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Portal large Zillow this week revealed that it’s increasing an “enhanced market” program, which notably contains an unique “post-pay” model of Premier Agent, to 2 new cities.

The enlargement will see Zillow’s enhanced market program come to Charlotte and Durham, each in North Carolina. This system was first introduced a 12 months in the past, at which era Zillow stated it was piloting the idea in Raleigh, North Carolina, and Denver, Colorado. Within the time since, the improved market program has additionally expanded into Phoenix, Arizona, and Atlanta, Georgia — making Charlotte and Durham the fifth and sixth metros to get this system.

For brokers, in all probability probably the most related a part of the improved market program is the best way it handles Premier Agent, Zillow’s standard lead-generation service. Historically, brokers who participated in Premier Agent pay up-front for leads within the hope of later closing offers.

Within the post-pay model, nevertheless, brokers don’t pay something till they shut a deal. When a deal does shut, the brokers then pay a “success payment.” The payment varies relying on a property’s sale worth and site however is usually between 30 p.c and 35 p.c of the taking part agent’s fee.

Maybe probably the most eye-catching a part of the post-pay mannequin, nevertheless, is that it’s solely out there by way of invite to top-performing brokers. Meaning in markets switching from the better-known pre-pay mannequin to the post-pay mannequin, many Premier Agent customers can be reduce from this system.

Each this week and a 12 months in the past Zillow declined to say precisely what number of brokers may get reduce within the change to the post-pay mannequin. Nevertheless, when this system launched final 12 months in Raleigh and Denver, the corporate stated “a number of hundred” brokers would finally be reduce whereas “tons of” would proceed with Premier Agent.

Presumably, one thing related will occur in Charlotte and Durham.

Information of the shift to the post-pay mannequin in Charlotte and Durham prompted chatter on social media, with some commenters framing the transfer as an finish to Premier Agent.

Nevertheless, Zillow instructed Inman Premier Agent isn’t ending. What’s taking place is merely a shift in some markets from one fee mannequin to a different. The corporate additionally stated that each the pre- and post-pay fashions proceed to be vital and long-term elements of firm technique.

The post-pay mannequin — which has existed in some kind since 2019 below the identify “Flex” — can be out there in different markets by way of invitation. What makes enhanced markets noteworthy is that they function solely with the post-pay model of Premier Agent.

Zillow additionally instructed Inman that the post-pay mannequin is merely one a part of a broader technique for enhanced markets. Apart from modifications to Premier Agent, the improved markets additionally get entry to a wide range of different options, akin to real-time touring, which debuted final 12 months in Atlanta.

The improved markets are additionally the place Zillow is testing its capacity to combine varied different providers, akin to Zillow House Loans.

All of those efforts are a part of Zillow’s much-touted efforts to finally construct an actual property “tremendous app” — a mission the corporate introduced shortly after bowing out of iBuying. Thus far, no such app is extensively out there to customers. However the enlargement of Zillow’s enhanced markets signifies the corporate is actively engaged on and increasing options that may probably in the future be a part of the app.

Associated to the tremendous app, Zillow additionally introduced final week that it has promoted Jeremy Hofmann — an government who has performed a key function within the tremendous app program — to the place of chief monetary officer.

Whereas the tremendous app’s influence stays to be seen, brokers within the speedy time period will probably be most occupied with modifications to their lead technology toolkit. And on that entrance, Zillow CEO Wealthy Barton wrote earlier this month in protection of a consolidated community of brokers who’re greatest in a position to convert leads.

“We more and more imagine,” Barton wrote, “a tighter set of companions permits us to ship a greater buyer expertise and permits us to check new services and products quickly alongside the best way in service of integration.”

E-mail Jim Dalrymple II