Connect with us

Opinion Editorials

Explaining the controversy surrounding RealEstate.com

There is a medium-sized kerfuffle in the real estate industry that is raising eyebrows. We opine below as to whether or not it is worthy of all this fuss.

Published

on

realestate.com

realestate.com

Hubub about RealEstate.com’s re-launch

It’s been described as a market-disrupting “hail-mary” pass that will change the entire real estate industry and the beginning of “crazy town.” I, however, believe that Bruce Lemiux’s thoughts about Market Leader re-launching the RealEstate.com domain with data from the associated brokerages licenses it also acquired last year from Lending Tree were most accurate when he said, “Yawn.”

It’s an 8.25 million dollar example of the larger industry debate about data sharing and how business models for online success in real estate will integrate with (or bypass) real estate agents – “bricks and mortar” if you will. And quite frankly, as has been noted elsewhere, if the website as it stands today represents the “re-launch” that was touted in the company’s buzzword-compliant and SEO-optimized press release, then they just spent a lot of money to very publicly embarrass themselves.

A quick illustration:

As I’ve written about before, I don’t believe that the raw data provides the same amount of value as the local, friendly individual that puts that data into context, and can dynamically filter and adjust it based on something as slight as a client’s non-verbal cues. To make this less personal, let me take an example from my car that might put this all in perspective.

I drive a reasonably-recent hybrid car brimming and whirring with electronics. There are a bunch of computers processing raw information to coordinate the electric motors, battery charging, and gasoline engine status while ensuring my safety through a coordination of a bunch more things like the airbags and brakes. If my car alerted me every time something happened with one of these systems, I would quickly become so overloaded with information that I would promptly park the vehicle and walk away.

But last week my vehicle’s dashboard illuminated the check engine light with a message about my hybrid system. My car was programmed with a philosophy that sometimes less is more and that it should alert me only when it has meaningful and actionable information. In this case I took my car to the repair shop and it was repaired under warranty.

I appreciate that my car spares me the reams of raw performance data and only alerts me when necessary. I do not want information unless it is personally meaningful to me and actionable in my particular situation – and I believe real estate shoppers feel the same way. Knowing a house is for sale is a commodity.

Long before Z/T/R

Long before Zillow, Trulia, or Redfin came along the chatty neighbor would also tell you that for free. Knowing that a house is for sale that fits their bedroom count and can be purchased with their particular financing requirements is more valuable and actionable.

Knowing that a great house is for sale that fits their bedroom count but they should ignore it because of something particular to their search moves even farther up the value chain. Finding a way to successfully overcome, fix, or work-around that one (or three) things that stands between a potential buyer and the house they want notches the value up dramatically.

The Siri era is here

We live in the age of Siri – decades of research and billions of dollars spent have finally delivered a phone that can tell me the weather when I ask conversationally. Someday someone will successfully build an algorithm and launch a business model that takes the raw data of real estate and transform it into meaningful and actionable information that makes sense to consumers in the way they want at the moment they need it (if your Realtor doesn’t promplty return your phone calls, texts, and emails you should fire them, but that’s another story).

Given how long it has taken the technology and telecom industries to build a phone that can answer a simple question about the weather, I feel secure that agents like myself will have an important role to play in the real estate value chain for a very long time.

Zillow, Trulia and other real estate “innovators” aren’t real estate companies that derive their income directly from the purchase and sale of a particular house but are instead advertising companies that derive income when individual agents voluntarily agree to pay them money so they can appear prominently on a page that most likely features someone else’s listing. Zillow, Trulia and similar websites and brands have spent years redesigning and subtly improving their product so that they can sell more advertising and generate more income in their core business – which is selling advertising.

Quite frankly, the realestate.com website looks to me like it was slapped up by a collegiate insomniac who spent $99 dollars for some clipart and $99 for a wordpress theme and pulled an all-nighter to put together a rather sophomoric effort. If this took them a year to design and code, I’d like to know what they did with the other 364 days?

