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  "documentTitle": "Zillow Group, Inc. (Z)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-03-05 00:00:00",
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  "notes": "Uses a quote from a Zillow Flex agent to undermine the company's growth narrative.",
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      "text": "In Spruce Point's opinion, converting most of the U.S. to Enhanced Markets is a very risky bet. Our research indicates it would take a very large sales force / training program to help assist Flex partners in converting leads and building a consistently profitable business. The real estate broker community has an extremely high turnover rate of 87% within the first five years according to one industry participant.(1)",
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      "text": "In Spruce Point's opinion, converting most of the U.S. to Enhanced Markets is a very risky bet.",
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      "text": "\"They have a ton of data that they're not sharing with us. The only thing that they shared with us is that Charlotte Market has 4,790 hand raises in the month of July. So if you just use a number of 4,000 hand raisers a month looking for an agent to reach out at one of their busiest markets, you take it down to a much smaller market where they're only getting one to two thousand a month. I think they start backing out, okay, well if he's got a low number here, probably the best thing to do is just do the market pricing and just sell it outright. I do think that's very profitable for them and they've been profitable with that over the years.\" — Zillow Flex Agent",
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      "text": "(1) “There Are Just Way Too Many Real Estate Agents Right Now—And It’s Hurting the Industry,” Biggerpockets.com",
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      "text": "Source: Spruce Point Interview",
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