Zillow Is Routing More Buyers to Preferred Agents

Preferred agents are set to receive nearly every Zillow buyer connection

Zillow is rapidly expanding its Preferred agent referral program, with the company expecting Preferred partners to receive 100% of buyer connections in the first half of 2027. During the third quarter of 2026, about two-thirds of connections in Zillow’s integrated experience went to Preferred agents, roughly twice the share from a year earlier. Zillow expects that figure to exceed three-quarters by the end of 2026.

The shift matters because Zillow remains a major starting point for home shoppers. Comscore data cited by the company showed 215 million average monthly unique users across Zillow’s apps and sites in the third quarter. That was down 3% from a year earlier, while total visits declined 5% to 2.3 billion. Even with those drops, Zillow accounted for 77% of average monthly unique visitors in the online real estate category.

Preferred is also financially important to Zillow. The company said each Preferred connection generates 35% more revenue than its previous lead-generation model. Zillow reported third-quarter revenue of $724 million, up 7% annually, while recording a net loss of $158 million. Its for-sale revenue was unchanged at $489 million, and residential revenue fell 4% to $419 million as elevated mortgage rates weighed on transaction volume.

Buyer routing can affect the path to a seller’s front door

For sellers, this is not primarily a story about Zillow’s earnings. It is about the system sitting between an online shopper and the person who eventually tours a home, writes an offer or recommends a lender. When a buyer asks for help through Zillow, that buyer is increasingly likely to enter a Preferred agent workflow rather than simply contact the listing agent or independently select another professional.

That does not mean Preferred agents control which homes buyers can see, and it does not mean a seller must hire one. It also does not establish that a participating agent is the best fit for every buyer or property. Preferred describes a business relationship and connection system. Sellers should not treat it as a universal measure of experience, negotiating skill or neighborhood expertise.

The practical effect may show up in buyer conversations. An agent receiving a Zillow connection may be the first person to explain a property, arrange access and discuss financing. Zillow said that in markets where its mortgage service has been integrated with Preferred for the longest period, Zillow Home Loans adoption is about 20%. Its mortgage revenue rose 32% to $70 million, while purchase-loan origination volume increased 55% to $2 billion during the quarter.

A seller does not need to reject a buyer because the buyer arrived through a particular portal, agent network or lender. The useful question is whether the offer is complete, adequately documented and likely to close. The route that produced the lead is less important than the buyer’s actual financing, contingencies, deposit, proposed timeline and ability to perform.

Sellers should separate online exposure from agent representation

Zillow’s audience can make the platform an important part of a listing’s exposure, but visibility on a portal and representation by an agent are different services. A seller’s listing agent works for the seller under the applicable agency agreement. A buyer connection routed by Zillow generally concerns the buyer side of the transaction. Sellers should ask their listing agent to explain exactly how online inquiries are handled and when an inquiry goes directly to the listing team versus another agent.

Before signing a listing agreement, homeowners can use a short set of questions to test whether an agent has a workable digital strategy:

• Inquiry handling: Who responds when a buyer requests a showing through Zillow, and how quickly does the listing team learn about that request?
• Feedback: Will comments from portal-generated showings reach the seller, or remain with the buyer’s agent?
• Agency: Could the brokerage represent both sides, and what disclosures or consent would be required under state law?
• Offer review: Does the agent evaluate lender documentation, appraisal exposure and financing contingencies rather than relying on a portal label?
• Marketing spend: Is the proposed plan based on broad distribution and strong property presentation, or on paid platform products that may not be necessary for the home?

Sellers should also resist assuming that a portal’s preferred status automatically translates into better service. Ask prospective listing agents for local evidence: recent comparable sales, list-to-sale timelines, price-reduction history, communication practices and examples of how they handled inspection or appraisal problems. Those details are more relevant to a seller’s outcome than an agent’s place inside a lead-referral system.

A larger Zillow ecosystem makes offer scrutiny more important

Zillow is building connections across search, agent referrals, mortgages, rentals and professional software. Its AI search mode is now available to all signed-in users, and people using it spend nearly three times as long on the site as other visitors, according to the company. Zillow Showcase appeared on 5.4% of new U.S. listings in the third quarter, while more than 800 brokerages had signed up for Zillow Preview.

Those products may shape how shoppers discover and discuss a home, but they do not replace pricing discipline. Sellers still need a price supported by recent local sales, accurate property details, accessible showing windows and a clear plan for comparing offers. A heavily viewed listing can still stall if it is overpriced, poorly presented or difficult to tour.

When offers arrive, compare their underlying terms rather than the brand names surrounding them. Confirm the buyer’s preapproval, loan type, down payment, appraisal terms, inspection rights, closing schedule and requested concessions. If an agent or lender has a referral relationship with another participant, ask for the required disclosures and read them. Zillow’s expanding Preferred program changes how more buyers enter the transaction, but sellers remain responsible for choosing their own representation and judging the strength of each deal.