Real estate listings site Zillow has just filed additional documents with the SEC indicating the initial range for the company’s upcoming IPO. Zillow’s price range will start at $12 to $14 per share, giving the company a $378 million valuation. The company aims to raise as much as $55.7 million in the IPO. Zillow will begin trading under the symbol “Z” on the NASDAQ.
Brazilian real estate developer Gafisa decided to ask people directly, what they want in their new apartments? Launched last week, the Edifício Colaborativo (Collaborative Building) initiative transformed the company’s fan page on Facebook in a crowdsourcing platform, intended to harvest innovative ideas for a new building. — PSFK
Click here to visit the Facebook page.
American Hotspots According to Non-Americans
Are international house hunters looking for a piece of the American Dream in your city? Most likely if you live in the Sunshine State.
America is often called the land of opportunity, but these days, it might be more accurate to describe us as the land of dirt-cheap real estate. In the past 12 months, American home sellers cut about $24 billion from the homes they’ve listed on Trulia, of which a staggering $3 billion was slashed in Florida. Meanwhile, word on the street is – international buyers spent a whopping $41 billion last year to snap up U.S. homes left and right. Given this fun fact, we thought it’d be pretty fascinating to see where global house hunters are looking. The results will surprise you.
Florida, Not Just For American Retirees and Tourists
Right now, global house hunters make up about 5% of the window shopping that happens on Trulia. Aside from the usual suspects (e.g., Los Angeles, New York City and San Francisco), we saw a ton of interest in Florida … hmm?
In fact, 10 out of the 24 most popular American cities that have caught the eye of international homebuyers are in Florida – check it out for yourself. And yes, this list is based on popularity. That’s right, there’s more interest in Cape Coral than in Miami.
# Most Popular Florida Cities 1. Cape Coral, FL 2. Miami, FL 3. Fort Lauderdale, FL 4. Naples, FL 5. Fort Myers, FL 6. Miami Beach, FL 7. Kissimmee, FL 8. Orlando, FL 9. Jacksonville, FL 10. Tampa, FL
Reportedly, Canadians, Europeans and Brazilians spent about $13 billion on homes in Florida last year. But what gives – are the oranges really that good? We can’t say for sure, but what we do know is that the houses in Florida are being sold at a super discount. Oddly, this blue light special is also happening in Arizona, but last time we checked, the interest in Phoenix and Tucson is pretty tiny. Just to throw it out there, but maybe, just maybe, this is because Florida might be perceived as as being friendlier to non-citizens.
So who wants to move to Florida? With the exception of Brazil, let’s just say that most of these global window shoppers hail from the northern hemisphere and/or across the pond (as in Canada, the United Kingdom, France, Italy and Russia, Germany, Sweden and the Netherlands). Judging by our findings, this interest from abroad isn’t slowing down and may be the jolt that revives the Sunshine State’s struggling housing market.
America’s Next Top Expat Community
Now, let’s talk about the usual suspects. Of the 1.4 million global house hunters looking (on Trulia that is) to buy a piece of the American Dream, most are eyeing La La Land aka Los Angeles. Guess when it comes to “California dreamin,” everyone from the British and Australians to the Chinese and the Brazilians want to be part of Hollywood. More specifically, the British and the Australians would especially love a 90210 zip code since Beverly Hills is on each of their top 5 U.S. cities lists.
Another interesting, though hardly shocking, migration trend that we saw was in Mexico. Most of these house hunters currently living south of the border aren’t looking that far beyond the border with El Paso, San Diego and Chula Vista at the top of their list – no further commentary here.
One anomaly that we’re still scratching our heads about is Australia and Detroit. Right now, Detroit is #5 on Australia’s top 5 U.S. cities list. Aussies must really love Robocop (it’s rumored that they’re building a statue in honor of this 80s movie icon) or they must be really into techno (’cause as we all know, Detroit didn’t just give birth to Motown, they also gave us electronic music without words). Another theory that we’re toying with is that it’s also possible that the folks down under just love picking up homes for $40K a pop.
All in all, if our findings are any indication, America’s real estate market may be a driving force in either making us the world’s second home or an even more multicultural community.
Real estate information marketplace Zillow® today expanded and improved its living database of homes, adding more than 25 million new Zestimate® home valuations and improving Zestimate accuracy nationwide. Zillow now has data, Zestimates and Rent Zestimates on approximately 100 million homes – more than three-quarters of all homes in the United States.
In the past five years, Zillow users have submitted information on more than 28 million homes, adding updates, such as remodel or home fact information, that are not reflected in public records. This gives Zillow an inimitable database of nearly every home in the country, and creates unique home profiles that allow Zillow to calculate more accurate Zestimates on more homes. The new Zestimate algorithms launched today incorporate more of this user-submitted data, among other changes.
