The $ 156 million purchase should help the company continue its entry into the residential real estate world.
CoStar, a commercial property tech company that recently aggressively moved into the residential space, announced Wednesday that it is acquiring listings website Homes.com.
In a statement, CoStar said it would pay US $ 156 million in cash for the website, which is described as “a recognized home listing and marketing portal that helps over 500,000 residential real estate agents sell their homes.”
Andrew Florance, CoStar Founder and CEO, added: “We are excited to welcome the Homes.com team to the CoStar family.”
“We believe the acquisition of Homes.com will be an excellent addition to Homesnap, the industry-leading residential real estate workflow and marketing platform that we acquired last December,” added Florance. “The combination of Homes.com’s online portal and consumer traffic with Homesnap’s powerful mobile tools and high-impact agent marketing solutions has the potential to create a differentiated service that is uniquely focused on moving home faster and into one Sell better price instead of just trying to take agent fees. “
CoStar, a fixture in the commercial real estate world for years, won Homesnap for $ 250 million. The deal caused a stir in the industry because it signaled the company’s commitment to residential real estate and apparently put the company in direct competition with Zillow.
For its part, Florance said in January that his company was not competing with Zillow but that “the real estate agent is Zillow’s competitor.”
In the months since then, CoStar has not slowed its aggressive expansion plans. In January, the company bought the URL Houses.com to enter the residential real estate industry.
CoStar also spent the first few months of 2021 buying real estate data and analytics company CoreLogic. This deal went back and forth several times before finally filling up in early March.
CoStar also saw its attempted takeover of rival RentPath fall apart late last year. In that case, the Federal Trade Commission filed a lawsuit alleging the acquisition increased concentration and eliminated competition in the rental space.
Regardless of the sunken deals, CoStar alone stands for how aggressive it was to expand through acquisitions in a relatively short period of time.
In the case of Homes.com, a division of parent company Dominion Enterprises, CoStar said in its statement on Wednesday that the company would “add approximately $ 5 to 10 million in additional revenue for the CoStar group in the second half of 2021 will generate. The statement went on to state that the site has 5 million monthly visitors who “browse nearly 1.8 million residential listings”.
Homes.com in Virginia has a listing search portal. The company also provides marketing services for real estate professionals. In 2015, the company also launched what it calls “one of the biggest banner ads in the industry.”
In Wednesday’s statement, Dave Mele, President of Homes.com said he and his team look forward to working with our new colleagues at CoStar.
“Together, we will be dedicated to growing the Homes.com brand,” added Mele, “and developing innovative solutions that expand marketing options for consumers and their agents.”
Email Jim Dalrymple II