Tag Archives: homesnap

Homesnap + Broker Public Portal: The Unofficial Why and How (and the case for more PR)

homesnap and broker public portalI’ve been seeing a lot of questions about the direction and makeup of the Broker Public Portal and its relationship with Homesnap. I have no direct influence or investment in either group, but plenty of interest.

Let’s clear the table first—some of these questions come from a great post/discussion earlier here on GeekEstate, others I’ve heard out in the field.

Unofficial answers about the Broker Public Portal and Homesnap (caveat emptor):

Why?
Brokers want a national search experience for consumers in which the brokers control the display rules. Partnering with their MLSs, they hope to create a clean, easy-to-use search and display that delivers leads back to the listing brokerage and is free of other commercial shenanigans. It doesn’t need to be the biggest, it just needs to return more traffic to brokers.

Does NAR run BPP?
The National Association of Realtors does not run or own the Broker Public Portal. Brokers developed the organization, and they run it in partnership with Homesnap. The MLS partners, in some cases, are owned by local Realtor associations, but NAR isn’t directly involved in BPP directly.

Who pays for Broker Public Portal?
MLSs who sign up with BPP pay $1 per member per month.

Why would agents want their dues dollars to pay for another portal?
The agent benefit is getting access to Homesnap Pro tools. By joining BPP, the MLS’s members get one of the best MLS apps available. Its integration of agent-only information, mapping, rapid CMAs, and direct client interaction will make most agents who see it open up their pocketbooks happily—for a buck.

As for dues: if your MLS passes the cost on to the agent, these would be MLS dues dollars (not NAR). Depending on your MLS, those dues may go to your association, a separate for-profit company, or a broker-owned conglomerate. So the BPP portal is the primary broker benefit, and Homesnap Pro is the primary agent benefit.

Is BPP a “for profit” initiative?
*Update: Via Victor Lund, it is a “for profit” corporation, but all profits are rolled back into the corporation.* I think the more appropriate label is a “for profitability” initiative. The BPP members and Homesnap could directly profit from 1.5 million $1 monthly fees from the entire nation of Realtors. But snaring a greater percentage of internet traffic and leads on a cost-controlled platform is the real goal for brokers. This is about greater leverage in online real estate. Commissions dwarf subscriptions. Brokers, and agents, want more closings with lower acquisition costs.

What if Homesnap wants to break away after BPP becomes popular?
We’re told that the operating agreement has fail-safes, or a pre-nuptial, built in. It’s a private venture. Everyone on this board knows about the NAR/realtor.com/Move deal 20 years ago–they don’t need another reminder.

Why would a consumer use BPP/Homesnap (vs Zillow et al)?
Consumer-driven traffic is just one part of the equation. Agent-driven traffic is a very different animal with a much higher correlation to closings. Don’t ignore the potential of MLS-wide adoption of an agent-to-consumer mobile search tool.

In 2012 I thought Realtor.com might nail this strategy with its app, but the adoption just didn’t take. It made even more sense to me in 2014 when Homesnap came on the scene. (Maybe that just means I’m repetitively wrong.)

Won’t this, effectively, be a “consumer facing MLS website” on a national scale?
If it gets national adoption, it would be in a way. Importantly, though, brokers initiated this project, not the MLS itself. The likelihood of all 700+ MLSs signing on anytime soon is low. But let’s be honest, there are already a handful of consumer facing MLS websites on a national scale. They’re just run by “media companies.” Almost all MLSs, brands, franchisors, and brokerages are feeding them MLS listings somehow.

If my MLS joins, does this mean my MLS will be competing with my local website for traffic?
There’s some nuance in this answer. A local MLS with a public facing website creates a clear competitor to a broker in local search. A national portal also competes, but on a bit of a different playing field. Brokers/agents with quality websites can still compete for local traffic because of their unique local status.

Truth be told, though, everyone’s competing with everyone. Once in a while a large portion of the brokerage sphere is in agreement, and it’s worthwhile to seize that momentum if that’s the “big picture” side you’re on.

So how does Broker Public Portal + Homesnap succeed?
Gradually: MLSs join, brokers push adoption of the tools for their utility and cost savings, and agents start using the app as their primary interaction with their MLSs. In turn, they share listings and the search experience with their clients. 1.5 million real estate professionals become the boots on the ground “selling” the product to actual real estate consumers.

