Kelley Blue Book now in the home valuation game
The company known for its vehicle valuations is entering the residential real estate space with a goal of providing “a tailored strategy to achieve full price.”
Kelley Blue Book, the brand known for its new and used automobile valuations, has entered the home valuation business, the company announced on Tuesday.
The move serves as the latest example of an outside player building connections within the real estate industry to strengthen ties with consumers and grow new revenue streams.
A platform for consumers and agents: With the new platform's launch, homeowners will have access to accurate home valuations, the company said, while agents can access seller leads based on ZIP code. The platform is free for consumers and subscription-based for agents.
To market to sellers within their ZIP code, agents will pay a monthly fee instead of a portion of their commission, which is common among other lead generation platforms. Zillow's lead generation model, for instance, can charge agents up to 40% of a commission on closed leads.
Agent subscription fees will vary based on local market conditions and how much ZIP code share the agent purchases from Kelley Blue Book Homes, the company said.
Adding value with 'Verified Agents': In a statement, the company said it is filling a gap in the market for "hyper-specific detail" on property valuation and providing "a tailored strategy to achieve full price."
"We believe agents are not a commodity — the best data combined with an agent that deploys a strong strategy can result in a homeowner getting a much better sale than faulty valuation data and a botched seller process," a company spokesperson said.
Starting July 8, agents can apply to be a Kelley Blue Book Homes Verified Agent in their area on the company's agent-facing website in advance of the platform's rollout to consumers on Aug. 1. The platform is currently available in 10 states — Arizona, California, Colorado, Florida, North Carolina, Nevada, Oregon, Texas, Utah and Washington — with plans to roll out nationally in early 2027.
Agents who apply will be vetted for placement on the platform based on "performance metrics" — including sales volume, days on market and sale-to-list ratio — in an effort to connect consumers with qualified real estate professionals, Kelley Blue Book Homes said.
Built with real estate tech: The platform was developed in partnership with appraisal technology firm True Footage, which launched in 2021 and announced earlier this year that it raised $40 million in a Series C round led by Kelley Blue Book parent company Cox Enterprises.
Home valuations will be determined based on homeowner-submitted information and photos reflecting a property's condition. Within 24 hours, homeowners will receive a neighborhood-level valuation expected to be within 3% of a final sales price, after which they'll be connected with a local agent.
In early test markets, more than 17% of listings have been placed on the MLS within 90 days of receiving a price report, the company said.
A larger trend: Kelley Blue Book's move into residential real estate appears to be part of a wider trend of companies within and outside of the industry seeking innovative partnerships to drive new business streams in a tough economy.
Fathom Holdings, for example, announced just last month that it is being acquired by Bed Bath & Beyond. The companies have described the $53 million deal as an effort to create a fully end-to-end homeownership platform spanning real estate transactions, omnichannel commerce and home services.