HomeLight and AgentMatch offer agent transaction data to consumers
(AGENT/GENIUS) – Launched in 2012, HomeLight is a search engine for agents, or an agent resume, as founder Drew Uhler likes to describe it, offering a unique blend of real estate agent transaction data and consumer reviews, monetized by agent referral fees. Funded to the tune of $1.5 million by Google Ventures, Crosslink Capital, Innovation Endeavors, and unnamed angel investors, it is in the Inman Incubator program, and is to be showcased in the Startup Alley at Inman Connect in New York City in January 2014.
Three weeks ago, Inman News introduced AgentMatch, shaping the conversation by focusing squarely on the negative reactions from agents (AgentMatch is the new site by Realtor.com that provides listing agent transaction data for the last six months in a consumer search site with no referral fees for agents). In seven articles written by Inman News on the topic, primarily negative in nature, not once have they disclosed their affiliation with Inman Incubator company, HomeLight, a product that shows production levels, similarly to AgentMatch. It is possible that this is a repeated unintentional oversight by Inman News, assuming readers should already know the company’s financial relationships.
In the seven stories, HomeLight was first referenced by writer Paul Hagey as “Google-backed HomeLight,” a phrase later repeated in a story quote by Move Inc.’s CRO, Errol Samuelson, however no possible conflict of interest was disclosed by Hagey or fellow writer, Andrea V. Brambila in their stories.
In the seventh article, founder Brad Inman penned a piece called “Taking a stand on agent data,” failing to disclose his company’s affiliation to HomeLight, nor their long-term sponsorship agreement with Move, Inc. Negative reviews are a critical part of news coverage, but the problem here lies in the seven articles where no comparison was made to an Inman-supported competitor, and no disclosures offered, which is exactly how the news industry offers fair coverage and makes clear the possible conflicts of interest.
The reason we wrote about AgentMatch is not because Realtor.com sponsors a few of our events, but because it can’t be gamed by agents – the very reason we never covered HomeLight, yet another agent review site. The other reason we steered clear of HomeLight is because it is disconcerting for Google to have agent data, even if only transaction histories – imagine your entire transaction history as part of your Google+ profile or Google flips a switch on property data retrieval (they have the closing data, why not offer AVMs? or what if your productivity statistics have an impact on your search engine rankings?).
This is all pure speculation and educated guesses, and at this point Google is only an investor, but the point is that agents have no control over the final resting place of their data when entrusted to third parties, whereas Realtor.com’s ultimate responsibility is to real estate professionals under their operating agreement with the National Association of Realtors.
The angst is real
We believe that angst among real estate professionals is very real, but in large part, it is being guided by an Inman argument, and framed in a way to exclude comparison to a product with similar functionality, fanning the flames toward AgentMatch and away from Inman Incubator and Inman Connect Startup Alley participant, HomeLight. It remains curious that when HomeLight launched and Inman covered it extensively, there was no controversy or outrage from the real estate community, creating the perception that the introduction of AgentMatch was designed to incite controversy, potentially providing cover to and benefiting HomeLight.
Getting to know HomeLight
The landing page touts that you can find the “perfect agent based on expertise,” stating that they have two million real estate agents in their database, serving 34 markets, a far cry from AgentMatch’s two pilot MLSs which allows no reviews to influence their algorithm. Let’s take a photo tour of how HomeLight works. Click to enlarge any photo below, as we take you through how the site works. We walk through a search for an agent in Austin, where we are headquartered:
Searching for an agent – method 1
There appear to be two common methods for finding an agent on the site, and one method is by selecting a popular city in the footer of the main page. Here’s how it works:
Below features the “top agents,” and the top two are very well liked top producers in the city that happen to be team leaders. This type of result is one of the main objections agents have against AgentMatch, yet here we are, looking at HomeLight which was put in a positive light by industry news writers.
And if you’re an agent, you can claim your profile
Finding an agent – method 2
So where do they get the data?
In order to get the data, HomeLight is partnered with brokers of record to pull MLS data, but HomeLight does not operate as a brokerage. The transaction data allows the algorithm to narrow down agents for the consumer, and appears to go back as far as 2009.
Reviews improve agents’ rankings on the site
The second part of the algorithm, and apparently a substantial part of the algorithm by all accounts, is reviews that agents receive through the site, so HomeLight is urging agents (especially new agents) to solicit reviews from all clients, which HomeLight says can improve agents’ rankings on the site. HomeLight says they verify reviews, either through the agent directly or by commenters’ claimed address, which they can cross reference with transaction data.