The expansion brings Zestimates to homeowners, buyers and sellers in states like Iowa and New Hampshire, where Zestimates were not widely available. The Zestimate median margin of error is now 8.5 percent nationwide, and below 6 percent in major metropolitan areas such as Denver, San Diego and Washington D.C.
"At Zillow, we have an unwavering commitment to give people as much free information about real estate and homes as possible, and Zestimate home valuations are a big part of that," said Zillow Chief Economist Stan Humphries. "We've spent six years cultivating our database of nearly all homes, creating a unique and living entity that combines public record data with information submitted by Zillow users on more than 28 million properties. By expanding the Zestimate algorithm to include more data points and new modeling approaches, we have been able to expand Zillow's footprint and improve accuracy. We are thrilled to offer this resource to even more consumers and professionals across the country."
Zillow launched Zillow.com in 2006, with Zestimates on more than 40 million U.S. homes. Since then, Zillow has more than doubled Zestimate coverage nationwide, added 100 million Rent Zestimates, and made significant improvements to the breadth and accuracy of data. Zestimates are a starting point in determining a home's value; together with a home's value range, comparable recent sales, and current listings, Zillow's information helps consumers gain an edge in real estate and make more informed decisions. Zestimates and other home information can also be found on Zillow Mobile, the most popular platform of mobile real estate applications across iPhone, iPad, Android and Blackberry.
Zillow's Zestimate accuracy is published on its website, and updated every three months. More information is available at http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm.
Urban Edge (urbanedgeny.com)
The frequently refreshed listings on this site, which are never more than 18 days old, come directly from owners, property managers and leasing managers—no broker postings allowed. Tired of filling out the same search form every morning? Sign up for Urban Edge’s tailored Twitter feed, covering new rentals in the nabe of your choice; listings will come to you.
In three years, online real estate marketplace Zillow has transformed its revenue model from a heavy reliance on display advertising to a stronger position as a broker of mortgage deals and a seller of subscriptions. The success of that pivot, apparently, is what positioned the company to go public.
Seattle-based Zillow yesterday filed an S-1 to raise $51.8 million, a figure dwarfed by the company’s total venture backing as well as its total losses: since 2004, it’s raised $87 million from VCs and racked up $78.7 million in red ink.
Zillow’s prospectus shows a clear shift in its revenue mix from one primarily based on advertising to a more mixed model where fees and subscriptions are taking over as the major revenue streams. In 2008 the company began offering Zillow Mortgage Marketplace, a subscription-based product connecting borrowers with lenders. In 2009, Zillow earned 22 percent of its revenues from the marketplace and 78 percent on display advertising. Last year the chunk earned on display dropped to 57 percent; marketplace revenues more than doubled. That ratio is likely to continue to shift away from display.
That’s not to say Zillow’s display ad business is shrinking—the business grew by 27 percent this year. But it certainly shows the company has no plans to exist on display alone. In total, Zillow earned $30.4 million last year, a sum that unfortunately doesn’t outstrip costs. The company came in just this side of unprofitable, a factor that hasn’t hindered the IPO performance of other recent VC-backed IPOs. Zipcar, for example, went public last week to great fanfare; its shares surged 58 percent in first-day trading, despite the company having lost $14.1 million in 2010. Clearly, public market investors are hungry for fresh product. Mix that with a six-year-old venture capital investment, and the motivation behind Zillow’s S-1 is clear.
Zillow’s $87 million in venture backing, spread across three rounds of funding starting in 2005, hasn’t been refreshed since 2007, when Legg Mason wrote the company a $30 million check. Prior investors, who plunked down money when Zillow’s revenue stream was so display dependent, include PAR Capital Management, Benchmark Capital and Technology Crossover Ventures.
Technology Crossover will acquire $5.5 million of the public shares in Zillow’s IPO, according to the S-1.
Trulia just launched another interactive map today, comparing the average home price, duration on the market, and reduction period for sales by zipcode across the US. Using the folks from Trulia's recent acquisition of Movity, they are empowering consumers to find the best deals, or greatest price reductions in the area. See below for the New York City metropolitan area.
See below for the article from the Trulia Blog.
Trulia’s Home Offer Report & Interactive Map Reveals Where Homebuyers Can Find Deep Discounts Across America
Today, Trulia launched its Home Offer Report to help give homebuyers and sellers the upper hand – whether they’re making an offer or putting their home on the market.
This brand new quarterly report and interactive price reductions map offers ZIP-code level insights on when the first price reduction occurs in your neighborhood, where the reductions are happening and how deep the reductions are. Click on the map below to learn about the price reductions happening in your neighborhood:
Check out this slide show for the full Q1 2011 report findings:View more presentations from Trulia