What is Zillow Your Complete Guide to How it Works

What Is Zillow? A Comprehensive Guide to How It Works

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If you’ve ever searched for a home online, you’ve almost certainly used Zillow. Since its launch in 2006, Zillow has become a household name, transforming from a simple real estate database into a comprehensive "housing super app." For millions, the platform is the first step—and often the central hub—for their entire home journey, whether they’re buying, selling, or renting. But with so many features and services, you might be wondering, what is Zillow exactly, and how does Zillow work?

This guide breaks down everything you need to know about the most visited real estate website in the United States. We’ll explore its famous Zestimate®, its services for buyers, sellers, and agents, and how it all comes together to create a seamless, end-to-end transaction experience. This is your complete answer to what is Zillow and how does it work.

Table of Contents

What Is Zillow? The Big Picture

At its core, Zillow is a real estate marketplace designed to empower people with information and connect them with the resources they need to find a home. It’s more than just a property listing site; it’s an ecosystem of products and services that aims to simplify the fragmented and often complex process of a real estate transaction. In fact, Google Trends data shows that the term "Zillow" is now searched more often than "real estate," highlighting its dominance in the industry.

The company behind the platform is Zillow Group, Inc., which operates a portfolio of the largest and most vibrant real estate and home-related brands on the web. What does Zillow do? It provides a vast database of over 123 million U.S. homes, including properties for sale, for rent, and those not currently on the market. It also offers a suite of digital tools and connects users with local professionals to guide them through every step of their journey.

So, who is Zillow? It’s a technology company that has fundamentally changed the real estate landscape by making data transparent and accessible to everyone.

How Does Zillow Work for Different Users?

Zillow is designed to serve everyone involved in the real estate process, from the first-time renter to the seasoned real estate agent. Understanding how Zillow works depends on who is using it.

How Does Zillow Work for Buyers?

For home shoppers, Zillow is a powerful research and discovery tool. Users can search for homes using a wide range of filters, explore neighborhoods, and get a feel for the market. Here’s a look at the zillow services available to buyers:

  • Advanced Search: The Zillow search engine allows users to filter properties by price, size, home type, location, and specific features. You can even draw custom search boundaries on a map.
  • Tech-Forward Shopping Tools: The Zillow app and website offer high-tech tools like 3D Home® tours and immersive floor plans, allowing buyers to virtually walk through a home. Co-shopping features also let you share and discuss favorite listings with a partner or agent.
  • Financial Tools: Zillow provides tools to help buyers understand their budget. The "BuyAbility" tool and various affordability calculators help you determine what you can realistically afford before you start your search.
  • Agent Connection: When a buyer is ready to take the next step, they can easily connect with a local real estate professional directly through a listing. Zillow works to match you with an agent who can provide tailored services and advocate on your behalf.

How Does Zillow Work for Sellers?

Sellers can leverage Zillow’s massive audience to get maximum exposure for their property. The platform offers tools to help homeowners understand their home’s value and market it effectively. Key features for sellers include:

  • Marketing Your Home: Sellers can list their home and use tools like Zillow Showcase™ to create premium listings with high-resolution photography and interactive tours that capture buyer attention.
  • Tracking Performance: Homeowners can access an owner dashboard to see stats on how many views their listing is getting and other valuable performance metrics.
  • Understanding Value: The Zestimate (more on that below) gives sellers a starting point for pricing their home, though it should always be supplemented by a professional comparative market analysis (CMA) from an agent.

How Does Zillow Work for Renters and Landlords?

Zillow is also the #1 most-visited rentals network in the U.S. It offers a comprehensive suite of tools for both renters and landlords through Zillow Rental Manager.

  • For Renters: Renters can search a vast inventory of apartments and houses. They can also submit a single online application and screening report to multiple properties for a flat fee, saving time and money. One of the unique zillow perks is the ability to have on-time rent payments reported to credit bureaus, helping renters build their credit history.
  • For Landlords: Zillow provides an all-in-one platform to manage the entire rental lifecycle. Landlords can post listings, screen tenants with credit and background checks, create and digitally sign leases, and collect rent payments online.

The Zestimate® Explained: Zillow Home Values

Perhaps Zillow’s most famous—and sometimes controversial—feature is the Zestimate. The term has become so ubiquitous that many people use it as a verb when asking, "what’s my house worth zillow?"

