Zillow Group, Inc. ZG recently announced that it has formed a partnership with HomeServices of America, one of the largest residential real estate service companies in the United States. HomeServices of America runs several brokerage companies nationwide. Through its collaboration with Zillow, the company is aiming to empower its agents with Zillow Showcase, a leading-edge solution powered by AI.
Zillow Showcase brings an interactive, visually engaging presentation featuring room-by-room photo organization, high-resolution, scrolling hero images and interactive floor plans. Such enhanced visuals and an innovative way of portraying capture greater interest from home shoppers. This approach also makes the listing stand out among the plethora of traditional listings. The solution's AI-native enhancements also significantly improve their discoverability on Zillow’s platforms.
HomeServices agents are drawing enormous benefits from this collaboration. Zillow Showcase listings sell for 2% more than non-showcase listings. This adds around $9,000 to the average sale price. Moreover, active showcase listings gain substantially higher customer engagement, like 81% more page views, 80% more saves and 90% more shares than standard listings. Zillow also offers target marketing support by sending a dedicated email to interested shoppers. Integration of such capabilities will immensely boost HomeService agents’ capability to attract more customers and drive sales in an increasingly competitive housing market.
The strategic impact of this collaboration can be far reaching. The partnership showcases how the usage of advanced technologies can bring transformational impact and revolutionize customers’ experience. The collaboration with a dominant player in the U.S. real estate market, which is also a Berkshire Hathaway affiliate, showcases the growing prominence of Zillow’s solutions suite in the industry.
Agents using Zillow Showcase over half of their listings are likely to win listings more than 30% compare to non-Showcase users. Moreover, agents using Zillow also gain from its enormous customer reach. As the spring housing market picks up steam, real estate agents are increasingly looking for advanced tools and strategies to beat the competition. This boasts a solid growth opportunity for the company in the near term.
Zillow Group aims to capitalize on AI technology as it intends to introduce several AI advancements in 2025. The focus will be on improving visual and multimodal capabilities, including richer media content. Generative AI will empower home shoppers with insights and guidance on home financing. It will also enable real-estate agents to better connect and engage with more potential customers. This innovation will significantly enhance home buying and selling experiences, likely translating to healthy long-term growth for the company.
Shares of Zillow have gained 24.8% over the past year against the industry’s fall of 6%.
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Zillow currently carries a Zacks Rank #2 (Buy).
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