Back in 2013, my friend Mike Lerner and I designed, developed, and launched a condo review platform called the Dirt (thedirt.co). It’s hard to believe that it’s already been five years.
Our mission was to empower real estate consumers through greater transparency in the marketplace. And we did this by crowdsourcing condo building reviews, as well as pricing comps.
Today we are excited to announce that InsurEye Inc. has acquired the Dirt. InsurEye began as a moderated insurance review platform for home, auto, and life insurance, but it has since grown to include condo reviews.
The team at InsurEye shares a very similar goal of creating greater transparency in the marketplace, and so we are thrilled that they will be picking up where we left off.
Press release, here.
P.S. The Dirt is the reason why I started the daily blog that you are reading right now. I started writing for the company and fell in love with it as a discipline and practice. Life is lived forwards, but understood backwards.
This week on Architect This City is turning out to have a big focus on technology. And it’s not going to stop today, because this evening I had the chance to try the Oculus Rift virtual reality headset for the first time (many thanks to Dave Payne of Invent Dev for the demo). As a reminder, Oculus is the company that Facebook recently acquired for $2 billion.
Now virtual reality certainly isn’t a new idea and lots of people have been promising – for a long time – that it was going to revolutionize the world. Which may be why I had somewhat low expectations going into this. But I have to say that I was blown away. Despite being a bit choppy (to get good visuals it ran at around 15 frames per second), I was shocked at how immersive the experience was.
Here’s a picture of Rick exploring the (virtual) space behind him:
It was actually really strange watching somebody move around as they explored another world. The demo that Dave showed us was of an apartment suite. You could walk around the living room. Turn around and see the front door. Walk up to the window and admire the view outside. It was incredible, but somewhat scary at the same time.
Obviously there are ton of potential use cases for this. I’m imagining a buyer touring a condo suite and picking their finishes before it’s even built. I’m imagining an architect designing a building in 1:1 scale by waving their hands around in a virtual world. I’m imagining “traveling” to a beach to treat seasonal affective disorder. And the list goes on.
This isn’t going to happen overnight. I actually got a bit nauseous because of how choppy the video got at times. But I can certainly see the potential. Virtual reality is coming. It’s clearly the future of gaming. And I’m sure it’ll get applied to many other areas of the economy. I guess that’s why Facebook bought these guys for $2 billion.
If you have an interest or need in the 3D visualization space, I would encourage you to reach out to Dave at Invent Dev. He’s super passionate about the work that he’s doing and is looking to collaborate with more people in the design and real estate spaces. Thanks again Dave.
Today it was announced that Zillow.com will be buying Trulia.com for $3.5 billion in a stock-for-stock transaction. Based on share of web visits, the biggest real estate website in the US has just acquired the 2nd biggest.
Both companies make the bulk of their money through advertising sales to real estate professionals (i.e. agents and brokers). But what was interesting to read in their press release is that, even with this merger, the combined revenue of both Zillow and Trulia still only represents about 4% of the estimated $12 billion that US real estate professionals spend on marketing each year.
Zillow says it’s because the real estate industry hasn’t fully made the switch to online and mobile – and thus it represents a huge market opportunity for them. And from my experience I would say that this is likely the case. But it could also be because the real estate community is putting their marketing dollars elsewhere online.
Whatever the case may be, Zillow.com (and its portfolio of companies) is now firmly positioned as the largest real estate website in the US. But even still, Zillow.com has never felt fully “net native” to me. It has never felt as if it were specifically built for the internet and that it’s only possible because of the internet. Instead, it feels like an offline model ported over to online. And the two are quite different.
The reason I feel this way is because there’s an inherent tension to the way the online residential real estate market works today. Virtually every lead generation tool (that agents use) is intended to funnel buyers and sellers to them. That’s why so many real estate websites have sucked for so long. Because the goal wasn’t to keep you locked into a website, it was to get you to connect, in person, with an agent.
Zillow and Trulia started to break with that tradition by offering a lot more information online. Before they came along, it was a lot harder for real estate consumers to do their own research. But at the end of the day, Zillow makes money when it’s an effective sales funnel for agents. And since that’s always been the way the market has worked, it doesn’t feel net native to me.
If my gut is right, then it means there’s still lots of opportunities in this space.