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Zillow (NASDAQ:ZG) (NASDAQ:Z) is in the midst of one of the biggest tech disruptions since Amazon started selling books online: Zillow is taking on the neighborhood real estate broker. Zillow Offers is part of its new strategy of flipping real estate. This new venture carries opportunities and risks. However, Zillow is one of the first companies to enter the sector and has an immense amount of data at its disposal.
A “replatforming” of the real estate industry
Zillow’s strategic plan (Zillow 2.0) involves disrupting one of the most traditional activities in the US: the homebuying experience. For decades, home sales were brokered with realtors, who would represent the seller throughout the process, handle the listing, negotiate with the buyer, and so on. The seller would pay all of the realtor commissions. Almost every offer would contain contingencies, such as the sale of another property or receiving approval for financing.
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