I wrote a previous piece on the five things that Realtor.com could learn from Zillow including the newer, fast-paced marketing techniques that they have been using to catch up to Realtor.com in terms of consumer traffic online.

While “shiny and new” always generates attention, it’s worthwhile to also examine some of the superior traits of a company with a long track record.  Experience creates some wisdom in marketing and an attention to detail that can sometimes be missed in a pell-mell startup environment.  Ergo:

Five Things That Zillow Could Learn From Realtor.com

Bigger Isn’t Always Better:  Sometimes More is Less

Of course, I’m talking about the database of homes available for sale.  It’s been widely reported that in many markets, the number of homes listed for sale on Zillow’s website and apps greatly exaggerates the actual market.  Expired listings, duplicates, and questionable “foreclosure” listings inflate the numbers and give an inaccurate view of the actual market of homes for sale.

While Realtor.com will sometimes miss a minute portion of the market, the listings you see on their website are directly from MLS sources.  The database of homes available is accurate, timely, and smaller for a good reason.  Home buyers browsing these homes will make better use of their time, and have a better understanding of the current market.  While Zillow has higher hurdles to cross to make this happen, that’s just reality.  The consumer isn’t concerned with the impediments a company faces, just the product it produces.

Speed and Ease of Use are Paramount for Mobile

I had previously lauded Zillow’s ads for their mobile device apps as superb marketing.  Realtor.com hasn’t quite started the same level of marketing push, but after comparing the actual mobile products, they should be blasting mobile ads on every screen they publish.

To be fair, Zillow and Realtor.com’s apps are both sensational real estate applications.  They have similar features, and are better visual products than what most agents use from their actual MLS.  The ability to draw an outline on a map with your fingertip and select homes within that sketch is mind boggling to an agent who has watched the clunky search functions evolve over time.

Realtor.com, even though its products have been downloaded less times, has superior products on both mobile phone and tablet platforms, in my opinion.  They just seem to get a user to their desired endpoint more quickly.  There are less steps to take, and the menus seem more intuitive.  The “draw” function for buyers to circle a search area happens seamlessly within the screen without delay.  Of course, the quality of listing data is better as well.

If you haven’t tried out these apps, give them a try.  I tested on Android, iPhone, and iPad, and although both companies’ apps on all platforms performed well, the Realtor.com app on iPad blew me away.

Newbies Like Flashiness;  Serious Buyers Like Accuracy

Real estate websites generate the majority of their revenue from advertising.  Most of that advertising comes from real estate agents.  While the sales process is changing daily, more and more attention is being paid to the kinds of visitors a web site gets, and not just the raw traffic numbers.

Agents want to advertise on sites that have serious home buyers.  Realtor.com prioritizes listings first, with all other offerings as auxiliary features.  When a user searches for homes, they’re not being called away to other items.  The focus is squarely on the homes for sale.

Zillow, on the other hand, seems more focused on displaying a wide range of features and tools, with listings for sale being one of those features.  Listings are just one of many layers of icons upon a map.  It’s a big part of the business, but it’s just one of many.

Which leads to a related point:

Not All Web Visitors Are Created Equal (In an Agent’s Eyes)

News stories and user discussion forums bring in traffic, but quality listing databases create buyers who stay on-site.  Realtor.com’s average visitor spends about 20 minutes on the site and views 45 pages.  The majority of this time is spent on actual listing pages, not conversing with strangers about the Federal Reserve.

These are the visitors that agents are looking for, and as the metrics and analysis for agents become more clear and prominent, this will be a huge factor in driving advertising revenue.  Realtor.com’s visitors spend more time, visit more often, and view more pages.  These are valuable visitors.

All Publicity Creates Traffic, but Bad Publicity Also Creates Enemies

We can cut to the chase on this one.  Zestimates created Zillow.  There are a whole lot of other amazing technical achievements by the company as it grew over time, but the Zestimate was the iconic calling card that brought attention to the company.  Everyone wanted to know what their home was worth, and this was the single element that initially defined the company as being very different.

While this drove a large amount of initial traffic, it was criticized by the vast majority of those than analyzed it.  Every strain of real estate professional knew that the numbers were ridiculous, and these are the people who were supposed to be the revenue source.  Home buyers and sellers, in large percentages, scoffed at the values they received.  Yes, they certainly visited the site and looked.  When they saw the results, however, the taint of inaccuracy was attached to the brand name.  No amount of disclosure, explanation, or rationalization can separate the zestimate from the overall brand.  If you rely on a marketing gimmick for traffic, you receive the appropriate consumer response.

Realtor.com had similar access to automated valuation products from First American other providers if it had felt the need to follow suit, but chose to stay out of the fray.  Home buyers, sellers, and agents who understand the inaccuracy of those valuations appreciate that.

The question for Zillow is, when do you drop the gimmick?  Is there a point at which you’re so successful that you don’t need it anymore?  It clearly hurts credibility.  It would be wise, in my opinion, if a company had already gained front-runner status and gone public, to re-evaluate the need for such a controversial feature.  Then again, I’ve never managed an IPO, nor had to answer to a board of directors.

Overall, these sites have both brought some significant and exciting changes to the world of real estate online.  Both have also made some mistakes that deserve analysis.  Still, the ongoing changes will keep us entertained and on our toes…and continue to give me something to write about.