Much has been written about the beta launch of Zillow recently. Mark’s recent post described a parallel to other industries, the resources that Zillow brings to the table and how they engage the consumer.
Well my comments are meant to amplify that. Zillows business model that supplies online home valuations has been cited as being inaccurate. My simple tests on properties that I am familiar with, seemed to be out of line with reality. I too, question the Zillow home valuations at this point.
And that is my point - its at this point. Look for the model to be improved and additional services offered.
Zillow was launched in beta form - that means it is still under going development ands testing. Many of the management team at Zillow came from other firms that made their mark by using the web to engage the consumer and in particular at Expedia, the online travel service. Something Zillow’s CEO Rich Barton said at the recent Inman Connect Real Estate conference in NYC keeps coming back to me. Batrton explained how for years consumers came to Expedia site to comparison shop, but did not purchase their airline tickets or hotel rooms online.
To me that says how Zillow might be viewing the market and their entry in it. Maybe they’re not looking to be an instant success, but given their funding and experience Zillow should be considered here for the long term. Of course they’ll need to perfect their model and solidify the valuations - but over the long term they could have something that consumers searching for information and remaining anonymous might embrace.
