Posts

zillow

Zillow Stocks Get Crushed As Google Tests New Real Estate Listing Search Format

/in , /by

Zillow shares have plummeted by over 9% on Monday over fears of what the future of online real estate might look like. Specifically, Google and its parent company Alphabet are running tests on adding real estate listings and sales into their search results. 

Embed from Getty Images

Real estate tech strategist Mike DelPrete published screenshots that showed Google Search results with real estate listings powered by real estate data company HouseCanary. The listings allow users to view the full details on a property’s page, request a tour, and contact an agent. This model is very similar to how Zillow functions.

The Google real estate results, however, are just being tested and are only available in select markets and on mobile devices. 

Investors and experts in the field are already projecting Google’s success with this new search algorithm, leading to the decline in Zillow stocks. During Monday’s session, the stock was down by at least 11%, according to reports from CNBC.

Analysts from Wall Street stated that Zillow, however, is not very exposed to organic searching like Google’s new tool seems to be trying to capitalize on, so this drop in stock could be temporary. 

Alec Brondolo, a Wells Fargo analyst said that he would not “expect a meaningful financial impact from listings on Google shifting from organic to paid,” especially since Zillow is not overly dependent on organic search results for traffic. 

“The listings product appears similar to Google Hotel Metasearch results; introduction could increase traffic cost to Zillow, but disintermediation unlikely,” CNBC reports Brondolo said in a Monday note to clients. 

Embed from Getty Images

“In the hotel category, Google merchandises hotel rooms in search results as a metasearch ad product for OTAs. We would expect a similar approach in real estate, with Zillow, Homes.com, Realtor.com, etc. bidding for home listing ad units rather than Google attempting to monetize directly with an ad product sold to agents.”

Some analysts, however, can see the longer term implications of Google’s new search tool and how it could compete with Zillow and other popular online real estate portals. 

Michael NG of Goldman Sachs wrote in a note to clients that he believes Google’s real estate listings show to be in an advertising format for buy-side agents, so it directly competes with Zillow’s Premier Agent program by “facilitating lead generation” for both agents and prospective buyers. 

“While we don’t expect a direct near-term impact on Zillow’s business, given that most of Zillow’s traffic is direct (e.g., Zillow.com, StreetEasy.com, mobile apps) and Google’s new product is currently limited to select markets and mobile browsers, we view this development as a long-term risk for real estate portals like Zillow,” Ng wrote.

Oppenheimer’s Jason Helfstein stated that Google’s expansion into real estate will likely impact the number of Zillow’s consumers; which hit up to 228 million in the third quarter. This could cause their ability to monetize to decrease. 

“The impact would likely take years to play out and would need to be rolled out across the US to meaningfully impact real estate portal traffic,” Helfstein said.

Real Estate Meeting

How To Make The Best Out Of Your Online Real Estate Presence

/in , /by

The real estate industry is always changing with the times. One of the biggest adjustments the industry has had to accommodate to is the implementation of technology and social media into marketing plans. With millennials now being at the age where buying a home is their next step, having an online presence is crucial for the success of any real estate firm. 

If a real estate firm is greatly established within a community, then their success seems inevitable. However, with a whole new generation of buyers now sweeping in and buying property, there needs to be a way that they feel like they can trust the firm they’re working with. 

It should go without saying that your real estate business should have an online presence. No matter how large or small your firm is, everyone goes online when it comes to finding the right business for them to work with, so make your presence stand out. Don’t just post listings online as a means to an end. The effort that you put into these digital listings could make or break how much buyer interest you curate. You want to show off the property to the best of your ability. Say your new client is from out of town and can’t coordinate a time to come see the property. If your online listing is detailed, thorough, and full of flattering photos of the property, they’re more likely to stay interested and make the time. 

Embed from Getty Images

One of the most unflattering things that can turn a potential buyer off of a property is a Craigslist-looking listing that simply has a few pictures of the front of the property and bullet points with how many rooms the house has. Effort pays off, so look at the home from their perspective and provide the details that you find so attractive about the listing. For example, say the home is in walking distance to an amazing bakery with the best coffee for the morning; buyers want to know that! Those quaint little details in a listing can surprisingly strike a lot more interest as opposed to a listing that simply states “two bedroom apartment with one and a half bath.”

In addition to detailed and thorough online postings, avoid excessive real estate industry lingo that the average person may not know. Many buyers, including first time millennial buyers, aren’t aware of the full scope that is investing into a property. When it comes to your online presence, don’t fill the spaces with complicated words and phrasing that aren’t common in everyday conversation. Instead, fill it with all the positives about the property. 

Embed from Getty Images

When it comes time to discuss all of the important terms and conditions regarding the property, do it in person and explain in depth what everything means. Having those conversations face-to-face makes the concepts so much easier to grasp as opposed to trying to figure it out on your own from a computer. In addition, a potential buyer is more likely to click off of your page if they can’t even understand it. 

In the same regard, discussing mortgages and real estate as an industry in general should be kept at a minimum. Obviously, you are selling a piece of property at the end of the day, so things like mortgage, monthly payments, utilities, etc. are an important and necessary conversation to have with your clients. However, there’s no need to have those conversations until you know how deeply invested a buyer is in a property.

Finally, a major trend in online real estate is video advertisements for your firm. These videos act as commercials for your place of business, so if you’re going to make one, make it short, simple, and casual. Tell your audience of potential clients why working with you is personal and comfortable. You can make a script, but don’t make it seem like you’re reading off of a teleprompter the whole time. That will make viewers think you’re just another real estate cog in the machine. You want to stand out beyond all of those other agencies who don’t put in the effort with how they represent themselves online. 

Your online presence gives your buyers a real insight into where your values are as a real estate agent. The more genuine you are, the more people will gravitate towards your business, and tell their friends about it too. Just be honest, and tell them why you love working in your industry so much, when people see passion, they want to feel like that too.