Where Real Estate Gets Its Dirt

Famous investor shorts Zillow stock big time.

The Real Deal: The “Big Short” investor that bet against subprime has a new target: Zillow

“In “The Big Short” – the 2015 film about the financial crisis – actor Steve Carell plays a character based on noted short seller Steve Eisman, who made hundreds of millions of dollars betting against collateralized debt obligations laden with subprime residential mortgages.
In real life, Eisman is now a portfolio manager at the investment management firm Neuberger Berman, where today he’s shorting companies like Barclays and TD Bank.
But one of his largest short positions is in the Zillow Group, which Eisman believes has run out of new ideas to grow its stagnating home-listing business.”

Yikes! I enjoyed the movie and Steve Carell’s character but I have more confidence in the iBuyer model than he does. But one thing I think he gets right is that Zillow is kind of betting the farm on Zillow Offers. Mike DelPrete did a great presentation at Inman Connect and talked about Zillow slow growth of Premier Agent Revenue. They had to do something.

Time will tell. Looking at Zillow stock, which has sacrificed profits in favor of growth, is up from a year ago when it announced it original version its iBuyer model, while Realogy (a profitable company) is down since the announcement that it was partnering with Amazon. ????‍♂️

Inman Connect Las Vegas – Recap

I’ve had a chance to somewhat recover from a whole week in Las Vegas. Frankly coming home on Friday (after a 4 hour delay, hell I could have drove back in less time) I was exhausted. While I didn’t “go big” on the first night I did on a few of the others. So here’s my take on Inman Connect’s first conference in Las Vegas. The good, the bad and the ugly.

The Good

Brad started off a little different this year, he turned the tables on himself. So instead of giving a inspirational speech or throw out a wild goal, he was interviewed and shared with everyone some of the origin stories of Inman News and his best and worst interviews. Interesting to hear that Barbara Cochran had him on his heels. As for the rest of the show I can’t remember when we had such great speakers. Both mornings (Wednesday and Thursday) were just great. Unlike other interviewers Brad isn’t afraid to ask difficult questions. At one point he asked Rich Barton, CEO of Zillow, since Zillow now seems to have broker licenses in all 50 states, “How can anyone trust you anymore? Yikes.

A big shout out to Clelia Peters who did a lot of interviewing on stage, she did an outstanding job. Hope she comes back again. I think the line of the show when she was interviewing Ryan Gorman, CEO of NRT, Inc. who is suing Compass over alleged illegal recruiting practices. Peters opined that such practices might be aggresive, but maybe not illegal. Ryan, shot back, “It’s a fine line between shopping and shoplifting”, which the crowd just loved.

I really enjoyed Cheih Huang, CEO of Boxed. His talk on “how I built my company” was great. He told a personal story of starting his business with a lot of emotion and humor. Good stuff.

While San Francisco is my favorite city of all time, I did enjoy having the conference in Las Vegas. You had so many options. The best restaurants, shows, etc.

So overall, as for the conference itself, the exhibit booths, startup alley, and General Sessions Inman Connect scored a 9 out of 10.

The Bad

The “bad” weren’t necessarily in control of anyone or a failing of the conference organizers, just compromises.

Having to huff back and forth between the conference area and your hotel room or bars was a pain in the ass. Not having everything in a central location was missed. But not every hotel is set up like the Marriott Marquis.

Your hotel room key only got you to the floor you had your room on. I’m told this was a security precaution since the concert shooting in Las Vegas. This made it very difficult to attend any parties or get customers up to your suite for private meetings.

Not having one central location (aka a single lobby bar) was also a bummer. With everything being so spread out there were people I didn’t see until Friday.

The Ugly

The General Sessions started at 8:30AM. And it doesn’t get anymore uglier than that when you were up till wee hours of the morning. How about 9:30am? 10? Pretty please, with sugar on top!

Other Highlights

While I didn’t win the Inman Innovator award ( you can see a list of award winners here) for either of my podcasts (Listing Bits and Industry Relations) I was very pleased to see Sam DeBord win the Nate Ellis Award. As Inman News put it….

“Sam DeBord…Embracing the role of the agent and the brokerage, he has pushed the industry forward with his credible voice, his relentless advocacy and his unmatched smarts about the real estate business.”

I knew Nate, and the spirt of this award was exactly right. Congrats Sam.

My thanks to Brad, and the rest of the Inman News team for a fun week.

Amazon partners with Realogy

Patrick Hearns for Inman News: Amazon makes splash with game-changing Realogy partnership

““Customers can be overwhelmed when moving, and we’re excited to be working with Realogy to offer homebuyers a simplified way to settle into a new home,” Pat Bigatel, director of Amazon Home Services, said on Monday leading up to the roll out. “The Amazon Move-In Benefit will enable homebuyers to adapt the offering to their needs – from help assembling furniture, to assisting with smart home device set up, to a deep clean, and more.”

I might be missing something but for years the industry has been holding their collective breath with “wait till Amazon gets in to real estate, then everything is going to change…” This announcement just sounds like Amazon wants to sell you more shit. “Game-changing”? Meh.

Design: Location

A couple things about design and location. The first is in an observation from me on the upswing in drone photography and best practices.

You can see a larger image of both by clicking here.

The second is from Leonard Kiefer, Deputy Chief Economist at Freddie Mac. He’s a great follow. I love his data viz stuff. He marries the context of his data viz with the story he is telling. For instance in this example he is talking about growth in housing prices on coastal states. I love how he matches each of the charts placement to mirror their location on a map of the U.S.

Both are highlighting location but it different ways.

