Zillow, the site where you can find pricing estimates and other info about houses around the United States, aims to disrupt the online lending market with the launch of its Mortgage Marketplace. The marketplace is a free service that hooks lenders up with borrowers. It works very much as Zicasso does for travelers (see our review of that service here). Borrowers submit just the essentials – what type of loan they need, where they’re located, their estimated property value, their credit history, etc – without divulging any of their contact info. Then certified lenders make offers that can be compared side-by-side. It’s up to the borrower to reach out and contact those lenders, not the other way around as it is with services like Lending Tree. Zillow cites a Harris Interactive study showing that it’s more important for borrowers to keep their contact info private than to find the best rates. Apparently lenders are a bit too eager to sell you on a deal after they know how to find you. So the main advantage of this marketplace lies in protecting borrowers’ identities and tipping the balance of power into their favor. There are other advantages to the system as well. Borrowers can rate lenders and leave comments about them so that others can make better decisions. The extra transparency also lets lenders know what types of offers they are competing with, which could lead to more competitive deals. That’s okay with lenders, though, since they’re gaining access to a larger market for which to make their offers. According to the company, Zillow attracts about 5M unique visitors monthly, 1/5 of which are looking for a loan and 2/3 of which are looking to buy or sell a home. We’ve also been told that 1 in 3 professional lenders visit Zillow every month. This traffic is therefore a natural fit for a service like this, which shouldn’t have a problem gaining traction. Some other fun facts about Zillow: of the 90m homes in the US, 80M are listed in Zillow and 70M have estimated prices (“zestimates”). A full 45% of the 90M total homes have been looked up on the site; in San Francisco that percentage is around 90%. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Venture capitalist Josh Kopelman has stated that he likes startups that shrink markets – “We love investing in technologies and business models that are able to shrink existing markets. If your company can take $5 of revenue from a competitor for every $1 you earn – let’s talk!” And while he isn’t an investor in Seattle-based real estate startup Redfin, I’m pretty sure he likes their business model. The company is doing its best to completely remove real estate agents and brokers (and their absurd fees) from at least half of a home sale. If you use them when you buy a home, they reimburse 2/3 of the broker fee to you, keeping 1/3 for themselves. 60 Minutes covered the company last May, which led to a surge in business. CEO Glenn Kelman told me today that, since launching in February 2006, they’ve been involved in 1,500 transactions and have reimbursed $12 million to customers. The average refund is $10,000. The company had 2007 revenues of $5 million, he says. They’ve just launched a new version of the website that includes more frequent MLS updates and the ability to group home sales by neighborhood and download the data. They are also providing deeper data on homes currently on the market as well as historical sales (they compete with a number of other startups in search, including Zillow, Trulia and Roost). If you want to use Redfin, check first to make sure they cover your geographic area, which include the San Francisco/Bay Area, San Diego, Orange County, LA, Seattle, Washington DC/Baltimore, and Boston. Chicago is coming soon. CrunchBase Information Redfin Zillow Trulia Roost Information provided by CrunchBase → Read More
Real-estate site Zillow has added 10 million homes to its Website, bringing the total to 80 million (out of 91 million homes in the U.S.). Of those, the properties it has enough information on to calculate a “Zestimate” is now 67 million, up from 53 million before. Zestimates and comparable-sales data are the two biggest draws to the site, says president Lloyd Frink, who dropped by my office on Wednesday. I gave Frink a hard time because I always find the Zestimates for properties in New York City to be way off base. “New York is tough,” he admitted. But Zillow has tweaked its algorithm and improved the accuracy of its Zestimates by 12 percent (as measured by the actual sale price versus the last Zestimate on the day of the sale). The algorithm improved by diving deeper into the data. “We went from having a model for each county to 20 models for each county,” says Frink. The Zestimates also now take into account more than one million corrections and facts added by home owners. The margin of error is now 8.8 percent. That is an average for the entire country. You still can’t trust the Zestimates on New York City apartments. But Frink notes that a third of the site’s Zestimates across the country fall within five percent of the selling price, and that half are within 10 percent. Still, he cautions that “the Zestimate is just a starting point.” You’d think that real-estate sites would be hurting right now, given the severe correction in the housing market. But Frink argues that in a down market research is more important than ever and says that Zillow is still benefiting from the overall shift in real estate activities to the Web. Zillow’s ad model certainly benefits from various targeting capabilities-geographic, demographic, and behavioral. Each action on the site is zipcode-specific. Frink notes that the EZ Ads Zillow sells itself go for $10 CPMs, versus $3 to $5 CPMs for backfill ads from ad networks. Zillow is trying to create a database of all homes in the U.S., which is a different approach than other real-estate sites. “It is the database of all homes, not just homes on the market,” notes Frink. This is both a strength and a weakness. On the downside, Zillow lists only 400,000 homes that are for sale, out of about 4 million nationwide. A deal → Read More
