Connect with us

Business News

Third party real estate listing companies, too big to fail?

“After three years of carefully examining internal metrics for the sites where our listings appeared, I categorically state the following – neither the home seller who has hired us to represent their property, or the potential home buyer, is remotely well served by listing syndicators. And here’s why – these sites are nothing more than slick advertising platforms.”

Published

on

Broker makes a public statement

In a public declaration, San Diego-based Abbot Realty Group (ARG) President and Managing Broker, Jim Abbott released a video on YouTube explaining why their brokerage will no longer permit third party syndication sites like Trulia, Realtor.com and Zillow to syndicate their listings, but will continue to syndicate company listings to their local MLS, Sandicor. ARG’s announcement is the latest in a string of similar developments.

Abbot stated, “After three years of carefully examining internal metrics for the sites where our listings appeared, I categorically state the following – neither the home seller who has hired us to represent their property, or the potential home buyer, is remotely well served by listing syndicators. And here’s why – these sites are nothing more than slick advertising platforms. They often use fear and peer pressure to induce agents and brokers to sign costly long-term contracts for their lead generation services. Our industry is vigorously regulated by local, state and federal governments to protect the public, yet listing syndicators have no legal responsibility for the accuracy of the data they display.”

“We demand, however, that any marketing plan produce tangible results, not meaningless hits in cyberspace,” he later added.

Other brokers pull listings

Last fall, AGBeat broke the story that 75 big brokers were rumored to be considering refusal of syndication of their listings, suspecting that others would also follow. ARG’s plea for industry professionals to consider their own syndication and for buyers and sellers to do their homework is a more tangible, public-facing and viral proclamation than other brokers have delivered to date.

The Realty Alliance President and CEO, Craig Cheatham told AGBeat, “If you see any trend among real estate brokerages in the coming months it should be traced to predictable industry reaction to overall trends in the offerings and business rules of MLSs and outside vendors.”

Each broker in The Realty Alliance – and likely elsewhere – will be analyzing their own returns in 2012 as Abbott did to consider whether their brokerages, consumers and agents are better served or not by syndicating their listings.

Milwaukee brokerage Shorewest pulled their real estate listings from syndication last fall. WAV Group Partner, Victor Lund told AGBeat, “As you can see by the graph – Shorewest is the #1 website in their market, and they do not syndicate – proving that brokers and agents do not need to syndicate to drive traffic and leads on their listings. In fact, this may argue that the opposite is true – if you do not syndicate, you provide consumers with an incentive to visit your broker or agent website to find the cheeze. In this case, the cheeze is listing accuracy, comprehensive listing inventory, and most of all, the service of a real estate professional.”

Media companies respond

In early January, AGBeat reached out to Zillow and Realtor.com who chose not to comment on brokers pulling listings from syndication, but Trulia’s company spokesperson, Ken Shuman said, “The accessibility of open and accurate listing information benefits everyone in the home buying and selling process–consumers, agents and brokers. We know that Trulia has a transaction-ready consumer audience and we are confident that brokers and agents who syndicate their listings to Trulia have a greater opportunity to meet new clients and close more transactions.”

Cheatham’s and Abbott’s comments reveal that it is likely that more brokers will join the movement to pull listings, adding to the string of recent announcements. Several real estate listing companies made comments off of the record that revealed a common sentiment of denial, while one blatantly noted that they do not wish for this to be a news story at all. When pressed, one third party syndicator told AGBeat that they would approach each brokerage relationship independently and had already begun the process of speaking with brokers privately, and if necessary, would take their appeal to their own audience.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Continue Reading
Advertisement
62 Comments

62 Comments

  1. Joe Virnig

    January 27, 2012 at 8:54 pm

    Good for Jim, I've made this argument in the past. Many MLSs have allowed syndication of all their listings. At our MLS in Ventura County hasn't been implemented syndication because we were trying to negotiate, "opt-in" so brokers could chose to include listings but the two major syndicators only wanted to work with "opt-out". I'm not sure MLSs should be involved in pushing listings to syndication sites at all.

    • John Rowles

      January 29, 2012 at 12:28 pm

      Its the industry's own fault that the listing syndicators exist in the first place.

      NAR could have acted in its member's best interest by organizing Internet listing distribution in a way that benefits consumers and the agents/brokers who actually go out and do the the work to get and publish listings, but instead they chose to double dip by selling out the Realtor.com name.

      Then there are the MLSs. 950+ fiefdoms whose #1 priority is to justify their existence (and their fees) in the digital age by kowtowing to the anti-competitive whims of their own dues paying members.

