Zillow Going Public

Real Estate website Zillow is set to have its initial public offering(IPO) in the not so distant future. Zillow has already filed with the SEC and has set its IPO price at about $14 per share. Zillow, founded in 2006, has been an extremely popular tool for prospective buyers and sellers looking to do research in their respective markets.  Zillow has received over $32 million in venture capital and will likely be infused with more cash as we approach Zillows’ IPO. Is Zillow a worthy investment when it becomes publicly traded?  Zillow certainly can be useful if you want to look up some general Real Estate information about your market.

However many of my clients who have used Zillow have found the information on the site to be inaccurate or not up to date. A perfect example is with listings. I’ve had clients who’ve contacted me telling me about a particular listing they found on Zillow or on a similar site. When I check the listing on the MLS it’s either expired or pending. This is a very common occurrence when clients use third-party sites. The problem with Zillow and similar sites is they don’t do a very good job updating listings and other info from the multiple listing service.  So you cannot rely just on Zillow when doing research. The most up to date and accurate information is what the Realtor provides you from the MLS. This is a big flaw that can hurt Zillow down the road.  Overall Zillow isn’t a bad site.It’s one of the many tools you can use when it comes to your Real Estate search. As an investment however, that remains to be seen.

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~ by fnunez on July 7, 2011.

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