Making itself at home in a few new neighborhoods, RealEstate.com is in the process of rolling out its online brokerage services in four metropolitan areas.
The IAC/InterActiveCorp
It's a bold move for a company that's looking to expand its already prominent role as a prized referrer. IAC is all over the realty map. Through Lending Tree, the company guides potential loan applicants to paying lenders. Through Service Magic, IAC refers local home service providers to homeowners. Then you have RealEstate.com, a site that has served IAC well in generating leads for realtors (much like Motley Fool Hidden Gems recommendation HouseValues
Competing outfits like ZipRealty
However, the industry continues to be tested by online sites like Google
Don't get me wrong. I like IAC's move here. Thanks to new sites like Zillow.com, I've been worrying about the referral model that companies like HouseValues have been working with. This shift in the real estate brokerage industry may also affect key players like Motley Fool Inside Value pick Cendant
IAC will probably find itself trimming commission rates sooner than it thinks in order to grow its business in a hurry. That's important, because the real estate model itself seems to be in a state of flux at the moment. RealEstate.com doesn't have the luxury to take it slowly.
In short, RealEstate.com may not be a distressed seller, but it really can't afford to be greedy at this point.
eBay was a Motley Fool Stock Advisor newsletter recommendation in June of 2002. HouseValues was a recent Hidden Gems stock selection.
Longtime Fool contributor Rick Munarriz isn't interested in selling his home, even if he recognizes that the once red-hot South Florida market is cooling off quickly. He does not own shares in any of the stocks mentioned in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.