CoStar Inches Further Into Residential Market
April 16, 2021
Commercial real estate giant CoStar is taking a bigger interest in the residential market, and its latest buy gives the company access to more real estate data to do that.
The CoStar Group announced this week that it has reached an agreement to buy Homes.com, a residential property listing site, in an all-cash transaction for $156 million.
Homes.com has 5 million visitors per month who search its nearly 1.8 million residential property listings. Homes.com also supports more than 500,000 residential agents and brokers in the home sales process. CoStar plans to combine Homes.com with another one of its recent purchases, Homesnap, which is a marketing platform for residential real estate professionals that the company acquired in December.
“The combination of Homes.com’s online portal and consumer traffic with Homesnap’s powerful mobile tools and highly effective agent marketing solutions has the potential to create a differentiated service that uniquely focuses on selling a house faster and at a better price, rather than just trying to take agent fees,” Andrew C. Florance, founder and CEO of CoStar Group, said in a press release about the agreement. “Our plan in bringing Homesnap and Homes.com together is to help agents market their listings in support of the ‘your listing, your lead’ philosophy—which stands in contrast to most players in the industry.”
CoStar is hoping for greater success in its Homes.com purchase than its attempt to buy RentPath for $588 million late last year. The Federal Trade Commission intervened in that transaction and filed a federal lawsuit in December 2020 to block CoStar’s purchase of RentPath, arguing that the combined companies would then have too much control over the rental listing market in the U.S.
The Homes.com acquisition, however, is largely expected to close in the first half of 2021. Homes.com will then join CoStar’s other apartment and home listing sites, which includes Homesnap, Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, and Apartmentos.com.
Updated: May 14, 2021