I recently attended an MLS industry conference in Houston.
Throughout the program I heard repeated references to how "we" the industry have lost control of the online business of real estate.
I heard among other online media attacks, about how terrible Zillow was for going public and how awful Trulia was for charging brokers and agent for premium advertising. And as expected, at every REALTOR-related event or sponsored event, I heard how wonderful REALTOR.com is as a service to the industry. All provided through its relationship with Move, Inc. and created by "the trusted and good NAR" for all REALTORS.
After all if it were not for the NAR what other awful things would we be exposed to in this industry? You know, those companies that steal REALTOR value and charge for their services.
In one word I say, and have always said, bunk.
As I listened, I thought how bold. How brash. No, simply how REALTOR.com.
Almost since day one, the leadership of REALTOR.com has based its value on the ability to denigrate its competition. I call this the "online Lion coming over the hill" extension of the declaration made by Bill Chee.
From the leadership of Wolff to Long to Samuelson we have all heard the same old rethoric and fear mongering lines. From interlopers, to carpet baggers to whatever other condescending comment, it has been the same strategy - divert attention from what REALTOR.com isn't doing and should as the strategic partner of the "trusted and good NAR".
In one word, enough.
How bold to bash Trulia and Zillow and others for something that has already been done by REALTOR.com - gone public - and what is done everyday - charge for advertising to get basic functionality that others provide for free!
In another word, weak.
For all those that feel going public with a real estate related media company is wrong. How many shares of Homestore were you given as a REALTOR by your "trusted and good NAR" when that company went public? Not once, but twice.
In yet another word, misguided.
So let's look at the value REALTOR.com brings to the brokerage industry. Since I attended that conference in Houston, I witnessed a REALTOR.com sales presentation and learned a lot. I learned that the supposed "free" value delivered by our "trusted and good NAR" and REALTOR.com was a listing displayed with limited photos and a phone number as the only means for contacting the listing broker / agent in the local market. I also learned the redirectiuon of consumer traffic, a means to get consumers back to the listing broker's site, was really not a core objective of REALTOR.com.
In another word, really.
To save time, this is for one reason and one reason only. Holding the consumer hostage. The ad model on REALTOR.com demands page views and if the consumer traffic is sent to the broker's site those views are lost and cannot be monetized by REALTOR.com. So for the sake of the public company Move, Inc. to make money off of REALTOR.com, the consumer is held captive on an industry site and absent a root canal experience of using the phone, cannot link to the local broker to buy a home.
In one word, twisted.
I get it though, I really do. The REALTORS suffer through a poor consumer experience on REALTOR.com so that Move, Inc. can make money off of the brokers and other advertisers to boost its value on Wall Street.
In another word, interesting.
Speaking of public companies and the measurement of value and the winner is?
Zillow.
Zillow's IPO this week produced a valuation of just over $800 million. Trading at this moment at over $34.00 per share.
And meanwhile back at REALTOR.com and as for Move, Inc.? A valuation of a $350 million and a share price of just over $2.00.
And as for the last one word for today a big, oops.
In summary of these "words" and as for my on-going opinion of REALTOR.com; bunk, enough, weak, misguided, really, twisted, interesting and lastly, oops!
