Real Estate Commission Settlement Could Shake Up Industry, Threaten Zillow's Business Model
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Settlement ending standard 6% real estate commissions could reduce agent incomes and marketing budgets, hurting Zillow's business model
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Zillow makes money from agents paying for leads and enhanced listings, so lower commissions means less money to spend
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Analysts disagree on severity of impact - some say Zillow has already adapted, others predict 40-60% stock drop
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Settlement boosts Zillow rival CoStar (Homes.com), as its model depends less on buyer's agents
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Uncertainty around final settlement terms and industry response, but clear the industry faces changes with winners and losers