As we all know by now the pending merger of Zillow and Trulia was approved early this year. What does the merger mean to the average real estate agent? What can we learn from the past in order to determine the future?
The answer is anyone’s guess so we are taking the time to throw our observations into the hat so that we can all think about them.
First, is that the real estate landscape online has been changing for some time and we have all felt the brunt of it as we are forced to resort more every day to online methods of generating new business. That said we have to look at the goals of Zillow while keeping in mind that goals may be clear but the methods of attaining those goals are not always clear to the decision makers at this moment in time.
Here are some points that everyone knows:
So what does the future of Zillow look like knowing all the information above?
It looks to us like they are going to face some challenges as they have replaced every newspaper in the country for advertising real estate. One challenge is that there are millions of agents in the country and they don’t have many options outside of Trulia and Zillow. This means that Zillow will have a couple of options in order to continue growing and increasing their share price, which they are obligated to do.
Some of these options should not raise any concern but other options should concern us a bit. There is nothing stopping Zillow from becoming Redfin now that they are owners of most search engine results. The difference with Redfin and Zillow is that Redfin is not publicly traded and was has never tried to monopolize search engine results while Zillow started out to monopolize search results as its primary goal. Zillow and Trulia have both done a fine job at it and should be admired for it. We should also be prepared for the next steps that Zillow will be required to make in order to continue increasing its revenue.