We Put Popular Real Estate Advice On Trial

Open houses, staging, new construction, and Zillow have all become lightning-rod topics, and we’re done pretending the answers are simple. Recording from a comedy club, we bring the same energy we see in the market: a little chaotic, occasionally funny, and very real about what actually moves a home and what just creates noise.

We go head-to-head on the claim that open houses don’t sell homes. One of us pushes back hard, with real examples of buyers who walk in “just to look” and end up writing an offer. From there we get honest about home staging: why great staging can raise perceived value and help a buyer feel the lifestyle, and why virtual staging often backfires by warping scale, hiding the true floor plan, and making a listing feel fake.

Then we tackle new construction versus older homes, including build quality, pre-COVID versus post-COVID materials, and why a solid outdated house can be a better long-term play than a shiny box with shortcuts. We also unpack how Zillow and other home search apps can make buyers worse at buying: inaccurate data, Zestimate confusion, decision fatigue, and the “click tour” moment that drops you into a lead funnel buyers don’t see coming.

We close with a rapid-fire pricing game: strategic pricing versus sabotage pricing, and what we watch for on day one. If any of these topics have ever stressed you out, hit play, then subscribe, share with a friend who’s house hunting, and leave a review. Which hot take do you agree with, and which one do you want to fight us on?

https://housenextdoortx.com

Transcript

Comedy Club Cold Open

SPEAKER_00 0:00

Welcome back to the house next door.

SPEAKER_01 0:02

Where real estate meets reality.

SPEAKER_00 0:03

I'm Anthony Harris.

SPEAKER_01 0:05

And I'm Barbara Julio. And here we are in our studio again. And we're okay, we're in a comedy club, so let's talk about that.

SPEAKER_00 0:12

So are we just going to keep doing jokes every episode? Is that a new thing? Because we're in a comedy club. And they have to be cheesy.

SPEAKER_01 0:19

Yeah, I guess so. I don't think the comedians who come here are cheesy. No, but we are. No, we are. But I feel like it's an homage to them letting us use their space because I don't think there's any other realtors that are doing a podcast. So it's all comedians. So we have to give like a little shout out to the comedians with cheesy shows.

SPEAKER_00 0:37

Or they'll just roll their eyes in the other way.

SPEAKER_01 0:40

Yeah, okay. Yeah.

SPEAKER_00 0:42

So are you ready?

SPEAKER_01 0:42

Yeah, I'm ready. This is our stand-up moment, folks. Hang tight. There we go. Me, me, me, me, me, me, me, me, me.

SPEAKER_00 0:50

These poor people in their car. Why did the buyer bring a flashlight to the showing?

SPEAKER_01 0:57

Um, you actually told me the answer and I forgot.

SPEAKER_00 1:01

Because in this market, they need to look for hidden value. Uh uh. That's good.

SPEAKER_01 1:08

That is so good. So yeah, but this is I'm really excited to be in here. It's called the Creek in the Cave. If anybody I've been here before.

SPEAKER_00 1:16

I haven't. We need to come to a comedy show.

SPEAKER_01 1:18

I have been here before. My friends um who are in the comedy, like they go to all the things and they know all the comedians. I don't even know. And and like I guess his name, it's Theo Vaughn. He's pretty like famous. Did I say that right? Theo Vaughn. Yeah. Um, so he just dropped in, you know, while somebody else was doing a set that I can't remember their name. But um and everybody flipped out. Everyone was like, oh my gosh, oh my god. I'm like, what? What's happening? I have no idea. I'm like, and I I he was a big name and I just didn't know who he was. And um, so he was funny. He was so funny. I was like, oh, that's really cool. But it was I didn't fully appreciate it as much as the people around me because I just didn't know.

SPEAKER_02 2:03

Yeah.

SPEAKER_01 2:04

Um, and then I went home and I told my son, I said, I think his name was Theo Vani's mom. So, like, how did you not know who that was? And I'm like, Because I only watch Bravo and only listen to people. So there is my pop culture.

SPEAKER_00 2:23

Million dollar listing.

SPEAKER_01 2:26

Had like one of the housewives gone up on that stage, I would have been like, oh, oh my god, oh my gosh. And then everybody else would have been like, Oh, who's that?

SPEAKER_00 2:34

And you'd be like, it's it's whoever. I was trying to come up with one of their names. I don't know. Myra, Myra, is that the one on the traders from Dubai?

SPEAKER_01 2:43

But that's not really right reality TV. I'm talking the Housewives franchise, Summer House, um, uh The Valley, um Ladies of London, The New Rain. Um, let's see what else do we have. Um, Southern Charm. Oh. So yeah. I'm in it.

