Torontonian Online Running in the fast lane! Real estate and more…
Image Source: Zoocasa/Facebook
BuzzBuzzHome is reporting that Yellow Pages “has announced that they have acquired popular Montreal-based real estate networking website ComFree…for $50 million.” ComFree is a site wherein owners can sell properties themselves commission free.
ComFree “is the fourth most visited real estate website in Canada and the top site in Quebec holding a 17 percent share of the province’s listings market.” These numbers are nothing to balk at. Demonstrating a strong consumer desire to list and sell properties while spending a small amount, sites like ComFree show private sales companies can be big business. The success of sites like ComFree is varied however much they strive for innovation in the real estate industry. While their numbers went up when given access to MLS in posting, overall sales success remains unknown.
Private sales are not without risk. Buyers should be wary when considering the for sale-by-owner approach as the seller assumes all risk. Using an experienced real estate agent benefits sellers with the protection of their specialized knowledge and EE&O insurance while a company like ComFree charges them the upfront fee and additional fees for listing changes or renewals.
Yellow Pages’ purchase of ComFree comes on the tails of the recent closure of Zoocasa. The online Canadian real estate brokerage is set to cease all operation on June 22nd after “losing about $1 million a month for the last two years.” Zoocasa’s approach included hiring agents on a commission split based on their sales but this ultimately failed as they were not able to generate enough sales.
Market Wired explains that “Zoocasa’s marketing style appealed to many online global investors and younger tech-savvy buyers and sellers who were attracted to its hip online advertising” but the reasons for its closure are being hotly debated. Innovation and being accepted in the real estate industry is a balancing act when there is so much proprietary information at stake. While Zoocasa’s closure sparks further debate over copyright infringements, going with a real estate agent protects you from unnecessary risk when selling in this time of industry upheaval.
Check out what people are saying about Zoocasa’s closure:
Weird rumours about #zoocasa going. FTR we had 700+ awesome agents, crazy smart dev’s and the best team/family you could hope for.
— John Griffiths (@johnantoni) June 12, 2015
Sometimes these things happen, just glad to be part of the journey. Enjoyed every second. #zoocasa
— John Griffiths (@johnantoni) June 12, 2015
Zoocasa closure shows it is evident that people value the expertise that a full price realtor brings to the table. http://t.co/XMulc3Z9AM
— The Regan Team (@reganmat) June 11, 2015
It’s no surprise, when you’re making your biggest investment, expertise trumps gimmicks every time! http://t.co/uOqwNf2rHu
— Frank Bott (@FrankBott) June 11, 2015
I guess nobody wanted to bundle their cable, internet, and home phone with a house for just $1500/month more. #zoocasa #realestate #fail
— Benedict Stelmach (@StelmachBen) June 11, 2015
With #zoocasa shutting down, it should open more doors for other companies to learn from their mistakes and capitalize on that space
— Nick Johnson (@motiv8td) June 11, 2015
As the real estate industry learns how to go digital there will be innovators and there will be failures. Share your thoughts on these recent real estate industry events in the comments!
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