It is not a perfect system, however, and can potentially be gamed (Joe at 123 Main St never reviewed his agent, so an agent can go in and falsify a review, say they’re Joe, claim 123 Main St, and affirm it’s legit when HomeLight asks). Agents that disagree with the accuracy of a review can appeal and HomeLight promises to investigate the matter, which is tremendously helpful, but tricky – a pothole Yelp stepped into several years ago.
Show me the money
The monetization strategy is much like other agent rating sites, wherein referral fees are paid at closing by agents who receive a lead through the site, but the company will not publicly say how much these referral fees are, as they likely vary by market.
Like other sites that match agents and consumers, there are holes, for example, agents that focus on off-market listings (pocket listings, and sometimes new home construction) aren’t given credit and can lose out to competitors, and team leaders are often given credit for the group’s closings even though a handful of agents touched the transaction (as seen above in the list of top listing agents in Austin), and team members’ numbers dwindle in comparison.
But unlike many competitors, HomeLight offers an opt out process so agents can remove themselves from their website, but not necessarily from data stored on HomeLight servers. This highlights, yet again, the uncertainty attached to a third party being given industry data.
Our only dog in this race are members, and our policy has always been, when in doubt, we default to the consumer if the benefit to membership is unclear, and when it benefits the consumer, it ultimately benefits the membership. That said, we have never supported blindly giving data to third parties when arms of the membership (like Move, Inc.) which are beholden to members, can provide the same service.
Update: on November 29th, we redacted the phrase “labeled as news rather than opinion” from this editorial.
AT&T hit with age discrimination lawsuit over using the word “tenured”
(EDITORIAL) 78% of workers are victims of age discrimination. As awareness arises, lawsuits show what may constitute discrimination, including verbiage.
According to the AARP, 78% of older workers have seen or experienced age discrimination in the workplace. As awareness of ageism increases, lawsuits that allege age bias can help employers understand what constitutes discrimination. A recent case from the U.S. Court of Appeals for the Fifth Circuit, Smith v. AT&T Mobility Services, L.L.C., No. 21-20366 (5th Cir. May 17, 2022), should give employers pause about using other words that could potentially be a euphemism for “older worker.”
What the lawsuit was about
Smith, a customer service representative at AT&T, alleged that he was denied a promotion because of his age. His manager told him that she was not going to hire any tenured employees. The manager wanted innovative employees in the management positions. Smith took this to mean that he was being denied the promotion because of his age. He sued under the Age Discrimination in Employment Act and Texas law.
The district court found that Smith failed to exhaust his administrative remedies as to one claim and failed to establish a prima facie case of discrimination as to the other two claims. Smith appealed. The Appellate court affirmed the district court’s decision, but they did say it was “close.” AT&T did not discriminate against Smith by using the word tenured, because there were other employees of the same age as Smith who were promoted to customer service management positions.
Be aware of the verbiage used to speak to employees
This case is another example of how careful employers need to be about age discrimination, not only in job postings. It’s imperative to train managers about the vagaries of ageism in the workplace to avoid a costly lawsuit. Even though AT&T prevailed, the company still had a pretty hefty legal tab. Don’t try to get around the ADEA by using terminology that could screen out older workers, such as “digital native,” or “recent college grad.” Remind employees and managers about ageism. Document everything. Pay attention to other cases about age discrimination, such as the iTutor case or this case about retirement-driven talk. You may not be able to prevent an employee from feeling discriminated against, but you can certainly protect your business by doing what you can to avoid ageism.
Writing with pen and paper may mean your smarter than your digital peers
(EDITORIAL) Can writing old fashioned make you smarter? Once considered and art form, handwriting is becoming a thing of the past, but should it be?
When I was in college, in 2002, laptops weren’t really commonplace yet. Most students took notes by writing with pen and paper. Today, most students take notes with laptops, tablets, cell phones, or other electronic devices. The days of pen and paper seem to be fading. Some students even wait until the end of class and use their cell phones to take a picture of the whiteboard, so in effect, they are not absorbing any of the information because they “can just take a picture of it and look at it later.”
Is it easier to take notes on an electronic device? I think that largely depends on preference. I type faster than I write, but I still prefer to take notes on paper.
According to researchers at Princeton University and the University of California, Los Angeles, students who take handwritten notes generally outperform students who typed them.
Writing notes help students learn better, retain information longer, and more readily grasp new ideas, according to experiments by other researchers who also compared note-taking techniques.
While most students can type faster than they write, this advantage is short-term. As the WSJ points out, “after just 24 hours, the computer note takers typically forgot material they’ve transcribed, several studies said. Nor were their copious notes much help in refreshing their memory because they were so superficial.” So while it may take a bit longer to capture the notes by hand, more likely than not, you will retain the information longer if you put pen to paper.
