Pros and Cons of Using Zillow for Real Estate Lead Generation in 2025
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Serious question.
Zillow is a pretty prominent player in the real estate marketplace. The tool provides a variety of tools specifically designed to assist professionals in lead generation, client engagement, and deal finalization.
Zillow Premier Agent, in particular, sees industry-wide use.It's worth noting, however, that not all tools are equal - some agents have expressed concerns about the high costs not quite aligning with the quality of leads generated.
In this guide, we aim to shed light on Zillow's role in real estate lead generation, exploring its advantages and disadvantages, and providing insights into how its potential can be fully harnessed for your business.
But first, a quick refresher on the rest of your lead gen toolkit if you’re serious about getting leads in 2025:
So is Zillow still lead generation powerhouse it’s made up to it? And if you’re not using it, should you go get it today? Let’s dive in.
Zillow Premier Agent is a platform that offers real estate professionals a somewhat distinctive opportunity to advertise their listings and establish a modicum of direct connection with potential clients.
It functions similarly to sites like Realtor.com; once you become a Zillow Premier Agent, your listings get priority visibility on Zillow and its partner platforms, Trulia and StreetEasy.
This priority visibility can significantly increase the exposure of your listings.This increase in exposure might moderately improve your chances of connecting with potential buyers and sellers, albeit not guaranteed.
But is Zillow Premier Agent All It’s Cranked Up to Be?
While Zillow Premier Agent does propose ways to generate leads, its effectiveness can vary greatly.
For example, while it offers you a platform to display their listings to a broad audience - which, with millions of users visiting Zillow each month, could potentially lead to an increased reach - the direct correlation between this increased reach and tangible results can be a bit of a grey area.
Zillow Premier Agent also introduces a range of tools intended to facilitate agents to connect with and nurture leads. These include a CRM system, automated email and text responses, and performance analytics.
However, these tools are not a magic bullet. They require a certain level of skill and commitment to use effectively. Albeit seemingly promising, these tools demand a degree of proficiency to effectively track leads, maintain follow-ups, and, hopefully, close more deals.
But as we’ll explore in the next section, just as Zillow comes with a number of benefits, using it also comes with its own set of challenges, such as a forced reliance on the portal’s branding, and the ever-present threat of competing agents trying to divert your leads.
Before that though, let's take a closer look on the reasons why you should be using Zillow.
With its vast reach and easy-to-use interface, it can serve as a fertile ground for lead generation. Here's how:
The Bounty of High-Quality Leads Zillow has an expansive user base provides a steady stream of quality leads, folks who are actively looking to buy or sell property. Especially for larger brokerages aiming to grow, this influx of promising leads is a definite advantage.
Plentiful Seller Leads Seller leads, often deemed the 'golden goose' of real estate, are abundant on Zillow. The platform's wide array of property listings and large user base offer a healthy volume of these prized leads. Through Zillow's Premier Agent program, you get the opportunity to exclusively connect with potential sellers, a significant advantage when looking to expand your portfolio of listings.
Readiness for Transactions Zillow leads are often ready to transact within a shorter timeframe compared to leads from other online sources (in about 90 days). This speed to transaction is a key advantage for realtors seeking quick deal closures and higher turnover rates.
User-Friendly Website and App Zillow's user-friendly design makes it a hit among users, expanding the pool of potential leads for real estate professionals. The intuitive interface, detailed property listings, and features like the Zestimate enhance the user experience, drawing in a wide audience. In 2022, Zillow averaged around 225 million monthly users.
Impressive Conversion Potential Zillow's proven track record of high conversion rates makes it a valuable resource. Top teams and agents have reported conversion rates as high as 10%. For perspective, the average conversion rate hovers around 5%.
Zillow's vast user base and high conversion rates make it a powerful tool for real estate professionals. What’s not to love?
However, your success with Zillow leads will depend on factors such as your market, budget, lead follow-up strategy, and reputation on Zillow.It is important to constantly evaluate your return on investment and adjust your strategy accordingly.
It’s also important to set your expectations accordingly. While conversion rate is high for the most part, some agents have reported that Zillow leads can be unresponsive or difficult to convert. This might call for a more stringent follow up strategy for the most part.
While Zillow offers several advantages, it also has its share of drawbacks. Here are some of the key cons to consider:
The Steep Price Tag of Leads
The cost of pulling in leads through Zillow might knock you back on your heels. This platform doesn't come cheap. In fact, it might even seem excessive, especially for those of you managing a smaller operation or limited marketing budget.
For instance, the Zillow Premier Agent program could run you thousands per month, depending on market competition. And for Zillow Flex partners? There's a catch.
You might dodge an upfront cost, but you're still shelling out 20% to 35% of your commission. You need to carefully weigh if the cost matches the quantity and quality of leads generated.
