Stakeholders from every facet of the real estate industry are calling for change. Problem is, that’s about the only thing they can agree on. So what happens when you put a broker, a vendor, a consultant, and NAR leadership in the same room to talk about all things MLS? A sometimes uncomfortable, yet revealing discussion around consolidation, data standardization, MLS fees, and the policymaking process.

Stakeholders from every facet of the real estate industry are calling for change. Problem is, that’s about the only thing they can agree on. So what happens when you put a broker, a vendor, a consultant, and NAR leadership in the same room to talk about all things MLS? A sometimes uncomfortable, yet revealing discussion around consolidation, data standardization, MLS fees, and the policymaking process.

Live from CMLS2017 in Austin, Rob and Greg are joined by James Dwiggins and Sam DeBord. James is the CEO of NextHome, a progressive real estate franchise with consumer-focused branding, technology and marketing. Prior to founding NextHome, James served as Chief Strategy Officer and VP of Realty World Northern California & Nevada. Based in the San Francisco Bay Area, James’ impressive resume also includes VREO, a groundbreaking company he co-founded in 2000 to develop web applications for agents and brokers.
Sam is both the managing broker for Seattle Homes Group and VP of Strategic Growth for Coldwell Banker Danforth. In addition, he is a member of the MLS Technology and Emerging Issues Advisory Board, and he will serve as the Vice-Chairman of MLS Policy for NAR next year. Sam writes for a number of real estate news outlets, and he was named to SP200’s Top 20 Social Influencers and Inman’s Top 101 in Real Estate.

Listen in as Greg, Rob, James and Sam search for a little common ground when it comes to the future of the MLS. James shares his concern regarding a lack of non-REALTOR members in NAR decision-making bodies, and Sam offers his take on the future of the industry. They cover the political barriers that prevent true collaboration in the industry, how the not-for-profit mandate hinders MLS progress, and the value of vendor-inclusiveness. 

 

What’s Discussed: 

James’ message at the CMLS event in Austin
The ongoing conversation among NAR, brokers and MLSs
The continued consolidation of MLSs
NAR’s focus on broker co-op
The vast differences in how MLSs are run
The challenges around a lack of data standardizationFactors that prevent a common data share
The brokers’ contribution to the technical barriers 
How a common MLS feed might affect membership
How members of the MLS Technology and Emerging Issues Advisory Board are selected

-Vetted by leadership
-‘Standard of experience’James’ concern regarding a lack of non-

REALTOR members NAR’s effort to bring in advisors/speakers from other industries to inform the advisory board

Why having your heart in the right place doesn’t mean you are a qualified decision-maker
The challenge of overcoming politics to engage in true industry collaborationNAR’s role in fostering cooperation
How CMLS is setting the standard of vendor-inclusiveness
Rob’s argument that the nonprofit mandate is the biggest issue hindering MLS progress
The pros and cons of raising MLS fees
The excessive fees vendors pay for access to IDX feeds
The benefits of MLS consolidation:

-Less overhead, more profitable for MLS
-Broker costs decrease
-Vendors can reinvest money saved

The painful loss of jobs that would result from MLS efficiency
James’ prediction that it will take outside forces to facilitate change
The value generated by a very small number of agents -Zillow market cap at 7.6B -80,000 agents

Sam’s take on the future of the real estate industry

-MLS will be part of equation (dependent on data)
-Fewer MLSs
-Realtor will remain at center of transaction

Greg’s A Few Good Men analogy
Rob’s theory about the future MLS breakdown
The top barriers to change: 

-Politics
-Lack of data standards

Sam and James’ advice to MLS execs moving forward

-Focus on broker priorities
-Be flexible, innovative in delivering
-Discuss pain points with vendors
-Work with other MLSs on same process

Resources:

Seattle Homes Group

NextHome

MLS 2020 Agenda

CMLS 2017

Connect with Rob and Greg:

 
Rob’s Website 

Greg’s Website 

It’s the quiet ones you have to watch out for…

Redfin has been quietly dominating since its inception in 2004, and no one in the real estate industry seems all that concerned. We dismiss Redfin as a discount brokerage and debate what to call it – Tech company? Brokerage? Something else entirely? Whatever label you put on it, Redfin is disrupting the way real estate works. And with its S-1 filing, we can finally see just how well the company has been doing. With a sales volume of $16.2B and a 31% gross profit margin, Rob is justified in saying that Redfin has the potential to ‘eat the industry.’