      The idiotic rules and practices that emerge (Can't show DOM. Can't show price changes. Can't "append" a listing with a AVM or user comments. Can't do this, Can't do that…) gave the ZIllows and the Trulias all the daylight they needed to do the one thing the "industry" *still* can't do: Design a user experience that puts what the CONSUMER wants ahead of what "the industry" wants.

      THAT is why the syndicators ate the industry's lunch. You created the monster, and now the monster has enough VC and IPO cash that it doesn't even have to pretend that they are worried about a couple of brokers growing a set 10 years too late.

      • Ken Brand

        January 29, 2012 at 4:57 pm

        Yep. But I hope it's not too late? We'll see. Reminds me of how the RELO business was lost.

      • Chris

        January 30, 2012 at 8:05 pm

        Spot on…

  2. Gary Little

    January 27, 2012 at 9:09 pm

    Great video. Everyone should make the time to watch it. Abbott makes some compelling points.

  3. Matt Wilkins

    January 27, 2012 at 9:26 pm

    Interesting move. It will be an interesting future to see whether or not buyers skip over properties they do not see on these sites or go in search of ALL properties on the market whether by themselves or through the services of buyer broker representation.

  4. Mike Sparr - Goomzee.com

    January 27, 2012 at 10:24 pm

    Thanks for sharing. Agreed that many portals may be too big to fail but the question Matt W. asked is spot on: will buyers be aware of missing listings and skip over, or do they just "surf" these sites for ideas and then reach out to their REALTOR when really serious to search the MLS.

  5. Sheila Rasak

    January 28, 2012 at 12:48 am

    Do we have the names of the major players who left the game?

  6. Mark Brian

    January 28, 2012 at 11:14 am

    I have asked buyers what site they are using to search homes and the answer is always the same: several different ones. Wish the majority of replies was "your website" but the truth is the consumers want to search a variety of sites.

    Getting ready to launch a new website so I have been getting as much feedback and input from clients as possible. One thing I have noticed is they know they CANNOT trust some of the websites mentioned yet they continue to use them…..

  7. Bill Lyons

    January 28, 2012 at 12:54 pm

    We are a site that displays syndicated listings but we do it different. We do not allow any advertising from other real estate agents on the listing detail page and we provide SEO backlinks to the brokers site. We respect the data and aim to help Realtors grow their business with relevant key real estate indicators

  8. Tom Johnson

    January 28, 2012 at 2:34 pm

    Stuffed full of IPO cash, the syndicators can pay the brokers 'privately' in their private discussions.

    • Benn Rosales

      January 29, 2012 at 5:19 pm

      all three are very well financially positioned, but not all three are public…

  9. Andy Piper

    January 29, 2012 at 10:39 am

    People that think they can make quality real estate decisions using Trulia and Zillow are mistaken. The data is useful but limited. I give them a lot of credit for what they have done. At least these companies give the leads back to the listing agent – Reator.com requires you to pay for an upgrade package or else…. They give the leads to someone in your market that does pay for the upgrade. Not cool at all.

    From a consumer's perpective, the more places their property is seen, the better – Consumers should demand open data sharing of their listings.

  10. Benn Rosales

    January 29, 2012 at 5:18 pm

    I hope these brokers aren't making decisions based on hitwise data and use sources like comscore to back up their positioning. It's so rare that anyone quotes hitwise as a source.

  11. Matt

    January 30, 2012 at 12:55 am

    Everyone should read counter points by Jay Thompson – Phoenix Real Estate Guy. He made very compelling counter arguments.

    1. Third party sites have stolen nothing, the listings are freely given to them
    2. MLS data is also inaccurate and out of date…the issue is with data entry, not display
    3. IDX websites are even worse offenders when it comes to both a) having another agent get leads of "your" listings and b) confusion over who the listing agent is. Most clients I know think Im the listing agent for all the properties I send the, from my IDX website
    4. We're adults. No one's holding a gun to your head to buy anything. Agents make the same choice when deciding to market their home in the local newspaper…there's no long contract there, just an incredibly high one-time fee
    5. Syndication sites show the data their given – if it's inflated it's because an agent didn't take it off. Why would you expect someone to take down your free marketing if you didn't tell them it was no longer available?
    6. A scammer can use the MLS site just as easily to defraud someone…it's just very few people visit those MLS sites
    7. At the end of the day, the Home seller chooses what happens with their listing data…they don't have to hire a broker who doesn't syndicate

  12. Ed Boscarino

    January 30, 2012 at 1:08 pm

    Thank You Jim Abbott for taking the effort to expose a problem that has been on my mind for sometime. Not knowing the full extent of how third party information prospers I had been concerned about the reasoning why it was given out.

