Tag Archives: retsly

Shortcuts: Zillow Group’s power play, actual intelligence, and NAR’s next move

This article was originally published on Inman News: 

  • Zillow Group’s agent input ban will improve accuracy and squeeze brokers.
  • Its Premier Broker program and data management tools are taking aim at teams and Upstream.
  • Redfin uses agents to create better Zestimates, and no one should be surprised.
  • “Realtor” has immense value. NAR’s CEO search should keep D.C. in mind.

Zillow Group has been using its leverage in more dramatic fashion recently. The headline this week is an upcoming moratorium on agent-posted listings.

Beginning May 1, agents’ listings will only be allowed on the company’s portals if they come via a broker or MLS feed.

This is a power play, and one that the company has every right to make in its quest for a better product. Zillow Group is willing to crack a few eggs to make this omelet.

It’s being sold as an improvement to accuracy, and that checks out. Manually input listings are notoriously error-prone. (Of course, that’s not the only benefit.)

800-pound strategy

The ban creates an immediate friction point for agents whose brokerages and MLSs don’t feed to portals. It puts a wedge between agents and clients, and ergo, agents and brokers.

When clients find out that their agent literally cannot put their listing on Zillow, and their broker can’t fix it before open house weekend, the situation is going to get white hot.

A little message for Jay Thompson, Zillow’s director of industry outreach — please take some vacation and rest up now. May is going to be the season of 1,000 wildfires.

The move will create more feeds for Zillow, and some resentment. Strategically, though, it makes sense.

The big brokers won’t squawk. Most of the country has already signed on. Only the stragglers and iconoclasts will feel the squeeze.

Some agents will continue to be indifferent, some will demand their brokers create a feed — and those whose needs go unmet will find a new brokerage.

The 800-pound gorilla is tired of asking. Independent and holdout brokers: You’re going to feel the weight of its thumb coming down soon.

Premier Broker vs. hiring a team

Meanwhile, the concierge service for the Zillow Premier Broker program is the back end of a team in a box.

Lead generation, text/email/phone conversion, distribution, tracking and management — it’s done. Just answer the phone when your concierge wants to hand off a live one, and you, the solo agent, now have team support.

The program has huge upside. It’s not perfect. Many Zillow consumers have a bad habit of contacting a new agent for every listing and rerouting themselves into spirals of increasing contacts and annoyance from lead converters and concierges.

Those leads are not happy campers when they get an agent on the phone.

The back end works well, though. It affords brokers some shortcuts to team efficiency without all of the hiring and testing of products.

I’m surprised that Zillow Group is using a third-party CRM for tracking; they’ll probably have their own soon.

This program will be popular as long the pricing keeps brokers’ ROI (return on investment) in the black.

The data management arms race

Somebody recently told me to stop writing so much about Zillow. I will when ESPN stops covering the Patriots.

Build or buy? Zillow Group has clearly been leaning toward buying for its data management platform. Paul Hagey (of Inman fame) and I took a deep dive on the developments in this year’s Swanepoel Trends Report.

Jack Miller, president and CTO of the Swanepoel T3 Group, did an outstanding job fleshing out the entire industry’s competitive data management tools.

Bridge Interactive, Retsly and dotloop, when combined with Zillow Group’s in-house tools, could satisfy a wide range of broker demands. The real estate behemoth is buying up a set of tools that cross paths in major ways with Upstream.

Whether that’s the intention, the positioning, or the marketing angle doesn’t matter. The tools being purchased by Zillow Group are designed to solve some of the problems that Upstream solves — albeit perhaps in a way that’s less logistically elegant.

The company is shortening its timeline to a user base by spending instead of creating. We will see quickly whether or not that pays off.

AI (Actual Intelligence)

Inman reporter Teke Wiggin’s piece on a study of Redfin vs. Zillow online valuations sparked some interesting debate.

Wouldn’t every valuation improve with a human-derived “condition” factor added to the algorithm? Forget artificial intelligence, this is actual intelligence in the machine.

A real person’s insights about current condition would be an invaluable addition to an otherwise computer-driven model.

Redfin took the shortcut. Agents are already scoring these homes based on today’s condition. They even have market knowledge. Redfin simply leverages their insights via list prices and adds context to current data.

The results of the study were clear. When listing prices are available, Redfin incorporates them, and its estimates become significantly more accurate than Zillow’s. But Zillow’s estimates for unlisted properties are still more accurate than Redfin’s.

It seems obvious that Zillow could win in both categories by incorporating list prices on listed homes’ Zestimates.

Zillow argues that consumers don’t want that. They want “independence” in their estimates.

No, they don’t. Consumers want the right price — remember that accuracy we were striving for earlier? It’s right in front of you.

Save our CRM

Vendors at Inman Connect New York repeated a phrase to me that I don’t hear often enough: “We integrate with your CRM.”

For all of the tools offered to agents, too many are built as standalone or loosely connected functions. CRMs with APIs, and vendors willing to use them, are taking away major pain points.

