As you may have heard, Zillow’s CEO stepped down and one of the co-founders has taken over.

Zillow Group Inc. which runs the largest U.S. home-search website, said Rich Barton would return as top executive in a bid to win investors’ backing for the company’s plan to buy homes and originate mortgages.

Bloomberg has this article:

https://www.bloomberg.com/news/articles/2019-02-21/zillow-ceo-rascoff-steps-down-so-barton-can-lead-moonshot-effort

Zillow wants the entire pie

Zillow must believe that they can do it all, charge real estate brokers for ads, buy/sell homes and originate mortgages.

However, they’re pilot program of buying and selling homes isn’t as easy as it looks though. In addition, realtors aren’t spending like they used to on their ads.

Zillow called me to see if I’d be interested in advertising with them. Needless to say, their prices are very high, Beacon Hill has a few zip codes, to advertise in just one zip code, 1/4 of the Hill, was $2.800 per month. I think I’ll pass.

Zillow stated that it was taking longer than anticipated to sell the homes it acquired. Just recently, it reported that some advertising customers were pulling their business because they disliked changes to the business model.. Shares in the company, which peaked at $65.21 in June, plummeted to a low of $27 in November 2018. Today, its still far below its peek, but has made some modest gains. (See the Chart below).

Agents may have told Zillow that they were pulling their business because of changes in the platform, but that won’t be the end of it.  As the number of home sales decline nationally, realtors will slow or stop spending money – starting with the very expensive Zillow ads.

Zillow still says they love realtors, but we’ll see about that once our advertising dollars dry-up.

Conclusion

The next few years are going to be exciting and its inevitable changes are ahead on how we buy or sell Boston downtown real estate. Who will be the top dog in 2019? Zillow? Perhaps, the new comer Compass as they spread out across Boston teaming up with other real estate offices. Another new player making moves into Boston is a New York firm Douglas Elliman.

Stay tuned.

 

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

Comments

comments

Call Now