Ideally, more consumers stay inside this sphere. Agents and brokers take home the same commission splits, with lower acquisition costs because advertising fees are lower/cut out.

Think of it this way: Homesnap getting into an MLS is like a software company becoming the only music app provider in Apple’s app store. Other companies can buy all of the Android and Microsoft user traffic they’d like, but everyone on Homesnap’s platform is protected in the walled MLS garden.

What’s next?
There’s no guarantee that any of this comes to fruition. But this is a very pragmatic approach at leveraging brokers’ greatest strengths—the MLS and their agents—and focusing them on building media exposure that they couldn’t otherwise achieve by simply trying to buy it.

Brokers don’t have to build their own mobile search–Homesnap has already done it. There’s already a significant base of traffic using their systems, so there’s no starting from scratch.

Finally, a respectful suggestion: The folks at Homesnap have always done a great job of getting media exposure as a lean startup. Now it’s time for brokers to give the joint venture some more financial horsepower to proactively answer these kinds of questions on a broader scale.

In the absence of immediate answers, wild conspiracies spring up. I can’t overstate how difficult PR and industry relations are in real estate for a new initiative. Just ask the folks at Upstream. Let’s get the story straight for our industry, and then let the chips fall where they may.

Comments? Fire away.

Sam DeBord is a former management consultant and web developer who writes for for Inman News and REALTOR® Magazine. He is Managing Broker for Seattle Homes Group with Coldwell Banker Danforth, and 2016 President-Elect of Seattle King County REALTORS®. His team sells Seattle homes, condos, and Bellevue homes.

Zillow’s Agent Finder, Winter Lull, and The Wide-Open Future of Online Real Estate

This article was originally published on Inman News:

I had just finished writing a post about the lack of interesting consumer innovation this winter in real estate. Then, along came Zillow’s Agent Finder. It’s exactly what you’d expect: an attractive, easy-to-use interface that lets consumers see agents in a geographic location based on reviews, listings and past sales. Of course, there are also some spots up top for agents who are paid advertisers.

Are there holes in the data? Absolutely. Will consumers care? Probably not. Agent Finder feels like Yelp for real estate; it allows for positive and negative reviews, without interpreting the company’s financial success. Yelp makes consumers feel comfortable that even though they might not have all of the available information, they have enough to make a good decision. That’s the feeling Agent Finder might give to real estate consumers — comfort that they’ve been able to make a good choice, even if all of the choices might not have been present.

Agent Finder will still present an inaccurate profile of some agents because of the lack of comprehensive sales data, but it will do so with less antagonism than the stark ranking via production data that we saw in the past with Redfin’s Scouting Reports or NeighborCity’s scoring system. Much of the agents’ past sales data has to be manually input, ensuring that we’ll have a picture that’s skewed toward the Zillow-friendly agent. That will likely boost agent adoption of the platform. I could be wrong, but I don’t think Agent Finder will draw out the agent pitchforks in the way past ratings systems did. It will still have some agents justifiably upset at the way they’re portrayed.

Having been on the advisory board for realtor.com’s AgentMatch, Find A Realtor and NAR’s Realtor Ratings Committee, there’s a simultaneous feeling of frustration and admiration watching Zillow build a tool like this. We have the membership and the data to make it happen through NAR, but we move cautiously for our membership. Most tech companies ask forgiveness instead of permission.

There’s still an opportunity for NAR to build a more comprehensive, broker/agent-supported platform for Realtor reviews. A more robust database can win in the long run, but the consumer mind share for reviews is hard to get back after a certain threshold has been reached. Zillow is climbing that ladder quickly.

The business rundown

The business side of the real estate Web has been volatile. In just a few months, Zillow swallowed Trulia, realtor.com upended the new Z-appendage for the No. 2 traffic spot, and NRT started unearthing its much-misinterpreted Flanker project. Upstream and the National Broker Public Portal are gaining steam.

In 2015, if you utter any version of “Company X is here to stay” or “You can’t compete with Y,” you’re voted off the island. That mindset is so not real estate. Real estaters are the fiercely independent, never-stop-striving, scrappy Rocky Balboas of sales. The day our industry becomes pacified followers is the day a website should take our jobs away from us.