SPEAKER_00 3:02

You told me I need to watch Southern Charm.

SPEAKER_01 3:04

No, you need to watch The Ladies of London, the New Rain. Okay. And I I like I am, I follow them. Like, I follow the gossip on social media. Like I'm a junkie for reality. For reality TV. It's the it's how I unwind. It's like, so I I read, and you know what the books I read, I try to read um, you know, kind of informative books, and then I'll have like a little fun, cozy romance novel that I read. So I try to like balance being smart with just rotting my brain out. And so Bravo is like me rotting my brain out. Like I have a hard day, I'll pour a glass of wine, and I'm like, oh, somehow this drama is soothing to me.

SPEAKER_00 3:43

Them screaming at each other and throwing their champagne just brings you joy. It's bomb to my soul. Because you can say it could be worse.

SPEAKER_01 3:50

It could be worse.

SPEAKER_00 3:51

And my husband, he'll be like, living in a multimillion dollar mansion.

SPEAKER_01 3:54

I know he's like, how can you even watch this? It makes my skin crawl. It's so irritating. And I'm like, oh, it's like so relaxing.

unknown 4:02

It's so relaxed.

SPEAKER_00 4:03

So here's the problem.

SPEAKER_01 4:06

But I think it makes me more prone to fight with him, like about drama stuff, because sometimes I'm like, ooh, I want a little drama. Well, you looked at me weird. You still love your ex-wife, right?

SPEAKER_00 4:16

Dun dun dun dun dun dun. Oh, so I've I've attempted to learn the piano.

SPEAKER_01 4:24

Right now? Like you're learning now?

SPEAKER_00 4:26

Well, last week I last week I was at my friend's house and they have a little piano. Oh, okay. And so there's this app that you can get, and it um it gives you like where you play with it, and it'll tell you if you're right or wrong on the notes. So I can go learn dun dun dun dun.

SPEAKER_01 4:42

So are you honestly? I know we gotta get to our episode, but I need to know this. Are you gonna learn how to play the piano? I think you should.

SPEAKER_00 4:47

We'll find out. Stay tuned. Do you know what I want to learn how to play? Beethoven. No, he's dead.

SPEAKER_01 4:53

No, I want to learn how to play the Renaissance uh recorder.

SPEAKER_00 4:56

Oh like it's a real thing.

SPEAKER_01 4:58

I want to sit on my patio.

SPEAKER_00 5:01

You're poor neighbors that are 10 acres away.

SPEAKER_01 5:03

I live on five acres, and we've got all the deer and turkey. You would scare them away. They'd commit suicide. Oh, and I'm gonna sit there with my Renaissance recorder and be like, I just like be in that moment. I think that's cool. And then supportive.

SPEAKER_00 5:21

Where are you gonna find this recorder?

SPEAKER_01 5:23

You can get them on my Amazon.

SPEAKER_00 5:24

Oh, well, you get your your your corn on Amazon.

SPEAKER_01 5:27

Yeah, my husband is not supportive of this. He's like, great.

SPEAKER_00 5:31

When he gets mad at you, you just play it.

SPEAKER_01 5:34

Okay, let's get to our episode, shall we?

SPEAKER_00 5:36

I guess.

Real Estate Hot Takes Setup

SPEAKER_01 5:37

You know, although I think the Renaissance recorder is more fun. Um, okay, this is a good episode because uh it's kind of about we're making some bold statements and then we're gonna talk about whether or not you know, like this. Okay, so real estate hot takes. Agree with me or fight me on this.

SPEAKER_00 5:55

Fight. I always say violence is the answer.

SPEAKER_01 5:59

He's so violent, our young Anthony. That's why I can be my worst self with you.

SPEAKER_00 6:04

We embrace it.

SPEAKER_01 6:05

So I'm gonna just kind of drop some bold statements. We may or may not agree with them, and our listeners may or may not agree with them, but let's just talk about them. Yeah. And so, okay, good. There are things that yeah, this is our bravo. This is our bravo episode. Okay.

Do Open Houses Really Work

SPEAKER_01 6:21

First hot take open houses don't sell homes, they just generate leads for agents. Okay.

SPEAKER_00 6:27

I disagree.

SPEAKER_01 6:28

You disagree? Tell me why.

SPEAKER_00 6:30

I don't bite me on this. I will. Okay. I don't love them. First of all.

SPEAKER_01 6:34

Well, you didn't have to say it that strongly.

SPEAKER_00 6:37

You said bold statements.

SPEAKER_01 6:39

This is true. This is true.

SPEAKER_00 6:40

But I think that the more people that come through your house, the more likely of them talking about it, uh taking pictures of it, yeah, sharing it, that might hit that end buyer.

unknown 6:51

Okay.

