Where Real Estate Gets Its Dirt

The Vendor Alley Top 3 Most Impactful People in Real Estate

I’ve shied away from doing lists in the past. Once, I even created an “Anyone But Bob Hale Awards,” since Bob has won just about every award imaginable. But in the end, I gave the award to Bob anyway.

Another reason I’ve avoided lists is that many feel pay-to-play or come with certain agendas. I get that this is the nature of these lists—and to be honest, I’ve been included on a few myself. Lastly, they’re often just too long: The Top 100, The Top 200, etc.

But as we close out a truly crazy chapter in organized real estate, I couldn’t resist putting together a list of my own. I’m not sure if I’ll do this every year, but this year I wanted to highlight a few people who genuinely deserve recognition. To keep things manageable, I’ve narrowed it down to three. Here they are, in no particular order:

James Dwiggins. I’ve worked with James over the years. His company, NextHome, was a major customer of W+R Studios and one of the first to embrace custom themes for Cloud CMA. Over the past year, however, James has stepped up as a leader, educating the industry on the NAR Settlement, advocating for best practices, and sparking important conversations through his excellent Real Estate Insiders Unfiltered Podcast, which he co-hosts with the wonderful Keith Robinson. He’s also a frequent and impactful speaker at industry events.

On top of all that, James is a family man, married with a young daughter, yet he has devoted so much of his personal time to this industry. And, as if that wasn’t enough, he’s also been busy launching an exciting new startup, Rayse. My hat’s off to you, James—thank you for all you’ve done this year to keep the industry we love moving forward.

Leo Pareja. Leo first came onto my radar as one of the co-founders of Remine. Longtime readers of Vendor Alley might remember that I was highly critical of some of Remine’s business practices and leadership. Their dirty laundry was aired in outlets like Inman News. However, I always heard that Leo was different, and that he had distanced himself from some of the other founders during those turbulent times..

Leo is different. Glenn Sanford deserves credit for appointing Leo as CEO of eXp Realty, where his leadership has been exceptional. His work on consumer-friendly forms prompted much of the industry to take a second look at their own practices. And now, his stance on CCP (Clear Cooperation Policy) continues to impress.

What’s more, it’s refreshing to hear someone running a public company who speaks plainly, cutting through the corporate jargon. Thank you, Leo, for leading by example and pushing the industry forward.

Ed Zorn. Over the past couple of years, it seems like there wasn’t an event I attended where Ed Zorn wasn’t speaking. The same goes for podcasts—he even appeared on Industry Relations with Rob Hahn and me a few times.

During this time, Ed became the industry’s “great explainer.” No one did more to break down the complexities of the NAR Settlement and its implications than Ed. But he didn’t stop at explaining—Ed and CRMLS proposed thoughtful solutions to help guide the industry through turbulent times.

Like James and Leo, Ed has devoted a significant amount of his personal time to helping the industry navigate these challenges. Thank you, Ed, for being a steady voice of reason and a source of actionable ideas during this transformative period.

I don’t have a fancy trophy to hand out, or a magazine to put your faces on, but you all have my thanks for doing what’s right.

CoStar won’t buy realtor.com

CoStar will not acquire portal Realtor.com after all

“During Tuesday’s investor call, Florance compared CoStar’s portal ambitions to the choice consumers face between buying a home verses building something new. But thanks to what Florance described as Homes.com’s success with traffic, and its positive reception within the real estate industry, CoStar has apparently settled for now on the building, rather than buying, strategy.

We feel we have a unique offering on the organic side that no one else is offering out there,” Florance said at another point during the call.

Tuesday’s earnings report states that Homes.com now has more than 20 million unique monthly visitors.”

I guess we shouldn’t be surprised, remember when CoStar was going to buy CoreLogic? Good times.

Ultimately this was a head-scratcher anyway, how was CoStar going to manage two brands? Rob and I went over this on an episode of Industry Relations.

I love the optimism here from Andy, but Realtor.com traffic is roughly 5 times that of Homes.com, and Zillow is 10 times that of Homes.com. I still can’t believe Andy’s grand plan is to “beat Zillow”, especially organically. I keep believing there has to be something else…some other plan yet to be revealed. Beating Zillow seems like a fool’s errand.

