I think Zillow will try to replace the MLS and create an efficient market to sell houses (In my humble opinion). Zillow’s CEO and leadership built Expedia and they replaced travel agents with Expedia. I think they may end up displacing some Real Estate agents.
I think their first step is to make Zillow become the MLS replacement (by being a competitor first). Then create an efficient market place to bid and negotiate house sales.
What remains will be a need for “advisers” or real estate agents to give tours of homes and giving advice.
This is extremely exciting news. The MLS system has been about locking certain people out of using it and using it as leverage to increase fees. I think that has built up a lot of ill-will and pent up demand. If the MLS organizations want to exist in 10 years, I think they need to create a plan now on how to convert to open system. Otherwise they will be replaced.
Zillow: The “eBay” for the real estate market.