SPEAKER_01 6:52

So just more eyes on it.

SPEAKER_00 6:53

I don't think it really sells the house itself, but it gets publicity for the house.

SPEAKER_01 6:58

Yeah. So don't you think that serious agents or serious buyers already have agents and they're just gonna come see it with their agent?

SPEAKER_00 7:06

Yes. But I think it's those homes that they don't realize that they'll like.

SPEAKER_01 7:12

Yeah.

SPEAKER_00 7:13

So yeah. You know how many people are bored on a Sunday and go on Zillow and figure out what open houses are and just go to them?

SPEAKER_01 7:21

Absolutely.

SPEAKER_00 7:22

Yep.

SPEAKER_01 7:23

So I'm acting like I don't like open houses, but they sell houses. They absolutely sell houses. It's sold. Um, most of my listings have sold from an open house. And in fact, my last listing that uh just closed was sold from the open house. And the buyers were coming through. It was a Sunday, they didn't want to bother their agent, and um they weren't even really ready to buy. They were they knew they were gonna buy and they were gonna buy in a couple of months, but they were like, let's just go see. They fell in love, they figured out that they didn't need to buy to they didn't need to sell to buy, and they put an offer in. And had I not had that open house for that day, they would not have come out.

SPEAKER_00 8:03

This is a little selfish of me, but I I want to be the one that sells the house, like because I can talk a whole lot better about my listing than a buyer's agent.

SPEAKER_01 8:12

Yeah, we're selling the listing because that is true. When you have somebody host your own open house for you, like you're the listing agent, but you have you know agents that'll say, Hey, I'll host the open house for you, I'll give you feedback, I'll really try to sell the house for you. What they're really doing is trying to generate leads, they're trying to get other people in the neighborhood who may want to list their house. Unrepresented buyers who may not want to buy this house but will want to buy another house. Or buy that house. So, or maybe buy that house, but they're not selling the house as hard as you're gonna sell it. You're standing in there and you're you work for you, you work for your sellers.

SPEAKER_00 8:45

And I like to be able to know the feedback, especially the first day on market, is I'm getting to hear from real buyers what their thoughts are.

SPEAKER_01 8:52

Absolutely. And you can see it on their faces too, how they're reacting like to the smells and to the rooms and all that. So I think I don't love them. I don't love them because sometimes you get there and you know nobody shows up. But you get more.

SPEAKER_00 9:06

I still love the one that we did together. Yeah, that was fun.

SPEAKER_01 9:08

Nobody showed up, but we had so much fun.

SPEAKER_00 9:11

It was the derby, it was the horse derby.

SPEAKER_01 9:13

It was like this weekend, it's the anniversary of the open house we did together.

SPEAKER_00 9:18

And the dog ran out the front door.

SPEAKER_01 9:21

That is the last open house we did together, period.

SPEAKER_00 9:24

Um, and we had champagne.

SPEAKER_01 9:26

We had champagne and we were on camera. My client my client was watching us the whole time.

SPEAKER_00 9:29

Comedy. Um we're comedians. Bravo! The camera follows us to go.

SPEAKER_01 9:34

Yeah, that was our reality show. Kate Katie watching us on her camera.

SPEAKER_00 9:38

Katie's a good Bravo name.

SPEAKER_01 9:40

She is. So, um, so I do I do feel like they are very effective. I don't love them. I do like them more now that we're not really allowed to put open house signs out because I hate it. He hated that.

SPEAKER_00 9:52

She it made her whole life.

SPEAKER_01 9:53

Oh, I know, because I hate signs. I put them in, I'm all sweaty, I'm all upset.

SPEAKER_00 9:57

You're running late to the house. There's someone waiting at the front door as you jingle your keys.

SPEAKER_01 10:01

And when you're trying to put signs in the ground when it's 105 degrees and it hasn't rained in 48 million years.

SPEAKER_00 10:08

And you're taking your sledgehammer.

SPEAKER_01 10:10

Yes, no. So I was really, really happy when that whole like and people still put signs out, and it's no big deal, but I lean hard into it. I tell my sellers, I'm like, no, it's illegal, and we're gonna follow the rules. Yeah, and ethical realtors truthfully, it has not affected my traffic at all because everybody finds it on online. So I've had wonderful open houses without having to put those horrible signs up. And so, do you think there's a difference in a luxury home open house versus having them for entry-level homes?

SPEAKER_00 10:41

100%.

SPEAKER_01 10:42

So I don't always do them for my luxury homes. Yeah. Because those people are gonna be It's people who want to see a luxury home.

SPEAKER_00 10:49

Yeah.

