CoStar Shifts Sales Model for Homes.com Agents
The company is replacing remote inside sales staff with field teams to offer agents more in-person membership demonstrations.
Updated on Oct. 28, 2026 in Commercial
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CoStar is shifting its Homes.com growth strategy by moving away from centralized inside sales teams toward field-based representatives. This organizational change follows the company’s recent quarterly earnings report and supports its push for greater operational efficiency.
Why it matters
The company believes that face-to-face meetings between field representatives and real estate agents generate higher productivity than inside sales models. This shift, paired with ongoing cost-cutting measures, aims to boost the profitability of its residential real estate segment.
CoStar cut its Homes.com inside sales staff to 267 representatives from 655 a year ago. The division generated $7 million in annualized net new bookings during the quarter as the company continues to seek $200 million in additional cost efficiencies.
The players
CoStar
A provider of real estate information, analytics, and marketing platforms for property professionals and consumers.
Homes.com
A residential real estate portal owned by CoStar that competes for agent memberships and consumer traffic.
Zonda
A housing market data firm acquired by CoStar to bolster its residential analytics capabilities.
Vexcel Group
An aerial imagery provider that CoStar has agreed to acquire to expand its visual data assets.
Matterport
A spatial data company focused on 3D captures that CoStar expects to become profitable by late 2027.
The details
CoStar is reallocating resources to deploy field professionals with industry experience in major cities to conduct in-person membership demos for agents. By reducing reliance on remote inside sales, the firm expects to improve conversion rates and long-term segment performance. The company is simultaneously managing a broader expansion, including the $815 million acquisition of Zonda and a planned $730 million purchase of Vexcel Group.
Timeline
CoStar closed its acquisition of Zonda in late August 2026.
The company reported its quarterly earnings performance in Q3 2026.
The acquisition of Vexcel Group is expected to close in Q1 2027.
Matterport is projected to reach profitability by the end of 2027.
Money Landscape
CoStar's strategic pivot follows a period of aggressive expansion and acquisitions aimed at capturing more of the residential market. This reorganization mirrors a wider corporate trend of seeking long-term profitability through leaner, more targeted sales operations.
Agents and real estate professionals should prepare for more direct, face-to-face outreach from CoStar as field teams replace remote inside sales. This shift in service delivery could change how agents evaluate membership demos and professional software subscriptions.
The takeaway
CoStar’s move highlights a return to high-touch, field-based sales models to drive residential growth and operational profitability. Households involved in real estate should monitor how these shifts in service model impact the cost and utility of professional marketing platforms.
Further reading
For more on the industry's changing landscape, visit our Commercial section.
Source note: This article includes information reported by HousingWire.
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