Brokers want our agents focused on their database, in their CRM. Some vendors are getting this.

Aiva, the AI-powered assistant by Deckspire; “First,” featuring predictive analytics (guys, you’re killing our searches with that name); and Cloud Attract from W + R Studios were just some of the product folks I talked to that understood this concept as a core issue.

Don’t build another CRM. Build something that works with our current CRM.

Goggling vs. feeling

News Corp. has helped realtor.com do some leapfrogging in the virtual reality (VR)/augmented reality (AR) world. Their work with Matterport and REA Group has provided the foundation for VR and AR in apps for goggles or the good old-fashioned mobile device in your hands.

They are a nice step forward, if VR’s where you think the industry is headed. Some of the hype is overblown, but it will be a nice a supplemental tool to increase conversions of internet traffic to in-person showings.

Buyers will love VR for property introductions. But when you think about downsizing mom and dad into a condo for their “final home,” or buying that first bungalow to raise children in, goggle-and-buy rings hollow. We want to smell how that home feels.

What’s in a name?

Marc Davison took us on an entertaining creative journey about the name “Realtor.” What’s the value? It depends on your audience.

When I go to Washington, D.C., in May and walk into a Senator’s office, you can be sure they understand it.

When our state’s legislative leadership calls us for insights on a policy negotiation, it’s clear that they know who we are.

Broker-owners ask us to come talk to their agents about what we do because they understand the value.

There is a disconnect with the public. It’s clear that they don’t distinguish between a licensee and a Realtor. But that in no way diminishes their knowledge of a Realtor’s value.

This isn’t a term that grew organically out of a need to describe a category of professions, like a doctor. It’s a trade organization being so effective with its label that its name has superseded the commonplace occupational designation.

The Realtor moniker being indistinguishable from a real estate salesperson makes us victims of our own success.

There’s clearly some frustration about the lack of distinction from consumers. We can continue to work to improve and distinguish Realtor members. But this is not such a bad problem to have.

Top job

National Association of Realtors CEO, Dale Stinton, responded to a reader letter on Inman. Read that twice.

Going forward for NAR, getting the right mix of transparency, accessibility, focus and resoluteness won’t be easy.

Kudos to Dale for being a leader willing to engage membership in an introspective and stout discussion about the association’s outlook.

Choosing the next CEO will be difficult. The right candidate needs a keen understanding of technology, communications, public policy and — most importantly — organized real estate’s multifaceted bureaucracy.

Somebody who knows D.C. pretty well just stepped aside from an MLS CEO position to allow the formation of a better marketplace for members.

That kind of leadership deserves a spot on the interview short list.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County Realtors. You can find his team at SeattleHomes.com and BellevueHomes.com.

The broker-driven future of the MLS

This article was originally published on Inman News:
by Sam DeBord

  • Brokers need to understand the new initiatives changing the way we work with MLSs.
  • New tools can create efficiency and improved data storage and analytics for brokers and vendors.
  • Consumers will have access to broader, more accurate information and tools.

New technology initiatives are reshaping the future of broker relationships with MLSs. The sheer magnitude of the changes coming to the MLS portion of our industry is creating uncertainty for some and unease for others.

These initiatives are complex. That’s why many agents, and even brokers, simply avoid them. It’s what we were taught: If the MLS is working, there’s no need to investigate further. Get back to business.

That focus is not selfish or small-minded — it’s a virtue to salespeople.

These are historic times, though. Brokers and vendors are driving the creation of tools that will radically change our industry’s data delivery system — streamlining and enhancing it significantly. These efforts will require not only understanding, but broad, demonstrative support by the broker community to come to fruition.

If we’re going to make intelligent decisions about the future of the MLS, we need to understand it. Many agents don’t know how their MLS works, let alone Upstream. Here’s a start, from one broker’s perspective:

The future of real estate data

 

To be clear, this is not a technical data flow chart. It’s merely a visualization of how the MLS world could fit together in the future. The intent is to illustrate the players involved and how they are connected. Many technical details will be glossed over in an attempt to provide brevity and clarity.

The players:

MLS service providers

Core MLS service providers handle the MLS’s listings and office information database. These could be Corelogic, FBS, Black KnightRappatoni, a custom solution, another vendor, or in the near future, RPR AMP. These companies provide the back end for the MLS and deliver data to some vendors for brokers.

They usually also provide a front-end interface for MLS users. This could be Matrix, Paragon, etc. In the case of RPR AMP, it could be multiple front-end interfaces for MLS users simultaneously sitting on top of the AMP database.

Secondary MLS interface providers

There are also secondary interfaces available to MLS users. Homesnap MLSand CloudMLX are optional enhancements to an MLS’s user interface options. They are built on top of any core MLS provider’s database. They don’t affect the primary MLS interface but provide a different (and sometimes more streamlined) way for a user to interact directly with the MLS database.

Upstream

Upstream is the database that would streamline brokers’ data output. Brokers who join Upstream would no longer send listing and office data to dozens of unconnected outlets. They would use the Upstream database to store and update all of their information.

