CoStar Group announced today plans to acquire Homesnap, an industry leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Over 300,000 agents nationwide use the application an average of 30 times each month. Those 300,000 agents are also the nation’s most productive, selling the majority of homes in the US.
The estimated value of commercial real estate assets in the U.S. is $16 trillion. «With the new addition of clients and information covering 90% of the estimated $27 trillion dollar U.S. residential real estate market, we are almost tripling our addressable market».
Over the past thirty years, CoStar has become the leading real estate technology platform by working in partnership with commercial real estate brokers to serve their needs for data, analytics and advertising exposure for their property listings. Similarly, Homesnap works in very close partnership with residential agents to serve their needs for data, analytics and advertising exposure for their property listings. «We believe that there is an important opportunity to differentiate our residential real estate portal and solutions by working solely to help agents market their listings, which is in sharp contrast to other portals that increasingly compete with those agents».
The addition of Homesnap’s complementary offerings will quadruple the number of professional, paying brokers and active agent users on the CoStar Group U.S. platforms from approximately 100,000 today to over 400,000. The number of U.S. property listings available across CoStar’s brands will double from approximately 1.35 million today to over 2.6 million.
Homesnap has great relationships, data, software and tools for residential real estate professionals that are complementary to our existing offerings. The tools and functionality developed by Homesnap for residential property agents, such as lead generation, client collaboration and digital advertising, have direct applicability to commercial brokers. «Our goal is to make these enhanced capabilities available to all of our audiences».
«Combining forces with Homesnap is also expected to enable us to expand and deepen our collaboration with MLSs nationwide». A very large percentage of CoStar’s clients such as investors, banks, government agencies, appraisers, suppliers and brokerage firms are active in both commercial and residential real estate, so we believe that they would welcome a more comprehensive solution for their needs across all real estate segments.
The transaction is expected to close in 2020, subject to customary closing conditions and regulatory review.
Source : CoStar Group