SPEAKER_01 10:50

And usually luxury home buyers are not, you know, they have their agent, they're not really doing it on a whim. Um, it's a more intentional buyer.

SPEAKER_00 10:58

Um one of my best um open houses was at a luxury home, though.

SPEAKER_01 11:03

Yeah, I remember you said that.

SPEAKER_00 11:04

And I felt like most of them were qualified. Um, there were a few that were probably not qualified, but most of them were, and it was such a good experience.

SPEAKER_01 11:12

Well, that's good.

SPEAKER_00 11:13

I it's c not common.

SPEAKER_01 11:14

It's not com I had one for my luxury listing in um in Realm Rock, and which it sounds funny. Oh, there's a luxury property in Realm Rock, but there is. There is, yeah. And um it was a lot of neighbors, it was a lot of people wanting to just see the house. Oh, I love this house. Oh, it's not my budget, it's not my budget. I think we got one person who is actually qualified to buy the house. So that it it's it just depends. That's something you have to gauge.

SPEAKER_00 11:41

And it depends on market, too.

SPEAKER_01 11:42

Yeah, it's something you have to gauge, yeah. You have to gauge, but entry-level home all day long because these are the people who are like, well, maybe we can afford a house. The masses. Oh my gosh, look at you being an elitist. Oh, it's the others who are going through the homes.

SPEAKER_00 12:00

No, I did not.

SPEAKER_01 12:01

Well, I was gonna say it's for people who might be on the fence about if they can afford a home or not, and then they see, and then they go, Well, let's talk to a realtor. And oh, hey, look, we can do afford it. But they weren't ready to call a realtor to look at a house yet. So it's a great opportunity of the masses. Okay, second hot take, Anthony.

Staging Wins Virtual Staging Fails

SPEAKER_01 12:24

Staging. Okay, and we have strong opinions about staging. Staging is overrated. Just use virtual staging.

SPEAKER_00 12:32

Yes, uh, all day long. No, just kidding. I was gonna start a fight.

SPEAKER_01 12:36

Oh, yeah, let's go.

SPEAKER_00 12:39

Um, staging it is important, I think, in all price points. And I think sellers, if you want to maximize your dollars, staging is the way to do it. Staging and paint.

SPEAKER_01 12:51

Yeah, staging and painting. Does wonders and yeah, because people need to visualize what the home looks like. So when people we're selling space and we're selling a lifestyle. So when people that's why you don't want your personal effects in the house too much, like pictures, because people will walk in and then immediately they'll feel like they're in somebody else's house. But you put everything very generic and you try to stage. When we stage, we have professionals come in, interior designers who know how to create more space and make it so when a buyer comes in, they have an immediate emotional connection to the house and they can visualize their life there and not like, oh, there's no room for the TV. That's why the clo that's why the couch is blocking the fireplace and the TV's on that. Well, no, no, no, no, no, no, no. One of our listings, yeah. No, no, no, we don't want to highlight that. So you highlight these, you know, you you set up conversational spaces, warm, cozy spaces, and make sure there's lots of room and it looks like a show home. And that's you want people to come in and go, oh, and then that way they don't notice some of the other things. Like maybe it needs pain.

SPEAKER_00 13:59

Well, and that's that's why I tell my contractor, like my flippers, yeah, is when you put staging, it covers up the imperfections. Whenever you go into a house that was just renovated, people expect 100% everything's gonna be right.

SPEAKER_01 14:11

Yeah, that's true. So and it and it staging creates that wonderful, like we said, emotional connection. Now, virtual staging, I have a real problem with virtual staging.

SPEAKER_00 14:21

Because it all looks the same. I can get seated about that. And the freaking chairs are taller than the lamp. Well, it's taller than the chairs.

SPEAKER_01 14:28

It is so deceiving, and I can't see what the room looks like because I'm looking at these stupid graphics of furniture that doesn't even go in the house and it's like a Barbie house or something. And I just I just want to see what the room looks like. I'm like, okay, if you were too cheap to get real staging, then just don't get any staging and let me see what this floor plan actually looks like.

SPEAKER_00 14:49

One of my listenings has virtual staging.

SPEAKER_01 14:51

Well, you need to stop that, Anthony. Take that down today.

SPEAKER_00 14:54

Something that I did was virtual staging, then the next picture is not staged.

SPEAKER_01 14:57

Well, I hate that no, I hate it it's so distracting because then I'm like, oh, this this is this looks like a Barbie Malibu house. And like one of the historic houses I was looking at. Uh-huh. Well, it's historic and it has like. No, that's real staging. They just have had it on the market so long that furniture has moved in and out of that one. But it's ancient and it's antique now. Yeah, they had all of this like very modern furniture in the 1907 dilapidated house in Smithville that when you walked in, you were like, oh no. And the staging, the virtual staging was very distracting and made it look a lot better than it was. So I find it to be very, very distracting.

