Where Real Estate Gets Its Dirt

Industry Relations Episode 65: A Retrospective of the Most Important Events in Real Estate in 2021

What were the most important events in real estate in 2021? And how might those events change the industry moving into 2022?

On this episode of Industry Relations, Rob and Greg sit down to reflect on what they see as the most significant headlines of 2021, discussing the real reason behind Zillow’s abrupt exit from the iBuyer market and what Zillow 3.0 might look like.

Rob and Greg explore the significance of NAR’s apology for its racist past and policy changes around hate speech, describing how the ethics complaint against Pastor Brandon Huber reflects a growing division in the industry.

Listen in for insight on the impact of MLSs becoming technology companies and find out why it’s time for you to start learning about the blockchain and what this trend toward decentralization means for the future of real estate.

What‘s Discussed: 

Rob & Greg’s take on the most important events in real estate in 2021

The DOJ’s withdrawal from its settlement with NAR and Biden’s subsequent Executive Order on competition

How Zillow’s acquisition of ShowingTime changed the way vendors, MLSs and associations do business

The real reason behind Zillow’s exit from the iBuyer market and what Zillow 3.0 might look like

Rob’s prediction that Rich Barton will retire again in 2022 and why Greg thinks he’s wrong

The significance of NAR’s policy changes re: the transparency of listing data

Why NAR’s apology for its racist past matters and how it might serve as the first step toward reparations

The ethics complaint against Pastor Brandon Huber and how it reflects the growing division in organized real estate

How Greg thinks about MLSs becoming technology companies and what it means for vendors 

Rob’s insight on how blockchain technology might impact real estate

Connect with Rob & Greg:

Rob’s Website

Greg’s Website

Resources: 

Biden’s Executive Order on Promoting Competition in the American Economy

The DOJ’s Antitrust Case Against NAR

The DOJ’s Withdrawal from Its Settlement with NAR

Business Insider Article on Zillow’s Project Ketchup

Rob’s Post on Zillow’s Project Ketchup

Ben Thompson on Zillow’s Decision to Exit the iBuyer Market

Rich Barton on the Stratechery Podcast

NAR Policy Changes on Transparency of Listing Data

Bloomberg Article on the NAR Formal Apology for Past Racism

Changes to the NAR Speech Code

Pastor Brandon Huber’s Lawsuit Against the Missoula Organization of REALTORS

The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous

The Bitcoin Standard Podcast

Saifedean Ammous on YouTube

Webinar: The Truth about the NAR Settlement

Rob Hahn, my partner in crime at the Industry Relations podcast is hosting a webinar Tuesday, March 26 from 9 – 10:30am PT, this is “must see tv” in my book. So, fire up the flat screen in your conference room and gather round your senior execs. From his announcement:

“It’s been quite a few days. I’ve been getting absolutely hammered with questions from some of you, plus the media, plus investors, plus plus plus. While I’m happy to answer them, and have as much as I could, I thought it time to just hold a webinar and see if I can do it all in one place and one time.

I’ll go over:

  • What the Settlement Agreement actually says.
  • What it requires of brokers, agents, MLS and Associations.
  • What it likely means for you and the industry.
  • Possible unexpected consequences.

I’ve done webinars like this a couple of times in the past, and thought they were useful.”

The Notorious ROB

Click this link to register = > The Truth About the NAR Settlement

It’s $399, but $200 cheaper if you are a Notorious VIP subscriber. As Rob says, “If you are not a VIP Subscriber, well… you can do the math.”

Support independent creators in our space. Sign up today!

T3 Sixty pens, “Letter to the Industry”

Letter to the Industry – Compensation Lawsuits

“The recent settlement between MLS PIN and plaintiffs in the Nosalek case reveals that foundational change to the structure – a decoupling of buyer broker compensation from listing broker compensation to some degree – will most likely occur sooner than later. These changes could come because of a settlement, a judge’s injunction or, if the industry is smart, by key stakeholders’ proactive adjustments to their policies and practices.”

Rob and I have been discussing this for a while now and will cover some of the implications of the Nosalek case on this week’s Industry Relations pod.

The bottom line is shit’s getting real.

Rob Hahn to host Webinar on Commission Lawsuits

My Industry Relations co-host and friend the Notorious ROB will be hosting a webinar on Commission Lawsuits. A great opportunity for any ORE peeps to get a good perspective on where things stand.

