In recent years, online real estate companies have become increasingly popular. Real estate websites Zillow and Trulia are both go-to resources for homebuyers and renters. But does Zillow own Trulia?
In this article, we will investigate this claim and attempt to determine if there is any truth to it.
Does Zillow own Trulia?
Yes, Zillow owns Trulia. In 2015, Zillow Group acquired Trulia for $2.5 billion in stock down from the $3.5 billion price tag when the deal was first announced in July 2014. The acquisition made Zillow Group the largest player in the online real estate space.
Prior to the acquisition, Zillow
and Trulia were direct competitors. The combination of the two companies has made Zillow Group the go-to source for all things real estate.
As a result of the acquisition, Zillow now operates under the name Zillow Group, comprised of four real estate brands: Zillow, Trulia, StreetEasy and HotPads.
According to Zillow Group CEO Spencer Rascoff (now former), Closing the acquisition of Trulia was a tough road. The process took longer than he anticipated. He termed the process as long, arduous and stressful.
He also added that the process was in jeopardy of not getting approval.
At one time, Zillow which was founded a year before Trulia was the fiercest rival in the real estate space. Trulia’s former CEO and co-founder Pete Flint took multiple shots at Zillow over the years, claiming that his service was far superior while attracting more customers.
The duo was once in court over a patent infringement lawsuit in 2012 when Zillow claimed that Trulia ripped off its Zestimates tool when it launched Trulia Estimates in 2011.
Why Zillow Bought Trulia
Since Trulia was the fiercest competitor of Zillow, it was crucial to acquire it to reduce competition.
The primary goal of the acquisition was to tap into its user base while decreasing the marketing spend that is used to fight it.
Trulia is not the only company that has been acquired by Zillow. In the past, it acquired StreetEasy(focused on New York apartments) and HotPads (tailored at rentals).
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How Does Zillow Make Money?
Zillow has three distinct segments; Homes, IMT, and Mortgages.
Home Segment
Have you heard that “data is the new oil”? As you have guessed, Zillow has a ton of it.
The company has millions of American homes in its database. It has data from almost every home in the US.
It began to utilize this data by launching Zillow Offers which used the iBuyer model.
This iBuyer model A.K.A Instant buyers utilizes computer-generated analysis, using broad sets of market data, seller information, or inputs by real estate agents, to make near-instant cash offers to sellers.
These algorithms get better with every purchase they make, thus allowing the iBuyer to make better buying decisions over time.
Zillow offers were first launched in Phoenix and Las Vegas.
The company made money whenever it sold a home for more than it paid for it, plus other costs associated with the sales process.
This segment was closed in 2021 after it became a major loss maker for the company.
IMT segment (Internet, Media, and Technology)
Zillow makes money by selling advertising and enhanced profiles to real estate agents.
While agents can create a free profile, many agents pay more for enhanced profiles and a suite of tools and data they can use to track and better convert leads into clients.
Mortgages
Zillow makes money by offering Zillow Home Loans and reselling them on the secondary mortgage market. They also offer mortgage refinancing.
Their mortgage origination services are primarily used by sellers and homebuyers who use their website.
Our study on “Zillow Business Model” is an excellent resource to understand how Zillow actually survives in the real estate industry.
How the Acquisition has Changed Things
After the acquisition, Zillow was expected to reap millions largely through spending cuts that will be achieved by cutting workers in areas where the companies have redundancies.
After the acquisition, Zillow and Trulia build an even larger audience.
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Conclusion-(Summary of Does Zillow own Trulia?)
In conclusion, Zillow does in fact own Trulia. This is a positive thing because it means that Trulia will continue to grow and improve under the Zillow umbrella. It also means that users of both sites will benefit from the increased resources and data that will be available. So if you’re looking for the most accurate and up-to-date information on homes, be sure to check out both Zillow and Trulia.
