Zillow, the controversial website that gives value estimates of people’s homes and other real estate info, has raised a significant $30 million of funding, despite the mortgage industry credit crunch.
The Seattle company has now raised a hefty $87 million in total funding during its short lifetime, making it one of the most richly backed of the new era of “Web 2.0″ Internet companies.
The round was led by Legg Mason Capital Management. Previous backers Benchmark Capital, Technology Crossover Ventures and PAR Capital all participated.
Opened in early 2005 by the founders of Expedia, Zillow started out as a portal for information about homes around the country. Over time, it has added on sales components for owners and real estate agents, and also provides a place for buyers to discuss or ask questions about a property.
Only last month, we reported that competitor site Redfin had landed $12 million in funding, led by Draper Fisher Jurvetson. Trulia, the other main player in the Web 2.0 real estate space, pulled in $10 million in May. Terabitz, started by a teenager, raised $10 million in July (our coverage).
Asked whether this most recent funding round has anything to do with the real estate slowdown, chief financial officer Spencer Rascoff told me that there was no relation. Rather, it had to do with the company’s focus on employing plenty of skilled developers and improving the site.
The country’s real estate troubles may indirectly benefit the Zillow, though; real estate agents desperate to sell homes are far more likely to post their offerings online, sacrificing some control in exchange for having more people see their properties.
Nota bene: Revised to reflect changes in VentureBeat’s story.
Technorati Tags: disintermediation, real estate, real estate marketing, Zillow.com
Chris says:
I have had my listings up on Zillow for a few months. Total waste of time IMHO, no interest.
In my area of the country we are usually about a year or two behind the rest. So Zillow isn’t really well known, yet.
September 20, 2007 — 10:39 am
Jonathan says:
Amazing.
$30,000,000 down the toilet.
Amazing.
September 20, 2007 — 12:55 pm
Richard says:
My 2 year old can do a better CMA than Zillow
September 20, 2007 — 7:56 pm
Colorado Home Guy says:
Richard I agree with you reply. Zillow is very inaccurate when it comes to CMA.
December 13, 2007 — 1:51 pm
Tampa Realtor Guy says:
An insult to our profession.
December 18, 2007 — 5:38 am
Daniel says:
Zillow displays inaccurate information concerning a properties value. Sellers that use Zillow to determine a listing price instead of a recommendation from your local real estate professional, are the same sellers that have a property sitting on the market 6 months later.
December 22, 2007 — 8:18 pm
Tampa Real Estate Professional says:
Zillow is a poor website. I could care a less about what they do!
April 9, 2008 — 3:06 pm
Las Vegas Real Estate Team says:
I’m not a big fan of Zillow myself, but I’m not sure I’d be quite as harsh as everyone else commenting here. While I do not agree with everything they do, you do have to hand it to them when it comes to getting their name out there and people talking about them. They sure do know how to create a buzz.
April 22, 2008 — 8:29 am
Rich Stover says:
Zillow has been of little use in Sarasota Florida. The values displayed tend to be far away from what the properties acutally sell for and put prospects off because they think home prices here haven’t come down nearly as much as they actully have.
April 28, 2008 — 11:14 am
Tampa Condos Specialist says:
Zillow have come a long way. They are a lot better now in estimating value than they were a year ago.
October 21, 2008 — 8:31 pm