reAlpha vs Zillow : A New Chapter in Home Buying

March 3, 2025

4 minutes

Zillow is a well-known website that many people use when they want to buy or rent a home. It’s popular because it has a huge list of properties and helps connect buyers with real estate agents. But as the market changes and new rules come into play, a new option is stepping up. reAlpha offers an easy, no-cost way to buy and sell homes using smart AI technology. This approach differs from traditional methods used by Zillow and similar companies.

The National Association of REALTORS® (NAR) recently changed the rules about how real estate agents get paid. Because of this, many people buying homes are now looking for cheaper and tech-friendly ways to do it. One option is a company called reAlpha, which is listed on NASDAQ. They use AI (a smart computer system) to help make buying a home simpler and less complicated. reAlpha removes commission fees, making buying a home more straightforward and cost-effective.

This article examines the key differences between Zillow and reAlpha. It provides clear information to show why many experts think reAlpha could become the top option for real estate deals in the future.

reAlpha vs. Zillow: Business Model Comparison

Zillow operates as a traditional real estate platform, relying on agents and charging commissions, while reAlpha disrupts the market with AI-powered, commission-free homebuying. By automating the process, reAlpha removes inefficiencies and lowers costs, providing a more affordable and seamless experience compared to Zillow’s agent-driven model. Here’s a closer look at the details:

Zillow’s Business Model: Traditional and Agent-Dependent

Zillow is a website that helps people buy or sell homes by linking them with real estate agents. The company makes money in different ways:

1️⃣ Premier Agent Program – Agents pay Zillow for lead generation.

2️⃣ iBuying (Zillow Offers – No Longer Available) - Zillow used to have a program called iBuying. They bought homes from sellers, made repairs, and then sold them. The goal was to make selling faster and easier, but it ended up losing money, so Zillow shut it down.

3️⃣ Advertising & Mortgages – Zillow monetizes through real estate ads and mortgage lending​.

Challenges & Limitations of Zillow’s Model:

  • Agent-Dependent: Buyers still rely on traditional agents, incurring 3-6% commission fees.
  • Limited AI & Automation: Zillow provides listings but does not assist with transactions beyond referrals.
  • No Integrated Homebuying Services: Users must seek out mortgage brokers, title companies, and insurance providers separately.

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reAlpha’s Business Model: AI-Powered, Commission-Free Transactions

reAlpha is not a traditional real estate brokerage. Instead, it uses AI-driven automation to remove inefficiencies, offering a commission-free homebuying experience.

How reAlpha Makes Money:

✅ No Buy-Side or Sell-side Commissions – reAlpha doesn't charge buyers any commissions, which is different from traditional brokerages.

Revenue from Ancillary Services:

  • Mortgage Brokering – Helps homebuyers find financing options.
  • Title Search & Insurance – Verifies property ownership and provides risk coverage.

reAlpha’s Key Advantages Over Zillow:

  • AI-Driven Agent (Claire) – Handles the entire transaction, including property searches, offers, and closing support​.
  • Fully Digital Homebuying Experience – No need for agent-led negotiations or manual paperwork.
  • Cost Savings – Eliminates traditional 3-6% or more commissions, making homeownership more affordable.

reAlpha vs. Zillow Side-by-Side Comparison Table

Feature reAlphaZillow
Business ModelAI-powered, commission-free homebuying
Traditional agent-driven marketplace
Cost for BuyersNo commission fees3-6% agent commission
Property SearchAI-powered recommendationsAgent-dependent listings
Purchase ProcessTech and AI guided process for better UX experienceManual negotiation with agents
Revenue SourceMortgage brokering, title & home insuranceAgent commissions, advertising
Tech IntegrationAI-driven customer experienceMinimal AI in transactions

reAlpha vs. Zillow: Comparing Benefits for a Homebuyer

Let’s consider this hypothetical example of two homebuyers, each using a different platform:

🏡 Buyer A – Using Zillow

🔹 Starts by browsing Zillow’s listings but must hire an agent for home tours.

🔹 The agent charges a 3% or more commission, adding thousands to the final cost.

🔹 Must coordinate with third-party lenders, title companies, and insurance providers, increasing complexity.

🔹 The entire process takes weeks, with back-and-forth agent negotiations.

🤖 Buyer B – Using reAlpha

🔹 Uses AI agent Claire to find listings, analyze pricing, and make an offer.

🔹 No commissions—saving 3-6% or more on the purchase price.

🔹 Mortgage, title, and insurance services are integrated into the platform.

🔹 Faster, fully digital transaction with AI-assisted negotiation & contract generation​.

🏆 reAlpha vs. Flyhomes Who Wins?

Buyer B (reAlpha) saves time, doesn't have to pay commissions, and has a simpler, AI-powered process when compared to Buyer A.

Buy your dream home commission-free

Get the guidance of reAlpha's AI and real estate professionals in buying your dream home without paying any commission.

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Industry Insights: The Future of Home Buying

With real estate commissions under scrutiny, the industry is shifting towards technology-driven efficiency.

Why Traditional Models (Like Zillow) Struggle:

  • High agent fees – Buyers and sellers still pay steep commissions.
  • Limited automation – Zillow acts as a middleman rather than a transaction enabler.
  • Fragmented homebuying process – No seamless mortgage, title, or insurance integration.

Why reAlpha Leads the Future of PropTech:

✔ AI-Powered Transactions – Reduces reliance on traditional agents.

✔ Integrated Homebuying Services – Mortgage, title, and insurance included.

✔ Commission-Free Model – Eliminates unnecessary costs for homebuyers.

reAlpha vs. Zillow Final Verdict: Why reAlpha Wins

🏆 reAlpha is a better choice than Zillow

1️⃣ No Commissions – Zillow’s agent model leads to 3-6% in fees, while reAlpha is commission-free.

2️⃣ AI-Driven Efficiency – Zillow offers listings, but reAlpha guides buyers through the entire purchase process.

3️⃣ Integrated Homebuying Solutions – Unlike Zillow, reAlpha provides mortgages, title services, and insurance in one platform.

4️⃣ Faster, Smarter Transactions – With AI-powered automation, reAlpha closes deals faster than agent-driven transactions.

🚀 Ready to experience the future of homebuying? Explore reAlpha and enjoy a smarter, commission-free way to buy a home!
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Article by

DA
Daniel Ares

As a great communicator with excellent negotiation skills, I focus more on establishing unbreakable ties between my clients, as opposed to just helping them achieve their real estate dreams. As a representative of both buyers and sellers, I understand how to lead a transaction process to ensure that the needs of both are met. My track record speaks for itself. Since I ventured into the industry in 2013 as a realtor, I have not only helped many buyers land perfect homes, but I have also assisted tons of owners and investors build wealth.