SPEAKER_00 15:39

That's the one you sent me.

SPEAKER_01 15:40

Yes. Ian you've been in that house, so you know it doesn't look like that. Yeah. So in some ways, it can also be very deceiving, I think. So I think we need to get rid of all virtual stages. You do it. And uh there are certain homes we shouldn't stage, right? I mean, we do agree on that. Yeah.

SPEAKER_00 16:00

So for me, it's it's a house where like you're not gonna get the return from it, or well, i it's such a hard house.

SPEAKER_01 16:08

Like, you know, you uh one in particular. They wanted me to stage, and I'm like, no, I'm not staging this. The house had been lived hard in for 20 years. It was very, very large, it's extremely dated, and they weren't willing to do anything at all. So and I pay for staging for my clients. So that's something that I pick up. That's part of my stage that's part of my life. Well, all the time.

SPEAKER_00 16:30

Well, it depends now.

SPEAKER_01 16:31

Well, maybe I don't know. The jury's still, but um, I wasn't willing to put an investment of about you know four thousand dollars if they weren't willing to put an investment.

SPEAKER_02 16:42

So the return, yeah.

SPEAKER_01 16:42

So the return wasn't there, and I honestly think staging would have made it it would have highlighted it that it was even more of an awkward house to try to put furniture in and make cozy. Yeah, I could see that. So there are certain houses, yes, it took a long time. And then sometimes if it's a certain price point, like oh, really, you know, we're we're under three. I'm not gonna stage under three. I'm just gonna make sure it looks clean and yeah, sellers could, but a lot of times they don't have that room because they have to net what they need to net. So um, okay. This is our third hot take. So we're for staging, and we hate virtual staging.

SPEAKER_02 17:24

Okay.

SPEAKER_01 17:26

Build okay, here's our third hot take. New

New Builds Versus Older Homes

SPEAKER_01 17:29

homes are overrated. Give me a solid outdated house anytime. Cite me on this.

SPEAKER_00 17:36

I think we agree. Give me an outdated home. No.

SPEAKER_01 17:40

Oh, wait, no, that is what we're saying.

SPEAKER_00 17:44

Like, you want a new home?

SPEAKER_01 17:47

I don't agree with you.

SPEAKER_00 17:49

She doesn't even know what she likes and what she doesn't. She just wants drama.

SPEAKER_01 17:53

I just wanted some drama. Like, disagree with me. We agree with everything. Everything we agree on.

SPEAKER_00 17:58

Well, I want a new house now.

SPEAKER_01 17:59

Okay, now you want a new house. Oh, you have no style. You just want a big white box. I do.

SPEAKER_00 18:04

Three stories with steep stairs, please.

SPEAKER_01 18:08

So, yes, but I have I bought my last two houses before this one were new construction. And um the reason it was just one of them we got to build ourselves, and it was kind of semi-custom. And so that was such a fun process. So I do, I do think it, you know, once in your life it's nice to do that.

SPEAKER_00 18:28

Because that's more custom.

SPEAKER_01 18:29

Like whenever I think of new home, I think of a Lenar, a dear hor in a but I'm telling you, that was the most poorly constructed house out of all of the homes we've owned. And it was one of the most expensive.

SPEAKER_00 18:43

Crazy.

SPEAKER_01 18:43

And so, and it was built during COVID, so I'll give it I'll give it that.

SPEAKER_00 18:47

Don't give it that.

SPEAKER_01 18:48

But our Lenar house that that we had in um Cedar Park, like like back in 2005, was built better than this beautiful, very expensive custom home on an acre. Yeah, yeah. And so there is something to be said for that. I mean, when the wind blew, the house would creak. It shouldn't be creaking like that.

SPEAKER_00 19:14

Oh shoot, no.

SPEAKER_01 19:15

Oops. There's no defect. There's no defect. There's no defects, it just wasn't as built as nicely as it could have been. No, but no, it's for staple. Yeah. Well, and I didn't, and I actually called the builder about it, and they said, How come the house creaks so much when the wind blows? And he said, Oh no, it's supposed to do that.

SPEAKER_00 19:34

And I'm like, So you don't need to disclose anything.

