvious they only care about their stock price and not us.

    I have built for generating relocating buyers leads from Northern agents. We
    have 25,000 members already but have an idea for expanding this concept nationwide. Done the way I
    am proposing no tech company like Zillow or even the fear that Amazon may enter the market could
    ever compete with it.

    As there currently is no real nationally recognized US agent referral network this could be an alternative
    lead source to replace agents spending exorbitant fee’s on Zillow or Trulia. It’s time to take back control
    of our industry!!!

    I am looking to gather a group of individual agents to work together to build this. Using the most conservative of estimates this venture would generate $3-$5M per year in pure profits within a year or two with virtually no limit for future growth.

    I can build the entire infrastructure for a one time upfront coast of app. $50,000 and as I said would take
    12-18 mos to have it fully implemented. After that it will have no ongoing overheads and is a pure cash cow.

    If you wish to discuss this further my contact info is below.

    Direct 407-491-0715
    Owner (Since 1997)

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