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NAR, Move respond to Zillow’s “Coming Soon” feature

Zillow’s “Coming Soon” feature has reignited arguments surrounding the rules of the road, and NAR responds strongly.

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The recent announcement of Zillow’s “Coming Soon” feature has reignited passions surrounding pre-MLS listings, and has become a very divisive issue in the industry. Pennsylvania Broker, Erica Ramus opined that Zillow is responding to a market demand, and highlighted the upside of the new release.

But Ramus is not in the majority (perhaps the growing minority, but currently takes an unpopular position). The National Association of Realtors (NAR) responded to Zillow’s announcement with a complete guide outlining the legalities surrounding “coming soon” listings, positioning these types of listings as being “withheld” from the MLS.

When to take a “coming soon” listing

In a statement, NAR asserts that there is a right and wrong way to take a “coming soon” listing.

“The first important step in advising a seller-client on whether to advertise a property as ‘coming soon’ is to identify the client’s best interests, as defined by that client,” said National Association of Realtors® General Counsel Katie Johnson. “Failing to act in the client’s best interest and failing to disclose the pros and cons of a limited marketing plan, such as ‘coming soon’ advertising, can violate state real estate license laws and regulations, MLS policies, and the Realtor® Code of Ethics.”

Johnson adds that “It’s important that sellers understand the implications of various ways of marketing the property so that they can knowingly determine the choice that best serves their interests. If a broker determines that “coming soon” advertising is in the client’s best interest and confirms that the client understands the possible consequences, then it is imperative for the broker to know the real estate license laws and regulations of their state to ensure that such advertising is in compliance. A broker who fails to comply with state laws and regulations risks facing disciplinary action from licensing authorities, as well as the possibility of litigation from unsatisfied clients.”

State laws vary

State license laws vary, NAR notes, pointing out that an angry seller could claim a broker failed to obtain the highest possible price by excluding it from the MLS, and the client may not have understood that “the marketing of the property might not achieve the highest price.”

NAR points to Colorado’s recent “CP-44 Commission Position on Coming Soon Listings” which clarifies that a licensee’s existing duty to “promote the interests of the seller or landlord with the utmost good faith, loyalty, and fidelity” which requires Colorado licensees to advise clients during the negotiation of the listing contract of the benefits or risks of limiting a property’s exposure through “coming soon” advertising. The broker’s motivation for such limited exposure of the property must be for the seller’s benefit – not the licensee. The Commission Position concludes by requiring licensees to describe in the listing contract the marketing plan agreed upon by the broker and seller prior to any marketing being performed.

In South Carolina, advertising a property as “coming soon” before entering into a listing agreement with the seller violates South Carolina license law.

By pointing out Colorado and South Carolina, NAR tells its members that at all times, they must ensure that their advertising complies with local MLS rules.

And of course, the Code of Ethics

NAR urges members to consider the Code of Ethics when advising clients on whether or not to market properties as “coming soon.”

“Realtors® must remember to promote and protect the interest of the clients, present a true picture in their advertising, marketing, and other representations, and make property available to other brokers for showing to prospective purchasers when it is in the best interest of the seller,” said Johnson. Failing to do so harms the reputation of the broker and Realtors® generally and may result in disciplinary action from the broker’s local association of Realtors®.

Where is Realtor.com in all of this?

Realtor.com, operated by Move, Inc. has mostly stayed out of the fray, but Suzanne Roy, Industry Outreach at Move, Inc. tells Realuoso, “Move is closely following the discussion among professionals in organized real estate about how ‘pocket listings,’ or so-called ‘pre-market’ listings, effect consumers and the industry.”

So what’s next?

Although not a new debate, it has come to a head as Zillow puts their stamp on the issue, and the NAR has responded strongly, and Move, Inc. is quiet but is certainly not ignoring the argument.

Agents and brokers will consider their individual positions and local and state associations are taking on the debate, but mostly behind closed doors. Watch for groups like the Austin Board of Realtors to make decisions regarding how pre-MLS listings may or may not appear in the MLS, and what rules surround these types of listings.

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.

Real Estate Corporate

Zillow hit with double whammy discrimination allegations

(CORPORATE) Zillow is facing new allegations of discrimination between employees based on their gender and how unequally they were treated during a crisis.

