Zillow vs. Google: The End Of The Real Estate Agent Era?
- Sarah Layton
- 2 days ago
- 8 min read
While you were sleeping the real estate industry quietly entered the post-listing era.
Listings still exist.
Agents still matter (for now).
Transactions still rely on human judgement.
However, the game has changed, and most agents are playing by the old rules (and losing).
The Quiet Invasion: How Google Just Slipped Inside The Transaction Without Asking Permission
In December 2025, Google partnered with CoStar to leverage their status as a broker and began testing a direct property display widget inside mobile search results in test markets. It might have seemed like boring “non” news if you don’t understand how big of a deal this really is and I promise this is a BIG EFFING DEAL.
Google has been laying in wait, allowing Zillow to overpay as they gobbled up market share and alienated agents along the way. Then last month they flipped the switch that poses the biggest threat to Zillow in it’s history by removing the need for buyers to click away from Google search results to explore properties. Google didn’t ask brokers how they felt about it. It didn’t negotiate with MLSs. It simply tested what happens when the world’s largest intent engine places itself directly between curiosity and commitment.
As one of the longest standing experts on SEO, traffic and content within the real estate industry, my phone started to ring with ambitious brokers looking for leverage and protection from Google if this destroys platforms like Zillow.
This is what I told them...
Now that Google controls the first expression of intent (“Request a Tour” button) the rest of the industry will be forced to reorganize itself around that button. My friends, this completely changes how you should be approaching content creation and marketing and it demands you pull out of paid Zillow Leads and put that money into organic content that will get you preferential treatment by Google and Gemini.
The market noticed immediately. Zillow’s market cap dropped more than 10% ($1.6 billion) in a single day because Zillow investors know they don’t sell listings; they sell access to intent and now that Google is taking over it might be checkmate for Zillow.
Zillow’s Counter Attack: Will Agents Survive It?
Obviously, with the stock tanking, Zillow has no choice but to fire back as hard as possible. This is an existential moment for them. Google didn’t poke the bear; it stepped on its throat with a stuffed Louis Vuitton.
But here’s the part most agents, brokers and armchair “experts” are missing:
Zillow can’t out-Google Google. So they’re doing the only thing left…They’re consolidating.
The shift from Zillow Premier Agent (pay-to-play advertising) to Zillow Flex (pay-on-close “partnerships”) isn’t about helping agents weather uncertainty. It’s about Zillow stabilizing revenue while transferring risk downstream to you.
If you are anything like most agents in the US, the last 18 months have been very difficult so I get the temptation to buy into a paid leads program with Big Box Retailers like Zillow to keep food on the table. And you know what? Flex really feels reasonable when things feel shaky.
You only pay if it closes. No wasted ad spend. No guessing. And that’s exactly why it works.
But if you are a current Zillow customer you probably noticed those referral fees that used to live around 25% have quietly crept to 35%, 40%, even 45% in some markets. Pair that with a broker split and suddenly you’re working for less than 40% of your own commission before taxes, marketing, staff, or sanity. I interviewed dozens of these agents who told me they are just so grateful to have the experience of doing transactions they’re willing to work for free in hopes referrals will come later.
Babe, that’s not a business model; That’s a margin chokehold.
Here’s the uncomfortable truth Zillow doesn’t want you thinking about: Flex only works if agents stay desperate enough to accept it.
And right now? Many are.
Inflation is up. Rates are beyond volatile and in serious jeopardy with Trump putting illegal pressure on the Fed to change the rates arbitrarily. Transactions are way down and trust in agents is at an all-time low. The average agent was lucky to close more than three deals last year. When survival is on the line, paying for leads creates the illusion of being in control even when it’s actually dependence.
This is where brokers need to stop reacting emotionally and start thinking structurally for the long term.
When I played volleyball, our club director taught us the difference between “playing to win” and “playing not to lose” and that’s exactly what is happening here. Agents buying into Zillow Flex and similar programs are sitting back on their heels “playing not to lose” when they should be on their toes “playing to win” with the strategies I’m about to share.
Is Your Real Estate CRM Being Used Against You?
If you don’t like to think too deeply about who owns the products and services you’re paying for I’m about to make you super uncomfortable.
When Zillow acquired Follow Up Boss, a lot of agents shrugged and said things like “Cool, better integrations.” “Nice, one less login.” “At least they understand agents.”
No, Sugarplum.
They understand systems and agents better than they understand themselves.
And you know what? They damn well better considering the ungodly amounts of data all of you have been paying them to create off of you, your listings, your business, your struggles, your clients. (Facts not judgement).
Did you catch it back In 2025, when Zillow quietly updated its policies to allow the merging of “mutual customer data”? That phrase sounds harmless until you actually think about what it means in practice played out over time.
If a lead exists inside your private CRM and has interacted with Zillow at any point, that data is no longer living in a sealed vault. Zillow doesn’t need to read your messages or spy on your conversations to extract its data-rich value.
