Real Estate Market News Dawn Griffin October 21, 2026
Let's clear something up: Zillow is a great place to browse homes. It is not the best place to choose the person who'll guide one of the biggest financial decisions of your life.
And Zillow just changed how it makes money — again.
Oh, you thought Zillow was free? You don't get a bill, but YOUR INFO is what is being sold. When you click "Contact Agent," Zillow gets paid to hand your name, number, and home search to a local agent. That's the business. That's how Zillow actually makes its money.
Zillow makes most of its revenue from real estate agents, not from you. For years, that meant agents bought advertising by ZIP code and paid for each buyer "connection." Zillow's own figures put the average around $181 per connection, higher in big metros.
Now Zillow is moving agents onto a program called Zillow Preferred (it absorbed the old "Flex" program in October 2025). Agents pay nothing up front. Instead, if you buy or sell with them, the agent owes Zillow a cut of their commission at closing — commonly reported at 15% to 40%, and as high as a flat 40% on seller leads.
Zillow told investors the new model earns it about 23% more revenue per connection than the old one, and it's aiming to put more than 75% of connections through it by the end of 2026.
At the Dawn Griffin Real Estate Group, our clients find us through referrals, reviews, and the work itself. Our listings average 103% of asking price. We've earned 300+ five-star reviews over 22+ years, and St. Louis Magazine named us Best Real Estate Agent on its A-List in 2024, 2025, and 2026.
Keep using Zillow to scroll listings. When you're ready to buy or sell, call me directly at (314) 541-3840 or request a free home valuation. No middleman, no algorithm — just a team that knows St. Louis and wants to help.
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