As a wise man once said, “never get involved in a land war in Asia.”

The MLS™/CLAW goes Plunk

The MLS™/CLAW Partners with Plunk to Power Agents with Real-time Home Analytics Platform

Plunk, the first real-time analytics platform for residential real estate, today announced a partnership with The MLS/CLAW, a leading multiple listing service in Southern California and next-generation software company, to provide its 20,000 members with access to real-time and dynamic home valuation tools.”

Rob Hahn and I interviewed David Bluhm (co-founder of Plunk) on our podcast Industry Relations. Plunk has some pretty big goals and while I think nothing beats the eyes, ears, and nose of a good real estate agent when it comes to home valuations Plunk tools may offer supplemental data points to help them in their jobs as real estate agents.

Zillow acquires VRX media, includes a national pro photographers network

Zillow Group acquires VRX Media to create national photographer network, elevate listing media through ShowingTime+ brand

“Zillow Group (NASDAQ: Z and ZG) today announced it has closed on the acquisition of VRX Media. This real estate media marketing and services leader is known for its aerial drone photography, virtual staging, 3D tours, high-definition photography and fast-media delivery to clients, which is made possible through the company’s national professional photographer network. Zillow Group will continue to offer VRX Media’s services through the ShowingTime+ software suite.”

Smart, and obviously a move to help Zillow compete against CoStar’s yet-to-be-announced launch of the new Homes.com which is said to offer “listing enhancement” packages.

I had made a prediction on the Industry Relations podcast that CoStar might buy Matterport because Matterport had recently bought VHT Studios which also had a nationwide professional photographers network. I guess Zillow thought it was a good idea too.

Thank You

Dear Readers,

I just wanted to send a quick thank you to all of you. I appreciate the comments and the interaction I have with everyone on this blog. Still hard to believe I’ve been writing here for over 15 years.

This past year the Industry Relations podcast I do with The Notorious ROB (Rob Hahn) has really taken off. I think a big factor in its success is Rob and my commitment to recording weekly.

I wish I could say the same for my blogging schedule, this year I’ve been especially lax. So, I making a new commitment to posting on Vendor Alley on all business days. This means I might expand my writing to cover topics I normally haven’t written about. But I hope to keep it entertaining.

I’m also changing the way companies can sponsor Vendor Alley, read about it here. Please reach out.

From all accounts, 2023 will be a challenging year for real estate. I want everyone to know that if there is anything I can do to help, please don’t hesitate to reach out. We can do this.

Happy New Year,

Greg

Industry Relations Episode 61: Diagnosing Zillow Angst – with Errol Samuelson, Chief Industry Development Officer at Zillow Group

Zillow has been consumer-centric since its inception in 2006. And in the early days, the tech company didn’t pay much attention to agents. Now Zillow realizes that reducing friction for consumers means helping agents respond to online leads and schedule showings, for example. But is it too late to earn the industry’s trust?

Errol Samuelson is the Chief Industry Development Officer at Zillow Group. With 25 years of experience in proptech, he served in leadership roles at Realtor.com, Top Producer Systems, and Move, Inc. before joining Zillow in 2014. On this episode of Industry Relations, Errol sits down with Rob and Greg to explain why Zillow is acquiring ShowingTime and explore what’s behind the industry’s volatile reaction to the announcement.

Errol discusses the real estate industry’s distrust of Zillow, acknowledging the frustration the tech company has caused over the years and assuring us that his team will not misuse ShowingTime data. Listen in to understand how Errol thinks about CoStar as a competitor and learn why he believes an industry without cooperation and compensation is not good for agents, brokers or consumers.