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We can all agree that violating the Americans with Disabilities Act makes you a capital D D-bag, right?

When a company (or CITY – looking at you, every tilted, rampless sidewalk in Austin) refuses to build accessibility, accommodations, and human GD dignity into their physical, corporate, and digital infrastructure, not only are they breaking the law, they’re being a bunch of unwiped butts.

Today, it looks as though my favoritest real estate site, Zillow, stands accused of being among that skidmark-leaving number.

Now because I’m too cute for defamation suits, I need to be 100%, crystal clear, like clear enough for a bird to fly into it, that Zillow has not been found guilty of anything. We’re going to report on the allegations and the suit brought against the company, but until Zillow gets their day in court, neither this esteemed publication nor I myself can say what definitely did or didn’t happen.

Said allegations are being brought against Zillow by Mr. Michael Cerce, and they’re as such:

Jane Doe at Zillow had her phone stolen, and was being harassed by someone awful, who also made mention of Mr. Cerce in their threats. Zillow stepped up and offered her protection with a security detail, all the days off she needed and… asking Mr. Cerce to step into danger for her.

Mr. Cerce further alleges that while Jane Doe rightly got paid days off to deal with her trauma, he wasn’t afforded the same resources, having his time off requests to take care of his mental health denied, having his concerns about company security dismissed, and not being afforded his commission payments during a leave of absence related to the stalking.

It might actually behoove me to say “the assumed stalking” though, as Mr. Cerce has come to believe he may have been collateral or intentional damage in a hoax perpetrated by Jane Doe.

So. Allegedly. Mr. Cerce was, I repeat ALLEGEDLY, discriminated against on the basis of disability as he was diagnosed with PTSD during counseling related to these allegations, as well as on the basis of sex as he claims a female employee was treated with more respect during similar travails.

To paraphrase the kids these days,  that’s effed up if true.

It should be obvious, but because I know it’s not, I’ll say it anyway. Someone’s being a man doesn’t mean that said someone comes automatically equipped to shrug off being stalked, threatened, harassed, and denied opportunities for healing from an ordeal.

Furthermore, not all disabilities are easily visible, though according to witnesses named in the suit, Mr. Cerce was noticeably distressed for days at a time.

If the allegations are found to be true in a court of law, then Zillow’s got a pretty serious deal on its hands, and we’ll have more as the story develops.

No matter how things shake out in court, ideally, public spotlight of the case will lead more folks of the gentlemanly persuasion to continue standing up against ACTUAL unfair treatment regarding their physical safety and mental health.

Fingers crossed (and Covid triple washed) for justice.

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Real Estate Corporate

Zillow’s patent game is strong – they just got 3 for IBM’s creations

(CORPORATE NEWS) This company was just granted not 1 patent but 3 on tech more than twice their age! What does it mean for you? Nothing good…

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Welp. They did it.

We’ve been watching Zillow for some time now, and in the midst of even the strongest of OP Eds saying how terrible an idea it is, Uncle Sam officially handed them multiple patent keys to tech they didn’t invent.

How big do you have to be before you can clout jack with this much impunity?

I’m used to seeing this with small artists. Forever21’s Etsy spies find a cute, simple design, maybe do the work to alter the pallate a smidgen and rely on the ‘Matilda’s Dad’ strategy of “I’m smart, you’re dumb, I’m big, you’re little, I’m right, you’re wrong, and our lawyers will argue the same, peasant’.

But with technology, you can literally trace the code back to a source. It’s not like using teeth as a motif, it’s real, it’s definite, and it’s definitely really shocking that the government signed off on this.

Zillow’s not exactly startup sized, they’ve been in business since 2004. They’re a big name. Their competition probably can’t muscle their way in and out like they can. Matter fact, a company you may have heard of fighting them on patents has only been doing their doings since…wait, since 1911. Must be a tiny outfit, that was in some other business for over a century right?

It’s IBM.

What le freaque?

We all need to be concerned about this level of government sanctioned patent jacking, no matter what field we’re in.

I’ve heard before that if you’re just starting out, and low on funds, paying for your inventory and manpower are more important than filing anything with the government. Now we’ve got fresh, bloody proof that that’s 100% not true.

