Zillow Success Story- How It Is Revolutionizing the Real Estate Sector

Zillow Success Story- How It Is Revolutionizing the Real Estate Sector

From ordering gourmet food to getting coaching, everything is available online. Today even our marketplace is online, be it groceries or property, one can easily buy them online. Traditionally the real-estate market was known for the deals that occurred with the help of unorganized brokers, agents, and middlemen.

However, with the changing times, the real estate market has shifted on the internet too, this is why Zillow came into existence with Zillow homes for rent, Zillow homes for sales, Zillow apartments, and much more.

With due diligence, one can buy or sell properties and houses on real estate websites. In the year 2019, the National Association of Realtors stated that 52% of the buyers who bought homes found them on the internet.

As per the report posted on ipropertymanagement.com, real estate websites collectively are known to have been visited more than 120 million times on the internet and one such dominant platform is Zillow. More than 36 million unique visitors search for properties on Zillow in a month as of 2021. Find more information about the real-estate platform Zillow in this article.

Zillow - Company Highlights

Startup Name Zillow
Headquarter Russell Investments Center Seattle, Washington, U.S.
Sector Real Estate
Founders Rich Barton & Lloyd Frink
Founded 2006
Revenue $11.186 Billion (2022)
Website www.zillow.com

Zillow- About
Zillow- Startup Story
Zillow- Business Model
Zillow- Revenue Model

Zillow - About

Zillow is one of the most prominent and famous real estate and home-related brands today on the internet. Zillow Group, Inc. has it focuses on all stages of the home life cycle and including renting, buying, financing, selling, home improvement, and so on.

With its unparalleled data, inspiration, and knowledge of homes and real estate, Zillow Group is committed to empowering its consumers and connecting them with the right professionals to help.

Concerning the business-to-business (B2B) segment, Zillow Group also develops and provides marketing and technology solutions to help real estate, rental, and mortgage professionals to maximize and increase business opportunities.

This helps them to connect with millions of customers daily and increases their reach as well. Data and voice communication needs of Zillow are accomplished by threshold communication which helps to safeguard clients from traditional errands of multiple network and hardware vendors.

Zillow was founded with the prime objective to find houses, and apartments and help consumers find their best match properties and now the company has expanded its services way beyond. Besides, the Zillow group also operates similar real estate portals like Trulia, Hot Pads, and Street Easy.


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Zillow - Startup Story

Zillow Home Page
Zillow Home Page

The idea of funding a platform like Zillow was initiated in the year 2004 by Rich Barton. At that time, Barton was working at Microsoft Firm. With the thought of changing the real estate industry and transforming the sector, Zillow was formed in the year 2004. The website of the company was launched in the year 2006 and the company started its operations thereafter.

Rich Barton- Zillow Founder
Rich Barton- Zillow Founder

Later on in the year, 2010 Barton stayed as the executive chairman, and Spencer Rascoff was appointed as the CEO of the company by the board of directors. After 8 years when Zillow was about to enter the on-demand home buying market, Barton returned as the CEO of the company to lead in the phase of transitions. He is still the CEO of the firm.

In 2018, the company for the very first time stepped outside the country and partnered with Century 21 Canada to list Canadian properties on its website.

Zillow - Business Model

The whole Business Model of Zillow came down with the single objective to empower people with tools and information so that they make wise decisions in buying, leasing, selling, remodeling, financing, or renting homes.

The segments that the company has categorized on its portal are:

  1. Sale: The customers in this section can find properties for sale according to their preferences by applying various filters.

2. Buy: This category is further categorized into different types-

  • Foreclosed: These are the properties where the homeowners have failed to pay the mortgage value and the property has now gone for foreclosure auction
  • Pre-foreclosure: These are the properties that are in the early stages of being
    repossessed due to the owner's inability to pay the mortgage amount
  • The others include new constructions, flats recently sold, and for sale by owner

3. Rent: In this section, customers can explore options like rental buildings, apartments, or offices.

4. Home Loans: Visitors on the website can also explore the various option of financing like refinancing rates, mortgage rates, different lenders, etc.

5. Agents: This is the last category where the visitors can look out for the agent's help if they wish to. The portal helps you find the right real estate managers, property managers, home inspectors, home builders, etc.

Zillow - Revenue Model

Revenue Breakdown of Zillow
Revenue Breakdown of Zillow

Zillow is a free website when it comes to listing a property for sale or rent. Websites, online tools, and mobile applications are free as well. Even though the company is providing almost everything for free its annual revenue was $8.147 billion (2021). The business model of Zillow is based on peer-to-peer (P2P), agency-to-the-customer (B2C), and agency-to-agency (A2A).

These are the ways through which Zillow is generating its revenue:

1. Sale of advertisements to property management companies

Zillow has a rental network that maximizes the visibility of the advertiser's property to the renters. This network comprises Zillow, Trulia, Hot Pads, and Street Easy. Zillow offers this network to property management companies. Such rentals bring a huge part of the revenue for the company.

2. Premier Services for Real Estate Agents

Through means of advertising, Zillow's premier services can bring you buyers, sellers, and better business for agents. If one wants to become a premier agent Zillow charges a nominal amount that depends on the place and the area. These agents pay Zillow an amount that is determined by the number of ad impressions delivered to the users of that area.

3. Ad Sales to Mortgage Lenders

The platform also sells its advertising space to mortgage lenders and businesses such as general contractors, interior designers, home organization retailers, etc. These lenders and businesses pay the amount to Zillow based on cost per click (CPC) or cost per thousand impressions(CPM).

Conclusion

Zillow is a real estate-focused online brand having the availability of products circling all the stages of home life cycling. Zillow was introduced to the world in 2006 after the initiation of re-evaluating the real estate market by Rich Barton, the former Microsoft employee.

Zillow is known to provide free services to its users related to renting or buying a house with many other similar services. Zillow is considered one of the major players in the real estate sector.

FAQs

What is Zillow?

Zillow Group is one of the major players in the real estate sector highly known to provide services circling all the stages of the home life cycle. They provide services like buying, renting, leasing, and financing a property.

Who owns Zillow?

Zillow is owned by Rich Barton, a former Microsoft employee.

Who are Zillow's competitors?

Some of Zillow's competitors are BoldLead CRM, Realtor.com, Zumper, Apartments.com, etc.

How does Zillow make money?

Zillow earns its revenue from multiple sources, some of them to be counted are by selling advertisements, providing premier services to its customers, etc.

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