Seattle-based real estate site Zillow has raised another big round of capital. Tonight they’re announcing a $30 million financing, bringing their total capital raised to a whopping $87 million. The round was led by asset management firm Legg Mason Capital Management, with participation from existing investors Benchmark Capital, Technology Crossover Ventures and PAR Capital. Their last round, $25 million, was announced in July 2006. Zillow continues to make big traffic gains, too. The company, which now has 155 employees, had 4.4 million unique visitors in August 2007 according to the company (Comscore says 1.9 million uniques and 38 million page views). They have 70 million U.S. homes in their database. They say more than 50,000 questions have been asked by users since a Q&A service was launched in April 2007. Legg Mason certainly seems bullish on consumer facing web services – In addition to this round, they recently led Ning’s July 2007 $44 million venture round. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Zillow has been down this afternoon as the popular real estate site adds a number of new features. They may have been taking a look at the runaway success of Yahoo Answers – Among the changes is a new product called Home Q&A, which allows users to ask and answer questions about any of the 70 million U.S. homes in the Zillow database. Answers are rated by other Zillow users. Every home in the Zillow database has its own dedicated page. Any user can now also add photos and information about any home and its neighborhood to the site. Users can also indicate if a home is for sale, and the asking price, as well as additional information. This is an expansion on user-generated content features added last September. Previously only the 600,000 registered users who claimed their homes or over 150,000 real estate agents could list a home for sale or post photos of the home. Now any registered user can list a home for sale and post an unlimited number of photos for the home, although the prime real estate on the listing is still reserved for a certified owner or agent. Bad photos and information can be flagged by other users. Zillow is moving beyond the general site wide advertising they got from brokerages and home improvement stores, enabling registered users to carry out targeted advertising campaigns for their home listing. The new ad units are called “EZ Ads”. Users will be able to target their campaign by zip codes and specify the number of view or bank roll their ad will run for. The effective CPM for these ads will be a penny per impression. Zillow claims 4.1 million unique visitors came to the site in March (Comscore (U.S.) says 1.8 million, down from 2.3 million a year ago, and 33 million monthly page views). They say that 90% of visitors own a home, and 54% play to buy or sell in the next two years. The company has raised $57 million in venture capital. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Home listing site Zillow is making it possible to shop for homes that are not necessarily for sale with their new Make Me Move function, which launches on Thursday. Home owners who may have no intention of moving, but certainly would for the right price, can list information about their homes on Make Me Move so that gutsy buyers can try to make a deal. “What number would it take for you to call the movers and hand over your keys?” said Lloyd Frink, Zillow’s co-founder and president, in a release about the new function. “Make Me Move is our twist on the traditional ‘For Sale’ sign.” A homeowner can post a Make Me Move price without exposing any personal information. Zillow then enables interested buyers to contact the owner through an email “anonymizer.” The service is free. Free is the magic word at Zillow lately because the company also announced that it will provide free listings for all home owners and realtors. Listings can include photos, and realtors can also create Web sites for each listing. Zillow’s third new function is the Real Estate Wiki, which has hundreds of articles on buying, selling, financing, or any topic a owner/buyer might need. Wiki visitors can edit or comment on articles, or create new articles. These new new announcements are undoubtedly Zillow’s efforts to continue hosting as much real estate information on their site as possible. It’s a sign that they have enough traffic to sell ads and do not need user money to survive. The company launched in early 2006 and has made major announcements all year, including 3D maps, open APIs, and many large rounds of funding. The company claimed 3.2 million users and 70 million home listings as of November. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Real estate search company Zillow has opened two APIs to allow other sites to utilize its data on homes around the US. The company made news last month when Yahoo! became one of the earliest users of the pre-launch API on its real estate site. There were more than 30 pre-launch users of the API in total, also including Prudential Northern California and Nevada, ZipRealty and Redfin. In addition to its own data, Zillow now includes home information uploaded by home owners. The site also offers mobile access and a 3-D view of homes based on Microsoft’s “bird’s eye view.” If you haven’t tried entering a few addresses into Zillow before, I recommend doing it for fun if nothing else. Now third parties will be able to access and incorporate on their web sites either of two data sets, one on home valuations and the other on property details. Use of the APIs is free and users can make 1,000 per day by default. This is a very smart marketing move on Zillow’s part. One of the best ways for small web sites to grow in functionality and sophistication is to offer rich data from off-site integrated into their own offerings. That’s happening with everything from video search to syndicated photographs as well. The move towards highly portable data makes this a very exciting time for small web site publishers, who are more easily than every before able to wrap a feature rich environment around their own core value proposition. Seattle based Zillow has raised a massive $57 million in venture backing and launched its beta site in February of this year. To go from launch to being one of the major providers of data to top sites in your field in 8 months is impressive. That’s made possible in large part because of Zillow’s executive team, lead by Expedia founder and former CEO Rich Barton and former Expedia senior vice president Lloyd Frink. Other startups doing similar work include Trulia , RealEstateABC, and Redfin. