7. Market Situation
Average home has appreciated 70% in the last 17 years
• 100% if within ¼ mile of a Starbucks and 140% if within ¼ mile of a Trader Joe’s or Whole Foods
• Zillow forecasts 2.6% appreciation in 2016
The global financial crisis hit Zillow very early
• Laid off ⅓ of workforce 2 years into operations
• Created a very lean and very united company culture
Strong dollar has resulted in decreased foreign real-estate investment
10. Points of Difference
Points of Parity
• Broad Focus
• Subscription Model
• Search and Filtering
• Analytical Information
• The global financial crisis
• High home prices
• Low foreign demand
• Site capacity
• Maintaining innovation
• Maintaining brand independence
• Expansion into international residential
or commercial domestic real estate
• Check and answer blogs like Consumer Affairs where it only has 1 star out
of 74 reviews.
• Create Loyalty Program for home buyers and sellers.
• Aggressively recruit new talent from both the technology and real estate
industry to allow for more innovation.
• Seek to maintain a unique culture around each brand (Zillow, Trulia, etc).
Low housing inventory is a factor in nearly every market now. Low oil prices are a drag on job growth in the Dakotas, Alaska and Texas. And the stronger U.S. dollar will affect demand from foreign buyers, while keeping mortgage-interest rates low.
What we were trying to do with Zillow also, was choose a name that could allow the brand to flex or the business to move in different directions, because we didn’t know where it was going to go entirely.
Our biggest competitor is ourselves, just trying to make sure that we stay innovative and that we stay focused and mission-oriented is competition enough on its own.
we believe that we can innovate on the transaction without being a brokerage. For example, we acquired a company called dotloop last year, which is the leader in transaction management.
Over the last 17 years, the average home in America has appreciated 70%, but those within 1/4 mile of a Starbucks have appreciated by 100% and those within 1/4 mile of a Trader Joe’s or a Whole Foods have appreciated 140%.
We should say the reason people think it’s controversial is because everybody wants to debate the value of their home and you jumped right in there.
We had over a million people visit the site by the second day and I think by the fifth day we had over two million people and the site crashed. We were down for, gosh, probably about 6 hours or so and we were scrambling to add capacity and to get the site back up. It turned out to be a blessing in disguise of course, because going down …
The global financial crisis, we were a young startup in the real estate business.
1/3 of the company, yeah. There’s just nothing even close in my business career that came close to how tough that was.
too fast, too quickly. That was a mistake that we made that other people had to pay for.
The biggest challenge for any technology company is maintaining innovation.
In terms of where we’re focusing our resources, our biggest resource allocation is towards product development on our Zillow and Truila brands, so hiring great engineers, designers, program managers, people to build great websites and mobile apps for Trulia and Zillow and then grow awareness of those services through advertising and through other means.
We look at hundreds of potential acquisitions a year
We’ve looked at both, international residential real estate and commercial domestic real estate. I’m not sure what might be first or when or if we’d expand. For now we have so much work to do with the U.S. opportunity in residential that that’s our focus.
All the data that we can see at Zillow still says that the American consumer and the economy is pretty good, better than Wall Street would have you believe.