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.