Webinar on Commission Lawsuits

Topics to be Covered

The rough outline for now:

-The likely outcome of Sitzer/Burnett v. NAR (the first lawsuit up) and why-Monetary damages
-“Co-Conspirator” status and why that matters
-Weak vs. Strong injunction
-Copycat lawsuits
-Bankruptcy issues
-Settlement?
-The DOJ and FTC
-The environment post-apocalypse and strategies for:
-Q&A and Discussion

For cost and registration click here -> Webinar: What Now? Real Estate Industry After the Commission Lawsuits

Authenticity, CoStar and the craps table.

If you haven’t caught our last episode of Industry Relations that just dropped today you hear Rob talk about the desire for industry entities such as NAR to stop the corporate word salad and speak authentically. This conversation made me think about an article and podcast that caught my attention. It was in relation to the letter (email?) Andy Florance, CEO of CoStar, sent regarding a few statements made at NAR NXT. The entire letter is available (and link to the podcast) so you can go read it here at:

COSTAR CEO SENDS MESSAGE TO WSJ & REALTOR.COM

In the letter Mr. Florance make a few statements:

He calls out Bob Evans, VP of Industry Relations at realtor.com, for making false statements “that Homes.com was working against real estate agent“.

He (Andy F.) takes full responsibility for CoStar News naming Sitzer/Burnett plaintiff attorney Michael Ketchmark, “newsmaker of the week” and states “It will not happen again.” [Small quibble; Ketchmark was named “Person of the week”]

He also points out the fact realtor.com and the WSJ is owned by the same company and then makes a damn good point. Here’s a quote from his letter:

“Many people mistakenly believe that Realtor.com is part of NAR. In fact, it is not, it was sold years ago and is now owned by News Corp. The Wall Street Journal and Realtor.com are sister companies. They work together closely. The folks that call the shots for The Wall Street Journal and Realtor.com are one and the same.

The Wall Street Journal has been prolifically writing more than most about theSitzer/Burnett class action lawsuit and the NAR defeat. They have published article titles such as “Home Sellers Take On the Realtors Cartel”, “Almost No One Pays a 6% Real-Estate Commission-Except Americans”, “The Upending of One of America’s Most Popular Professions”, “The Way You Pay to Buy or Sell a Home is About To Change”, “Jury Finds Realtors Conspired to Keep Commissions High”, “Real-Estate Commissions Could Be the Next Fee on the Chopping Block”, “Realtors Face an Antitrust Reckoning” and more.“

Letter from Andy Florance, CEO & Founder of CoStar

Zing! Pow! Authentic enough for you yet? Love him or not Andy Florance is not in his box seats, he is on the field, and I’m here for it.

As a prolific player of craps I have an analogy for you. In the game of craps you have the concept of “right way” and “wrong way” bettors. In simple terms “right way bettors” are betting on the shooter, and “wrong way bettors” are betting “against the shooter”. When a hot craps game is going on and a “wrong way bettor” shows up at the table everyone gets pissed off. They think having a “wrong way bettor” at the table brings “bad juju”. CoStar, in my view, has been perceived by the industry as a “wrong way bettor”. This was due to the fact that CoStar’s business model does better with the elimination or neutering of buy side compensation. And guess what? It’s looking like Andy made the right bet.

“7 OUT!”

Here’s the thing as these so called “portal wars” heat up. There are many things that we can argue about regarding the business models of all the portals. Dual agency, agent responsiveness, etc. But the Sitzer/Burnett ruling and all the copy cat lawsuits are making it very clear that the game has changed. CoStar isn’t the wrong way bettor any longer.

We need to move on. CoStar, Zillow, Realtor.com are all going to have to adjust. We as an industry are going to have to adjust.

We aren’t play craps anymore. Feels to me more like poker.

My prediction #sitzerburnett

With the risk of letting one more tiger in to the ring I’m going to make a prediction. I first have to thank Andrea Brambila of Inman News for her live updates. Also Austin Alanzo from Real Estate News.

While it would have been ideal to be in the courtroom and see the reactions of the jurors to testimony I’m going to make my prediction based upon a couple precepts.

  1. The issue is more complicated than it seems.
  2. The vote must be unanimous.

So, what’s my prediction? Drumroll please……

NAR wins.

