Online Real Estate Marketplace App Development | Business Model Of Zillow

Gone are the days when people used to travel or waste hours and hours to find a perfect living place or a dream house for themselves. All thanks to the real estate app development. These apps really made searching for houses very easy and simple.  Now, if you want to buy or rent a property, an online real estate marketplace can do everything. These apps are so high in demand in the US, India, Australia, and other parts of the world. Many have started as entrepreneurs but are now really successful with this online real estate marketplace. One of the best examples we have is “Zillow”.

This is the best real estate app, which users can use aggressively, and this app has a great user base to justify the importance and demand of a real estate app like Zillow. And as we have seen, the demand for real estate app development is increasing day by day. That is why we bring you this simple guide to make you understand the working of the Zillow app and what you can best earn from this Zillow business model. Let us start with a little introduction to the Zillow app, and then we will go further with the business model of the Zillow App.

What Is An Online Real Estate Marketplace | Zillow App

So, Zillow is actually a simple app that offers services to users for the following:

1. Buying property
2 Buying a house on rent
3. Offering services to the landlords, mortgage professionals, and property managers.

Zillow has a massive database of 110 million US properties with the help of a real estate search engine. This includes homes for rent, sales, etc.

Zillow real estate app also helps users to connect with real estate agents, home inspectors, and property managers.  It provides a piece of detailed information about properties and their respective owners. Which makes this app so user-friendly and convenient. 

The Zillow app is a subsidiary of the Zillow Group that involves details and information of all the largest and important real estate properties and home-related brands. There are other subsidiaries of Zillow. Some of the popular subsidiaries are Trulia, HotPads, Streets, Naked Apartments, RealEstate.com, and Outkast. 

Users can easily access Zillow through the website or directly through the app. All these features make Zillow’s real estate app one of the best online real estate marketplaces worldwide. If you want to know more about this app and what else is required for the marketplace app development of this amazing real estate app. Then you can get in touch with us today for a better discussion.

A Little History Of Zillow App

Now, if you are planning or want to know about the Zillow app in detail then we believe you must know about it’s history too. When you start any business it is very important to do full research about that market or business so that you are ready to face any type of situation. Therefore we provide you with the history of the Zillow app to make things more convenient for you. 

Here we go:

Zillow was founded in 2005 by Rich Barton and Lloyd Frink.

The headquarters is located in Seattle, Washington.

The Zillow app is considered to be one of the leading real estate marketplace apps in the US. This data was released by Statista in 2021.

How Does an App Like Zillow Work

Zillow helps users to make the right decisions regarding buying a home, selling, renting, leasing, remodeling, and financing. To make their decision even more easy, Zillow categorized their services into three segments:

For Sale:

Zillow allows users to make their property search easier by providing them with filters. With the help of filters, users can directly get in touch with the properties listed by the owners, agents, property under construction, coming soon, and foreclosure. 

Potential Listing

This includes the list of properties which will be launched or available for sale in the near future. The properties that come under this are:

Foreclosed: the type of property where the homeowner is unable to pay the mortgage, and later the property has gone to foreclosure auction or process.

Pre-foreclosure: Houses or properties that are in the early stage of being repossessed because their owners are not able to pay the amount.

Make-me Move: Properties that are listed by the owners to check the market and interest of the buyers without officially putting the property for sale. 

For Rent

Under this, they list all the properties or houses (buildings, apartments) that are available for rent across the US. Zillow allows free services for landlords, but the renters have to pay $29 to avail the services.  

Well, this is how Zillow works, and this is the working aggregator model that they follow. You can also categorise your real estate marketplace app into these four categories or further if you have more to discuss or provide. Then you can discuss your plan with our market experts and developers to provide you with the best possible design and layout for your real estate app like Zillow. 

Read Bonus: How Much Does a Real Estate App Cost? A Detailed Guide

 

How To Generate Revenue from the Real Estate Marketplace App Like Zillow

It will amaze you to know that Zillow offers absolutely free services to its customers, still this real estate marketplace app manages to generate revenue of $1.1 billion. Let us check what marketing strategy they have:

• Ad sales to property management companies

Zillow provides its rental services to property management companies for advertisement. Zillow, Trulia, StreetEasy, and Hotpads, these rental networks, increase the visibility of the property to the renters. 

Later, Zillow sends leads to the advertiser to contact the respective renter. This rental service helps in generating great revenues for the company because rental property managers spend $3.5 billion per year on advertising to get new rentals. 

• Premium services for real estate agents

Zillow’s program helps real estate agents to make the maximum of the app. Through this premium service, agents get the chance to list their properties on all the property listing sites. Zillow charges $10 for its premium services.

• Ad Sales To Mortgage Lenders

Zillow provides space for advertisement to mortgage lenders and interior designers, general contractors, etc. Here they (Zillow) charge on the basis of CPC ( cost per click) or CPM ( cost per thousand impressions).

• IMT segment

Zillow generates revenues from sales and marketing, and the other medium from which they generate revenue is IMT (internet, media, technology). 

• Mortgages Segment

Zillow has become the licensed lender in the US since it acquired mortgage lenders in 2018. The service was later introduced as Zillow Home Loans. Under this segment users or borrowers can take loans or refinance their homes or property. 

Read More: Metaverse in Real Estate: What Does the Future Look Like?

Summary

Well, this was all about how you can earn from your real estate marketplace app like Zillow. If you are planning to develop an app like Zillow, then we believe this is the first thing you must consider: “How to earn from an app like Zillow”. If you haven’t done enough market research yet, then you can contact our real estate app development company for more details and information.