Zillow and Trulia are recognized brands at this point, regardless of your feelings about syndication, IDX, or data sharing. I’d be willing to make a friendly bet that when Lending Tree wanted to dump their realestate.com domain and brokerage licenses, they got in touch with every player in the market. It wouldn’t surprise me to learn that Zillow, Trulia, and others passed on the opportunity to spend so much on a domain name because they’ve built enough name recognition that they don’t need the “obvious” domain name to redirect to their own site. NAR would have made a perfect buyer for the domain, but that’s its own column…

Getting to the crux of the controversy

The part of all of this that is fascinating – and probably “smells” the most offensive – is how a company with a valuable domain name and brokerage licenses that once was in the business of earning income on the purchase and sale of individual homes has suddenly transformed into something else entirely: an advertising company with a lot of brokerage licenses that provide it with IDX data feeds so it doesn’t have to rely upon syndication for the data it needs (real estate listings) to sell its new product – contact data for consumers browsing on their very expensive URL.

To me this just smells like bare-knuckle American capitalism at work. We live in a country where Google (the website folks) can buy Motorola (the old-school hardware company) while Apple and Samsung are busy litigating each other senseless. We could wake up tomorrow to headlines of Apple buying AT&T or Wells Fargo buying PayPal from eBay. After all, a coffee company just made a major play in the retail payment processing space (Starbucks and Square). Anyone can buy their way into another industry – but buying your way in the door is entirely different from succeeding once you are there.

Bloggers’ support and criticism of the move:

Matt Fuller brings decades of experience and industry leadership as co-founder of San Francisco real estate brokerage Jackson Fuller Real Estate. Matt is a Past President of the San Francisco Association of Realtors. He currently serves as a Director for the California Association of Realtors. He currently co-hosts the San Francisco real estate podcast Escrow Out Loud. A recognized SF real estate expert, Matt has made numerous media appearances and published in a variety of media outlets. He’s a father, husband, dog-lover, and crazy exercise enthusiast. When he’s not at work you’re likely to find him at the gym or with his family.

Business Finance

How to survive a recession in the modern economy

(OPINION EDITORIAL) Advice about surviving a recession is common these days, but its intended audience can leave a large gap in application.

Published

on

recession squeeze

There’s no question of whether or not we’re in a recession right now, and while some may debate the severity of this recession in comparison to the last major one, there are undoubtedly some parallels–something Next Avenue’s Elizabeth White highlights in her advice on planning for the next few months (or years).

Among White’s musings are actionable strategies that involve forecasting for future layoffs, anticipating age discrimination, and swallowing one’s ego in regards to labor worth and government benefits like unemployment.

White isn’t wrong. It’s exceptionally important to plan for the future as much as possible–even when that plan undergoes major paradigm shifts a few times a week, at best–and if you can reduce your spending at all, that’s a pretty major part of your planning that doesn’t necessarily have to be subjected to those weekly changes.

However, White also approaches the issue of a recession from an angle that assumes a few things about the audience–that they’re middle-aged, relatively established in their occupation, and about to be unemployed for years at a time. These are, of course, completely reasonable assumptions to make…but they don’t apply to a pretty large subset of the current workforce.

We’d like to look at a different angle, one from which everything is a gig, unemployment benefits aren’t guaranteed, and long-term savings are a laughable concept at best.

White’s advice vis-a-vis spending is spot-on–cancelling literally everything you can to avoid recurring charges, pausing all non-essential memberships (yes, that includes Netflix), and downgrading your phone plan–it’s something that transcends generational boundaries.

In fact, it’s even more important for this generation than White’s because of how frail our savings accounts really are. This means that some of White’s advice–i.e., plan for being unemployed for years–isn’t really feasible for a lot of us.

It means that taking literally any job, benefit, handout, or circumstantial support that we can find is mandatory, regardless of setbacks. It means that White’s point of “getting off the throne” isn’t extreme enough–the throne needs to be abolished entirely, and survival mode needs to be implemented immediately.

We’re not a generation that’s flying all over the place for work, investing in real estate because it’s there, and taking an appropriate amount of paid time off because we can; we’re a generation of scrappy, gig economy-based, paycheck-to-paycheck-living, student debt-encumbered individuals who were, are, and will continue to be woefully unprepared for the parameters of a post-COVID world.

If you’re preparing to be unemployed, you’re recently unemployed, or you even think you might undergo unemployment at some point in your life, start scrapping your expenses and adopt as many healthy habits as possible. Anything goes.

Continue Reading

Opinion Editorials

How strong leaders use times of crises to improve their company’s future

(EDITORIAL) We’re months into the COVID-19 crisis, and some leaders are still fumbling through it, while others are quietly safeguarding their company’s future.