    Incorrect information, too much information and how it is used disturbs me and should also disturb home sellers as well if they knew the extent of what it means to them.

    My first concern was the address. Too many times i have noticed prospective buyers or people knocking on doors as i was there to show the property to legitimate buyers. When no one answers the door these people walk around to the back and are checking things out. Whatever that means.

    We all want greater exposure for our listings but if it doesn't work well forgetaboutit. We tried it and it does not work. Tweek it or better yet eliminate it. Real Estate is a local business in most cases and local people know how to get the information when they want it. Getting to the correct information fast and local is a benefit to all concerned.

    Local Boards and Local MLS, NJAR in my state, NAR officials have failed to see the problem or do anything to protect the public or Realtors. Initially, it may have sounded like a good idea but, they have failed to monitor.

    The IDX may also need monitoring. What do they do with this private, personal information. Are they satisfied with the fee's they charge us or are they selling the info.

  13. azhomesforsale

    May 23, 2012 at 9:32 pm

    Make this simple, and lets focus on Zillow. Zillow sales two spaces by impressions per zip codes. Imagine two realtors bought both zip codes. Then assume there is 200 to 500 homes for sale in that zip code. Do you think those two agents have some magical control on the homes sold or listed? Zillow would want you to think so, so truth be told they do not. They will get a handful of buyer leads, which were going to go to somebody and buy some home. The Zillow agents have a vested interest to see these buyers through to the highest level of customer experience. I wish Zillow would take out the junk and just list active, but the site is not bad at all. To each is their own wanting to remove the inventory from Zillow and similar sites.

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

What you need to know about the historic TikTok deal (for now)

(BUSINESS NEWS) No one really knows what’s happening, but the TikTok deal’s impact on business, US-China relations, and the open internet could be huge.

Published

on

Male black hands holding app opening TikTok app.

So, maybe you’ve heard that Oracle and Walmart are buying TikTok for national security!

Um, not exactly.

Also, Trump banned TikTok!

Sort of? Maybe?

But then he said he approved the Oracle-Walmart-TikTok deal!

We guess?

The terms of the proposal seem to shift daily, if not hourly. The sheer number of contradictory statements from every player suggests no one really knows what’s going on.

Just one example: Trump said the deal included a $5 billion donation to a fund for education for American youth. TikTok parent ByteDance, said, “Say what now?”

Here’s what we think we know (as of this writing):

Oracle and Walmart would get a combined 20 percent stake in a new U.S.-based company called TikTok Global. Combine that with current US investors in China’s ByteDance, TikTok’s parent, that would give American interests 53 percent. European and other investors would have 11 percent. China would retain 36 percent. (On Saturday Trump said China would have no interests at all. But that does not jibe with the reporting on the deal.)

Oracle would host all user data on its cloud, where it is promising “security will be 100 percent” to keep data safe from China’s prying eyes. But reporting has differed on whether Oracle will get full access to TikTok’s code and AI algorithms. Without full control, skeptics say, Oracle could be little more than a hosting service, and potential security issues would remain unaddressed.

Walmart says they’re excited about their “potential investment and commercial agreements,” suggesting they may be exploring e-commerce opportunities in the app.

The US Committee on Foreign Investment in the United States, which is overseen by Treasury Secretary Steven Mnuchin, still has to approve any deal.

As for the TikTok “ban” – which isn’t really a ban because current users can keep it – the Commerce Department postponed the deadline for kicking TikTok off U.S. app stores to September 27, to give time for the deal to be hammered out. Never mind that it’s still not clear whether the U.S. government has authority to do that. Unsurprisingly, ByteDance says it doesn’t in a lawsuit filed September 18.

Whatever happens with the whiplash of the deal’s particulars, there are bigger issues in play.

According to business news site Quartz, moving data storage to Oracle mirrors what companies like Apple have done in China: Appease the Chinese government by allowing all data hosting to be inside China. A similar move could “mark the US, too, shifting from a more laissez-faire approach to user data, to a more sovereign one,” says China tech reporter Jane Li.

More obvious: Corporate sales and mergers are now part of the parrying between the U.S. and China, which adds a whole new playing field for negotiations among businesses.

In the meantime, TikTokkers keep TikTokking. White suburban moms continue to lip sync to rap songs in their kitchens. Gen Z continues to make fun of the president – and pretty much everything else.

And downloads of the app have skyrocketed.

