"Way back in 2014, I wrote an article on Inman about the Zillow/Trulia merger, where I said, Run for your lives godZulia is coming muah! From there, I shared my four-point wishlist of what could keep Zillow from becoming GodZillow and holding a monopoly that would indeed mimic the likes of Godzilla, whose 1954 tagline included, incredible, unstoppable titan of terror!"
"A key premise of the book, and Econ 101, is that the world goes around based on financial incentives meaning changes in costs or benefits influence our choices and actions. In short, we work based on our pay. More specifically, Freakonomics concluded that a real estate agent's financial incentives, which are often percentage-based and not a flat fee, are often misaligned with their client's best interest, leading agents to sell homes for less than their potential and prioritize quick sales over maximizing client profit."
Zillow grew from a 2014 merger concern to a dominant platform with 2.4 billion visits in Q1, facing lawsuits alleging ill-gotten gains. Simultaneously, agents, brokers, and the National Association of Realtors face accusations of extracting improper benefits. Economic incentives drive behavior, as changes in costs or benefits shape choices; commission structures that are percentage-based rather than flat fees can misalign agent incentives with client interests. Evidence from Freakonomics suggests agents may prioritize faster sales or accept lower sale prices to secure commission, contrasting how agents sell their own homes. Consumer protections like fair housing and lending can conflict with pure profit maximization.
Read at www.housingwire.com
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