Zillow is facing yet another lawsuit. Filed on Friday in U.S. District Court in Seattle, the lawsuit alleges that the portal tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices. 

The suit was filed by Alucard Taylor, who purchased a home in Portland, Oregon, in 2022 using a Zillow-affiliated agent. According to the complaint, when Taylor clicked the “contact agent” button next to the listing he was interested in, he assumed he was contacting the listing agent, but instead he was routed to a Zillow-affiliated agent. 

Taylor is being represented by Steve W. Berman, a named partner at class action litigation firm Hagens Berman Sobol Shapiro LLP, the same firm that represented plaintiffs in the Moehrl commission lawsuit.

The suit claims that when a consumer clicks the “contact agent” button on a listing on Zillow, they are directed to a Zillow-affiliated agent and not the listing agent of the property. It says that consumers are then directed to sign Zillow’s Touring Agreement, which “promises the buyer that the agent’s services are ‘free,’ but this is deceptive and not true: if the sale goes through, the buyer’s agent still receives a commission.” 

“In addition, if the Zillow- affiliated agent is a ‘Flex’ agent, he or she has to pay Zillow up to 40% of the agent’s commission,” the filing states. “This cut of the commission paid to Zillow, for no services rendered related to the real estate sale, is never disclosed to the buyer or the seller.” 

The complaint argues that if buyers were directed to the listing agent instead of a Zillow affiliated agent, “they would be better positioned to negotiate a lower purchase price, because the seller would not have to pay commissions to the seller’s agent and the buyer’s agent.” 

“It also incentivizes Zillow Flex agents to prioritize receiving his/her full  commission at all costs, even if the buyer loses the bidding process. Since the Flex agents only effectively receive a 1% commission from the purchase of a home (after paying the Hidden Zillow fees and commissions to their firms), they have no practical flexibility in negotiating a lower commission,” the filing states.

“Sellers are stuck with paying 6% commission (or more) because the buyer Flex agent is receiving such a paltry sum in return, thereby increasing the purchase price of the home for the buyer. Zillow’s scheme has the intent and the effect of unlawfully maintaining high and inflexible commissions that drive up the prices that buyers must pay.“

According to the complaint, Zillow has furthered its “scheme” through its listing standards policy, which requires sellers to make their property available for display on Zillow within one business day of publicly advertising the property. 

“This policy effectively requires sellers and their agents to forgo using other initial methods to advertise the home sale. The effect of this policy is to inflate the unjustly earned profits Zillow receives from its deceptive conduct, as it continues to increase its dominance of the market,” the filing states. 

The complaint claims that, through these actions, Zillow has violated the Washington Consumer Protection Act, the Real Estate Settlement Procedures Act (RESPA) and has been unjustly enriched by allegedly profiting from hidden fees. 

The suit is seeking class-action status for all U.S. consumers who have purchased a property listed on Zillow and were represented by a Zillow-affiliated buyer’s agent. 

Taylor and his counsel are demanding a jury trial and are asking the court for treble damages, disgorgement of Zillow’s profits and an injunctive relief preventing Zillow from continuing the practices in question.

Zillow did not return HousingWire’s request for comment in time for publication.  

In mid-August, Hagens Berman initiated an investigation into real estate agent practices regarding home sale transactions. In a release, the firm claimed that its research had identified “allegedly deceptive practices” that it claims may have impacted consumers nationwide, violating their consumer rights and causing home sellers to overpay.

Melb auctions roar before AFL grand final

Melbourne sellers are rushing to beat the siren this weekend, with more than 1200 homes scheduled to go under the hammer before the city takes its annual AFL Grand Final breather.

PropTrack figures show 1212 auctions slated, about 10 per cent fewer than the same week last year.

Next week volumes fall sharply to 208, down 21 per cent year-on-year, as agents avoid the traditional long weekend lull.

Reservoir leads the charge with 25 auctions, followed by Glen Waverley (22), Craigieburn (21), Bentleigh East (18) and Mickleham (17).

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Melbourne sellers are rushing to beat the siren this weekend. Picture: Nicki Connolly

More than 1200 homes scheduled to go under the hammer before the city takes its annual AFL Grand Final breather. Picture: Michael Klein

PropTrack senior economist Eleanor Creagh said the surge in spring activity underlined how far the market had bounced back after a subdued 2024.

“When we measure buyer demand through enquiries per listing on realestate.com.au, the data is really clear, Melbourne is back,” Ms Creagh said.

“Almost 90 per cent of suburbs are seeing rising demand, confidence is returning, competition is intensifying, and momentum is building into spring.
“Lower interest rates have boosted borrowing power, reduced mortgage costs, and re-accelerated price growth.”

Prop Track senior economist Eleanor Creagh

Ms Creagh said the expansion of the federal First Home Guarantee from October would add fuel to the fire.

“Melbourne already will lead the country in the take-up of this scheme, and removing the income test will only supercharge that trend,” Ms Creagh said.

“With stock levels tight, more buyers competing for fewer homes inevitably pushes prices higher.”

