<PAGE>
                                                                    EXHIBIT 10.7

ZipRealty.com(TM)
     Real Estate Redefined(TM)

            April 27, 2001

            Eric Danziger
            4801 E. Sparkling Lane
            Paradise Valley, AZ 85253

            Dear Eric:

            On behalf of zipRealty.com, Inc. (the "Company"), I am pleased to
      invite you to join the Company as the Chief Executive Officer (CEO). In
      this position, you will report directly to the the Board of Directors, and
      you will be expected to devote your full business time, attention and
      energies to the performance of your duties with the Company. The effective
      date of your employment will be June 11th, 2001 or sooner depending on
      your ability to transition into your new position.

            The terms of this offer of employment are as follows:

            1. Compensation. The Company will pay you a base salary in the first
      year of your employment of $22,916.67 per month payable in accordance with
      the Company's standard payroll policies. You will also be eligible to earn
      a bonus equal to 100% of your annual base pay at the anniversary of your
      start date by achieving the following two objectives;

            A; Lead the company to profitability for two consecutive months in
            Q1-02 or Q2 -02

            B: Insure company revenue exceeds $1.5 million a month for two
            consecutive months in Q1-02 or Q2-02.

      At the conclusion of your first year of employment the Board of Directors
      will meet with you to review your performance and come to mutually
      agreeable terms for the next year's base salary and bonus plan. These
      negotiations will be concluded no later than two weeks past the
      anniversary of your start date. For all subsequent years of employment,
      the same process will be repeated unless a new method is mutually agreed
      to by the Board of Directors and yourself in writing.

      In addition, you will be eligible to participate in all employee benefit
      programs currently adopted by the Company. An additional memo is provided
      outlining the key components of the current company benefits plan.

            2. At-Will Employment. You should be aware that your employment with
      the Company is for no specified period and constitutes "at-will"
      employment. As a result, you are free to terminate your employment at any
      time, for any reason or for no reason. Similarly, the Company is free to
      terminate your employment at any time, for any reason or for no reason. In
      the event of termination of your employment, you will not be entitled to
      any payments, benefits,

   1401 Marina Way South Richmond, CA 94804 510.965.2600  fax 510.237.2471 -
                               www.zipRealty.com

<PAGE>

      damages, awards or compensation other than as may otherwise be available
      in accordance with applicable law.

            3. Proprietary Information Agreement. As a condition of accepting
      this offer of employment, you will be required to complete, sign and
      return the Company's standard form of Employee Proprietary Information
      Agreement.

            4. Option Grant. The Board of Directors of the Company has approved
      that upon commencement of employment you be issued a stock option grant of
      2,000,000 shares of Common Stock of the Company at the strike price of 1/4
      of the Series D share price under a vesting period of 48 months. The
      stock shall vest at the rate of 1/48 of the total grant per month
      (41,666.67 shares per month) starting the first day of employment and
      continuing until all such shares are exercisable, based upon your
      continued employment with the Corporation. Such options shall be subject
      to the terms and conditions of the Company's Stock Option Plan and Stock
      Option Agreement. In the event of a change of control (merger or
      acquisition) of the company in which more that 51% of the company stock
      after the change of control is owned by the acquirer, there will be an
      acceleration of vesting of half of the remaining unvested shares (as in
      the stock purchase agreement with the founders).

            5. Relocation package. You will be eligible for reimbursement of up
      to $100,000 net relocation costs for relocation expenses incurred during
      your move to California. In the case where you do not complete twelve
      months service with the company, you will be required to reimburse the
      company 1/12th the relocation expenses for each month remaining until the
      anniversary date.

            6. Employment Classification. Your position is classified as exempt
      pursuant to the Fair Labor Standards Act (FLSA) and current applicable
      state laws.

            8. General. This offer letter and the Employee Proprietary
      Information Agreement, when signed by you sets forth the terms of your
      employment with the Company and supercedes any and all prior
      representations and agreements, whether written or oral. This agreement
      can only be amended in a writing signed by you and an officer of the
      company. Any waiver of a right under this agreement must be in writing,
      This agreement will be governed by California law.

            9. We look forward to you joining the Company. If the foregoing
      terms are agreeable, please indicate your acceptance by signing the
      enclosed copy of this letter in the space provided below and returning it
      to me, along with your completed and signed Employee Proprietary
      Information Agreement.

                                   Sincerely,

                                   zipRealty.com, Inc.

                                   /s/ Juan Mini
                                   -----------------------
                                   Juan Mini

      AGREED AND ACCEPTED

      /s/ Eric Danziger
      ----------------------
      Eric Danziger

                                       -2-