The Zillow Zestimate is a proprietary, computer-generated home valuation model. It is an estimated market value, not an official appraisal. The zestimate meaning is simply Zillow’s best guess of a home’s worth based on available data.

So, how does Zillow calculate home values? The algorithm uses a sophisticated neural network model that analyzes hundreds of data points for over 116 million homes. The calculation for the Zillow estimate incorporates:

  • Public and MLS Data: Information from county and tax assessor records, as well as direct feeds from hundreds of Multiple Listing Services (MLSs).
  • Home Characteristics: Details like square footage, number of bedrooms and bathrooms, location, and lot size.
  • Market Trends: On-market data such as the listing price, description, days on market, and comparable home sales in the area. It also factors in seasonal changes in demand.
  • User-Submitted Data: Homeowners can update facts about their home, which can influence the Zestimate’s accuracy.

A common question is, is Zillow accurate? The accuracy depends heavily on the amount of available data in a specific area. Zillow reports a nationwide median error rate of 1.94% for on-market homes and 7.06% for off-market homes. The "Estimated Sale Range" provided with each Zestimate offers context, showing a predicted range where the final sale price might fall. The wider the range, the more uncertain the Zestimate. This is often why zillow estimates are wrong or seem off—they are data-driven estimates, not in-person appraisals. What does zestimate mean in practice? It’s a starting point for a conversation about value, best used alongside the expertise of a real estate agent.

Key Zillow Services and Programs

Beyond property listings and the Zestimate, Zillow has developed several core services that cater to different needs within the real estate market.

Zillow Premier Agent

The Zillow Premier Agent program is the company’s primary advertising platform for real estate agents. What is Zillow Premier Agent? It’s a service that connects agents with active home buyers and sellers on the Zillow network. How does Zillow Premier Agent work? Agents pay to advertise in specific ZIP codes, and when a user on Zillow or Trulia requests to speak with an agent, Zillow connects them with a Premier Agent partner.

These connections can be live phone transfers, tour requests, or nurtured leads delivered to the agent’s inbox. The zillow premier agent cost varies by market, home values, and the level of competition among agents in a specific ZIP code.

Zillow Home Loans

To further streamline the transaction process, Zillow offers mortgage services through its affiliate lender, Zillow Home Loans. This service allows buyers to get pre-approved and secure financing for their home purchase directly within the Zillow ecosystem, creating a more integrated buying experience.

Zillow Offers (iBuyer Program)

In the past, Zillow operated an iBuyer service called Zillow Offers. What is an iBuyer program? An iBuyer (or "instant buyer") is a company that uses technology to make an instant cash offer on a home. How does Zillow Offers work? Homeowners could submit their property details and receive a cash offer from Zillow, which would then buy the home, make minor repairs, and resell it on the open market.

What is Zillow Offers today? Zillow announced in late 2021 that it was winding down its Zillow Offers operation. The company has since shifted its focus back to its core business of connecting buyers, sellers, and agents through its technology platform.

How Does Zillow Make Money?

With all of its free tools, many users wonder, how does Zillow make money? The answer is that while Zillow is free for consumers to use, it generates revenue primarily through advertising and business services sold to real estate professionals.

The main revenue streams for how Zillow makes money are:

  1. Premier Agent Program: This is the largest source of revenue. Real estate agents pay for advertising placement and lead generation in specific ZIP codes.
  2. Rentals Advertising: Landlords and property managers pay for advertising and access to premium tools within Zillow Rental Manager.
  3. Mortgage Services: Zillow earns money through its mortgage division, Zillow Home Loans, by originating and selling loans.
  4. Other Advertising: This includes advertising sold to new construction home builders, brand advertisers, and other industry professionals.

So, is Zillow free? Yes, for the general public looking to browse listings, use calculators, or get a Zestimate, there is no charge. The costs are borne by the professionals who use the platform to grow their businesses.

Zillow’s Data: Where It Comes From

The power of Zillow lies in its massive and constantly updated database. But how does Zillow get its data? The platform aggregates information from a wide variety of sources to provide a comprehensive picture of each property.

Where does Zillow get its data from?