Frame Finance director and principal broker Imogen Alexy said many investors were already moving before the scheme changes kick in.

“A lot of my clients are trying to secure properties now — particularly in that $700,000 to $950,000 price bracket — before first-home buyers flood in and create extra competition,” Ms Alexy said.

“There’s also a renewed sense of confidence. Buyers know Melbourne passed its trough some time ago, and while price growth is gradual, the trend is upward.”

Frame Finance director and principal broker Imogen Alexy.

Jellis Craig Richmond director Jodie McCarthy.

Jellis Craig Richmond director Jodie McCarthy said interest rate uncertainty had not slowed activity in her patch in the Melbourne’s inner east.

“Most buyers have accepted the ‘new normal.’ They’ve spoken with their banks, they know what they can borrow, and they’re ready to act,” Ms McCarthy said.

“Even if another cut doesn’t come immediately, the sentiment shift is powerful.

“Positive headlines around first-home buyer incentives and stamp duty reform don’t necessarily apply directly to this price range, but they lift confidence across the board. Buyers are tired of waiting and want to move forward.”

The latest REA Group Listings Report shows Melbourne’s new listings in August were down 7 per cent year-on-year, while total stock was 12 per cent lower.

Analysts say the shortage of homes for sale is magnifying auction competition and fuelling momentum as spring heats up.

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david.bonaddio@news.com.au

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Homeowners in one Aussie state may be forced to spend thousands of dollars on cat containment if new laws are passed next year.

Western Australia is in the process of amending the Cat Act 2011 to give local councils sweeping new powers to enforce cat containment across the state.

The new powers would cover a range of enforcement issues, including the ability to fine cat owners whose feline friends stray too far from home.

WA Local Government Minister Hannah Beazley said councils had been calling for changes to cat containment regulations for more than a decade.

“(The act) provides local governments with important tools to manage cats, including prohibiting them from specific public places, addressing nuisance behaviour, and enforcing sterilisation, microchipping and registration,” she said.

“If passed, the reforms will provide a framework for local laws which promote responsible cat ownership including cat containment — empowering individual councils to engage with their communities on these issues.”

The cat containment issue in WA was forced back into the spotlight after the City of Bayswater in Perth tried to introduce laws allowing council officers to fine owners whose cats were found too far from home.

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The move, however, was rejected by the WA parliament on the grounds such actions would go beyond the powers of the Cat Act 2011.

WA opposition local government spokeswoman Kirrilee Warr said the parliamentary rejection was the 27th time a local council had tried to take action against irresponsible cat owners and been denied by parliamentary procedure.

“This Government has continued to flip flop on local government matters, creating uncertainty instead of solutions,” Ms Warr said.

“The minister herself acknowledged at last year’s Local Government Conference that the Cat Act required amending, yet the government has delayed action for years and is only acting now as an attempt to save face following negotiations on supporting the disallowance.

“This is the 27th time a local government’s attempt to implement cat containment laws has been blocked. Councils still lack the tools they need. The law must be fixed so councils can act now, protect wildlife, and meet community expectations, not wait until 2026.”

WHAT DOES IT COST TO ACCOMMODATE YOUR CAT?

The cost to modify Australian houses to accommodate pet cats can vary from DIY netting at a couple of hundred dollars to large custom enclosures which could cost upwards of $4500.

Sydney woman Susie Hall said on Facebook she paid $2500 for an enclosure that was just 3m x 1.5m for her cat, which she considered reasonable.

“This included installation of the door and a tunnel to the catio. Super happy,” she said.

“I don’t have handy person skills but really needed an outdoor space for a cat moving into an apartment for the first time. It took a while for him to accept it and learn how to use the cat flap but he loves it now.

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“It alleviated my fear that he wouldn’t realise we were one floor up and leap over the balcony in pursuit of a bird.

“A fair price to pay for him to get some sun and me to have peace of mind.”

But another Australian woman didn’t have the same experience: “I was initially quoted $5600 for 8mx3m but got it reduced down to $4300 with less aluminium posts, less materials/cost,” a user responded.

“It took a day and a half. Labour was $264p/h for subcontractor. I was expecting to have to pay $4K.”

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WHY DOES CAT CONTAINMENT MATTER

A University of Sydney study claims each roaming pet cat kills an average of 186 reptiles, birds and mammals per year.

The 2020 report compiled the results of 66 different studies on pet cats to determine the impact domesticated felines have on Australia’s native environment.

The report’s data showed a death rate of 4440 to 8100 animals per square kilometre per year in areas inhabited by pet cats.

In Australia, 1.1 million pet cats are contained 24 hours a day by responsible pet owners but the remaining 2.7 million pet cats (71 per cent) are able to roam and hunt.

The study said cats had played a leading role in most of Australia’s 34 mammal extinctions since colonisation in 1788.

The post Aussie pet owners could be forced to upgrade homes appeared first on realestate.com.au.

This Mount Barker home was handcrafted with love and has been a dream come true for its builder, stonemason Frank Linke, who personally laid every stone of the home by hand – and it has one of the most impressive cubby houses we’ve ever seen.

