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Portal big Zillow this week revealed that it’s increasing an “enhanced market” program, which notably consists of 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 yr in the past, at which period Zillow mentioned 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 common 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 value and placement however is often between 30 p.c and 35 p.c of the collaborating agent’s fee.

Maybe probably the most eye-catching a part of the post-pay mannequin, nevertheless, is that it’s solely obtainable 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 will probably be lower from this system.

Each this week and a yr in the past Zillow declined to say precisely what number of brokers would possibly get lower within the swap to the post-pay mannequin. Nevertheless, when this system launched final yr in Raleigh and Denver, the corporate mentioned “a number of hundred” brokers would in the end be lower whereas “lots of” would proceed with Premier Agent.

Presumably, one thing comparable 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 occurring is merely a shift in some markets from one cost mannequin to a different. The corporate additionally mentioned 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 type since 2019 beneath the identify “Flex” — can be obtainable 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 adjustments to Premier Agent, the improved markets additionally get entry to a wide range of different options, equivalent to real-time touring, which debuted final yr in Atlanta.

The improved markets are additionally the place Zillow is testing its skill to combine numerous different companies, equivalent to Zillow Residence Loans.

All of those efforts are a part of Zillow’s much-touted efforts to in the end construct an actual property “tremendous app” — a venture the corporate introduced shortly after bowing out of iBuying. To this point, no such app is extensively obtainable to shoppers. However the enlargement of Zillow’s enhanced markets signifies the corporate is actively engaged on and increasing options that may doubtless someday be a part of the app.

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

Whereas the tremendous app’s impression stays to be seen, brokers within the instant time period will doubtless be most considering adjustments 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 capable of 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.”

Electronic mail Jim Dalrymple II