SPEAKER_01 19:36

And I'm like, I'm not really sure it's supposed to do that, but okay. But yeah, there was a lot of things that we ended up having to repair on it. Um and we shouldn't have, it was a brand new home. Yeah, we shouldn't have. They put no GFCIs in, we had to put those all in. Uh, they forgot to put a vent in the casita roof. Oops. So we had to put that in. It was, it was just, it's nuts. And when I had my cabal house in Cabayo Ranch built by MI Homes, um, love that builder. And I almost went to work for MI Homes uh several years ago. When I just I have these moments in real estate, you know this, you have them too, where I'm quitting. I'm done. I'm getting out of jail. Or we go to other people I'm breaking out. Yeah, I'm like, that's it, I'm done. This is what I'm gonna do. And so I was interviewing with MI, I got the job, and I was about to cross over into the the other world and with a set hours and a steady paycheck.

SPEAKER_00 20:33

Um yeah, but you don't have set hours as a new home. No, you you that is really a lie.

SPEAKER_01 20:38

And so I was talking to the VP of sales in yeah, you do. I was talking to the VP of sales, and he said, I cannot build the house that you live in now for the same price at all. Not even like the same price. He's like, I can't build that house anymore. He said, I wish I could, but I just don't have access to those materials and all of that. He's like, we used to be able to build such a solid home. And not saying that they're not building a solid home now, but it's just not to that same caliber that the older homes were.

SPEAKER_02 21:08

Yeah.

SPEAKER_01 21:09

And so, really, when you're looking at some of these homes pre-COVID, they are built so solidly.

SPEAKER_00 21:14

Well, just go to a lumber store. Yeah, you can tell a big difference from between between before COVID and then after. Yeah, just quality of lumber.

SPEAKER_01 21:22

Quality of lumber, yeah. And so it's it's very interesting, but I would say new homes are great in many ways, and they have their place, and not all of them are built poorly at all. That that's not what we're saying, but there's something to be said for a nice old, you know, 1975 gal.

SPEAKER_00 21:40

I literally was gonna say 1975 or 70s.

SPEAKER_01 21:43

That's my that's me. I'm personifying the house to be me. Um but you know, there's something to be said for old construction, it's quality, and you can always come in and make those homes your own. But you know, the other uh side to that is getting construction, like getting. Contractors just to come out and do work on houses right now is really, really hard. And trying and it's expensive. So, you know, the good, the bad. But fight me on this. I think an older home is better.

SPEAKER_00 22:09

Yeah, I do too.

SPEAKER_01 22:10

Okay, fourth hot take.

Zillow Data Myths And Scroll Fatigue

SPEAKER_01 22:14

Zillow has made buyers worse at buying homes. Yes. Yeah, we both agree. Like we we haven't been able to fight each other on anything, but except when Barbara says lies. When I say lies. Except for, you know, maybe our listeners. Maybe our listeners are like, no, that's not true.

SPEAKER_00 22:29

True.

SPEAKER_01 22:30

And now we're gonna tell you why it is true.

SPEAKER_00 22:31

Yeah, because we're always right.

SPEAKER_01 22:34

So Zillow, in your opinion, how has Zillow made buyers worse?

SPEAKER_00 22:40

Um I think it gives them way too much information that might be inaccurate, might be accurate. Nobody knows. Nobody knows where the data comes from.

SPEAKER_01 22:49

Well, that's because we're a non-disclosure state.

SPEAKER_00 22:52

Yeah. Well, but also like the flood zones, the schools, the like they have all those date all those data points or old pictures.

SPEAKER_01 23:02

This is true.

SPEAKER_00 23:03

And as realtors, we have no control over that. As a listing agent.

SPEAKER_01 23:07

We don't. We do not. Yeah.

SPEAKER_00 23:09

And what are we supposed to do if it has like one of my clients keeps telling me Zillow has the wrong number of bedrooms?

SPEAKER_01 23:15

Good luck trying to get anybody on the phone to answer your question. And you're you are, as a list agent, you are a prisoner to what Zillow does with your listing. Whether they choose to show it, because that's a whole thing. If they get wind that you put the house on private exclusive or you come you put it some on some avenue coming soon, they will not put your house on Zillow. And then that's almost like it's a death nail to you know, visibility. So many people use Zillow. And so we have such little control as listing agents. And really it sellers should know that that they are a huge monopoly that are trying to control what homes are seeing and how you see them and how you interact interact with them.

SPEAKER_00 24:00

Yeah. And they have Zillow showcase that will show that property over any other property. And that's just a agent paid for it.

SPEAKER_01 24:06

Yeah, the agent paid for it.

SPEAKER_00 24:08

So they're forcing you to look at what you're looking at. Right. We're going off in a tangent.