Today Greg and Rob get into the impending Redfin IPO and the potential consequences of its success on traditional real estate. They cover Redfin’s phenomenal company culture and the advantages associated with having employee agents rather than independent contractors – and explain how its software has the ability to capitalize on repeat/referral business in a way that traditional brokerages do not.

Listen to understand why Rob believes that the industry should be more afraid of Redfin than Zillow, and hear Greg’s take on the relative importance of agent relationships versus company culture in shaping the consumer experience. Might there come a day when traditional brokerages would have to partner with (GASP) Zillow to compete with Redfin? As the company goes public, let’s talk about why Rob and Greg think industry leaders should start losing sleep.

What’s Discussed: 

The importance of culture at Redfin
Redfin’s recent S-1 filing
– Shares in $12-14 range
– Company valued at $1B
The debate around Redfin’s identity
– Tech company
– Real estate brokerage
– Agent team hybrid
Why there is no backlash against Redfin’s IPO
Rob’s take on why the industry should be more afraid of Redfin than Zillow
How traditional brokerages throw shade at Redfin as ‘discount brokerage’
Rob’s theory that Redfin is going to ‘eat the industry’
Standout stats from the Redfin S-1
– $16.2B in sales volume, #5 in RealTrends 500
– 31% gross profit margin
How Redfin’s software capitalizes on repeat/referral business
Redfin’s focus on data
– Measures customer satisfaction via NPS
How the Redfin culture affects the consumer experience
The myth that only independent contractors can provide high-level service
Greg’s take on Redfin’s limited ‘boots on the ground’
The advantages of employee buy-in to Redfin company culture
Who might be considered Redfin’s competition
The what-if scenario around Redfin establishing a ‘sneak peek’ listing agreement
How Redfin generates traffic to its site
– SEO
– Targeted email
When the heads of large real estate companies should start losing sleep over Redfin
– Redfin offers lower commissions, agents paid based on satisfaction ratings
– Customer demand could force traditional brokerages to enact similar policies to remain competitive
How a company with a multi-brand strategy could incorporate Redfin into its business model
How traditional brokerages might need to partner with Zillow to remain competitive
How reducing costs through automation would allow brokerages to charge less for commission
The way capital acts as an accelerator in the tech world
How having employee agents allows Redfin to fully adopt its technology systems

Our Sponsors:
CSS
Corelogic

Resources:
Redfin IPO: Tech Company, Real Estate Brokerage, or Something New?
Rob’s Redfin IPO Blog – Part 1
Sam Debord’s Guest Blog

Connect with Rob and Greg:

Rob’s Website
Greg’s Website

If you ask Wiktionary, to swim upstream means ‘to opt for a difficult course of action when a simpler alternative is available.’ And if you ask Rob and Greg, real estate’s Upstream venture is a prime example of doing things the hard way.

Today Rob and Greg discuss the MLS response to the brokerage community’s push for data sharing and the probability of Upstream’s success. They also cover other hot topics in real estate technology news, including Zillow’s new Millennial consumer brand announcement, the extraordinary capital raised by Placester, and Realogy’s recent changes in management.

Listen in as Greg explains how to think about the ‘real estate ecosystem,’ and Rob outlines the inevitable development of a new brokerage model.

What’s Discussed:

Zillow’s recent announcement regarding its launch of new consumer brand

Why Zillow is likely adding RealEstate.com as a search portal

The real estate industry’s ‘Millennial worship’

-Half of new home buyers under 36

The stereotypes associated with Millennials vs. the reality

What a site designed for Millennials might look like

The staggering capital being poured into the industry

-Placester raised $50M in March, bringing its total to $100M

Placester’s recognition of the aspirational nature of real estate

-Willingness to take any agent

Why Zillow focuses on ‘super agents’ and teams

Placester’s role in the ‘real estate ecosystem’

Realogy’s recent changes in management

How technology undermines the idea of a ‘real estate ecosystem’

The necessity for transformation of the current brokerage model

The mammoth undertaking that is Upstream

The feasibility of Upstream clearing all the hurdles it faces

How MLSs have responded to the brokerage community’s call for consolidation

Rob’s suggestion to add representatives from the broker community to the CMLS Board

Resources:

“Zillow Group to Launch New Consumer Brand” on RISMedia

“Placester Continues Growth with $50 Million Capital Raise” in HousingWire Magazine

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

We’re feeling a little déjà vu at Industry Relations as controversy brews between Zillow and brokers in NYC. Everything old is new again with the launch of the premier agent feature on leading real estate marketplace StreetEasy. For the last ten years, agents across the country have dealt with syndication – and it seems New York real estate’s time has come.

