Zillow, the new Craigslist of real estate?

Seattle-based Zillow, the site that offers free home estimates, is now encouraging homeowners or their real estate agents to post for-sale listings for free. Or, if you’re not so sure you want to put your home up for sale, you can post a “Make Me Sell” listing that displays a dream price that would convince you to sell. While Zillow leaves the transaction to the buyer, seller and any agents involved, the free listings are creating an alternative to the Multiple Listings Service. As you may expect, the move is causing more waves in the real estate industry, especially considering Zillows deep pockets ($57 million in venture capital), smart management (created by former Expedia founder) and hefty traffic (3 million uniques last month.) Keep an eye on this one.