Right now as you read this, realtor.com is in private meetings with specific brokers’ agents, discussing a new ad concept that they tell us is in such an early stage that it can’t even be identified as a product.
The concept features agents from the same brokerage as the listing agent, right on the property’s lead form, instead of competitive agents in the same area.
The concept is being tested by partnering with seven brokers, beginning on July 22nd. The company says they will not be promoting the test with any marketing, rather gathering data on how consumers react to and interact with the feature they find organically as they search.
As shown in the image above, the lead form offers four agents, and each name is a clickable link to each agent’s realtor.com profile. Consumers can explore the four agents and select which of the four they are willing to be contacted by – the lead then goes to all four within the same brokerage.
Why consider altering the current offering?
There are two reasons for realtor.com to test out this method, one being altruistic, the other capitalistic.
Because they’re so early on in the process, no pricing structure has been set, but the most obvious reason for the concept is that the lead form is prime real estate (no pun intended), so brokers will likely be willing to pay more to feature their agents instead of a lead going to competitors on the figurative backs of their listings.
Russ Cofano, Senior VP of Industry Relations at Move, Inc. (which operates realtor.com), said that one driving force for this test concept is “the industry’s need to protect broker brands.”
Real estate listing sites featuring competitive agents on an agent’s listing has long been a contentious issue – could this shift appease the naysayers?
The less obvious, and more altruistic reason for testing this concept is that studies continue to show that many leads on real estate sites, be they portal or broker sites, go unanswered, and many of the responses to consumers come days after they’ve lost interest. The process is flawed and realtor.com is testing out a simple feature that could chip into this massive amount of lost opportunity for the industry.
Interesting requirement realtor.com placed on agents
Confano explained to us one stringent requirement they placed on the brokers testing the concept. “We gave brokers cart blanche to pick who the other agents are, but we did require that the other three agents must have had a recent transaction completed in the zip code [of the listing].”
Why such a relentless position? Cofano said the goal is to “create a scenario where listing agents and other agents can speak intelligently to consumers” about the neighborhood.
This attitude goes toward the altruistic side of this concept.
What’s next for this concept?
The test will go on for roughly three months, the company says, but asserts that there is no hard set date, as the goal is to acquire data and determine whether or not they’ll legitimize the feature as a purchasable product.
This serves as a reminder for real estate professionals to complete and customize their profiles in preparation for this feature to potentially become a reality.
News Corp performing well, led by 35% growth at Move, Inc.
More buyers will use the Internet than agents and even the home buyers using agents still use the Internet to supplement their home search. As the old saying goes, “It’s good to be king.” And right now, News Corp finds itself in the enviable position of being “the world’s largest player” in online real estate.
More buyers will use the Internet than agents and even the home buyers using agents still use the Internet to supplement their home search.
As the old saying goes, “It’s good to be king.” And right now, News Corp, which in November 2014 purchased Move Inc., which in turn operates Realtor.com for the National Association of Realtors, finds itself in the enviable position of being “the world’s largest player” in online real estate.
Internet use on the increase
Lest you think online real estate is some pseudo term that looks impressive on paper but nothing in real life than think again. According to the National Association of Realtors, “nearly 74% of home buyers polled answered that they would use the Internet as part of their home search.” Think about the significance of this in terms of growth: More buyers will use the Internet than agents and even the home buyers using agents still use the Internet to supplement their home search. NAR points out further that “while online real estate research sites have not put real estate agents out of business, they have taken viewers away from the old traditional sources of information.”
This increased use of the internet as a real estate tool has fueled the growth of Realtor.com and as a result explains an article in businesswire.com, “News Corp is evolving rapidly into a more digital and increasingly global company with a diverse revenue mix that will drive long-term growth in profits and shareholder returns.”
News Corp Chief Executive Officer Robert Thomson proudly remarked that “The Company is, by most measures, the world’s largest player in digital real estate, a position certainly enhanced by the rapid growth in the U.S. of realtor.com.”
To the victor goes the spoils
News Corp said that the growth was driven by 57% growth in mobile users. News Corp also said that Realtor.com’s traffic accelerated in January to 50 million monthly unique users, or 34% growth year-over-year.
More specifically, in the second quarter, Move’s revenues increased 35% on a stand-alone basis to $87 million from $65 million in the prior year.
Not only that, based on Move’s internal data, average monthly unique users of realtor.com’s web and mobile sites for the quarter grew 37% year-over-year to approximately 39 million, which was driven by 57% growth in mobile users. Further, traffic accelerated in January to 50 million monthly unique users, or 34% growth year-over-year.
Coulda been a contender
Depending on which side of the river you want to water your horse, Zillow (which has been Realtor.com’s main competition for like, ever) claims that it actually represents more than 70% market share of all mobile-exclusive visitors to the real estate category. This despite a July 2015 report from Barclay’s that states Zillow is experiencing slow traffic growth due to a “function of audience saturation and new competition.
Comparatively, recent comScore data also showed that Realtor.com’s traffic in June 2015 surpassed Trulia’s traffic for the first time in two years.
Superficially it seems like tit-for-tat, but the truth is, competition is good for the real estate marketplace and for the time being, realtor.com is wearing the crown.
For the first time ever, realtor.com will pipe in third party real estate agent ratings and reviews
Realtor ratings is a hot button issue, but NAR has set standards, and realtor.com announces how they’re meeting, perhaps exceeding those standards.
Finding an agent is a big challenge for consumers, and offering some semblance of accuracy in ratings and reviews is a tremendous challenge for real estate search sites – a challenge that has a long, convoluted history. Today, realtor.com is announcing their next move, confident that they’re appealing to both consumers and industry insiders, in yet another push to assert the superiority of their offering.
