Real estate agents, homeowners and homebuyers may already know that Yahoo Real Estate (Stock Quote: YHOO) and are some of the most popular real estate sites on the Web, ranked second and third, respectively, in most user surveys. Now the two real estate powerhouses are joining forces to bring Zillow’s software model to Yahoo’s widespread menu of homes for sale. Here’s what the new formula will look like.

In effect, Yahoo is handing the keys to its real estate site over to Zillow, allowing the company to handle its real estate listings and pitch in on ad sales for Yahoo Real Estate. Yahoo will keep control over its national sales market, but will give Zillow the responsibility of selling ads in local U.S. markets to real estate agents and brokers.

While Yahoo says it will continue to handle the overall management of its real estate site, structurally the deal is similar to the one Yahoo Auto has with As part of the deal, Yahoo gains Zillow’s 4 million listings, plus the company’s popular “Zestimate” home value listings.

Yahoo is used to partnering with high-profile companies — on the Yahoo Real Estate web page, one of the first things users see are links to partner sites like Quicken Loans and Bank of America (Stock Quote: BAC).

For buyers and sellers, the deal means a one-stop shopping site. For real estate professionals, the deal means higher exposure for their home listings and for any ads they place.

Here, from, are the details on the deal:

For agents and brokers: Zillow will immediately begin coordinating local advertising sales across the two sites, extending the Zillow Premier Agent program to Yahoo Real Estate. Existing Zillow advertisers will be the first to be offered the opportunity to add Yahoo. Also, once an agent’s listings begin appearing on Yahoo Real Estate later this year (via Zillow), the agent will have one less listings feed to maintain.

For home shoppers: The partnership gives homebuyers core home details (number bedrooms and bathrooms, square feet) in addition to Zestimates, price history, listing description, etc.

For home sellers: Seller listings will now appear on both the second-and third-largest real estate websites.

For home builders: Zillow and Yahoo expect to work together in the sale of display advertising on Yahoo Real Estate to new home builders, real estate agents and brokers. Zillow says “stay tuned” for more information on that deal.

While no specific date was released for the partnership launch, both Zillow and Yahoo said they expect the deal to officially kick off this year.

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