How Real Estate Websites Might Be Sharing Your Data (and Making Money in the Process)

Real Estate Websites Might Be Sharing Your Data

Ever wonder how those "perfect" homes keep popping up in your online ads? It might not be magic, but the way large real estate websites operate. While they're valuable tools for finding properties, it's important to understand how your information might be used.

Here's the deal:

• Selling Leads: These websites often act as middlemen, collecting your search criteria and connecting you with agents. This connection comes at a cost, as the website might sell your information (leads) to agents who pay for access.
• Targeted Advertising: Based on your searches and browsing behavior, these websites can build a profile of your interests and preferences. This data is then sold to advertisers who can target you with specific real estate-related ads, from mortgage lenders to home improvement companies.

So, what does this mean for you?

• Limited control: While most websites have privacy policies outlining data usage, it's crucial to understand what information is being collected and how it's being used.
• Targeted ads: Be prepared to see relevant, but potentially unwanted, real estate-related ads popping up across your online ventures.

Here are some tips to consider:

• Use a Local Realtor:  Obtain a local Realtor, an agent not obligated to pay 25-35% of their commission to a third-party reseller may be working harder than an agent being fed "leads" via email. 
• Review privacy policies: Before submitting any personal information, take the time to understand the website's privacy policy.
• Limit information sharing: Be mindful of the details you share. Consider using a separate email address for real estate searches to minimize data collection.
• Use incognito/private browsing: This can help limit the amount of data websites can track and collect about your searches.

Remember: Knowledge is power. By understanding how these websites operate, you can make informed decisions about how much information you share and be more cautious about your online browsing habits.   Let's get to know the three biggest Real Estate Portals!

Getting to know The Big Three U.S. Real Estate Portals: Zillow, Realtor.com, and Homes.com

Let's dive into the key facts and recent developments surrounding the three biggest real estate portals in the U.S.: Zillow, Realtor.com, and Homes.com.

Market Share and Traffic

• Zillow reigns supreme: Zillow boasts the most significant traffic among the three, followed by Realtor.com. However, both saw traffic dips in 2023 due to market factors.
• Homes.com on the rise: Owned by the commercial real estate giant CoStar, Homes.com is experiencing significant growth and is expected to receive further investment. CoStar aims to challenge Zillow's dominance.

Ownership and Business Models

• Zillow: Owned by Zillow Group, a publicly traded company. Generates revenue primarily through selling buyer leads (Premier Agent) and exploring new models like commission sharing, enhanced listings, and mortgage services.
• Realtor.com: Owned by Move, Inc., which is partially owned by News Corp and REA Group. Sells leads and advertising space to agents and brokers.
• Homes.com: Owned by CoStar Group. Pledges not to sell leads and focuses on charging agents for premium visibility packages on their listings. This model is common outside the U.S.

User-Friendly Features

All three portals offer similar features like keyword search, filters, virtual tours, and scrollable photos.

Financial Performance and News

• Zillow: Share price recovered slightly after the iBuying shutdown. Continues to innovate and reported revenue exceeding half a billion dollars in Q2 FY23.
• Realtor.com: Faced traffic and revenue drops in 2023 and underwent a CEO change. Aims to regain the top spot from Zillow.
• Homes.com: Benefited from CoStar withdrawing from the Realtor.com acquisition, positioning it for significant investment. CoStar celebrated surpassing Redfin and Realtor.com in traffic for the first time.

This article provides a snapshot of the competitive landscape among the leading U.S. real estate portals. As the market continues to evolve, it will be interesting to see how these companies adapt and compete for dominance.

• Schedule a no-obligation consultation to discuss your home-buying goals
• Browse my current listings and find your perfect match!
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Tim Vicsik - Broker
RE/MAX 100
(574) 329-9587
Tim@TimVicsik.com 
www.ND-Condos.com