They just need the data to find the patterns…
Who converts
How fast
Under what conditions
At what cost
With which scripts
In which markets
Once a platform like Zillow can see which agents perform best and which ones stall out, it can quietly work to replace them. Which is precisely what they have been working on for years. And if that makes you uneasy, good; that tells me your instincts are still working.
Are Agents Themselves Being Farmed By Zillow?
Let’s step out of conspiracy-theory land for a second and consider this…
Every vertically integrated industry does the same thing once it matures:
Aggregate supply
Standardize performance
Optimize margins
In this situation, Real estate agents are now the supply.
Flex agents are scored. Ranked. Repriced. Recycled.
If you drop out, someone else is waiting in line even hungrier and more desperate to pay any price they demand. You guys, I know brokers in Florida that are paying 6-figures per month on Zillow leads and they are happy to do it because they know it drives the price up so much their competition can’t afford a seat at the table and they aren’t the only ones doing this.
What do you think these behaviors do for platforms like Zillow?!
That’s not partnership; that’s labor and data farming.
And the most dangerous part? It doesn’t feel hostile. It feels like an opportunity to a hungry agent. It feels like momentum when you’ve been stuck in a slump. It feels like finally getting traction.
Until you do the math. Until you calculate your hourly rate. Until you realize your “successful” year left you resentful, exhausted, ashamed, or quietly panicked.
I’ve watched agents go through this emotional arc dozens of times. First, gratitude. Then comes the rationalizations. Then anger & fear. Then the brutal burnout. Finally, the late-night question no one wants to ask:
“How The F*** did I work this hard to end up with so little leverage, control over my business and income?”
Take my recent client Lynea Carver who boldly shares her story of doing exactly this when she tried to scale back in 2021. She bravely uses her voice to warn that volume and paid leads only lead to burnout faster in hopes other agents won’t fall victim to this cycle like she did. She was working consistent 100hr weeks and generated nearly $500K in revenue that year but her P&L was actually in the red $47K and her marriage was on life support because she was always working. On paper she was "successful" and it looked to everyone around her like she had it all.
She had “won”!
Inside, she was more isolated than ever and failing while surrounded by other people thriving.
Sadly, Lynea’s story is far from unique and it's going to mirror your own if you don’t take action based on this post.
What This Means For Brokers Right Now & Who Survives This
If you take nothing else from this post, take this: This is not a lead problem. It’s an ownership problem.
Google just made it painfully clear that the future of real estate marketing belongs to whoever controls first intent. Zillow knows it. CoStar knows it. And now brokers need to act like they know it too.
Because if you don’t own and control:
your traffic
your content
your data
your brand authority
Then you don’t actually own a business. You own a very vulnerable revenue stream that can be rerouted at any time.
Right now, most agents operate like tenants, not landowners when it comes to their marketing. They rent attention from portals, rent credibility from brands they don’t control, and rent consistency from platforms that are actively learning how to replace them.
That model worked when portals needed agents more than agents needed portals. That era is over.
That means your job as a broker is no longer:
recruiting agents
feeding them leads
splitting commissions
Your job now is actually to build intent gravity.
The brokerages that survive this next decade will look less like sales teams and more like:
media companies
local knowledge hubs
search-dominant brands
trust engines
Not louder.
Not spammy.
Smarter.
Why Organic Content Is No Longer A Luxury
For years, agents treated SEO and content like a hobby they kinda hate. Bland AF blogs that are just boring market updates. Random videos. Inconsistent or super spammy posting. No strategy.
That luxury is gone.
When Google controls the “Request a Tour” button, it doesn’t care who pays the most.
It cares who:
answers the question best
demonstrates expertise fastest
shows up consistently
aligns with its AI-driven trust signals
The elephant in the room here is that if you have been buying leads,your addiction to short-term gratification (spend money & get leads) is why you’re probably not going to commit to doing what you need to but I’m going to share it with you anyway.
First, fall in-love with playing the long game because the ROI is higher and the stress levels are SO much lower. Next, steal this high-ticket strategy I am sharing with all of my VIP clients right now…
Create 10 customer segments
Assemble lists of Top 10 FAQs asked by each segment
Create & post 100 YouTube Shorts answering those questions
Rinse & repeat
In case you didn’t know, Google’s Gemini is being fed primarily off the content and data within YouTube Shorts so this is actually the greatest opportunity in SEO to dominate organic Google search since 1997. Will you get a million leads from this tomorrow? Probably not, but that’s not the point. The point is that content will compound with time and by 2028 you will dominate your local market with streams of FREE leads coming from Google and Gemini. The thing is you have to be willing to play the long game and create as many videos for YouTube shorts as you humanly can over the next 12 months.
This is why dumping money into Zillow while ignoring organic visibility is now the equivalent of building a house on rented land during an eviction boom.
Paid leads will only continue to get more expensive. Organic leverage will always compound.
Choose wisely.

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