REAL ESTATE TOPICS...Zillow, Realtor, Redfin: Which Is the Best Real Estate Website?

By John Burke

The Internet has changed the way people shop for homes. According to Statista, in 2015, online websites were the most consulted information channels for home purchases in the United States. 89% of the respondents consulted websites, and 87% consulted real estate agents. The venerable yard sign was the choice for 51% of the respondents.

Most real estate websites feature mortgage calculators, allowing shoppers to make affordability determinations. While a broker might make reckless assurances when responding to a potential buyer’s verbal inquiry during a home showing, sellers are more cautious about representations made in writing on a web page due to legal considerations.

Zillow Group

Another survey from Statista revealed that as of May 2016, Zillow Group Inc. (NASDAQ: Z) operated the most popular real estate website, with a monthly average of 36 million unique visitors and a 24.7% market share of real estate websites, as of February 2016. In February 2015, Zillow acquired Trulia. The Statista survey indicated that Trulia had approximately 23 million unique visitors per month, making it the second-most popular real estate website. As the owner of the two leading sites for online home shopping, Zillow Group reaches approximately 59 million unique visitors per month.

Zillow’s most distinctive feature is its Zestimate, which appears within the listing of each property. The Zestimate is a home valuation, explained as Zillow’s estimated market value, to be used as a starting point in determining the property’s value. Although it is not an appraisal, the Zestimate can be an effective negotiating tool for buyers. It is probably the key factor behind Zillow’s success. The Zestimate is calculated by a proprietary formula, based on public and user-submitted data.

Zillow’s page for each property includes sections for tax history and price history. Unfortunately, this information does not always appear in the spaces provided. The price history occasionally includes the price paid by the seller to purchase the home.

Realtor.com

Move Inc., a subsidiary of News Corporation (NASDAQ: NWS), operates the Realtor.com website. News Corp acquired Move in November 2014. Despite News Corp’s acquisition of Move, Realtor.com continues to function as the official website of the National Association of Realtors. Because of its extensive relationships with multiple listing services (MLS), realtor.com has approximately 97% of all MLS-listed properties.

Realtor.com offers the advantages of Move’s network of websites, geared to buyers, sellers and real estate professionals. Buyers can make moving arrangements with a click on the link for Moving.com. Sellers can access Tiger Lead, List Hub and Top Producer by selecting from the Products pop-up menu at the bottom of the Realtor.com page. This website has more features than its competitors. The option above the search bar for recently sold properties allows buyers to understand how firm the asking prices generally are in a particular locale. Other real estate websites typically do not provide this information. Realtor.com allows the user to filter the search for particular features, such as golf course views or swimming pools.

Although the Statista survey indicated that Realtor.com had an average of 18 million monthly unique visitors as of May 2016, Realtor’s parent company reported a higher flow of traffic to the site. In its May 5, 2016, earnings report for the third quarter of its fiscal 2016, News Corp boasted that Move’s internal data indicated a 25% increase of traffic to Realtor.com between April 2015 and April 2016, to 55 million monthly unique users.

Redfin

Redfin.com claims to be the originator of map-based searches for real estate listings. Its name is based on the phrase: real estate redefined. According to the Statista survey, Redfin had an average of 6 million unique users per month as of May 2016.

Redfin’s listing fee is only 1.5%, half the average fee. However, a seller must still pay a commission to the buyer’s agent. From the buyer’s perspective, Redfin usually offers more information in its property details field, compared to what is available on other real estate websites listing the same properties. Examples of this information include: whether photovoltaic power is installed, homeowner’s association fees, construction components, sewage system specifics, flood zone information and other details about the lot.

Although Redfin offers an abundance of important information, Realtor.com offers such map-based information as nearby restaurants and stores, with links to Yelp Inc. (NYSE: YELP). This is particularly useful for people moving to an unfamiliar area due to a job transfer or other change of circumstances. Realtor’s property history section appears more useful than what is offered by Zillow. Realtor also has a moving cost calculator on the right sidebar. Ease of use and its unique resources make Realtor.com arguably the best real estate website.