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Overstock.com fails at real estate

Overstock.com is getting into the real estate business, and that's not a good thing. The company launched today a real estate search application, at realestate.overstock.com. The idea, according to the company, is to be a unique site that shows classified, foreclosure and "hard to find" auction homes.

Overstock's pitch piqued my interest because finding homes in foreclosure is a bit of a challenge. But when I went to the foreclosure listings on Overstock's site, it simply directed me to listings at Foreclosure.com, which wants to charge you $40 a month. Then I hunted around the "classified" section, which sent me to real estate brokers or to sites like HotPads.com.

Overstock couldn't find any "distressed" homes in San Jose, so it gave me a listing in Florida. Not exactly the smartest move. 

There are better ways to do this, and if Overstock wants to jump into the online real estate pool it needs to provide a solid service. So far, its site just repackages other lists in an attempt to sell advertising. No wonder the stock didn't do anything on the news. Overstock shares are trading down 2% to $22.96 at last check.

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Comments

 

This is another example of companies jumping into the real estate pool thinking it's 1999.  Housing shoppers in this day and age want sites with robust content and interactive features like a www.Trulia.com or www.HotPads.com.  Overstock should stick to discounted robes and lawn furniture.

Frank W. (Posted 06.10.08 9:06 PM)

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