RICO Rodeo

Splits and Caps Daily: Action for Agents

November 20, 2025

📈 Market Move:

Funnel Fallout

Zillow just leveled up its legal problems — and not in a fun, “achievement unlocked” way. The lawyers from the Moehrl commission case dropped an amended class action that now accuses Zillow of racketeering (yes, RICO… the mobster kind).

The new filing says Zillow built a “fraudulent enterprise” that funnels buyers from Zillow’s site → to Flex agents → to Zillow Home Loans, all while hiding big referral fees and keeping commissions high. It claims buyers who hit “Contact Agent” think they’re reaching the listing agent but get routed to a Flex agent who doesn’t disclose Zillow’s 40% cut.

Twelve confidential witnesses — mostly Flex agents — say Zillow monitored their calls, gave off-the-record quotas, and punished anyone who recommended outside lenders. Agents who didn’t steer enough buyers to Zillow Home Loans allegedly lost leads or got kicked from the program.

This case also stacks on RESPA allegations, echoing another recent lawsuit calling Zillow’s mortgage tactics “kickbacks.”

Bottom line: Zillow’s push to own the whole transaction is now teetering on a legal knife’s edge. If the RICO angle sticks, this could reshape how referral programs and in-platform lenders operate across the entire industry.

🌟Quote of the Day:

“Be yourself; everyone else is already taken.” — Oscar Wilde

⚡ Quick Win:

“Before They Ask” Tip: Email one client a small tip before they need it: moving checklist, staging advice, or mortgage insight. Anticipate needs, stay top of mind.

🎉 Fun Fact of the Day: 

Goat Gloat: 🐐 A goat once sold a vacant lot at auction. The county trained a goat to “pick” the winning ticket as a publicity stunt. It worked — the lot sold above asking.

📚 Book Recommendation:

“Atomic Attraction” by Christopher Canwell — Being a top real estate agent isn’t just about listings and comps — it’s about people. This book is a masterclass in understanding why humans are drawn to certain personalities, energy, and confidence. Canwell breaks down the psychology of attraction — and yes, it applies to business, not just romance.

For agents, that means learning how to naturally connect with clients, build trust, and make yourself the go-to person in your market. It’s about being magnetic without being pushy — so buyers and sellers seek you out, listen to your advice, and stick around through the deal.

Takeaway: In real estate, closing more deals isn’t just about strategy — it’s about creating authentic, magnetic connections. This book shows you how.

Another day, another chance to get better.

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