If you’ve ever wondered what Zillow is and how it works, you’re in luck. Not only does Zillow help consumers find homes for sale, but it also owns other real estate companies. But what is Zillow exactly, and what do they offer consumers? Let’s find out. Below you’ll find some interesting facts about this real estate company. You might be surprised to know that Zillow also provides mortgages.
Zillow is a real estate company
One of the most successful companies in the world is Zillow. Its mobile applications enable you to search for nearby homes based on your location. The company produces home value reports across the nation and more than 130 metropolitan statistical areas. The reports highlight market trends and identify properties that have experienced negative equity, short sales, and foreclosures. Zillow also produces a Homeowner Confidence Survey, which measures homeowner’s opinion about home value changes.
The company has over 110 million homes in its database, making it one of the largest databases of homes in the US. With its proprietary Zestimate home valuation model, it estimates the value of homes based on public and user-submitted data. Its acquisition of Mortgage Lender of America in 2018 further enhanced its role as a mortgage broker, providing multiple mortgage options for borrowers. Similarly, Zillow provides a variety of tools to help borrowers in the mortgage application process.
The company’s revenue from advertising is not as high as its revenue from agent fees. It made $403 million from agent advertising sales in 2020 and is projected to earn $1.7 billion by 2021. It also makes money from offering Zillow Home Loans, which it resells on the secondary mortgage market. As a result, Zillow is able to generate a steady stream of money despite the company’s reliance on real estate agents for the vast majority of its sales.
It offers mortgages to consumers
Although the company is a renowned name in the real estate industry, it has recently begun to offer mortgages to consumers. The company has expanded its house flipping business with the launch of Offers in April 2018. The service is set to be available in 14 markets by the end of the year, and it will be based on the real estate technology trend called iBuying. Zillow has received positive reviews for its work-from-home policy, low rates, and ease of use.
The newest service is not a replacement for Zillow’s existing mortgage marketplace, which asks consumers a series of questions to match them with lenders. The new service will give consumers the freedom to shop for mortgages, but it will not replace the current system. The company also wants to be an integral part of the consumer’s experience, so the mortgage marketplace will complement Zillow Offers. In addition to offering mortgages to consumers, Zillow also plans to continue offering other mortgage products, such as custom quotes and Zillow Connect.
Although Zillow offers mortgages, the company doesn’t offer a full range of loan programs. Most borrowers opt for conventional loans. Many first-time home buyers finance their new home using an FHA loan. There is also a lack of specialty loan options. Zillow does not seem to offer adjustable-rate mortgages, which change with the market. However, if homeowners want to refinance their mortgages, they have two options: a rate-and-term refinance and a cash-out refinance.
It owns other real estate companies
The recent acquisition of Mortgage Lenders of America by Zillow means that the company has more than 1,000 different real estate companies. That’s a big deal, and it’s good for Zillow, which has already made $1 billion in sales from the sale of its real estate properties. But there are some concerns about the company’s plans for the properties that it acquired. Despite this, the company still plans to sell the homes that it acquired to anyone who wants to purchase them.
Besides Zillow Homes, it also owns other real estate companies that have taken advantage of the company’s growing popularity. For example, it recently announced that it would form the Zillow Group, a holding company for the largest real estate and home-related brands. It also announced the launch of a $1 million data-science competition for data scientists, which at the time was responsible for 20 percent of Zillow’s entire user base. Another major move that Zillow made was partnering with media outlets to share insights on housing prices and other real estate-related data. It also gained valuable links and consistent media coverage.
Besides selling homes, Zillow also makes money through its mortgage services, where it works with over 50 lenders to provide financing. Another service offered by Zillow is Zillow Offers, which lets people visualize the homes that they are unable to afford. These services are meant to streamline the real estate transaction process. Zillow also partners with homebuilders to buy old homes, allowing for the closing to coincide with the new home’s completion.