Now, I’m unsure if the jury votes on the corporate defendants separately (KW and BHHS) and I don’t know if the jury’s instruction includes a “per se” messaging (you’ll have to listen to the last few episodes of Industry Relations to understand what that means).

But based upon what I’m hearing from people inside the courtroom and the summaries I’m reading this wasn’t a “slam dunk”. So if there is any hint of uncertainty, that means an unanimous vote is unlikely.

Now I believe this is a pretty bold prediction. You’ve got a home town lawyer (Ketchmark) who apparently was close to tears in his closing arguments (tears? really? really?) and the cliche of the “greedy real estate agent”. But did they prove an industry-wide conspiracy? I don’t think so.

New bidder emerges in REcolorado sale

The plot thickens!

I just learned via an email that MRI Software, a private equity firm a privately held company, is putting a bid in to buy REcolorado. Here’s the excerpt from the email’s “Official Statement”.

“MRI Software, the parent company of CTM eContracts, has submitted an Indication of Interest (IOI) for the purchase of REColorado.

We decided to take this action after learning of the potential sale of REColorado, when it was reported publicly.

Many of you are already familiar with MRI Software, but for those who are not, here is some background: MRI provides the CTM eContracts to nearly 40,000 subscribers in Colorado.  The software was first introduced in 2003.  MRI, a U.S.-based leader in real estate technology, has been in business since 1971. You can learn more more about MRI and about our open-and-connected approach to software integrations here.”

MRI Software

You can read the full statement here.

Just to catch everyone up, it was first reported that a single person, Joseph Burks, was buying the MLS organization. Under the name of MAZL, LLC. From my research Joesph Burks is, “one of the largest shareholders in the early creation of CTM eContracts, a widely used contract software for real estate transactions.’ was a large shareholder in CTM eContracts, which was sold to MRI Software in 2019.

Denver Metro Associaiton of REALTORS (DMAR) wrote an “FAQ” on their blog back in June 30th stating,

“MAZL is not a private equity firm, nor is a private equity firm a funding partner in the proposed sale.”

DMAR

Now it appears that a private equity firm has offered to purchase REcolorado MLS. Rob and I went over in detail on our Industry Relations podcast how a private equity firm might approach running an MLS organization.

I also posted a thread on Twitter (X) titled, “So you are a PE firm and wanna get in to the multiple listing services (MLS) game? Here a thread of how I would do it. A thread.“

So far no word from DMAR or SMDAR.

***THIS POST HAS BEEN UPDATED AT 7:57AM 7/25/24. MRI Software is not a private equity firm, but a privately held company. I also clarified information regarding Joesph Burks (previous) ownership stake in CTM eContracts.***

Industry Relations Episode 64: A New Approach to Antitrust Regulations—with Michael Wurzer

The DOJ pulling out of its antitrust settlement with NAR seems like bad news for the industry.

But what if it could be an opportunity?

Michael Wurzer is the CEO of FBS, the leading innovator of MLS technology. Prior to FBS, Michael spent seven years practicing law in California and Minnesota, working in corporate law, litigation, and serving as Assistant General Counsel for Aveda.

On this episode of Industry Relations, Michael shares his unique perspective on the DOJ withdrawal, discussing the Biden administration’s intent to refocus on antitrust principles and the need for smaller, independent businesses to ensure competition in any sector.

Michael explains how organized real estate might engage with regulators, describing how MLSs could serve as labs of experimentation to promote transparency and competition in the industry.

Listen in to understand the challenge of overcoming what Rob calls the regulatory mindset and find out how real estate can take an offensive posture with the FTC, working together to innovate around Brandeis and Patman’s antitrust ideals.

What’s Discussed:  

The intent of the Biden administration to refocus on antitrust principles

Why industries need smaller, independent businesses to ensure competition

How the competitive nature of the MLS benefits NAR in negotiating with the DOJ

Why Michael sees an opportunity for the industry to engage with regulators

How MLSs might serve as labs of experimentation to promote transparency and competition

The concerns around Ben Harris’ advocacy for delinking of commissions 

How a willingness to experiment would be a good defense for government intervention

Rob’s concern that the regulatory mindset won’t allow for such a nuanced approach

Why Michael doesn’t see NAR or large MLSs as Goliaths to be broken up

Connect with Michael:

FBS

Michael on Twitter

Connect with Rob and Greg: 

Rob’s Website

Greg’s Website

Resources:

