"HouseValues is just a scam in a consumer-friendly disguise for generating local leads for real estate agents." -- Rick Munarriz, 5 minutes ago
Well, duh!
I mean, there's no need to be so harsh about it, Rick. But that's basically the idea here, yes. HouseValues (NASDAQ:SOLD) is in business to serve its customers: the real estate agents who pay for leads on potential clients. If you were under the impression that the company was set up to give away free advice for a bunch of window shoppers who (a) have no desire to actually sell their homes and (b) are only looking for an educated guess at what their house might be worth -- oh, and (c) voyeuristically check the price tags on the neighbor's shack -- then think again.
Is it true that competing sites -- like Zillow.com or IAC/InterActiveCorp's (NASDAQ:IACI) RealEstate.com -- make it easier for homeowners to see their homes' price tags? Sure it is. Internet housing voyeurs wanting to sneak a peek on the cheap can find easier ways to do this than by visiting HouseValues.
After conceding all that, I must again point out that HouseValues' sales are continuing to rise -- months after Zillow began offering an ultra-easy alternative.
Why is that? I submit it's in part because HouseValues' customers (again, the realtors who pay HouseValues for leads) aren't particularly upset if all of the window shoppers and non-serious sellers are going to Zillow. So long as the true motivated sellers keep coming to HouseValues, its customers should be happy.
At last report, that's exactly what's happening. I quote: "Real estate lead generation business grew modestly in the first quarter," and the company reported "a record number of home buyer and seller inquiries being delivered to its network of real estate agent customers across North America."
Sounds good to me.
Think you're done with the Duel? You're not! Go back and read the other three arguments, and then vote for a winner.
Fool contributor Rich Smith has no position, short or long, in HouseValues, but the stock is a recommendation of Motley Fool Hidden Gems . The Motley Fool has a disclosure policy.