All of their data could then flow downstream to their providers (including MLSs) at the individual broker’s discretion. This would increase efficiency and improve data storage and analytics for brokers.

Those brokers who do not join Upstream would continue the current process of listing and office data distribution on their own. They would send separate data feeds to multiple MLSs, office tools, vendors, portals, etc.

Aggregators

Aggregation products allow access to IDX data across multiple MLSs for brokers. They provide a feed that brokers can use with their office tools and vendors. The breadth of the data is dependent upon the aggregator’s MLS reach.

Some aggregators have additional data. Zillow’s Retsly Connect adds public records data for broker use. Trestle from CoreLogic adds consumer-facing public records data and AVM data. It’s far and away the largest with 100 MLSs already signed up, but it won’t be available until late 2016.

Broker office tools and vendors

One of the misunderstandings about Upstream is that it’s only about listings. Brokers are currently feeding different kinds of data to a wide range of office tools. Company records, office addresses and photos, agent rosters and photos, staff information, accounting, transactions, and customer records are all uploaded to disparate databases that don’t talk to one another.

With Upstream, these broker tools and vendors can all go to the single source of that data for the information. The broker merely needs to keep one central set of records with Upstream to ensure uniformity.

Portals

The major consumer-facing real estate portals currently receive listings from many sources. Agents, brokers, MLSs, franchisors, vendors and syndication systems send listings of different levels of quality to be displayed on these platforms. The data rights of the senders also vary widely.

In an Upstream world, a foundation of rights over the listing data and photos would be established for any broker or agent member using the system. Listings delivered by broker consent through Upstream to a portal would have pre-existing rules attached to their usage and display.

Brokers could negotiate different or superior agreements with the portals if they wished to. In short, portals wouldn’t be taking listing photos and recycling them as they please. The broker retains control of them.

Broker Public Portal

The BPP is a totally separate animal. It’s essentially another consumer-facing portal, but it’s broker-owned and managed. Its intention is to deliver an accurate, timely, responsibly displayed database of brokers’ listings to consumers.

BPP recently hired Homesnap to provide the technology for its product.Somebody pinch me. Homesnap has shown an uncanny ability to combine software interfaces that attract consumers, deep connections of MLS data and a cooperative style that works well with associations. If there is a company that fits the mold for this to be a successful venture, Homesnap is probably it.

The environment:

Friction

It seems logical that a broker with access to Upstream at the front end of data distribution and an aggregator such as Trestle at the nexus of multi-MLS data would be significantly more empowered than one using today’s traditional system.

It shouldn’t be surprising, though, that some of these initiatives face pushback from entrenched players. In some cases, they create significant new work and additional complexity for MLSs. MLSs need to be at the table with brokers in the planning and implementation phases. The transition will not be easy.

Action

There will be objections to this new model, some with genuine concern for viability and some self-preserving or self-serving. It will hit road bumps, and there will be growing pains. The rumor mill is already in full churn. That shouldn’t discourage us from seeking long-term improvement in our systems.

The funding is in place to begin the process, and most of the industry’s biggest players are on board. Upstream has five alpha markets already selected to begin testing the program.

Then what becomes of the MLS? I’ve heard intelligent people predict everything from a national MLS to the end of the MLS. Neither is happening nor would they be good for the industry.

Focused MLS

These initiatives are taking items off MLSs’ plates that create controversy. Most brokers don’t want the MLS to make advertising decisions for them. They want fast, inexpensive access to broad MLS data. They want flexible software options.

They want to have their data synchronized across their plethora of tools without having to update it manually in so many locations. Upstream, AMP, aggregators and secondary MLS interface tools take much of this burden away from the MLS.

Brokers also want the MLS to continue doing what it does so well — cooperation and compliance. Brokers are the MLS. Its existence is invaluable to us.

The idea of a compliance arm of a national MLS handling enforcement is frightening. Imagine the federal government replacing all local police forces with the national guard and expecting everything to be OK. “Seattle, you’re OK with people smoking pot in the park. Provo, you’d like to throw ’em in jail for the weekend. We’ve got a single answer for both of you that will please neither. Your papers, please.”

Painting the corners

There are a lot of angles and conspiracies regarding how these initiatives benefit some parties over others. Many have credence. These are businesses trying to make money.

That doesn’t have to be the narrative about these initiatives, though. They also create a picture of an MLS system that effectively serves its brokers, while brokers simultaneously gain back efficiency and control over their data distribution. They remove conflicting territories.

Will some outside platforms lose leverage? It seems that they might, but improving the business for the brokers and agents who actually generate transactions should always be viewed as a benefit to the industry.

And lest we forget, there’s a consumer angle. They’ll simply get more accurate data across consumer-facing outlets, better tools developed at faster rates and access to broader information across markets and MLS territories.

That’s worth a shot.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County Realtors. You can find his team at SeattleHomes.com and BellevueHomes.com.