Could Zillow's Fears Be The Key To Zillow's Growth?
Zillow Group (NASDAQ: ZG) hopes to be much more than the app you use to see how much your neighbor's house is worth. The company, founded in 2006 and based on Seattle, aims to insert itself in every major part of the home-shopping process, from "A" -- access to listings of homes for sale or rent -- to "Z" -- Zillow Home Loans, its affiliated lender, which provides a way to get mortgage pre-approvals and financing. These moves could put it at risk if there is a housing crash, though.
Last year, the company launched Zillow Offers, its foray into "iBuying," the already crowded instant-homebuying market. Through the service, potential sellers can get quick cash offers for their homes, skipping the work of prepping their home for sale (cleaning, making repairs, staging, etc.); but it comes at a premium. Users pay an average of 7.5% on the sale price of their home.
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Source Fool.com
