The $3.5B Zillow takeover of Trulia, and consolidation of two of the largest online real estate platforms guarantees to have some ramifications for everyone engage in real estate. So what does it mean for property wholesalers, and how can they use it to their advantage?
The Rise of ‘Zulia’
Bloomberg coverage reveals the massive merger will deliver almost $1B a year in revenues for Zillow, and enable it to capture almost 90% of online real estate related search traffic.
A third of readers at industry publication Inman News believe it may be a good thing for the industry. Yet, over half are fearful that it could have negative fallout for professionals and consumers.
But, forget the rumor mill; what does the Zillow – Trulia consolidation mean for real estate wholesalers in the trenches?
Coming Soon…
One of the biggest concerns over the new giant dubbed ‘Zulia’ by the press, is the monopoly could dramatically increase online marketing costs. Zillow has made no secret of the fact it wants to grab as much of the $27B annual real estate marketing pie it can. As the main go to source for advertising and viewing homes (if consumers will ever trust it that much, in spite of flawed products) it could have the power to command a lot of online traffic and charge big fees for listings.
While many wholesalers may not use the MLS for flipping houses, Premium Zillow Broker, Sandra Allen of Metro Brokers Carolinas has announced the firm will assist property sellers in leveraging the platform’s ‘Coming Soon’ listings feature.
Billion Dollar Real Estate Blogging
G-Code Magazine was quick to pick up on the data showing each Zillow visitor is worth an estimated $89, and how much of the website, and its new companies’ traffic is drawn by blogging and articles. Considering the number of visitors the Zillow Blog, Trulia Blog, Active Rain, and RealEstate.com’s advice sections attract, each piece of content could be worth well in excess of $100,000. And, RealEstate.com, and Trulia have been investing in it heavily. This may explain their 76% annual growth, which far outpaced Zillow’s, and may have left Zillow no choice to buy Trulia, or be bought out by them next year. In which case we would have a ‘Trillow’.
While many real estate wholesalers may not be able to afford upwards of $200 or $300 for freelance writers to craft daily blogs at the beginning, the value is clearly there. Content is going to be the best marketing tool most wholesalers and small to mid-sized real estate investment firms, and Realtors have at their disposal.
Through better keyword, selection, honing in on targeting local and niche traffic wholesalers can capture high quality web traffic and real estate leads. However, they are going to have to shake the habit of crusty self-promotion, and cookie cutter content, and get serious about delivering on what consumers are really interested in.
Too many say they can’t afford quality content right now. They should be asking if they can’t afford to invest in quality content now – how will they survive and grow to be able to do it later? Quantity is great, but quality still rules. Fewer, better posts, with more circulation via social and email blasts might be the best strategy.
For many of those reading this - Zillow just helped you get free content! With rising cost of other types of online real estate marketing, other small and mid-sized real estate firms needing help, those that work together to collaborate could make a significant impact. Think guest posts, and collaborative articles, and content exchanges between various vendors, local companies, and real estate professionals.
On Target
On the subject of quality, Zillow has been plagued by a series of less than highly praised products and moves. There is the extremely controversial ‘Zestimates’, bold claims of perfect credit visitors, incredible inaccuracies in home listing data, and major loses in new customer acquisition practices. Perhaps buying other more profitable companies with better products is the only way for Zillow to stay afloat.
However, in the meantime it means wholesalers have a ton of room to win customers and lifelong business partners by doing great business. Provide accurate ARVs, repair estimates, and deliver good deals, and no matter how much noise the competition makes you’ll gain all the repeat business, and referrals you can handle as a property wholesaler.
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