A few things have been written about MOVE’s latest announcement on the creation of the “Real Estate Network” (REN). MOVE’s says REN will “extend the syndication of property listings to highly trafficked websites operate by real estate franchisors and brokerage networks.”

I have to say I think this is a brilliant strategy on MOVE’s part. Here’s why:

1. Zillow and Trulia have already proven quantity (and quality for that matter) of listing data isn’t necessary to operate a highly trafficked real estate portal.

2. This further hedges MOVE’s position. MOVE currently depends upon its agreement with the National Association of REALTORS (NAR) for listings and does not run a national IDX network.

The big question is “who cares?” So I’m going to focus on a few tipping points that would cause a Franchisor or brokerage network to implement a REN feed on their respective websites.

1. SEO benefits
I think this is the weakest case. Most Franchisors running sophisticated IDX networks from vendors like Homes Media Solutions (formerly eNeighborhoods) and RED (formerly LPS Real Estate Group) have already figured out how to maximize SEO benefits using a platform designed to be a launching site for a “network of broker idx sites”.

2. Cost
This is a big factor. As I’ve stated Zillow and Trulia have already proven quantity of listings doesn’t matter. Aggregating MLS data from multiple sources managing all those different display rules and paying those MLS fees have a huge cost associated with it. What if RE/MAX is paying their IDX vendor $70,000 per month and MOVE is offering REN for $7,000 per month. Is it possible that a company like RE/MAX might opt to save the money? Maybe.

3. The MLS Two Step
This is also a potential decision point. Lets say that a particular MLS provider, for the purposes of this example the Houston Associaiton of REALTORS (HAR) has made is very difficult to display listings from their MLS. The Franchisor always has to jump thru a few extra more hoops when dealing with HAR. Will some Franchisors be willing to forego not having all Houston listings as long was they don’t have to talk to Sam Scott anymore? Maybe : )

4. Filling the gaps
The REN might be a great way for new and exisiting Franchisors to supplement coverage in areas where they don’t have a Franchisee yet. According to the rules they would still need a license in the state, but thats relatively easy. This makes Realty Executives participation as a charter member of REN a little clearer.

5. Exposure.
Search traffic to real estate portals is still heavily brand related. Long tail searches are a relative minor piece to the equation. It was announced recently that Century 21 is running a Super Bowl ad on February 5th. Depending on when REN would be implemented how ironic would it be when Realty Executives announced to their agents that all their listings would be advertised during the Super Bowl. Pass the chips!

In a way MOVE, with the announcement of REN, has changed the conversation away from IDX (something they are very weak in) to Syndication (something they are very strong in).

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle”
― Sun Tzu, The Art of War, Special Edition

Smart MOVE.

A few thoughts about what I’ve been hearing and observing about the state of MLS systems and vendors

Flash’s dead, baby.

I’ve written about the problems and issues of some MLS vendors MLS platforms be written in Flash. and now this, Adobe announced they will no longer continue to develop a Flash version for mobile devices. So to me the debate ends here, MLS vendors who’s new versions rely upon Flash have two choices. Develop a separate HTML5 or equivalent version of their MLS system or create separate “native” versions of their MLS systems that run on mobile devices (iPhone, Droid, iPad, etc.). Either prospects are not great, but….

I’ve seen Discover MLS’ offering and now recently got a sneak peak at LPS’s REinsight new MLS system and was impressed (both are built using Flash). They not only look great, from a UI perspective, but there is some real innovation going on. One of things that struck me about LPS’s REinsight was the blending of the LPS public records data along with MLS data. This is great for creating all inclusive CMAs and other reports. Plus from a map search perspective you can see an MLS listing and also click on the property next to it (that might not be in the MLS database) and up pop public records data, which is super cool. One database, no need to exit out of the MLS system and log in to a separate app, the data is all on the same map/listing view.

