• Zillow has been on a hot streak lately, diversifying and boosting its revenue along the path towards total domination.
• No longer content to just be the house-listing site where you compare your apartment’s closet size to ritzy mansions, Zillow is evolving into a full-fledged “super app”.
• They now offer services across a real estate transaction, from buying & selling to financing, closing, and even home repairs – because why leave any part of the process untouched?
• Their super app generated an impressive $1.8 billion in revenue in 2021, earning a solid profit of $292 million – talk about money moves!
• Interestingly, Zillow’s strong performance comes at a time when the overall real estate market is in a slump.
• However, the company is not all rainbows and sunshine; They’ve earned a fair share of controversy and criticism, with some accusing them of unsporting behavior and others complaining about accuracy.
• The Zestimate, Zillow’s proprietary home price valuation model, has been called into question over its opaque algorithm and tendency to overvalue properties.
Zillow, the Expansive Universe of Real Estate
Supercharged Revenue via ‘Super App’
Despite the wild roller coaster ride that is the current real estate market, our friend Zillow has been making some serious dollar signs. Far from being just a nosy neighbor’s window into other people’s homes, Zillow has adopted a new avatar – a ‘Super App’. Challenging the traditional transaction model, it now dabbles in every step of the real estate process. Living up to Rand Fishkin’s ‘Eat the Internet’ prophecy, maybe?
Sour Sweet Symphonies
Turning profits in a down market is akin to pulling a rabbit out of a hat, but not everyone’s a fan of Zillow’s magic. Accusations include practicing monopoly-like behavior and providing inaccurate valuations. Apparently, the Zestimate has been seen doing some funny calculations, and not the kind you’d chuckle at.
The Verdict: Zillow, Savior or Sacrosanct?
In the end, should we hail Zillow as a conquering hero, or wag our fingers at its perceived transgressions? That’s the million-dollar question (or maybe the $1.8 billion question in this case).
The real estate world has long been overdue for a shakeup, and Zillow has taken the first few giant strides. Yes, there are bumps on the road, but as long as Zillow can fix some of its Zestimate woes and keep its ambition in check, it might not be long before we see a new property titan emerge.
And hey, any company that can make profit in a sinking market is clearly doing something right – or at least, it’s doing something incredibly lucky. Either way, we’re eyeballing this real estate maverick with interest – and perhaps a dash of apprehension. Stay tuned, property punters, for the next chapter of The Zillow Chronicles!
Original article: https://www.inman.com/2024/03/01/heres-how-zillows-new-super-app-is-driving-revenue-growth-delprete/