As I teach English Composition at the University of Oklahoma, I would also like to say that while I find this to be true for myself, every student has a different learning style. Typed notes are much better than no notes at all. Some students detest writing by hand and I understand that. Everything in our world has gone digital from phones to cable television so it makes sense, even if I don’t like it, that students gravitate more towards electronic note taking than pen and paper.
While I would like to see more students take notes by hand, I certainly won’t require it. Some students are navigating learning disabilities, anxieties, and other impediments that make taking notes digitally more advantageous.
I imagine the same is true for other areas as well: instead of typing meeting notes, what would happen if you wrote them by hand? Would you retain the information longer? Perhaps, and perhaps not; again, I think this depends on your individual learning style.
I would like to suggest that if you are one of the more “electronically-minded” writers, use a flashcard app, or other studying tool to help you review your classroom notes or meeting notes to make them “stick” a bit better. While I find this type of research intriguing, if you enjoy taking your notes electronically, I wouldn’t change my method based on this.
If it’s working for you, keep doing it. Don’t mind me, I’ll be over here, writing everything down with pen and paper.
5 reasons using a VPN is more important now than ever
(EDITORIAL) Virtual private networks (VPN), have always been valuable, but now, more than ever, entrepreneurs and businesses really should have them.
Virtual private networks (VPN), have always been valuable, but some recent developments in technology, laws, and politics are making them even more important for entrepreneurs and businesses.
A VPN serves as an intermediary layer of anonymity and security between your computer and your internet connection. Your Wi-Fi signal is a radio wave that can ordinarily be intercepted, so any data you transmit back and forth could be taken and abused by interested parties. VPNs act as a kind of middleman, encrypting the data you transmit and protecting you from those prying eyes.
Top10BestVPN.com offers a selection of some of the best-reviewed VPN services on the market; there you can see the different approaches to security and anonymity that different brands take, and get a feel for the price points that are available. But why is it that VPNs are becoming even more important for business owners and entrepreneurs?
These are just five of the emerging influencers in the increasing importance of VPNs:
1. The rise of IoT. The Internet of Things (IoT) is already taking off, with a predicted 8.4 billion devices will be connected to the internet by the end of the year. All those extra connections mean extra points of vulnerability; hackers are skilled at finding tiny entry points, so every new channel you open up on your Wi-Fi connection is another opportunity they could potentially exploit. Using a VPN won’t make your network completely hack-proof—user errors, like giving your password away in a phishing scam, are still a potential threat—but VPNs will make your network more secure than it was before.
2. The popularity of ransomware. Ransomware is growing in popularity, seizing control of devices, sometimes for weeks or months before activating, then holding the device “hostage,” and demanding payment in exchange for releasing the files that are stored on it. These attacks are fast and efficient, making them ideal for hackers to use against small businesses. Again, using a VPN won’t make you immune from these types of attacks, but they will make you harder to target—and hackers tend to opt for the path of least resistance.
3. The escalation of attacks on small businesses. Speaking of small businesses, they happen to be some of the most frequent targets of cybercriminals. About 43 percent of all cyberattacks target small businesses, in part because they have fewer technological defenses but still have valuable assets. Protecting yourself from cyberattacks is a must if you want your business to survive.
4. Political attacks on net neutrality. Politicians have recently attempted to attack and eliminate net neutrality, which is the long-standing guarantee that internet providers can’t violate user privacy by collecting and/or reporting on certain types of data, and can’t create “slow lanes” that throttle certain types of traffic. If net neutrality is abolished, you could face slower internet traffic and decreased privacy on the web. A VPN could, in theory, protect you from these effects. First, your web traffic would be anonymized, so internet providers couldn’t gather as much data on you as other customers. Second, you’ll be routed through a private VPN server, which could help you get around some of the speed throttling you might otherwise see. It’s uncertain whether net neutrality will ultimately fall, but if it does, you’ll want a VPN in place to protect you.
5. The affordability and diversity of VPNs available. Finally, it’s worth considering that VPNs are more affordable and more available than ever before. There are specific VPNs for all manner of businesses and individuals, and they’re all reasonably affordable. Inexpensive options can be yours for as little as a few dollars per month, and more robust, secure options are still affordable, even for frugal businesses. If you try a VPN provider you don’t like, you can always cancel and switch to another provider. This availability makes it easier to find exactly what you need.
If you’ve never used a VPN before and you’re confused, try not to be intimidated. VPNs sound complex, but connecting to one is a simple login process you can use on practically any device. The hardest part is choosing a reliable provider that suits your business’s need. With the influx of coming changes, it’s a good idea to get your VPN in place sooner rather than later.
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