The Slow Creep of Rising Costs
Zillow's cost trend isn't on a downhill slope. Over the years, Zillow's pricing has consistently climbed, making it a potentially unstable choice for long-term lead generation.
You may face more and more hurdles to securing a positive return on investment as costs rise. This rising tide is a clear call for you to evaluate the cost-effectiveness of Zillow leads and consider if other lead generation strategies offer a better return.
Shareholders Before Clients
Zillow's business model might put you, the client, in a tight spot. As a publicly traded company, Zillow's first duty is to its shareholders.
This could sometimes mean decisions that favor Zillow's bottom line over your needs or interests. For instance, Zillow has been known to prioritize more profitable programs, even if it means severing existing client relationships.
This potential fickleness could be a major concern if you're relying heavily on Zillow for lead generation.
Branding on the Backseat
Working with Zillow, your branding takes a hit.
All your marketing is funneled under the Zillow brand, not yours. Although the exposure could be beneficial, it's important for you to consider the impact on your unique brand identity.
In real estate, a distinct brand can be a major asset. You should weigh Zillow's extensive reach against the potential setback to your personal branding.It's crucial to consider the long-term implications. The rising costs, potential impact on your brand, and the company's primary obligation to its shareholders may pose challenges.
As a real estate professional, it's essential to balance the immediate benefits with these potential drawbacks and consider if other lead generation strategies might offer a better return on investment in the long run.
That’s a complicated question.
Zillow - it's not perfect, but it can still be a valuable tool in your arsenal. I've seen agents use all sorts of platforms to connect with potential clients, and Zillow often finds its way into the mix.
If you're using Zillow, you better make it count. Here's how you can create a profile that really pops and sets you apart from the competition in your area.
1. Emphasize Your Local Market Expertise
Show off your deep knowledge of the local real estate scene. Share some juicy insights, trends, and updates in your profile.
Prove how your expertise can help buyers and sellers move through the process more smoothly.
Believe me, once you establish yourself as the go-to expert in your market, you'll attract leads who are looking for that special touch.
2. Showcase Positive Reviews and Testimonials
Social proof is huge for building trust with potential clients. Make those glowing reviews and testimonials from your past clients stand out on your profile.
These endorsements are like gold - they show your value and the quality of your service.
Here's a tip: don't be shy about asking your satisfied clients to leave reviews on your Zillow profile. It'll boost your credibility big time.
3. Offer Valuable Resources and Information
Your profile is prime real estate for sharing helpful resources and information that educate and empower potential clients.
Think buyer and seller guides, mortgage calculators, or links to those informative blog posts on your website.
Providing valuable content shows you're committed to helping people make smart decisions. It establishes you as the trusted advisor they need.
4. Optimize Your Profile for Search
To make sure qualified leads can find your profile easily, improve it with relevant keywords and phrases. Include terms related to your local market, property specializations, and unique services.
Strategically incorporating these keywords will improve your profile's visibility in Zillow's search results.
Putting these strategies into action and constantly refining your Zillow profile will create a powerful lead generation tool that complements your overall marketing efforts.
Success in real estate lead generation often comes from diversifying your approach and using multiple platforms to effectively reach your target audience.
Are you wondering exactly what Zillow Premier Agent will cost you?
I tell agents daily that pricing varies widely, and understanding these variations helps you make smarter decisions about your marketing investments.
Market-Dependent Price Structure
Zillow Premier Agent advertising costs differ based on your location and market conditions.
Consider major metropolitan areas, where agents typically spend $1,000 monthly, compared to smaller markets where $300-$500 monthly achieves similar results.
Market competition and property values directly affect these costs.
Flex Program Structure
The Flex program represents a different approach to payment.
Rather than paying upfront, agents contribute a percentage after closing deals with platform-provided leads.
The commission percentage varies according to market conditions and property values.
Seller transactions generally include a 40% referral fee, though rates might change.
Understanding Your Investment
Lead prices fluctuate significantly.
Variables include competitive pressure and regional home values, with costs ranging from $20 to $60 per lead.
Agents can select specific ZIP codes and adjust budgets strategically.
High-competition areas might require increased spending to maintain visibility.
Return on Investment Analysis
Success measurement requires careful tracking of results.
Some agents report excellent conversion rates while others find costs excessive, particularly in competitive markets with premium lead prices.
Regular analysis of lead quality, conversion percentages, and total expenses helps determine whether your investment meets business goals.This overview breaks down Zillow Premier Agent costs, including standard pricing and Flex program options.
Careful consideration of these elements helps agents determine how this platform fits their lead generation strategy.
Success with Zillow Premier Agent depends on understanding lead types and implementing effective conversion methods. Here's what makes the difference between struggling and thriving with these leads.
Lead Quality Assessment
Zillow Premier Agent generates several lead categories:
Direct contacts who choose you specifically
Platform connections ready for agent engagement
Prospects requiring nurturing before transaction readiness
Each category demands specific handling strategies.