I haven’t yet seen CoreLogic’s Fusion product (also developed in Flash) but I have to imagine an MLS system integrated with RealList data would be a hit. CoreLogic does have some hurdles, Tempo, doesn’t work on any browser except Microsoft’s Internet Explorer. And now Fusion won’t run on an iPad. Not anyone’s fault, who could have predicted the iPad’s popularity. But some MLS Vendors, like Solid Earth, appear to be heading to an “iPad first” strategy.

One argument I hear a lot from these MLS Vendors is that according to their analytics less than 2% of MLS subscribers are using iPad to access their current MLS systems. This is just whistling through the graveyard in my opinion.

The Octagon

The issues I talk about above really make for some interesting thoughts about the competitive landscape of MLS Vendors. I see a few scenarios.

Innovation. MLS Vendors who have MLS systems that run on multiple devices, won’t have to develop or mange multiple code bases. These MLS Vendors are free to leverage their develop resources towards other innovations instead of solving cross compatibility issues. A huge advantage as I see it.

Less choice. With the recent acquisition of Tarasoft by CoreLogic lowered the choices in MLS systems vendors. And with CoreLogic still dominating the public records side (has anyone really canceled their RealList contract as RPR has suggested?) are they getting “to big to fail”? Put in another way, do MLS Providers want to have a single vendor control so much of their mission critical applications and data?

It seems the value proposition for other smaller (alternative?) MLS Vendors are starting to get more attractive.

1. Don’t put all your eggs in one basket.
2. More innovation
3. More personal service.

Sounds good to me.

New Business Models

The reality is that its hard being a pimp. MLS system sales have always had a long sales cycle and with the down real estate market not many large/medium MLS Providers are in a hurry to go thru a conversion. So some MLS vendors are opting to start new business models. FBS comes to mind. MLS Providers are also branching out. Metrolist’s Marketplace comes to mind.

Focus is also becoming a big factor. I noticed this in two areas recently.

1. LPS sold their broker and agents division (now R.E.D. Real Estate Digital)
2. CoreLogic recently sold their Membership Director product back to MMSI.

Welcome to the 3rd Party

I also see a big boon for 3rd Party Software developers in the future (hooray!) Managed and standardized databases and APIs are all in the near future. The aforementioned Marketplace is a perfect example of a new distribution model for real estate specific web apps to be sold. If MLS Providers and Vendors can successfully change the behavior of MLS members to look to buy these apps through a portal, and that portal is easily accessible through their MLS system, 3rd Party software companies stand to benefit immensely. Talk about “non-dues revenue”!

You are witnessing the rebirth of MLS Vendors

I see in 2012 MLS Vendors hammering out their strategy for the next NAR annual meeting Orlando. At that conference I think we are going to see a lot of new innovative stuff, not just from the product side but the re-invention of what it means to be an MLS Vendor going forward. I’m excited about the possibilities.

If I had to pick the biggest story in U.S. real estate this year (aside from the ongoing housing crisis) I would have to say Zillow’s IPO. But looking back I’ve been really impressed at what an incredible year Move, Inc. has put together. Yes, that’s right I said Move.

When you take a look everything Move announced in 2011 you have to say that these guys have been hard at work. Not convinced? Take a look at some of the bigger stories.

January 13. Move, Inc. powers AOL. One of the untold stories about this deal is it was actually a “take away” from LPS. So they not only signed AOL, but took the business away from a competitor. – Well played.

February 11. Realtor.com Android App was showcased a the 2011 Mobile World Conference. In the world of mobile this is a huge deal.

April 21. Move, Inc. signs listing syndication deal with Zillow. Crazy? Like a fox.

April 26. Realtor.com launches iPad App. By far the best real estate app on the iPad.

July 18. Move acquires Social Bios. I’m looking forward to see the implementation points Realtor.com does with this technology.

August 17. AOL Real Estate Launches New Search Experience Powered by Move, Inc. The fruits of their agreement begin to bear fruit.

November 1. Release first real estate CRM app to be powered by HTML5. Super cool update to their Top Producer application.