What’s Discussed:  

Why the real estate industry went apeshit over Zillow’s acquisition of ShowingTime

Zillow’s assurance that ShowingTime will remain an open platform with a strict privacy policy

What problem Zillow is trying to solve by acquiring ShowingTime

Errol’s insight on the rumor that Zillow bought ShowingTime to keep it out of CoStar’s hands

How Errol thinks about the fact that people assume Zillow is lying

Errol’s acknowledgement of the frustrations Zillow has caused agents over the years and how the company’s behavior may have amplified the industry’s distrust

The possibility that social class and age are a factor in the industry’s mistrust of Zillow

The focus of Zillow’s Q4 earnings call (Zillow Offers vs. streamlining the consumer experience overall)

Why innovation in the lending space is limited by federal regulations

The unique opportunity Zillow has to innovate around ownership models

Errol’s thoughts on CoStar as a competitor and why CoStar’s success hinges on the government putting an end to cooperation and compensation

Connect with Errol:

Errol at Zillow

Errol on LinkedIn

Errol on Twitter

Connect with Rob and Greg: 

Rob’s Website

Greg’s Website

Resources:

Rob’s Post on Zillow, ShowingTime & Paranoid Realtors

Zillow’s Press Release on Acquiring ShowingTime

ShowingTime

Steve Murray at REAL Trends

CoStar News

Greg on Twitter

Zillow’s Q4 2020 Earnings Call

Zillow Offers

Nick Bailey at RE/MAX

Gary Keller’s 2021 Family Reunion Vision Speech Recap

Trulia

Dotloop

Jay Thompson on Inman

Susan Daimler at Zillow

Rob’s 2020 List of the Seven Most Interesting People in Real Estate

Zillow Home Loans

Divvy

Federal Regulations on Mortgage Finance

REA Group

Andrew Florance at CoStar

Rob’s CoStar Red Dot Report

CoStar’s Q4 2020 Earnings Call

Rob’s Interview with Joe Rand

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Adrese Roundtree joins Zillow

Word about this has been out there for a couple of weeks but Adrese made it official on his LinkedIn page. I was a bit surprised about the move, but you can’t fault Zillow for having an eye for talent.

I first met Adrese some 25 years ago, he had made the move from PRC/Interealty to OCMLS, which became SoCalMLS then CRMLS. You can’t be any more OG than belonging to the PRC mafia.

I also hear there has been a significant reorg in the agent product and industry relations team at Zillow. Along with these new strategic changes, I think we will see more new faces and some old ones departing. Developing…

Welcome to the vendor side Adrese!

CoStar to purchase Realtor.com?

News Corp in Talks to Sell Real Estate Site For $3 Billion

“Rupert Murdoch’s News Corp. is in talks to sell its Move Inc. online real estate business to CoStar Group Inc.

Move is the parent of Realtor.com and other real estate-related websites. The deal is worth about $3 billion, according to people familiar with the matter, who asked not to be identified because the discussions are private. The sale could be announced within days, one of the people said.”

After CoStar announced at a recent earnings call they had raised $750M for future acquistions Rob and I on our Industry Relations podcast tried to guess what they would scoop up. I thought we had a pretty good guess with Matterport. Matterport had recently bought VHT Studios. So we thought it would give them some killer IP and a network of photographers. Turns out Zillow took the bait and purchased VRX, and CoStar had bigger fish in mind. Although $3 billion isn’t that much money for CoStar, remember they bid $7 billion for CoreLogic.

Brings up a few questions. Will NAR approve? Or do they even have the say? If NAR was cool with handing the reins to Rupert Murdoch, then Andy Florance seems like a Boy Scout.

What about Homes.com? I’ve been wondering when the new website would be launched, and they recently had a big round of layofffs. Maybe Andy realized that it would take a hell of lot more money to get Homes.com (a distant #3) to compete with Zillow than it would take #2, realtor.com. And the whole “your listing, your lead” actually might play better under the realtor.com umbrella.

Your move Nestfully.

Listing Bits Podcast: Pooling Resources & Expertise Among MLSs – with Betsy Hanson of Markt

From a vendor’s perspective, small MLSs are the most challenging to work with. And that’s no surprise, seeing as how they have fewer resources than the big players in the space.

So, how do we support MLSs with fewer than 400 members in keeping up with NAR rules, for example? Is there a way MLSs might share marketing, support, and compliance services in a way that makes the market work better for all involved?

Betsy Hanson is General Manager and General Counsel at Markt, a multi-MLS service organization focused on pooling resources and expertise to serve MLSs, brokers, and agents. 

