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Realogy Acquiring ZipRealty For $166 Million

By
Real Estate Broker/Owner with RIVER FARM PROPERTIES, LLC BK3341635 - Florida

 

 

My old employer Zip Realty is merging with a behemoth in the real estate industry, Realogy.   It's an old story of giant buys little guy for its technology which they can buy cheaper than develop themselves. 

This has been a couple of years in the making as Zip's management had never been able to take the company where they envisioned.  Even as it was the first real estate firm breaking ground and using the Internet on a major scale with a unique business model.

So they finally got smart and hired a team to either turn it around or get it ready to sell.  It's good for both notwithstanding the angst employees may deal with or their jobs.

 

The story details are available here: Inman News

 

Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi John.  Economies of scale doesn't always work.  Time will tell.

Jul 16, 2014 08:35 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, John....it's just another sign of the times.....

Jul 16, 2014 08:53 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

I agree with Conrad: time will tell...

Jul 16, 2014 08:56 PM
John F Muscarella
RIVER FARM PROPERTIES, LLC - Venice, FL
Broker/Owner, Venice, FL, Florida's Suncoast

Conrad, Barbara, Carol: 

With Zip it was always about the technology platform.  I was with them in the early days and they were not so good at managing brokerage operations.  But their technology is world-class and if Realogy can integrate this into the many brokerage properties they own..  well let's just say they will have competitive advantage in spades.  It will take a few years to do this but that is really what they are buying.

Jul 16, 2014 09:06 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning John. Zip sure did have a unique business model and am not surprised that they could never move to the next level and it will be interesting how this model will change going forward.

Thank you for commenting on my post.

 

 

Jul 21, 2014 10:27 PM