FBS Summit

Justice Department Withdraws from Settlement with the National Association of Realtors

Goliath: The 100-Year War Between Monopoly Power and Democracy by Matt Stoller

Chicago School of Economics

‘Amazon’s Antitrust Paradox’ by Lina M. Khan

Robinson-Patman Act

Biden’s Executive Order on Promoting Competition in the American Economy

REX on Industry Relations EP055

‘Anticompetition in Buying and Selling Homes’ by Roger P. Alford and Benjamin H. Harris

Rob’s Post on Ben Harris

Michael’s Presentation on the Expanding MLS

British Columbia’s Shadow Flipping Controversy

Our Sponsors: 

Cloud Agent Suite

Notorious VIP

Introducing Giant Steps Advisors

Industry veteran, Greg Robertson, launches Giant Steps Advisors to help entrepreneurs, real estate companies and leaders accelerate their success. 

COSTA MESA, FEB. 26 – Greg Robertson announced today the launch of Giant Steps Company, LLC a new company poised to help navigate the new real estate landscape. With a vision centered on innovation, growth, and collaboration, Giant Steps Advisors is set to become the go-to advisor for visionaries ready to take on new challenges.

“Having co-founded my first real estate software company in 1992, I’ve had a front seat to the arc of innovation in the organized real estate industry for the last 30+ years.  My goal with Giant Steps is to give back and share those experiences with our clients to help them reach their goals faster,” stated Greg Robertson, Founder & Principal Advisor.

Giant Steps Advisors believes you need to start from the end and work backwards to help you arrive at the best solutions.  Whether you are developing a product, a go-to-market strategy, M&A, or planning for the future, thinking about the outcomes of your choices first, will help you arrive at your goals quicker.

Staci Wood, Executive Advisor, has joined Robertson to expand the breadth of expertise.  Staci started her career at RE/MAX playing a critical role in the evolution of real estate portals. Staci then moved to one of the largest MLS organizations in the country, REcolorado.  While at REColorado Staci was their VP and Chief Product Officer for over 9 years. With this duo of seasoned experts at the helm, Giant Steps Advisors brings a wealth of experience and a fresh perspective to the table. 

“I met Staci over 20 years ago.  Her broad experience is a perfect addition, and I’m excited she has chosen to join me on this new endeavor,” Robertson said.

For more information about Giant Steps Advisors and its services, visit www.GiantStepsAdvisors.com or Greg@GiantStepsAdvisors.com.

About Giant Steps Advisors

We are here to help entrepreneurs and real estate companies accelerate their journey to success.

Greg Robertson co-founded his first real estate software company in 1992. He is an author of the book, ‘The Art of the CMA’, and publisher of the industry technology blog, “Vendor Alley”. He also publishes two industry podcasts, “Listing Bits”, and is co-host of “Industry Relations”. Greg was the co-founder of W+R Studios, creators of Cloud CMA and the rest of the Cloud Agent Suite. W+R Studios was acquired by Lone Wolf Technologies in December of 2020. 

Contact

Greg Robertson

Founder/Principal Advisor

Giant Steps Advisors

Greg@GiantStepsAdvisors.com

www.GiantStepsAdvisors.com

Some personal news

Today, Friday, July 28th will be my last day at Lone Wolf Technologies. Going forward, they have asked me if I would serve as a senior advisor to the company, and I am happy to do so. Despite the market setback, I strongly believe Lone Wolf is on the right track in regard to product and strategy.

I want to also personally thank Jimmy Kelly, CEO of Lone Wolf for his patience, and trust and for creating a place for me and everyone else at W+R to learn and grow.

As you get older your circle of friends tends to grow smaller. Luckily, that has not been the case with me.  I have met so many great and talented people at Lone Wolf. I will continue to call upon them in the future and will miss working alongside them every day.  And thanks for the nice write-up. 😁

I am also very proud of the team we brought over from W+R.  It fills me with great pride to see W+R people continue to advance, take on key leadership positions at Lone Wolf (and other companies), and watch their influence propel the industry forward.

For the next chapter I plan to decompress a bit, maybe write another book, focus on my blog (Vendor Alley) and podcasts (Industry Relations and Listing Bits), invest, and give back to the industry that has given me so much.  I also have three teenagers in the house, so there’s that.

In the future, you can reach me at gregrobertson@gmail.com or 714.240.3895.

Sponsored By RentSpree