On this episode of Listing Bits, Betsy shares her journey from an executive assistant at a small association to her current role at Markt, describing how she avoids the attorney’s reputation as the Department of No.

Betsy offers her take on what organized real estate is missing about the life and times of an ordinary REALTOR, why the average agent doesn’t understand the lawsuits facing the industry, and how those lawsuits might change the way we do things moving forward.

Listen in to understand how Markt works as an MLS back-office provider and learn how Betsy and her team are uniquely positioned to help MLSs of all sizes with local market delivery.

What’s Discussed:  

Betsy’s journey from an executive assistant at a small association to General Counsel at Markt

What differentiates the role of executive assistant from that of the chief of staff

How Betsy avoids the attorney’s reputation as the Department of No

Betsy’s experience teaching English in China between undergrad and law school

What organized real estate is missing about the life and times of an ordinary REALTOR

Why the average REALTOR-on-the-street doesn’t know about the lawsuits facing the industry

How public perception of REALTORS remains positive despite lawsuits around compensation

Betsy’s predictions re: how the lawsuits facing organized real estate might play out

How Markt began as a way for MLSs to pool support resources and create efficiencies

Markt’s potential to solve the challenge small MLSs face in keeping up with NAR rules

Connect with Betsy:

Markt

Email betsy@themarkt.com

Resources:

Notorious ROB

Industry Relations Podcast

Turn On by 1000watt

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Industry Relations Episode 57: On Divorcing Commissions & Weathering the Tweetstorm

The November 2020 DOJ-NAR settlement requires that buyer’s agent commissions are apparent to consumers. But that transparency is just a first step in a push to divorce real estate commissions entirely. Should the other DOJ lawsuits succeed, home buyers will negotiate buy-side commissions directly with the buyer’s agent. So, what happens if the disruptors calling for these changes (like Jack Ryan) get their way?

On this episode of Industry Relations, Rob and Greg discuss Sam DeBord’s passionate Tweetstorm in response to their recent interview with Jack Ryan of REX, clarifying the arguments made by both Jack and Sam and considering how transparency around buyer’s agent commissions is likely to reduce the population of agent-facilitators and drive market share to the true realtor-counselors in the space. 

Rob and Greg describe how a rule ending cooperation and compensation would impact the industry long-term, exploring a possible transition from a buyer’s commission to a flat fee or hourly model. Listen in for insight into the questions industry disruptors raise with regard to the role of the MLS, the brokerage and the agent in the absence of cooperation and compensation.

What’s Discussed:  

Lone Wolf’s acquisition of W+R Studios and how Greg & Dan are sharing $1M of the proceeds with their team

Sam DeBord’s passionate Tweetstorm in response to our interview with Jack Ryan of REX

What makes a real estate agent a facilitator vs. a counselor

How transparency around buyer’s agent commissions could significantly reduce the agent population

How Jack Ryan’s background in politics and high finance informs the way he thinks about making real estate better for consumers

How the end of cooperative compensation is likely to disrupt real estate referral networks

The opportunity for vendors to help buyer’s agents demonstrate their value

Why Rob thinks there could be a transition from buyer’s agent commissions to a flat fee or hourly model

What agents and brokers might do to take advantage of the required disclosure of buyer’s agent commissions 

The questions Jack Ryan’s line of attack raises re: the value prop of the MLS or the real estate brokerage in the absence of cooperation and compensation

Connect with Rob and Greg: 

Rob’s Website

Greg’s Website

Resources:

Lone Wolf Technologies

Lone Wolf’s Acquisition of W+R Studios

Greg’s Post on the Lone Wolf Acquisition

Sam DeBord on Twitter

Sam DeBord’s Tweetstorm on Jack Ryan

Jack Ryan on Industry Relations EP055

Spencer Rascoff & Austin Allision on Industry Relations EP056

HousingWire’s Acquisition of REAL Trends

Jeff Corbett’s Post on Divorcing Real Estate Commissions

The NAR-DOJ Agreement on MLS Rules

Buyside

Biden’s Proposed First-Time Home Buyer Tax Credit

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