HomeAdvisor Joint Venture Ends

Microsoft is dissolving its HomeAdvisor Technologies joint venture, selling the mortgage technology part of the business, and folding the other two parts of the business into the MSN organization. HomeAdvisor Technologies, founded at the peak of dot-com optimism in Mar. 2000, aimed to use the Internet and various software technologies to streamline the process of buying a home. Microsoft’s minority partners, including GMAC Residential Funding and J. P. Morgan Chase, eventually contributed more than US$100 million to the venture, in hopes of creating a successful, publicly traded business. The terms of the agreement to disband the venture were not disclosed.

HomeAdvisor Technologies consisted of three divisions. Microsoft is now seeking to sell the mortgage division, which created technology to streamline various mortgage and real estate transactions, such as credit checks, underwriting, and property valuation. However, it will continue to serve this division’s more than 50 active customers until a buyer is found. Meanwhile, Microsoft will continue to operate, develop, and promote the other two parts of the business: the HomeAdvisor.com Web portal, which will continue to offer advice and buying guides to home buyers; and the real estate tools division, which provides realtors with applications and services to help them streamline their work. Microsoft recently announced nationwide commercial availability and an improved version of one such tool, Realty Desktop, which helps real estate agents manage their customer relations and track transactions. Realty Desktop is based on the ClearLead platform, which also forms the core of the company’s DealerPoint application for car dealers and the Customer Manager application on bCentral.