Continue Reading

Business News

Hobby Lobby increases minimum wage, but how much is just to save face?

(BUSINESS NEWS) Are their efforts to raise their minimum wage to $17/hour sincere, or more about saving face after bungling pandemic concerns?

Published

on

Hobby Lobby storefront

The arts-and-crafts chain Hobby Lobby announced this week that they will be raising their minimum full-time wage to $17/hour starting October 1st. This decision makes them the latest big retailer to raise wages during the pandemic (Target raised their minimum wage to $15/hour about three months ago, and Walmart and Amazon have temporarily raised wages). The current minimum wage for Hobby Lobby employees is $15/hour, which was implemented in 2014.

While a $17 minimum wage is a big statement for the company (even a $15 minimum wage cannot be agreed upon on the federal level) – and it is no doubt a coveted wage for the majority of the working class – it’s difficult to not see this move as an attempt to regain public support of the company.

When the pandemic first began, Hobby Lobby – with more than 900 stores and 43,000 employees nationwide – refused to close their stores despite being deemed a nonessential business (subsequently, a Dallas judge accused the company of endangering public health).

In April, Hobby Lobby furloughed almost all store employees and the majority of corporate and distribution employees without notice. They also ended emergency leave pay and suspended the use of company-provided paid time off benefits for employees during the furloughs – a decision that was widely criticized by the public, although the company claims the reason for this was so that employees would be able to take full advantage of government handouts during their furlough.

However, the furloughs are not Hobby Lobby’s first moment under fire. The Oklahoma-based Christian company won a 2014 Supreme Court case – the same year they initially raised their minimum wage – that granted them the right to deny their female employees insurance coverage for contraceptives.

Also, Hobby Lobby settled a federal complaint in 2017 that accused them of purchasing upwards of 5,000 looted ancient Iraqi artifacts, smuggled through the United Arab Emirates and Israel – which is simultaneously strange, exploitative, and highly controversial.

Why does this all matter? While raising their minimum wage to $17 should be regarded as a step in the right direction regarding the overall treatment of employees (and, hopefully, $17 becomes the new standard), Hobby Lobby is not without reason to seek favorable public opinion, especially during a pandemic. Yes, we should be quick to condone the action of increasing minimum wage, but perhaps be a little skeptical when deeming a company “good” or “bad”.

Continue Reading

Business News

RIP office culture: How work from home is destroying the economy

(BUSINESS NEWS) It’s not just your empty office left behind: Work from home is drastically changing cities’ economies in more ways than you think.

Published

on

An empty meeting room, unfilled by work from home employees.

It’s been almost six months since the U.S. went into lockdown due to COVID-19 and the CDC’s subsequent safety guidelines were issued – it’s safe to say that it is not business as usual. Everyone from restaurant waitstaff to start-up executives have been affected by the shift to work-from-home. Even as restrictions slowly begin to lift, it seems as though the office workspace – regarded as the vital venue for the U.S. economy – will never truly be the same.

Though economists have been focusing largely on small businesses and start-ups, we are only just beginning to understand the impact that not going back into the white-collar office will have on the economy.

The industries that support white-collar office culture in major cities have become increasingly emaciated. The coffee shops, food trucks, and food delivery companies that catered to the white-collar workforce before, during, and after their workday, are no longer in high demand (Starbucks reported a loss of $2 billion this year, which they attribute to Zoomification). Airlines have also been affected as business travel typically accounts for 60%-70% of all air travel.

Also included are high-end hotels, which accommodate the traveling business class. Pharmacies, florists, and gyms located in business districts have become ghost towns. Office supplies companies, such as Xerox, have suffered. Workwear brands such as J. Crew and Brooks Brothers have filed for bankruptcy, as there is no longer a need to dress for the office.

In Manhattan – arguably the country’s most notorious white-collar business mecca – at least 1,200 restaurants have been permanently lost. It is also is predicted that the one-third of all small businesses will close.

Additionally, the borough is facing twice as many apartment vacancies as this time last year, due to the flight of workers no longer tied to midtown offices. Workers have realized their freedom to seek more affordable and spacious residence outside the city. As companies decentralize from cities and rent prices drop, it isn’t all bad news. There is promise that particular urban white-collar neighborhoods will start to become accessible to the working class once again.

Some companies, like Pinterest and REI, are reporting that their shift to work from home is in fact permanent. The long-term effects of deserted office buildings are yet to make themselves evident. What we do know is that the decline of the white-collar office will force us to reimagine the great American cities – with so much lost due to the coronavirus, what can now be gained?

Continue Reading

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!