They’ve inked agreements to integrate content from Quality Service Certification, Inc. (QSC), RealSatisfied, and Testimonial Tree to agent profiles on realtor.com®, becoming the first online real estate website to offer a consolidated view of reliable information for consumers researching potential agents online.
Adhering to stringent policies
The information will appear on realtor.com’s revamped agent profiles and ratings and reviews system, offering very specific data. In fact, they’re the first to base these standards on the National Association of Realtors (NAR) guidelines for professional evaluation, established last year. The ultimate goal is to insure that ratings and reviews are by clients who have closed a transaction with a particular Realtor only – they say they’re the only real estate search portal to offer this.
One source tells us that the realtor.com policies were so stringent, that it was actually a struggle to find any vendors that met their standards.
Separately, the system allows a recommendation section which can be provided by colleagues, friends, and so forth. In a statement, realtor.com states, “The combined system provides a standard for transaction-based information while allowing all agents to showcase their professionalism.”
The industry has demanded a solution
“Buyers and sellers of homes rely on an agent with one of the biggest investments in their lives, and they spend inordinate amounts of time doing their due diligence to select someone they can feel confident about,” said Tapan Bhat, chief product officer at Move. “It’s important for them to have a resource they can trust – one that offers consistent quantifiable metrics around an agent’s performance and that provides a clear and reliable portrayal of the qualitative aspects as well.”
“Brokers and agents have consistently communicated that they want and need a solution that allows them to easily syndicate the ratings and recommendations they collect as part of their customer satisfaction programs,” said Jeff Turner, president of RealSatisfied. “From the very beginning, realtor.com® has supported this notion and their decision to continue to support this as part of their new platform is a testament to their forward-thinking approach to agent performance evaluation data. We are proud to be a part of this solution.”
Leveraging the abundance of data
In a press release, the company notes, “Leveraging the abundance of reliable data collected by trusted affiliates while carefully managing the integrity of the new solution was no small challenge. The integration of third-party, transaction-based ratings and reviews content into the realtor.com® system is made possible by matching the external data to the criteria established by realtor.com® for display where possible.”
QSC has decades of experience as a proactive performance management platform that helps brokers spot agent performance issues early. Realtor.com calls the affiliation a “natural fit,” having over 1.5 million surveys in the field to date – today more than 95 percent of buyers and sellers are ‘satisfied or very satisfied’ with agents participating in QSC’s program, including 84 percent that are very satisfied, compared to a national average of approximately 58 percent.
“QSC was the first to offer consumers reliable information to make better, more informed decisions by collecting feedback only from real customers and after every closed transaction,” said Kevin Romito, president and COO of QSC. “Through this agreement, realtor.com® will provide millions of consumers access to a level of accuracy and transparency not available anywhere else, and for participating brokers and agents, this will be a powerful differentiator and competitive advantage.”
Realtor.com®’s recent agreement with Testimonial Tree will enable testimonials collected by real estate professionals to be integrated within recommendations at realtor.com®, and adds a social element to agents’ profiles.
R.com expects this to increase leads for agents
As credible and reliable content makes its way onto the realtor.com® profile platform over the coming months from these partners and through realtor.com®’s built-in evaluation system, the company expects to see a boost in traffic, engagement and high quality leads for agents.
“The resulting virtuous circle of visibility, combined with the reliability of the content we are gathering, fulfills our vision for this solution: to meet the needs of the consumer for a trustworthy resource while addressing the complexities of the industry which we are uniquely positioned to understand,” said Bhat. “We are delivering a solution that works – not just today, but for the years ahead.”
STORY UPDATE: It is important to note that Real Satisfied and Testimonial Tree are feeding the recommendations section, and QSC is feeding the ratings and reviews.
Have you seen realtor.com’s aggressively anti-Zillow ad campaign?
For years, real estate listings sites have fought about who’s more accurate, but realtor.com is taking the fight to consumers to help them understand the urgency of data accuracy.
While many brands allude gently to their competitors, or simply call themselves the best, realtor.com is going for their competitor’s jugular, tapping into the real estate industry’s concern regarding listing accuracy, presenting it to consumers in a visually meaningful way.
Today, the company wrapped a real home for sale in Austin, Texas, leaving a giant blank spot on the block, asserting that if you only search Zillow, you may be missing out on y our dream home. The experential ad is part of a broader, ballsy campaign wherein realtor.com appears hellbent to finally illustrate the value of accuracy in listing data.
Drawing attention to accuracy
Realtor.com says that their campaign is based on statistical analysis from October, which estimates that they have 20 percent more MLS-listed for-sale homes than Zillow. They note that the gap is much bigger in some markets than others.
To further illustrate their “listings advantage,” they’ve offered some data to back up their claims:
“Buying a home is one of the biggest commitments many of us will ever make, so it’s not a decision we enter into lightly,” said Nate Johnson, chief marketing officer for realtor.com®. “This advertising campaign draws attention to the fact that, unlike our competitors, realtor.com® provides the most comprehensive view of MLS-listed, for-sale homes.”
Digital and static ads will also run
The home will remain wrapped through Saturday, and they’ll also be running these digital ads:
In addition to the digital ads, static ads on major sites and platforms from Google and Curbed to Spotify and Twitter. The ads feature headlines such as:
- “There are more homes for sale than Zillow’s showing you. Realtor.com® – search more homes for sale”
- “If you’re looking to buy your perfect home, Zillow might not have it. Realtor.com® – search more homes for sale”
- “More homes on realtor.com® means more homes that could be yours. Realtor.com® – search more homes for sale”
If you thought changing their logo to red was aggressive, we’re betting this is yet another move away from the soft, friendly brand. Under new ownership, they’re clearly serious about connecting with consumers and planting their flag.
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