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Seattle based Zillow is a website that allows people to get information on 68 million homes in the United States (such as an estimated value, size, number of bedrooms and bathrooms, etc.). On Wednesday morning they are releasing new features which will allow users to contribute updated and detailed information about their own homes to Zillow’s national database. This owner information will appear on an information page about a property along with Zillow gathered information (see screen shot below). If some of the information about a home is incorrect or outdated, users will have the opportunity to correct that. Additional information on valuation can also be included, and Zillow will use that information in determining an updated estimate of the home’s value.Before adding any information users must complete a verification process to claim a home. I would expect people to be aggressive about updating Zillow information when they put their home up for sale. Zillow continues to innovate and execute well. They’ve raised a massive $57 million in venture funding to date, and are deeply integrated into Yahoo Real Estate. Our previous posts on Zillow are here. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Yahoo unveiled its new Real Estate site today. The site now incorporates an interactive map displaying home price data filtered by location, price, and number of beds and baths. It draws its data from MLS listings, classified, foreclosures, and rentals. Yahoo has also fully integrated with high-profile and massively funded partner Zillow by using their technology to power a home value mashup with Yahoo maps. The new site will make life more difficult for the myriad of competing real estate websites, including newcomers such as Redfin, Trulia, Movoto, and RealEstateABC.com. With the redesign, Yahoo supports finding and listing a house, researching the area (schools and community), finding a realtor, getting a mortgage (with local rates), and valuing your home. This makes for a far more comprehensive site than the price listings Trulia provides, yet doesn’t go as far as Redfin and Movoto by stepping in as the broker (note, however that these last two services are restricted to just a few geographic locations). CrunchBase Information Trulia Zillow Redfin Information provided by CrunchBase → Read More
Zillow, which just raised another boatload of cash, has announced a couple of new features recently. One, the Zillow API, will be embraced by legions of real estate agents desperate to get traffic to their websites. The other, a Zillow mobile feature, will let you get a Zestimate, which is Zillow’s estimate of a home’s value, by email/SMS. The Zillow API is still being developed, although they’ve given some details on the Zillow blog. Yahoo is already using the API, as well as this test site from a company that build sites for agents. The mobile feature allows you to obtain the value of a house by email/sms. To use it, text or email a home address to z@labs.zillow.com. I agree with SocketSite – Zillow Mobile you no longer have to wait until you get home from a dinner party to figure out how much your host’s house is worth. Another use, of course, is to check home values in a neighborhood when you visit an open house. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Seattle-based Zillow, which raised $32 million in funding in 2005 from Benchmark Capital and Technology Crossover Ventures, has raised another $25 million. This round of capital comes from a new investor, Boston-based Par Capital Mananement. No word on valuation. This comes on the heels of a recent (and massive) distribution deal with Yahoo. Zillow, essentially a mashup of maps and historical real estate sales information, has now raised a whopping $57 million in capital. Other than supporting their 118 employees, it’s unclear what they plan to do with the money. John Cook has good information on Zillow’s recent stats, noting that in June the company had 2.1 million unique visitors, ranking 11th among real estate Web sites. Note that Jobster, another Seattle startup, has also recently completed a large financing, bringing their total to nearly $50 million raised. CrunchBase Information Zillow Information provided by CrunchBase → Read More
A little competition is good – just two weeks after Zillow saw Real Estate ABC and Google Real Estate move into its territory, they launch a new 3D viewing application based on Microsoft Live’s “bird’s eye view” feature. This is a perfect use for Live.com Local, allowing potential buyers to get a better view of the homes they are considering purchasing. CrunchBase Information Zillow Information provided by CrunchBase → Read More
Three month old Zillow, which gives people an indication of home values in specific locations based on publicly available comparables, will be having some competiton in the near future. The new site is called Real Estate ABC (which is owned Internet Brands). The Zillow competitor is in beta on a hidden URL: www1.realestateabc.com/home-values/. I have no idea if they’ll leave it up, but as of right now it’s live. The name isn’t as cool and the design isn’t a fluid as Zillow, but it may be better in some ways. For instance, Real Estate ABC allows users to adjust property values for a particular property with an Ajax slider. Adjustable property factors include Interior, Exterior, Lot Size, View, Privacy/Noise and Local Market Conditions. Users can also refine property values by adding or removing comparables directly on the results page. In fact, Real Estate ABC gives significant detail on comparables, including distance from a specific address. Real Estate ABC also provides a mashup with Google maps, although they do not use satellite images like Zillow. Zillow is perhaps one of the most popular recent mashup to launch. If anything, Real Estate ABC shows that if a mashup site is going to try to make a go at creating a real business, they need to build in proprietary features that are not easily duplicated before the competition arrives. → Read More
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