Today’s guest, Greg Fischer, serves as principal broker at Fred Real Estate Group in Bend, Oregon, and author of the blog Next in Housing. His unique background also includes work in the tech industry with real estate software companies Move, Inc. in San Francisco and Doorsteps in New York City. This makes him uniquely qualified to discuss the bruhaha as NYC brokers decide whether to pay the Zillow tax or boycott it.

**Audio alert.  Robertson’s audio track has an echo effect that we couldn’t get rid of in post.  But Fischer and Rob audio (which handle the majority of the discussion) sounds great.***

What’s Discussed:

How NYC brokers reacted to the premier agent feature on StreetEasy

How StreetEasy GM Susan Daimler justified the change

-Home shoppers deserve the option to connect with agent who represents only them

The explicit language used by the StreetEasy product to suggest a buyer agent

Why NYC should seek the counsel of brokerages around the country who have dealt with syndication

How Manhattan real estate does business differently

-Listing agents are used to owning all buyer leads

REBNY’s request for an investigation into the legality of advertising an exclusive listing

The potential to create an MLS in NYC

-Change in compensation model

-Dominance of top ten listing brokers

-Legal ramifications of only sharing data feed with REBNY

The differences among IDX, VOW and StreetEasy’s premier agent

The danger of dual agency

Fischer’s take on leads generated via third-party websites

-Inquiries rarely lead to sales

The evolution of Zillow’s playbook on generating revenue

Why brokerages need to get savvy on how ad tech works

The value of agents as local experts

Compass CEO Robert Reffkin’s concession to Zillow

Resources:

Greg Fischer’s Premier Agent Blog Post

The Real Deal’s Premier Agent Article

The Real Deal’s Premier Agent Video

Vendor Alley Job Board

Connect with Greg Fischer:

Blog

Twitter

Rob and Greg are back, and this time they are debating an unusual strategy real estate coaches and trainers might employ to establish credibility – using the techniques of the pickup artist community.

In researching the dating habits and family formation of millennials (for work – no, really!), Rob happened upon a company called Real Social Dynamics, the world’s largest dating coaching company. Among their promotional materials are YouTube videos called ‘infields’ in which their coaches demonstrate the company’s techniques for attracting women in real situations at parties and nightclubs.

This got Rob to thinking, “Why don’t we do that in real estate?” On this episode of the podcast, Rob and Greg explore the feasibility of real estate trainers generating similar footage to market their services.

 

What’s Discussed:

How infield footage lends credibility to the trainer

The legality and ethics of filming interactions with clients

How Hear It Direct sought to give professionals an understanding of the consumer point of view

Why data (# of transactions) may not be enough to establish a coach’s authority

-Numbers demonstrate personal credibility (sufficient for the consumer)

-Infields would establish credibility for the tactics you are selling

The significance of training as a key value proposition for every association

The aspects of an agent’s work that could benefit from infields

-Listing presentations

-In-person lead generation

-Buyer negotiations

-Sphere of influence calls

-Customer relationship management

Resources:

Real Social Dynamics YouTube Channel

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

 

 

I’ve been really having a good time with my new podcast, Listing Bits. In Episode 5 I teased that Rob Hahn (The Notorious R.O.B.) and I were launching another podcast, called “Industry Relations“. I’m happy to announce that it’s now available on iTunes, Google Play and Stitcher with 4 episodes.

Here’s the rundown.

In Episode 1 Rob and I discuss the state of organized real estate.
In Episode 2 we talk about the state of MLS industry.
Episode 3 we invited special guests, David Charron, Andrea Bushnell along with Sunny Lake and discuss her “NAR Girl Boss” initiative.
In episode 4 (which is just being posted) we discuss what’s going on in Canada, specifically British Columbia, and how it might effect real estate here in the U.S.

We are currently looking for sponsors. So if you want to reach some the industry finest, please drop me a line at vendor.alley@gmail.com