Homestore.com creates new e-commerce
platform
May 19, 2000
by Adam Feuerstein
Homestore.com is teaming with seven real estate industry players to
create a new Internet-based system designed to streamline the purchase
of a home.
Homestore (HOMS) and its partners will invest between $150 million
and $200 million over the next year to build out the new system, dubbed
the Realtors Electronic Transaction Platform.
Partnering with the online real estate service are GMAC Real Estate
and Mortgage; technology provider Wyldfyre; financial services firm
Fannie Mae (FNM); real estate software provider RE FormsNet;
Internet security firm Verisign (VRSN); and RE/Max and Prudential
Real Estate, two of the largest residential real estate networks in the
country.
The National Association of Realtors is a large shareholder in
Homestore, so the new online real estate platform is not intended to
eliminate the need for brokers in the real estate transaction. In fact,
Homestore broke the news of the new venture at NAR's midyear
conference today in Washington, D.C.
The new electronic platform will be designed to help real estate agents
better manage all the processes that go into purchasing a home, including
property inspections, appraisal, mortage, title and escrow. The system
will also give homebuyers real-time access to their transactions,
Homestore executives say.
Homestore was down $1.63 to $26.38 in midday trading.
The new Homestore-led venture follows similar plans announced in
March by Microsoft Corp. (MSFT), a key rival in the online real estate
business. The software giant formed a new company, HomeAdvisor
Technologies, with several real estate and finance players, including
GMAC Residential Funding Corp., Chase Manhattan Bank
(CMB), Freddie Mac (FRE) and Bank of America Corp. (BAC).
HomeAdvisor Technologies made some announcements about some new
online real estate transaction tools of its own at the NAR conference.
Homestore is the largest online real estate service, encompassing a
family of websites that let consumers buy or rent homes. The company
also runs the official website of the National Association of Realtors. In
April, the antitrust division of the U.S. Justice Department requested
information from Homestore regarding its online real estate business. |
