Online real estate search portal Zillow announced Monday that it is purchasing its competitor Trulia in a $3.5 billion stock deal
expected to close in 2015.
Although some in the real estate industry have expressed concerns over third-party real estate search portals, RE/MAX Chairman and Co-Founder Dave Liniger, who recently met with Zillow CEO Spencer Rascoff at RE/MAX World Headquarters in Denver, welcomed the news. He called the two portals “partners in our success” during a phone interview Monday with Bloomberg News.
“Some people in my industry panic and think the Internet is going to put Realtors out of business,” Liniger said. “But we don’t sell a commodity. We sell unique properties; each one is different. The value of someone to guide you through a [home] purchase is far more important than simply viewing homes online.”
Liniger added that companies such as Trulia and Zillow have the capital and technology resources to build sophisticated search platforms. Brokerage networks like RE/MAX have thousands of agents who have established personal relationships with buyers and sellers in their local markets.
“We look at the portals as our friends,” Liniger said. “We wish them success.”
To read news coverage and analysis of the Zillow/Trulia deal, check out these resources:
For more information about the acquisition, read the full Zillow press release.