SPEAKER_01 24:11

No, but that but that's what makes them worse buyers. Is because what they're seeing is very controlled by a corporation. And so they're missing other homes by just focusing on that search engine and that avenue. And and also, yeah, certain homes are getting showcased and put in front of them just because they paid money. They paid $650. Yeah. Or they send them leads. Exactly. And so I think that's definitely affects the variety, the true inventory. And then you're right, since uh Texas is a non-disclosure state, we don't disclose when a house closes what it sold for. Other states do, so then Zillow will be a little bit more accurate there. But it's just a guest, it's a zestiment, a guesstimate. And the zestament is never really in the range. And and I get I get people who will send me Zillow comps, like so I'll get a seller who will who will say, Oh, I'm sending you comps. And I'm like, Oh, really? Okay, so why'd you hire me? But okay, send me your comps, this will be great. And then they send me Zillow comps, and I'm like, okay, first of all, that isn't even in the same school district. That is on a golf course. You you are not on a golf course and you don't have a pool. Anyway, I type in.

SPEAKER_00 25:26

And they actually and they actually gave 50,000 in closing concessions.

SPEAKER_01 25:30

Right, that you didn't see, and those aren't what they close. Yeah, so anyway.

SPEAKER_00 25:33

Um so Zillow makes buyers worse.

SPEAKER_01 25:36

They do. It makes it worse because they don't.

SPEAKER_00 25:38

I think it goes with other online platforms too, not just Zillow, but there's and yeah.

SPEAKER_01 25:44

And then

Click Tour Lead Funnel Explained

SPEAKER_01 25:45

you also have like you decision fatigue because you're sitting there and you're it's like dating, left or right. You're looking at all these houses and you're looking at all these areas, and you start searching on the map. Oh, what's over here? Oh, what's over here? And then it's like Little Red Riding Hood. Yeah, you suddenly you're looking, you you were in Austin, and now you're in Brenham. Yeah. And you're like, I I want to go look at this house in Brenham. And then you're in Lockhart. And you're in Lockhart, and you're like, but I have to be at work in Austin, and it's only a two and a half hour time. I think that's perfect.

SPEAKER_00 26:16

And I gotta be in the office eight days out of the week.

SPEAKER_01 26:19

And so by the end of a Zillow scrolling session, people are completely overwhelmed on what they can afford, where they should live, what's in their price range, what's close to work. And you just get to where you just put it down and you go, ah, I can't even think about that right now. I can't think about it, I don't even know where to begin. And it's just because you got down this weird Zillow rabbit hole. It's sort of like when I plan vacations. Like I'll start planning the vacation and then I'm like, oh, oh, and then I'm like done. I'm like done. I can't, I can't do it anymore. You know, I'm like, I you know, we are going here and then we're going here and then we go here, and I'm like, I just need a travel agent. Can we just get a travel agent again? Can we bring back a travel agent where I can be like, I want to go somewhere fine and this is where I want to go, book it all for me. Get me a car and then tell me. Give me the itinerary and give me the itinerary. I miss a good old classic travel agent.

SPEAKER_00 27:13

And they're coming back.

SPEAKER_01 27:14

Well, I hope so. And Blockbuster needs to come back too. I'm just gonna say that.

SPEAKER_00 27:18

Going to get a Friday night movie with a box of candy that I don't need.

SPEAKER_01 27:22

Yes.

SPEAKER_00 27:23

And popcorn that was in the skillet thing.

SPEAKER_01 27:26

And then I'm gonna text my travel agent and say, plan me a vacation. I want old school life. But so I'm just saying we're going to House in the Perry. Yeah, so Zillow is part of that whole and then gosh forbid you hit tour.

SPEAKER_00 27:46

What happens when you hit tour?

SPEAKER_01 27:47

You when you hit tour, you go into a crazy call cycle. You're like, did you ever see that? So I did see this SNL um skip where it was who's that guy? Who's from Schlitzkrieg?

SPEAKER_00 27:58

Schlitzkrieg? Dan Levy?

SPEAKER_01 28:00

Yes. No, the sun. See, again, I don't know things.

SPEAKER_00 28:03

I don't remember.

SPEAKER_01 28:04

Anyway, um, he's with homest.com. He's the spokesperson for homest.com. Anyway, he's talking about like Zillow and it's like a porn, you know, like you're like all, oh, talk to me with your two bedrooms. Like, like it's just going on. And look at all this room to grow, you know, like it's just like tele reading it like it's some sort of sexy ad or something. And then it says, like, if you really, you know, get serious, you can hit click tour. And then on the other line, it's like, hi, this is Barb. Would you like to see a home? That one's not available, but I got another one for you. And he's just like, Thanks. And then she calls right back. So it's like the people And that's exactly that's exactly what happens. So as soon as you hit tour, you are connected with Barb on the other line from ABC who will sell you a home. And there's certain brokerages that are Zillow brokerages, and you and there's agents who pay for the Zillow leads. And the thing is, is that the the buyers think they're contacting the list agent or somebody affiliated with that listing, and really they're just getting routed to an agent who's a leads agent, who's gonna pick them up and you know, go meet them at this house. And then if they kind of go, oh, pay and I can say I didn't really mean to do that, they will hammer that person. So the rule is because I've worked for Zillow brokerages before, you have to contact them three times a day um for three weeks.

