Today we will break down the differences between Zillow and Redfin and talk about which company we think will make it long term. Lets first start off by saying these two companies are different in their own way but have some similarities.
Zillow is defined as “… an online real estate database company that was founded in 2006.” Zillow has stated “that it is a media company that generates revenue by selling advertising on its web site.” This model has helped pave the way for realtors to market their services to a tech-based clientele.
Now let’s take a look at Redfin and how they are different. According to Redfin’s Google Knowledge Panel they describe themselves as “a real estate brokerage that uses modern technology to help people buy and sell homes.” So the main difference between the two is that, one gets their revenue by allowing users to advertise and create lead generation while the other is a non-traditional brokerage firm that helps you buy or sell a home.
Zillow has data on 110 million homes across the United States, not just those homes currently for sale. In addition to giving value estimates of homes, it offers several features including value changes of each home in a given time frame (such as one, five, or 10 years), aerial views of homes, and prices of comparable homes in the area. It can access appropriate public data, it also provides basic information on a given home, such as square footage and the number of bedrooms and bathrooms.
Redfin offers a commission discount and 1% listing fee for customers who use Redfin agents for either side of a real estate transaction. Redfin agents are salary-based employees and don’t follow the traditional real estate commission model (though they do receive bonuses, based in part on customer satisfaction).
These two companies they have broken into a market that has not been changed in decades but is now seeing more competition than ever. Based on what you have read what do you think will be the next big thing in the real estate market. Will it be Zillow, Redfin or maybe something else?
Let us know what you think in the comment section below!