Former Zillow Flex agent on who benefits from Premier agent class action lawsuit

In full transparency: My former Dayton, Ohio real estate team is one of Zillow’s top-performing Flex partners, closing a significant number of Flex deals every month. I understand how the program works — the good, the bad and the fine print.

When I read about the new class-action lawsuit accusing Zillow of misleading consumers through its Flex and Premier Agent programs, it made me think.

The lawsuit claims Zillow’s “Contact Agent” button gives buyers the impression they’re reaching the listing agent when they’re actually being connected to a buyer’s agent who either pays Zillow or shares a referral fee, often around 35% to 40% depending on the closing price.

As a team that’s received those leads, I can say buyers are almost always surprised when they realize we don’t represent the seller. However, they typically don’t ask — they generally just want clear, accurate information, quick access and someone they can trust.

“Flex agents aren’t trying to deceive anyone”

The Realtor Code of Ethics is something our team takes seriously. However, I do understand, Zillow’s interface and algorithms do the confusing work for us, whether that is intentional or not. I’m not an attorney, but it is safe to say buyers “assume” that if they’re on Zillow looking at a property, clicking “Contact Agent” means they’re “probably” contacting the person who listed the property. It’s not an unreasonable assumption.

From a business standpoint, Zillow’s model is designed to make Zillow money. From a transparency standpoint, again, I’m not an attorney, but it’s questionable.

The larger issue isn’t about Zillow

The larger issue; however, isn’t just about Zillow — it’s about how the buyer agency system is evolving after the NAR settlement. Questions about who pays buyer agents, how they’re compensated and how those relationships are disclosed were long overdue. In our business, transparency about commissions has always been a clear, upfront conversation before we started the process with our clients. Platforms like Zillow, with their scale and influence, can either help bring clarity or make things even worse.

If we want real estate to remain a profession built on trust, then transparency has to come before convenience or commission. Buyers deserve to know who represents whom and what financial incentives are behind that connection. That is just good, fair, honest business. That’s not being anti-Zillow — that’s being an advocate for the consumer and the overall reputation of the industry.

The Flex program has connected us with real, qualified buyers who might not have found us otherwise. It works. It’s helped our agents stay productive in a shifting housing market. We have to admit the tradeoff: we’ve allowed a tech company to come between us as Realtors and the client, to control the first impression and to significantly profit from that confusion. Is that “illegal?” That is for others to figure out.

I believe, ultimately, the best agents and brokerages will get back to owning their databases, building real relationships and generating business organically by focusing on care, integrity and the consumer’s best interest. Maybe this lawsuit will be the push the industry needs to start leading again instead of renting access to our own clients.

Jeff House is the Strategic Real Estate Advisor at Real Estate Bees, a veteran real estate coach and business professional with over 30-year experience in real estate. 
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: tracey@hwmedia.com.