SPEAKER_00 29:31

Insane.

SPEAKER_01 29:32

And sometimes do double callbacks.

SPEAKER_00 29:34

Nope.

SPEAKER_01 29:34

So you will get hammered.

SPEAKER_00 29:35

That's not me.

SPEAKER_01 29:36

So if you really need to see the house, just reach out to a realtor who will help you.

SPEAKER_00 29:42

Yeah.

SPEAKER_01 29:43

Speaking of which, so you don't you don't go into this Zillow leads funnel where you're assigned to an agent who will hammer you. And then if you don't work with them, you go to a leads pool where um random, where their uh their inside sales will hammer you. And then when it does come time to actually buy a house, they're gonna push their lender on you to use because there's rewards and benefits for it. So really it's not in the best interest of the consumer. And yes, Zillow, come after me, fight me on it. Let's do it. I might have just lost my license for all this, but I said it. Our license is Yeah, I said it.

SPEAKER_00 30:20

You know, they don't rule us.

SPEAKER_01 30:21

They don't rule us, so they try. If but yeah, there it is. Yep. Okay, I said I said some hard stuff about Zillow. It's fine, but that's the real that is the reality of what it is when you call. And I I don't I don't think it's fair that the consumer doesn't know that.

SPEAKER_00 30:34

And I also don't think that it's fair that the consumer doesn't know that whenever they get connected with one of their brokerages, that Zillow gets a big chunk of the commission.

SPEAKER_02 30:45

Yes, true too.

SPEAKER_00 30:46

And so it's not fair to the realtor, to the seller, to the buyer, to anybody, in my opinion.

SPEAKER_01 30:51

Yeah, it's it's definitely a benefit to Zillow as a and I think the consumer is the one who's getting missed who's missing out on all of it.

SPEAKER_00 30:59

And I think there should be disclosures about it.

SPEAKER_01 31:01

I think there needs to be disclosures about it. It's it's a monopoly. Where are we? Yeah. Okay, so it's game time.

Pricing Strategy Or Pricing Sabotage

SPEAKER_01 31:07

Yay. Okay. Pricing it. Okay. Is this strategic pricing or is this sabotage pricing scenario? And we only have three of these. Okay. Okay. Listed high to leave room to negotiate later.

SPEAKER_00 31:23

You said listed high, sabotage.

SPEAKER_01 31:25

Sabotage, yes. There is this old school belief that happened back in the 1800s where you would list high to sell to negotiate. And that's not really true, 1800s, but I was like, No, you know your history. No, I was actually making a joke. And then heywenzillo.com. We haven't in this market, especially in Austin, listing high to negotiate down to the price you want. You won't get people in. It hasn't worked in 20 years. Nope. And it's not going to. And then the other one is price right at the market, day one, knowing that markets can shift. Yes.

SPEAKER_00 31:59

Strategic.

SPEAKER_01 31:59

That's strategic. Yeah.

SPEAKER_00 32:01

And being ready.

SPEAKER_01 32:02

Yes, sorry, I got a tickle in my throat. And being ready to pivot. Okay, and here's the other one. Start low and create value and potentially a bidding war.

SPEAKER_00 32:13

Strategy. Because it's only it only works in certain circum or situations.

SPEAKER_01 32:18

And it can blow up on you.

SPEAKER_00 32:19

It can sabotage you, but there's one agent in Austin that will list it like 30% under market value on all his listings. And they all have 10 offers on them.

SPEAKER_01 32:31

But do they get to the market value?

SPEAKER_00 32:33

I really don't think so.

SPEAKER_01 32:34

Yeah.

SPEAKER_00 32:35

So it is a very because whenever a buyer comes in, telling a buyer in this market that we need to go 100,000 over list price, it's tough. They're gonna look at me like I have a third eye.

SPEAKER_01 32:44

Right. And and sometimes it's a good strategy, but sometimes it's like, okay, you get all these offers in, all your 10 offers are coming in at your list price. That's not listing it low. That's telling you where the market value is. And you have to be prepared for that. And sometimes people aren't prepared for that. All right.

SPEAKER_00 33:00

Well, awesome.

Final Thoughts And Sign Off

SPEAKER_00 33:01

This is great. This wraps up our studio session. Our studio sessions, yes. And until not wrapped up, but our first session.

SPEAKER_01 33:10

Yes. So until next time, thanks for joining us.