November 3. Realtor.com goes global. Oh yeah, they launched an international site, just for kicks.

November 21. Reverse Stock Split takes effect. I think this is more a mental thing than anything else.

Plus their Find app has been launched in several MLS markets around the country.

And that’s not including another biggie: “Connections” which allows Realtors to generate leads from listings within a specifc zip code (even if those listings are not their own). While I think Realtor.com lost the “high ground” with this service I do think by displaying all photos within that sponsored zip code is a clever way of placating most agents.

And then they launched a Facebook app dubbed “Social Connections“, with Ernie Graham (founder of recently acquired Social Bios).

Whew, no wonder Audie is so damn busy!

Just half of those initiatives would be a huge undertaking. There are some potential game changers on this list. But, as a wise man once said, “ideas are just multipliers of execution”. 2012 needs to be Move’s year of executing the vision (generating revenue) of what the 2011 bumper crop products and services.

So, what do I take away from this? If Zillow, Truila or anyone else wants to play in this sandbox Berkowitz, Samuelson, Beardsley and the the rest of the Move team is ready for a fight.

It’s just about the time of year when you start reading “top 10″ lists of 2011. I thought I would start a new tradition here at Vendor Alley and rattle off my choices for top companies and people in the real estate industry for 2011.

I call them “The Vendys”.

1. The “Bob Hale” Award
The reason I call this the “Bob Hale” award is that it seems Bob is listed every year as one of the top influencer/innovators in the industry. So think of it as “besides Bob”, who really made a difference this year in the real estate industry. : )

And the winner is….Merri Jo Cowen

I’ve been a part of CMLS for many, many years and while other board presidents have set the stage for CMLS to take a larger role in the MLS community Merri Jo has been the catalyst to make those goals happen. It’s been a pleasure to have a front row seat to how CMLS has changed over the years and Merri Jo has been a huge part of that success.

2. Best new real estate technology/product. -Nest
What happens with the inventor of the iPod focuses his attention on real estate? Magic.

Runner up- I have to say that I really love Realtor.com’s iPad app.

3. Top MLS Provider. – MRED, LLC
All you need to do is take a look at the pressroom of MRED, LLC to see the transformation happening at MRED.

4. Top MLS Vendor – TIED: LPS and CoreLogic.
My basis for this was the CIVIX lawsuit. While I believe NAR painted themselves in to a corner with the settlement it was these two MLS vendors who stepped up and wrote the really big checks.

5. Top Real Estate Portal – Zillow
Their spectacular IPO and recent acquisition of Diverse Solutions only shows they are here to stay and poised to dominate.

6. Best new real estate vendor. – Goomzee
I’ve had many discussions with their CEO, Mike Sparr, and he is one of the new players that “gets it”.

7. Top company to watch – RED -Real Estate Digital
After a bold management buy-out, these guys are just getting started.

8. Most improved company – Inman News
The conferences are better, their site is better, Agent Reboot, InmanNext, the list goes on and on. Tim, Alice, Chris, and Katie and the rest of the team has done a spectacular job and can’t wait to see what’s next.

9. Best industry blog – 1000watt Blog
If I can’t pick VendorAlley.com then 1000watt Consulting gets my vote. Brian, Marc and Joel, offer equal doses of spot on analysis and inspiration all wrapped up in a beautifully atheistic and great writing.

10 Best company blog – RPR
While I have been known to poke some fun at these guys you can’t argue what a great job they do with their blog. One small quibble, I can’t view videos on my iPad.

11. Top MLS Provider CEO – Art Carter
Art Carter turned the fiasco that was California Association of REALTORS failed state-wide MLS effort (calREDD) into in the the largest MLS in country. I don’t think he’s done yet.

12. Best Industry Conference. – CMLS
Like with all my picks I’m a little biased but CMLS’ annual conference keeps getting bigger and better.

13. Best Real Estate Franchise – Keller Williams.
Sure their consumer facing website sucks but in the world of real estate franchisors its all about agent count and these guys are winning.