Captain Obvious: “Remember when we used to wear watches? And when realtor.com and brokerage sites dominated search rankings? Hahaha. That’ll never happen again … unless by some crazy chance there are genius billionaires who invest in technology and real estate.”

The strange thing with all of these investors making it rain in the real estate club is that the true innovation on behalf of consumers has felt somewhat stagnant for months (the new spring exception being Zillow’s Agent Finder). Everyone is increasing their ad spending, but few are building something that will make the average consumer say, “Wow! I bought/sold a home in a measurably faster and better way.”

The more traditional, complex and investment-heavy these top real estate outfits get, the more difficult they’ll be to overcome by joining the financial arms race. There’s so much good money being thrown after bad right now, though, that there seems to be plenty of space for smaller investors to do something unique and succinct at a reasonable price for consumers without trying to out-gorilla the big boys.

Project Upstream and the data integrity projects under the same idea umbrella have serious legs now. The non-geek crowd seems to finally be noticing that fair display guidelines and feed agreements are important. Unfortunately, many boards and brokers have been so deafened by their screaming agents that they missed out on this opportunity for real guidance when they signed the first portal feed agreements that were thrown in front of them. If you don’t know whether you’ve signed away the rights to your clients’ interior home photos in perpetuity to a marketing portal, you need to go freshen up on these topics.

The cultural reach

“Zillow Talk: The New Rules of Real Estate” was the best consumer real estate entertainment this winter, and it’s being quoted every 1.3 seconds by a real estate reporter. It’s strategic genius in terms of marketing and public relations. If there’s one thing Zillow knows, it’s consumer attention.

The book’s takeaways are pop culture shareable trivia like those in “Freakonomics.” There are a mix of interesting insights, such as how to pick the next up-and-coming neighborhood. There are also some cringeworthy statistics-turned-sound bites that you’re going to undoubtedly hear at cocktail parties in the future.

One such revelation: The words you use in your listing description can cost you money. “Luxurious,” “impeccable” or “spotless” in a listing description results in a higher-than-expected sale price on average, while “fixer,” “TLC” and “investor” point to a lower-than-expected price. The Zestimate is the “expected price” that you’re probably asking yourself about, which is as appropriate as calling a child with an American Girl doll an “expectant mother” — but I digress.

Captain Obvious: “So you’re telling me that when the real estate agents, who actually saw the property, specifically tell us what condition the homes are in and use words that mean good condition, it will result in higher values than words that mean poor condition? Genius!”

You can’t fault Zillow for playing the statistical click-bait game with the consumer entertainment topics. The reusable content is pure gold for media relations and will drive traffic and brand building. Just ask Buzzfeed. It’s less attractive when easily refutable statistical analyses are lazily used to suggest policy changes, such as restricting the mortgage interest deduction.

The hopeful future

The National Broker Public Portal hit its initial funding goal of $250,000. The prognosticators will say it’s an insignificant number; that if the portal can’t match Zillow or Move in funding, it can’t compete — poppycock.

Name whichever company you’ve attached the term “disruptive” to this week, and ask yourself if it became successful by outspending gigantic traditional competitors on advertising. It’s true that the NBPP has a long way to go in attracting consumers, but outspending others on advertising is a lost cause. Delivering a proprietary, crystal-clear tool to consumers, on the other hand, makes organic growth just one good idea away.

Ask Homesnap. With what looks like less than $10 million in total funding, it’s a top five consumer app that wants to drive its growth by joining with brokers and MLSs — much like NBPP would like to do. Homesnap is leveraging agent/broker/MLS connections to build support from the industry floor upward. In the markets where it has signed up seven of the nation’s 20 largest MLSs, as far as consumers and agents on mobile are concerned, Homesnap’s MLS app is the MLS.

The silly little tool that lets consumers snap a picture of a home and pull up its data is just a gimmick based on GPS and a gyroscope, right? It couldn’t be that Homesnap is building an unmatched database of millions upon millions of photos, taken by consumers, of real estate with GPS coordinates and public records data attached. There’s no way to compete with the biggest boys without hundreds of millions of dollars. Nothing to see here, move along.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and a director for Washington Realtors and Seattle King County Realtors.