Your or your company’s intellectual property can be deeded off with a factor no more elaborate than whether the patent office likes your face that day, regardless of what kind of trail you’ve left, and as far as being run into the ground or laid off goes, that’s hardly a non-factor.

This decision represents a higher financial barrier to entry for everyone from Amazon entrepreneurs to realtors daring to use tech as basic as texting in their business.

Yes, literally.

Zillow’s patents, condensed for readability, are on:

Taking panoramic images for 3D walkthroughs

Multi-criteria search engines

And superimposing images scaled for size onto an area of land

Do all of those sound familiar? They should. We’ve been using that tech for years. And Zillow’s no Microsoft.

As always, we’ll have to see how this plays out. But if your New Year’s resolution was to take more bold steps in your business, maybe see if you can patent the idea of putting your picture in your email signature?

Apparently it couldn’t hurt.

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Real Estate Corporate

Conductor buys their company back from WeWork (that’s a good thing)

(CORPORATE NEWS) In an effort to refocus, co-working giant, WeWork, is looking to offload many of its recently purchased assets which may work in the small companies favor.

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Once upon a time, WeWork, the popular, ever growing, co-working space giant, was valued at $47 Billion. But on August 14th, 2019, everything changed.

In August, WeWork submitted its first IPO paperwork for the company, not realizing it would almost immediately face incredible scrutiny from various entities, such as investors and the press, in regards to its finances. Although the company’s revenue doubled in 2018, Business Insider found that the company wasn’t actually earning any profit. In fact, reporter Rebecca Aydin reported on July 3rd that the company was losing $216, 000 every hour of every day.

But that’s not all. Since WeWork went public, the company has witnessed an incredible devaluation, from $47 billion, all the way down to $8 billion. Now, since we’re talking about billions of dollars here, the devaluation may not seem like a big deal for the future of the company, but I can assure you it is.

This devaluation resulted in Softbank, WeWorks’ biggest investor, taking over, and offering $1.6 billion to then CEO, Adam Neumann, in exchange for stepping down.

Throughout their growth, WeWork acquired more than 20 businesses, such as Spacious, a small co-working space in Manhattan, New York. Spacious’ CEO prior to the acquisition was Preston Pesek, who launched the firm in 2016. Pesek had a background in real estate and founded the business to leverage and monetize abandoned buildings and restaurants.

Customers had easy access to these spaces for a nominal fee, but because of WeWork’s recent decisions with finances, it made the decision to offload quite a few of its previously acquired businesses, including Spacious. They’re also looking to liquidate Managed By Q, which was purchased by WeWork from founder, Dan Teran in April.

In light of this news, Pesek anounced that Spacious will close its doors at the end of the year, alluding to WeWork’s refocus on its core workspace business. But while Spacious is set to close, Teran has decided to fight to re-acquire his company. In a article on The Real Deal, writer Rich Bockmann states that Teran said he’s actively looking to buy back his company.

Conductor, another company WeWork purchased more than 2 years ago, has already been successful in purchasing its company back, and it looks like it may be a better setup for its employees than previously. Co-Founder, Seth Besmertnik, stated in an interview that, prior to the sale of Conductor, he actually only owned 10% of the company. But with the re-acquisition of the company, Besmertnik and his partners, investors, and employees will be in full control. He says that under the company’s restructuring, employees will have “more than four times what they did when we sold the company”, which is clearly a better deal than what they had before.

But WeWork isn’t just liquidating co-working assets they’ve acquired. They’ve also laid off 2,400 employees in an effort to cut costs. Additionally, they’re also considering selling and/or shutting down other ventures, such as Meetup.com, a web platform that makes meeting up with like-minded individuals as easy as possible (purchased in 2017 for $156 Million). WeGrow, an elementary school in Manhattan, is also on the chopping block.

At the end of the day, WeWork just wasn’t as strong as users, investors, business partners, and the general public thought they would be. At a current valuation of only $8 billion (again, down from $47 billion), and with a $9.5 billion bailout from Softbank, the company will have to get really smart with their remaining finances. It’s obvious that the company is still in a state of flux, reevaluating their options and their main focus, but the question remains – can they still be saved? Maybe even more importantly, are they worth being saved? Only time will tell.

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