Well that’s it. Am I a “kiss ass”, “spot on”, “not even close”? What say you?

“Before I built a wall I’d ask to know
What I was walling in or walling out,
And to whom I was like to give offense.
Something there is that doesn’t love a wall,
That wants it down.”
Excerpt from “Mending Wall” by Robert Frost

Know Thy Neighbor, is what Nextdoor, a new social network site that is launching today, wants you to take to heart. I admit being new to my neighborhood I have only made causal contact with my own neighbors (polite waves in the driveway). But Nextdoor wants to change all that. By setting up a neighborhood website you can engage with your neighborhoods online. So instead walking over and asking for a cup of sugar, you can write a post asking them for a cup of sugar. Progress!

Part of me thinks this a great idea and part of me thinks its sad that we need to hunch over our computers inside the cocoon of our homes in order to interact with people who are literally right next door (no pun intended).

But I can say that many relationships I’ve made online have then led to IRL meetups that have turned out to be great. Then again Mr. Frost’s poem, I referenced at the beginning of this, post does end with the old English proverb…”Good fences make good neighbors”

Check out Gigaom for a good write up about the new site. And below is a video.

“greater control of the MLS listing database and RETS feeds.”

Seems to be a lot of hubbub in this space. RED has a solution with reDataVault, I believe OnBoard Informatics has one (Listings 360 insight), so does Bridge Interactive Group (RETS IQ Contact™ Server) and I feel like I’m missing someone else. But I’m still not clear on the difference between each of their respective solutions and what main problems they are solving. Part of me hopes it could be some sort of “Data Socket” as Brian Boero suggested at CMLS 2011 and in a recent blog post.

We tried to do a panel with some of these player at the CMLS Listings Summit earlier this year but it was a bit confusing. I’d like to see the same thing again, somewhere.

That being said, I think Bridge Interactive does the best job explaining their value proposition, which is mainly due to focus. Their website is chock-full of good content and videos. And it seems that the only deals I see announced in this space is from Bridge. Here’s another:

________________________________________________________
FOR IMMEDIATE RELEASE

Rhode Island State-Wide Multiple Listing Selects Bridge Interactive Group’s RETS IQ Contact™ Server

Atlanta, GA, October 14, 2011- Bridge Interactive Group (Bridge) announced today that Rhode Island State-Wide MLS selected Bridge’s Contact RETS server for greater control of the MLS listing database and RETS feeds.

“We chose RETS IQ Contact over other RETS servers for its advanced reporting tools, ability to control access to our listing database, ease of use, and affordability” says Mike Letendre, Chief Information Officer at State-Wide MLS. “We have had a very positive experience working with the Bridge staff during the transition to their Contact server, and look forward to a long working relationship with their team.”

Pace Davis, Bridge’s President, says “State-Wide MLS was looking for a robust solution to provide complete control of their listing data and RETS management. We are thrilled that they have chosen Contact as their solution, and are pleased to add Rhode Island State-Wide MLS to our growing list of clients.”

Bridge’s RETS IQ Contact is an MLS-level RETS data management tool that provides detailed control and use reporting for MLS RETS access. RETS IQ Contact has the most comprehensive RETS usage reporting in the industry. Contact stores each and every RETS action then presents that data in several easy-to-read, analytical reports. Contact enables MLS staff to review real-time queries, the number of listings, amounts of data requested and much more. Executive-level summary reports are presented in clear, graphical detail allowing the MLS Administrator or Executive to quickly review and monitor activity on the RETS server. In addition, Contact makes troubleshooting RETS simple. Help Desk or Administrative staff can easily identify failed queries and identify the problem, such as a misspelled word or an improper character. Failed queries are displayed in red which makes them easy to identify and therefore, quicker to manage.

