...Imagine everything you need to do to buy a new home. If you already own a property, you’ll probably need a broker to sell it. You may also need a broker to find you a new place. You’ll need a mortgage lender to finance the purchase. You’ll have to buy title insurance and home insurance, and then find a moving company to haul all your stuff to the new digs.
Now imagine being able to get all of these services from one company. And better yet, imagine that this company will coordinate the timing of each stage of the transaction so that moving from one place to another becomes virtually seamless. Several real estate tech companies are racing to make this dream a reality.
Has tech-world “disruption” finally come for the cumbersome process of buying and selling a home? Algorithm-driven home-flipping companies like Opendoor, along with strategic shifts by major companies like Zillow and consolidations across the industry, seem to say yes.
...Factor in its existing listings sites and Zillow is currently the closest to providing an end-to-end customer experience for real estate....
...But as more players jump into the space and markets are saturated with various competing platforms, profit margins that are already paper thin get squeezed even more. Zillow says it’s making $1,723 per home flip at a minuscule 0.6 percent profit, which leads one to wonder if this space is really worth getting into if you don’t have multiple modes of monetization...
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