Over the past week, real estate has been dominated by news of Zillow Group’s Instant Offers. The new program, which allows prospective homesellers to receive an instant offer on their home, has been covered across the industry and met with a largely negative reaction. A thought provoking article in VentureBeat rhetorically wondered whether Zillow could “Uber-ize” the hundred-billion-dollar real estate brokerage business. The author claims that Zillow is well positioned to disrupt the industry and capture an even larger share of the brokerage market. There’s an immense amount of interest related to Zillow disrupting or displacing the traditional real estate industry structure. It’s a huge opportunity, but one fraught with risk. I’m going to approach this situation from two angles: first, my own time as head of strategy for a publicly listed multi-billion dollar business and, second, what the data tells us. Instant Offers: offensive, defensive or opportunistic? The...
- The industry is up in arms about Zillow displacing agents and brokerages, but the data doesn't support it.
- Instant Offers is about giving consumers choice, expanding the existing lead marketplace and providing a new source of revenue with seller leads.
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