About Bridge Interactive Group

Bridge Interactive Group specializes in providing cutting edge technology and

services to the real estate industry. Bridge offers solutions for listing syndication

control, RETS data usage and monitoring, account management and billing, and

add/edit functionality via its RETS IQ product suite. Bridge technologies are used

by MLS System Vendors, MLSs, Brokers, and more than 280,000 agents. For

more information about Bridge Interactive Group, please visit www.retsiq.com, or contact Turan Tekin at: phone- 404.310.6475, email- turan at retsiq dot com

“Heard You Went Down Last Night”

Ciao Bella Marketing

So here’s my take on the news being announced today.

Management buy-out

LPS Real Estate Group has been split in two. The MLS side, responsible for the Paragon MLS system will still be part of LPS. The franchise/broker and agent products division has been bought out by current managers Jay Gaskill, John Hensley, Prem Luthra and Mike Kovar. This new entity is now dubbed Real Estate Digital. RED for short (love the new logo too!).

Think of RED as a startup but all ready generating tons of revenue. From my understanding RED is well funded and the new owners are pumped up and ready to roll.

MLS Division
In regard to the MLS division I see this gives them a ton of more focus on delivering their current product and services while expanding. LPS knows they have a great asset and doesn’t want to lose it.

The Industry
I don’t see any real parallels to CoreLogic‘s recent news. Their motivations are purely on a “maximizing share holder value” vein. Rumors are also swirling about another MLS vendor looking for a buyer and a deal may be announced soon. Consolidation? Maybe. Time will tell.

But this play is about 4 guys taking the bull by the horns and going for it. Jay, John, Prem and Mike think they can do better, and they are putting their own money, and reputations on the line to prove it.

The Future
To me the franchise/broker and agent products divisions was too messy for LPS to deal with. LPS has bigger problems to solve. I see RED acting more from a consultive side to help franchisors and brokers generate revenue. I also think this change will be welcome from the new owners perspective. In the past they needed to serve many masters, LPS corporate, the MLS division, franchise/broker/agent products and all the customers associated with them. Shedding LPS corporate and MLS will allow them greater focus.

Challenges
Change always freaks people out. So they will have deal with that, from a existing customers and more importantly from a employee side. John Hensley’s core team has been with him for 10+ years, and several company acronyms, so hopefully that won’t be a problem.

On the product side you have a monster platform with their associated rDesk products. That has many advantages, but also challenges. How quickly will they be able to roll out new products? How do their existing products fit into these new business models they want to roll out to franchisors and brokers?

Final Thoughts
I have to say the thing I love about this announcement is about 4 men taking a stand. Some in the industry are hunkering down, timid, a “batting down the hatches” mentality. Jay, John, Prem and Mike are on deck, looking forward, ready for the journey. I find it just damn inspiring.

As Teddy Roosevelt once said…

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. ”

Got get ‘em boys!!!

The program is in beta and limited to the San Francisco Bay Area. According to the blog post the functionality was ” built by an in-house team of experts”. At least they didn’t copy Zillow entirely and call them something zany like “Truestimates” or “Testimates”?

Trulia notes this features was requested by their users. But it’s hard to believe that any of those users included Listing Agents or that they, or anyone else shouted “Give Us Your Team Of Experts Best Guess At The Price Of This Home!!”. To combat this they’ve done something interesting by adding a “Tell Us How Badly We Screwed Up On The Price Of This Home.” “Tell Us What You Think About This Estimate.” comment form.

This gives users a way of commenting on the estimate. Not sure if any of these comments will be of any use. Once they include Active Listings you know the seller and seller’s agents are going to say its bullshit if the estimates is too low, and you know any buyer interested in will say the estimate is too high. On the bright side maybe it will have agents creating more CMAs. So let the games begin!

It’s been only a little more than a year since First American Financial Corp spun off CoreLogic, (June 2010) and now this? It sounds like they are bit spooked by the market. Which is a shame. I think this period is going to separate the men from the boys.

Some will see uncertainty/panic, and some will see opportunity.

CoreLogic forms committe for possible sale
http://www.housingwire.com/2011/08/29/corelogic-forms-committee-for-possible-sale