In its most recent earnings report, Zillow revealed a significant number of its Zillow Offers users are turning to remote online notarization.
In fact, the company reports that more than 60% of its Zillow Offers customers closed on their home through RON. This increase in tech usage is now driving up the company’s earnings.
“The second win, maybe even mightier than the first, the technology tailwind,” Zillow CEO Rich Barton said in the earnings report. “Across every industry, there has been a COVID catalyzed and dramatic increase and reliance upon and adoption of technology. The concrete is setting on new digital habits for life and work, and it is highly unlikely that we go back to the old analog ways.
“We see the same technology acceleration in our residential real estate industry and Zillow as the digital leader is benefiting,” he continued. “There is increased shopping traffic at the top of the funnel and more adoption of the digital transaction at the bottom. Our customers are looking for more ways to reduce friction, and we have rallied quickly to bring to market products and services that have been in research and development.”
And this acceleration, he said, has led to an increase in RON usage, and the company says even after the pandemic subsides, there will be no going back.
“Virtual tour requests tripled when the stay-at-home orders began,” Barton said. “Now nearly 2/3 of our Zillow Offers home purchases are closed digitally with a remote notary. We are investing our dollars and smarts into building these solutions on behalf of our customers. These new tools are immediately relevant today, and there is just no going back. They will change the expectations for new generations of buyers and sellers in the future.”
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RON acceleration was not the only news to come out of Zillow’s third quarter earnings. As reported previously by HousingWire, the company also revealed that the company cashed in on low rates by accelerating its refinance business. Overall, Zillow’s mortgage revenue grew 114% to $54 million in the third quarter. Within the mortgage segment, its origination revenue grew more than 300% year over year and for the fourth quarter, Zillow estimates a range of between $49 million to $53 million.