Realtor.com Boss Dismisses 20% Traffic Drop and Claims Portal Business Is Not Winner Takes All

May 17, 2023
Share this Post: 

The boss of American number two portal Realtor.com has claimed that dropping traffic numbers aren't his company's focus and that he won't be drawn into a public mud-slinging contest.

In an interview with U.S. publication Real Estate News, David Doctorow said that the portal's recent 20% year-on-year drop in traffic was not a big focus and that his company could do "a lot of things to make that number bigger". Instead Move Inc., which is the parent of Realtor.com, is focused on getting a higher-quality audience.

The company claims that according to an independent survey, 53% of consumers who use Realtor.com are looking to be matched with an agent compared with 41% at Zillow - a claim Zillow refutes.

Hinting at the practices of Realtor's longtime rival, Doctorow said that his portal does not want to "risk undermining what's right for the consumer" by pushing its own adjacent products on consumers. Doctorow, who has been in charge of Move since 2020, also hinted that his company would not get involved in the media-fuelled mud-slinging match that has been going on between Zillow and new rival CoStar:

"Our focus is not on creating a narrative that sounds good, or is engaging, or is trying to bait a public dialogue. That's just unhelpful to what we're trying to accomplish, and what we should be trying to accomplish."

On the subject of the recently aborted $3 billion acquisition deal that would have seen Move Inc., sold off to CoStar, Doctorow was coy but did say that the bosses at the commercial real estate giant "were intrigued about something that was working [at Realtor.com]."

Perhaps the most revealing comments from the brief written interview were Doctorow's thoughts on the nature of the real estate portal business in the United States which the CEO believes is one where all participants can improve the consumer experience and is definitely not a winner takes all environment.

"We do not have to take all of the dollars in the real estate transaction and the loan, the title, etc. There's plenty to go around. Of course, we're a business, so we need to make money, but we're not trying to steal all of the attached business.

It's a $200 billion marketplace between real estate and the adjacencies. Realtor.com is not yet a billion-dollar revenue company. So is there still room for multiple businesses to grow in this arena, even if the market has gone down for a period of time? Of course."

Move Inc's recent Q1 earnings report saw the company's revenues drop 17% compared to 2022 while Zillow's were down 13%.

Those figures were put into stark relief by Zillow's claim that overall transaction dollars in the market were down 27% and by Doctorow's claim that currently there are "three Realtors in the nation for every listing that's out there."

May 17, 2023
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Fotocasa Madrid Buildings
Fotocasa Launches Travel Time Search Tool

The Spanish real estate portal Fotocasa has launched a tool that lets its users search for properties by the time...

Read More
Shutterstock 1965375514 1
Zillow's Listing Pages Get Biggest Overhaul in Five Years

The market-leading U.S. real estate portal Zillow has announced a redesign of its listing pages. According to a press release,...

Read More
Shutterstock 1743401084
CoStar's OnTheMarket Acquisition: Tebb to Remain CEO, Shareholder Questions the Deal

The latest news to come out of Costar's expected acquisition of UK agent-owned portal OnTheMarket has raised a couple of...

Read More
Shutterstock 2200544553
Financial Services Specialist BetterHome Group Increases Shareholding in South African Portal Private Property

The BetterHome Group has increased its shareholding in the South African real estate portal Private Property. According to a report...

Read More

Editor's Pick