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A University of Pennsylvania Wharton professor published a paper that says Zillow users don’t know who they’re dealing with when choosing an agent, alleging that Zillow-affiliated agents are directing users to Zillow mortgages.
Research by Professor Jerry Wind showed only 0.3% of users understood that they would not be connected to a listing agent when they selected the “Contact Agent” or “Request Tour” tabs.
“This study provides strong evidence that Zillow’s interface is systematically misleading consumers about an important aspect of the home buying process,” Wind’s paper concludes.
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“[Consumers] you do not contact the listing agent. They are directed to agents who pay Zillow for their information, agents who are financially incentivized to refer them to Zillow real estate products.”
FOX Business sat down with Wind to discuss his findings and what he believes are his biggest takeaways.
A study by professor Jerry Wind found that almost no Zillow users realize they are not communicating with the listing agent, raising concerns about transparency and benefits. (iStock/Getty Images Plus/Getty Images)
“My understanding has has has has has has has has has been a major incentive for them to get a name, and once they´ve got their name and are successful in selling a house, they have to pay Zillow up to 40% of their commission,” the professor told Fox News Digital.
“So that’s what Zillow came out with this time. The agent, obviously, leads.
“And if an agent … recommends a Zillow loan to a customer, Zillow, I understand, may stop giving them a lead,” Wind continued. “So, there’s a real carrot and stick here in terms of promoting agents [encourage] their customers to use Zillow’s mortgage.”
Zillow maintains that buyers are not directed to their mortgage products and are always free to choose any lender that fits their needs. (Gabby Jones/Bloomberg via Getty Images)
Wind joined the Wharton faculty in 1967 and is Lauder Professor Emeritus and professor of marketing.
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“According to recent lawsuits filed in federal court, these agents may be required to meet benchmarks for referring buyers to Zillow Home Loans in order to continue to reach leads,” Wind research said. “Agents who fail to meet these quotas risk losing their primary source of business.”
Zillow did not hesitate to deny what the professor said that such quotas exist in a statement he wrote to FOX Business, dismissing this study and the allegations that it forces buyers who work with Zillow to recommend Zillow Home Loans (ZHL).
Wind Research says Zillow’s user interface confuses users about which agent they’re dealing with, potentially directing them to agents related to Zillow’s mortgage business. (Saul Loed/AFP via Getty Images)
“This deeply flawed document is doing a lot of gymnastics trying to turn Zillow’s consumer behavior into a purchase,” a Zillow spokesperson told FOX Business. “When a buyer requests a tour or clicks ‘contact agent,’ Zillow connects them with a local buyer’s agent, someone whose job it is to represent the buyer’s interests and drive the best results for them. The listing agent represents the seller.”
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Reports and US national data estimate that the total number of home sales in 2025 was approximately 4.74 million units when combining existing and new home sales.
Zillow’s 2025 Consumer Housing Trends Report showed that nearly 68% of home buyers use Zillow during their home buying search.
Wind suspects that Zillow’s popularity has created a problem of infidelity, where the platform tries to close the loop between searching, buying and choosing a mortgage provider to pay.
Wind told FOX Business “the situation really calls for some kind of legal intervention here” or “some regulatory involvement.”
Zillow said the closed loop claims were false and did not direct customers to ZHL.
The company disputes the fraud claims, arguing that its “Agent Connection” feature is a consumer support tool designed to match consumers with qualified agents. (Stephanie Reynolds/AFP/Getty Images)
“Claims that buyers are directed to Zillow Home Loans or any other mortgage provider are false,” explained a Zillow spokesperson. “We offer choices, not requirements, and buyers are free to work with any lender. Agents are encouraged to help customers analyze all available financing options.
“We remain confident that our platform brings transparency, competition and meaningful choice to millions of buyers and sellers.”
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As for what Wind hopes to see come out of his study, he told FOX Business that he believes consumer awareness and education is important for those looking to buy their next home.
“I think the important thing here is that buyers try to be more careful and make sure that they are looking for another loan, not just buying the first one,” explained Wind.
“So, consumer education is key here. Second, I would hope that Zillow would change their incentive programs and business model, fundamentally, and realize that they have an amazing platform.”