  • Public Records: A significant amount of data, such as tax assessments, property characteristics, and sales history, comes from public county records.
  • Multiple Listing Services (MLS): Zillow has agreements with hundreds of MLSs across the country to receive direct feeds of active listings. This is a crucial source for up-to-date information on homes for sale.
  • Brokers and Agents: Many real estate brokerages and agents provide their listings directly to Zillow.
  • Homeowners and Landlords: Users can create accounts, claim their homes, and update property details like remodels, new features, or incorrect information. Landlords also post their rental listings directly on the platform.

This leads to a common question: is Zillow an MLS? No, Zillow is not an MLS. An MLS is a private database created and used by real estate professionals to share information about properties. Zillow is a consumer-facing advertising portal that receives data from many different MLSs. While its database is vast, the question of does Zillow have all listings depends on its agreements with local MLSs and brokerages. In most major markets, its coverage is very comprehensive.

The Zillow Group Ecosystem: Brands and Competitors

To understand Zillow completely, it’s important to know about its parent company, Zillow Group. Zillow Group owns a portfolio of popular real estate brands that work together to capture a huge share of the online real estate audience.

What companies does Zillow own? The Zillow Group family of businesses includes:

  • Zillow: The flagship brand and most-visited real estate site.
  • Trulia: Another major real estate portal acquired by Zillow in 2015. So, does Zillow own Trulia? Yes, it does.
  • StreetEasy & Out East: Dominant real estate marketplaces in New York City and the Hamptons, respectively.
  • HotPads: A map-based rental search engine popular in urban areas.
  • dotloop: A transaction management software for real estate professionals.
  • ShowingTime+: A scheduling and management platform for home tours.

And who owns Zillow? Zillow, Inc. is a publicly traded company (NASDAQ: Z, ZG) founded in 2006 by Rich Barton and Lloyd Frink, who were also founders of Expedia. The company is headquartered in Seattle, Washington.

Of course, Zillow isn’t the only player in the game. Who are Zillow’s competitors? The main websites like Zillow include Realtor.com, operated by Move, Inc., and Redfin, which is a real estate brokerage that also operates a popular portal. There are also many smaller regional portals and brokerage websites that serve as sites like Zillow.

Frequently Asked Questions

What is Zillow used for?
What is Zillow used for is a broad question, but simply put, it is used for nearly every aspect of the home journey. People use it to search for homes to buy or rent, estimate their own home’s value, find a real estate agent or lender, and manage rental properties.

What is Zillow real estate?
What is Zillow real estate refers to the comprehensive digital marketplace Zillow provides for residential properties. It includes listings for sale, rent, and off-market homes, along with data, tools, and connections to professionals. Zillow, Inc. is also a licensed real estate brokerage in certain states to facilitate its services.

Is Zillow legit?
Yes, is Zillow legit is a common question, and the answer is that it is a legitimate, publicly traded technology company and the most popular online real estate platform in the U.S.

Is Zillow safe?
Generally, yes, is Zillow safe for browsing and connecting with verified professionals. However, like any online marketplace, users should be cautious. Zillow has measures to fight fraudulent listings but always recommends users verify information and never wire money or share sensitive personal data without meeting a landlord or agent in person.

What is the Zillow meaning?
The Zillow meaning comes from a combination of "zillions" (referring to the vast amount of data) and "pillow" (evoking the idea of home). The name was created to be memorable and unique.

Que es Zillow?
For Spanish speakers asking "que es zillow," the answer is: Zillow es el mercado inmobiliario en línea más grande de los Estados Unidos. Es una aplicación y un sitio web donde puedes buscar casas para comprar o alquilar, ver el valor estimado de tu casa (el "Zestimate") y conectar con agentes inmobiliarios y prestamistas. (In English: Zillow is the largest online real estate marketplace in the United States. It’s an app and website where you can search for homes to buy or rent, see your home’s estimated value (the "Zestimate"), and connect with real estate agents and lenders.)

What are Zillow keywords?
Zillow keywords are search terms people use to find information related to the platform. This includes phrases like "homes for sale in [city]," "Zestimate," "apartments for rent," and the company’s name itself. The brand has become so strong that "Zillow" is a primary keyword for real estate searches.

Where is Zillow located?
Where is Zillow located? The company headquarters is in Seattle, Washington.