Mr Linke sourced all of the stone locally 17 years ago, with the end result at 27 Yaktanga Way, Mount Barker a grand family entertainer and a property that has become something of a local landmark.

“Often people will say how the house is so well known,” Mr Linke, who is selling the home with his wife Alison, says.

Mr Linke learned his craft from his father Roland Linke, also a stonemason, who developed his skills in Germany.

“Dad built a lot of the stone houses in the Hills and in Hahndorf,” Mr Linke says.

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“We sourced all the bricks and stone locally. I used bluestone, sandstone and limestone on my house and the big feature fireplace has a lot of extra stone and details.”

The home sits on a spacious 3026sqm and has four bedrooms, three bathrooms, an open-plan kitchen, living and dining area; a rumpus room, a study/retreat, a turret-like balcony and a custom two-storey stone and brick cubby house.

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Mr Linke, his wife and their four children will leave the home with fond memories, with Mr Linke now looking to embark on a new project – a farm in the Adelaide Hills.

“I would like some old ruins to work on, to make some stone barns,” he says.

“I never sit still, I am not retired yet!”

Oh, and that cubby house I mentioned at the start?

Well take a look at this beauty!

The post Renowned stonemason Frank Linke’s home has mind-blowing backyard feature appeared first on realestate.com.au.

Australia’s migration intake has exploded to double pre-pandemic levels, sparking fresh warnings it is driving up house prices and rents, straining services and deepening the nation’s economic squeeze.

New figures released by the Australian Bureau of Statistics showed there were 110,062 new arrivals over the March quarter – the equivalent of 1223 people every single day and almost 500,000 per year.

Migration accounted for three-quarters of population growth, the ABS figures revealed.

Intake over the March quarter was double the pre-pandemic quarterly average of 55,036 recorded from March 2010 to March 2020.

Critics warn the intake is overwhelming housing supply, worsening rental shortages and fuelling record property prices, while also placing unsustainable pressure on infrastructure and public services.

The Institute of Public Affairs claimed the surge, green-lit by the Albanese Government, had destroyed the dream of home ownership and left mainstream Australians “poorer”.

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The think tank’s deputy executive director Daniel Wild said migration had dropped below earlier peak levels but remained well above historic patterns and pre-pandemic volumes.

“The elevated level of migration is no longer a post-pandemic catch up,” he said.

“It’s the new normal under the Albanese government. It is something that Australia simply cannot afford – with housing, infrastructure, and services unable to keep up.”

Housing experts said the primary impact of migration on the housing market was on rents, but there was overflow into the buying market as well.

Latest SQM Research data indicated vacancy rates in most cities were near record lows of under one per cent, indicating a severe shortage of available homes.

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These warnings have come as HIA figures showed the country has been falling behind in critical targets set out in the National Housing Accord plan to build 1.2 million new homes by 2030.

HIA managing director Jocelyn Martin said in July, on the anniversary of the National Housing Accord, that the pace of building needed to speed up to meet targets and accommodate population growth.

“There were only 168,050 dwelling commencements nationally in the 2024 calendar year. If we continue at this pace, Australia will fall well short of the 1.2 million homes target.

“HIA’s forecast of dwelling commencements, or gross new housing supply, shows only around 986,000 homes will be delivered to market over the five years to 2028/29.”

Ms Martin added that building industry problems have exacerbated the challenges.

“Builders are still facing the same barriers that have been holding the industry back for years,” she said.

“Land supply remains constrained, planning systems are slow and complex, and the cost of delivering a new home continues to rise because of charges, taxes and red tape. Interest rates, skill shortages and material costs only add to these pressures.

The ABS data confirms net overseas migration is running at twice the pre-Covid quarterly average of 55,000, raising fears that the government’s promises to rein in population growth have failed.

Mr Wild said the government’s “deliberate” migration strategy had contributed to a prolonged per-capita recession and urged a “harder and faster” cut to the intake.

“Australia is a tolerant and welcoming country, and migration has and will always be a part of our national story. But Australia’s migration program needs to be properly planned for, sustainable, and have the support of the community,” Mr Wild said.

Migration has emerged as a hot-button issue in recent months.

Thousands of protesters from across the political spectrum converged on Australia’s capital cities and regional centres last Saturday, marching through the streets and facing off with police.

Opposing groups came face-to-face in multiple cities, as rallies against racism and mass migration unfolded.

The migration boom comes as first-home buyers face the toughest affordability crisis in a generation, with property prices in Sydney, Brisbane and Melbourne climbing back near record highs.

These price increases – fuelled by multiple forces – have often eclipsed the savings buyers would have got from recent cuts in interest rates.

“Mainstream Australians are paying the price,” Mr Wild said.

Abul Rizvi, former deputy secretary in the immigration department and ANU professor Alan Gamlen told media the most relevant figure for assessing the impact on housing and services was net overseas migration.

Federal government figures showed net overseas migration for over 2024 was 341,000 people, down 37 per cent from a peak of 538,000 in 2022/23.

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