Quick, Personal Response Strategies
Response speed dramatically affects engagement success.
Contact attempts should happen minutes after receiving lead information.
The Premier Agent app enables immediate notifications for faster contact.
Personalization matters greatly.Reference specific properties or areas of interest during initial contact.
This shows attention to detail and builds stronger connections.
For example, discussing neighborhood characteristics demonstrates local market knowledge.
CRM Implementation
Organization determines lead management success.
Zillow's CRM features enable:
Interaction tracking
Follow-up scheduling
Communication history maintenance
Detailed contact records support consistent, professional interactions.
Value Delivery and Relationship Development
Market insights and property recommendations demonstrate expertise while helping leads make informed choices.
This approach establishes trust and credibility.
Long-term leads benefit from consistent communication focused on relevant information.
Market updates and targeted property suggestions maintain engagement until transaction readiness develops.
Understanding lead categories and applying these strategies increases success rates with Zillow Premier Agent.
Consistent value delivery and appropriate responses for each lead type create satisfied clients and referral opportunities.
Optimizing Lead Response Systems
Your systems make or break lead conversion potential.
The Premier Agent app provides real-time notifications - but what happens next matters most.
Setting up automated text responses confirms receipt while you prepare personal contact.
Phone calls within five minutes show responsiveness and capture attention during peak interest moments.
Territory Management Strategies
ZIP code selection requires strategic thinking.
Rather than spreading resources thin, successful agents concentrate on areas matching their expertise.
Analyzing past transaction data reveals patterns in conversion rates and commission values, guiding territory choices.The platform allows precise targeting within your selected areas.
This means you control exactly where your advertising appears, maximizing visibility among your ideal client demographic.
Monitoring performance metrics for each ZIP code enables continuous optimization of territory coverage.
Cost-Benefit Analysis Methods
Tracking expenses against results requires systematic documentation.
Create spreadsheets recording:
Monthly advertising spend per ZIP code
Number of leads generated
Contact-to-appointment ratios
Closing percentages
Commission amounts
This data reveals true ROI, helping identify which areas deserve increased investment and which need strategy adjustments.
Lead Nurturing Programs
Different lead types require distinct communication approaches.
Direct contacts often seek immediate assistance - they clicked your profile specifically and expect expert response.
Platform connections might need more information before committing to representation.
Nurture leads benefit from steady, valuable market updates maintaining connection until ready for action.
Building Long-Term Value
Creating sustainable success through Zillow Premier Agent means thinking beyond immediate transactions.
Each lead represents potential future business and referrals.
Regular market updates, property alerts, and neighborhood news maintain relationships long after initial contact.
Performance Analytics
Monthly performance reviews reveal opportunities for improvement.
Analyzing metrics helps identify:
Most responsive lead sources
Highest converting territories
Most effective contact methods
Optimal response times
Best performing price points
These insights guide strategic adjustments maximizing platform effectiveness.
Technology Integration
Connecting Zillow's systems with your existing tools streamlines operations.
The CRM interfaces with many popular real estate platforms, enabling seamless data flow and automated follow-up sequences.
This integration reduces manual tasks while maintaining consistent client communication.
Client Communication Standards
Establishing clear communication protocols ensures consistent service delivery.
Standard response templates save time while maintaining professionalism.
Personalizing these templates with specific property details and market insights demonstrates attention and expertise.
Database Management Principles
Maintaining accurate contact records supports future marketing efforts.
Regular database cleaning removes outdated information while identifying opportunities for reconnection.
This maintenance ensures marketing reaches interested parties and supports referral generation.
Market Positioning Strategy
Your Zillow Premier Agent profile represents your business to potential clients.
Professional photos, detailed market knowledge, and client testimonials build credibility.
Regular profile updates reflecting current market conditions and recent successes maintain relevance.
This comprehensive approach maximizes Zillow Premier Agent effectiveness through systematic implementation and continuous refinement of proven strategies.
Final Thoughts
Despite its shortcomings, Zillow remains a significant player in real estate lead generation. Its expansive network and user-friendly interface provide real estate professionals with unparalleled opportunities to engage with potential clients.
But jumping headfirst into using Zillow for lead generation without careful consideration of how its benefits and challenges can impact your bottom line is ill-advised.
Assessing the potential long-term return on investment and considering alternative lead generation strategies that might better suit your needs is crucial.
Our honest opinion?
The real estate world is as diverse as the properties on sale. No magic formula or universal solution exists. Success hinges on identifying a combination of strategies that align with your specific business needs.
Whether you opt for Zillow or chart a new path, the objective remains consistent: engage with potential clients, nurture relationships, and close deals.Interested in becoming a Zillow Premier Agent? Here’s a great video to show you more …