4 Ways Zillow is Going to Revolutionize Residential Real Estate
Zillow has been slowly rolling out a direct is about torevolutionize home buying in a way that leapfrogs the paradigm shift of bookingvacations, a car, and a room in another’s home. Rich Barton and Lloyd Frink, ofExpedia and Hotwire fame, founded and launched Zillow just as the market wastanking, which allowed them the insight of watching an entire market the sizeof France’s GDP rebuild itself. Where Lyft, Uber, and Airbnb made missteps iswhere Zillow is more poised than any technology company to reach stratosphericheights. Here are the 4 reasons Zillow will become the sole residential realestate powerhouse in the next few years.
1) Zillow offers a level of transparency no one else canoffer
With a decade of pricing and tax history on nearly every home,green scores, monthly cost estimates, rental value estimates, and tons of otherdata points on every listing, Zillow brings a ridiculous amount of transparencyand data to a market that’s shrouded in mystery and ripe for exploitation
2) Purchase Journey
Anyone looking for a home understands the headaches thatcome with scheduling, touring, applying for mortgages, financial constraints,managing a realtor, and the overall stress of the biggest purchase in anyone’slife. The issue here is that all of these stressors come BEFORE you’ve foundthe home of your dreams, so countless times throughout the process you’redissuaded from carrying on. Zillow sends an unconscionably accurate email eachday that suggests 10 houses with your tastes, finances, and ideal locationtaken into account. It has unprecedented machine learning that makes yourrealtor’s top selections seem like they were drawn out of a hat.
3) They’re buying up real estate
This is the big one. Zillow has quietly starting purchasingand listing homes themselves, which could significantly drive down both thecost to sell and to purchase a new home by removing the human factor. It’s nocoincidence that this comes as people are increasingly unhappy with theantiquated system of 6% commissions. “The client wants Netflix and thetechnology for Netflix is here, and it's like Blockbuster saying, 'no, this isthe only way to watch videos,” says Lindy Chapman, a Dallas woman who got herown license after being fed up with the current system.
4) Data Warehousing
As Zillow expands, their most profitable revenue channel maybe yet to come. If Amazon’s playbook gives any indication for the future oftechnology companies, Zillow may soon see their most profits from the sheerdata they’re able to amass in being involved in nearly every step of the homebuying journey. Zillow is more likely to see profits from tangential productsthan from selling homes themselves. Afterall, they’re out to improve theprocess and cut prices. Once they’ve done that and they see significant marketshare, real estate firms and all other businesses that count on the housingmarket for their livelihood (a casual $xxx billion) will be forced to licenseZillow data.