Published

on

strong leaders

Anthony J. Algmin is the Founder and CEO of Algmin Data Leadership, a company helping business and technology leaders transform their future with data, and author of a new book on data leadership. We asked for his insights on how a strong leader can see their teams, their companies, their people through this global pandemic (and other crises in the future). The following are his own words:

Managers sometimes forget that the people we lead have lives outside of the office. This is true always, but is amplified when a crisis like COVID-19 occurs. We need to remember that our job is to serve our teams, to help them be as aligned and productive as possible in the short and long terms.

Crises are exactly when we need to think about what they might be going through, and realize that the partnership we have with our employees is more than a transaction. If we’ve ever asked our people to make sacrifices, like working over a weekend without extra pay, we should be thinking first about how we can support them through the tough times. When we do right by people when they really need it, they will run through walls again for our organizations when things return to normal.

Let them know it’s okay to breathe and talk about it. In a situation like COVID-19 where everything is disrupted and people are now adjusting to things like working from home, it is naturally going to be difficult and frustrating.

The best advice is to encourage people to turn off the TV and stop frequently checking the news websites. As fast as news is happening, it will not make a difference in what we can control ourselves. Right now most of us know what our day will look like, and nothing that comes out in the news is going to materially change it. If we avoid the noisy inputs, we’ll be much better able to focus and get our brains to stop spinning on things we can’t control.

And this may be the only time I would advocate for more meetings. If you don’t have at least a daily standup with your team, you should. And encourage everyone to have a video-enabled setup if at all possible. We may not be able to be in the same room, but the sense of engagement with video is much greater than audio-only calls.

We also risk spiraling if we think too much about how our companies are struggling, or if our teams cannot achieve what our organizations need to be successful. It’s like the difference in sports between practice and the big game. Normal times are when we game plan, we strategize, and work on our fundamentals. Crises are the time to focus and leave it all on the field.

That said, do not fail to observe and note what works well and where you struggle. If you had problems with data quality or inefficient processes before the crisis, you are not fixing them now. Pull out the duct tape and find a way through it. But later, when the crisis subsides, learn from the experience and get better for next time.

Find a hobby. Anything you can do to clear your head and separate work from the other considerations in your life. We may feel like the weight of the world is on our shoulders, and without a pressure release we will not be able to sustain this level of stress and remain as productive as our teams, businesses, and families need us.

Continue Reading

Opinion Editorials

Declutter your quarantine workspace (and brain)

(EDITORIAL) Can’t focus? Decluttering your workspace can help you increase productivity, save money, and reduce stress.

Published

on

decluttering

It’s safe to say that we’ve all been spending a lot more time in our homes these last few months. This leads us to fixate on the things we didn’t have time for before – like a loose doorknob or an un-alphabetized bookshelf.

The same goes for our workspaces. Many of us have had to designate a spot at home to use for work purposes. For those of you who still need to remain on-site, you’ve likely been too busy to focus on your surroundings.

Cleaning and organizing your workspace every so often is important, regardless of the state of the world, and with so much out of our control right now, this is one of the few things we can control.

Whether you’re working from a home office or an on-site office, take some time for quarantine decluttering. According to The Washington Post, decluttering can increase your productivity, lower stress, and save money (I don’t know about you, but just reading those three things makes me feel better already).

Clutter can cause us to feel overwhelmed and make us feel a bit frazzled. Having an office space filled with piles of paper containing irrelevant memos from five years ago or 50 different types of pens, has got to go – recycle that mess and reduce your stress. The same goes with clearing files from your computer; everything will run faster.

Speaking of running faster, decluttering and creating a cleaner workspace will also help you be more efficient and productive. Build this habit by starting small: try tidying up a bit at the end of every workday, setting yourself up for a ready-to-roll morning.

Cleaning also helps you take stock of stuff that you have so that you don’t end up buying more of it. Create a designated spot for your tools and supplies so that they’re more visible – this way, you’ll always know what you have and what needs to be replenished. This will help you stop buying more of the same product that you already have and save you money.

So, if you’ve been looking to improve your focus and clearing a little bit of that ‘quarantine brain’, start by getting your workspace in order. You’ll be amazed at how good it feels to declutter and be “out with the old”; you may even be inspired to do the same for your whole house. Regardless, doing this consistently will create a positive shift in your life, increasing productivity, reducing stress, and saving you money.

Continue Reading
Advertisement

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!