Bolstered by its best sales quarter in company history, commercial real estate behemoth CoStar Group is making a massive investment in its residential real estate channels including a relaunch of in June and a rollout of New York property search site Citysnap by the end of the year.

The biggest event on CoStar’s horizon as it seeks to dethrone Zillow and as real estate agents’ go-to source for customer leads is a full launch of a new collaborative marketplace that will directly connect homebuyers and sellers to agents. That project is on track for a 2023 launch, CoStar Group founder and CEO Andy Florance said during an earnings call Friday.

Having just acquired for $156 million in a deal that closed last May, CoStar has been spending aggressively in an effort to go “from 0 to 100 miles an hour” in residential real estate, Florance said Tuesday on a call with investment analysts.

“We are engaged in a very ambitious scale software development effort,” he said, with “well over 1,000 people working on the project right now.”

CoStar CFO Scott Wheeler said the company plans to ramp up spending on its residential channels by $200 million to $220 million this year, with $110 million earmarked for content generation, $65 million for marketing, and the remainder on technology.

Andy Florance

“Our research team is busy building the proprietary content around neighborhood, schools and parks and other features that consumers told us are important to them when they’re shopping for the best place to live,” Florance said. “So far, we’ve produced hundreds and hundreds of videos with tens of thousands of more in the works. We believe this rich content will produce significant organic search results and will be highly informative engaging to consumers as they research the best place to live.”

Unique visitors to CoStar’s residential network, including and Homesnap, were up 125 percent from a year ago…

Source link

Turn leads into sales with free email marketing tools (en)

Join Us

Subscribe Us

Related Post