Keller Williams partners with DocuSign

Patrick Kearns from Inman News: EXCLUSIVE: KW partners with DocuSign to improve transaction management

Keller Williams is integrating its proprietary customer relationship management tool with DocuSign, an e-signature and transaction management platform.

“The integration of DocuSign’s Rooms for Real Estate into the Keller Cloud is a significant step for us as we continue building an end-to-end platform for our agents, who in turn will create a world-class experience for consumers,” Neil Dholakia, Keller Williams’ chief product officer said in a statement.

Nothing says you’re a technology company more than outsourcing your technology. That being said, this is a smart move.

The integration of DocuSign into Command will likely leave many wondering what’s to become of Keller Williams’ relationship with dotloop, which many associates currently use as their transaction management software.

The Zillow-owned dotloop will still be available to associates through an integration with Command — which is expected to be in place by September 15 — however, the service will be fee-based. Using DocuSign will be free for Keller Williams associates.

Not a good day for Zillow.

Inman Connect – Las Vegas. Are you ready?

I gotta be honest. I’m a little nervous. A full week in Vegas? Yikes. At the same time I’m super pumped. Brad has put together a jammed pack agenda (the best ever?) As a real estate geek I’m going to be in heaven.

You got Mike DelPrete talking about iBuying. Mike is an expert on iBuying and his presentations always give me great insight. Also, Molly Bloom, the women who ran the most exclusive poker parties in Hollywood (great movie Molly’s Game, if you haven’t already seen it), I’m in! Plus Brad is going to interview Zillow CEO Rich Barton, Eric Wu, CEO of Opendoor and my personal favorite GFK (Glenn Fucking Kelman), CEO of Redfin. And that’s just a taste, there’s tons more great content.

Dan and I arrive Monday. And we are bringing a lot of the W+R team with us, so we will be rolling deep!

W+R Studios’ very own Katie Smithson will be on a Data Track panel Thursday at 3:45 PM, discussing with RESO CEO, Sam DeBord, “The Technology Driving Data Policies”.

If you are looking for a bit of an Inman Connect warm up, please check out the latest Industry Relations episode with Rob Hahn (recent Vegas transplant) and I. Which reminds me that on Thursday at 11:45 they will be announcing the Inman Innovator award winners. Two podcasts I produce, Listing Bits and the previously mentioned, Industry Relations are both nominated. ????

And of course I really looking forward to the great conversations I know I will be having with all of you.

But, I feel that I must leave you with this important Public Service Announcement (PSA). I feel that now more than ever, you need to really embrace it…

Buyside gets Zapped!

Buyside: BHGRE Metro Brokers Integrates Buyside™ Into Realogy’s® Zap Platform

Buyside™ announced that Atlanta, GA based BHGRE Metro Brokers will be the first firm in the Realogy Franchise Group to integrate data from Zap into Buyside. Metro Brokers is among the largest Better Homes and Gardens Real Estate franchises in the world with over 2,400 agents and 27 offices. Using Buyside’s proprietary algorithms, buyer data from all Metro Brokers’ Zap websites will be combined with search activity from the major search portals to form a more complete picture of the demand for any property.

This sounds very intriguing. I wonder how many and what the traffic is to these “Zap websites” that Metro Brokers have deployed.

“According to Charles Williams, IV, CEO of Buyside, “The software we supply to Metro Brokers unlocks the power of their buyer data for agents so they can win more listings, become more profitable and command greater control over their inventory.” Buyside’s core products include Home Valuation landing pages, which combines multiple automated home valuations with visualizations of real-time buyer intent; Buyer Match™ dashboard, which intelligently pairs home buyers and sellers within a brokerage; and Real-time Buyside Market Analysis (BMA), which arms a brokerage’s agents with insights on buyer demand to help them close more listing presentations..”

We are about to launch Buyside integration (to a broker to be named later) in Cloud CMA. I’ve seen it on staging and can confirm it is a super cool use case for listing presentations.

Apollo 11

Buzz Aldrin


“But why, some say, the moon? Why choose this as our goal? And they may well ask why climb the highest mountain? Why, 35 years ago, fly the Atlantic? Why does Rice play Texas?


We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.”

-John F. Kennedy

The audacity. The optimism. Still gives me chills just reading it.

Did I ever tell you the story the day I met Neil Armstrong? I think I did.

Industry Relations Episode 37: Inman Connect Las Vegas Pre-Show – RealScout, Opendoor, Redfin and Coming Soon Listings

Fight! Fight! Fight!

We’ve always been told that people love it when Rob and Greg argue.  If that true, then we have one of the best Industry Relations Show ever!

With Inman Connect Las Vegas on the horizon, Rob and Greg are facing off over the trend toward exclusive listings and the new Redfin-Opendoor partnership. What does the development of in-house listing programs mean for the industry? And how will the joint venture with Opendoor impact RedfinNow? Our intrepid hosts have very different answers to these questions.

On this episode of Industry Relations, Rob and Greg are discussing the impact of systematic coming soon listings. Rob makes the argument that widespread adoption will take down the MLS, moving residential real estate to the commercial model. Greg makes the case that pocket listings are nothing new and challenges the idea that the MLS will become a ‘dumping ground’ for properties that haven’t sold privately.

Rob and Greg also weigh in on the new partnership between Redfin and Opendoor. Listen in for Greg’s insight around why the collaboration is a genius move that benefits both parties and learn why Rob sees it as a huge concession on Redfin’s part—a concession that will eliminate their own iBuyer operations in each and every Opendoor market.

What’s Discussed: 

What Rob & Greg are looking forward to most at Inman Connect

Greg’s criticism of Rob’s recent posts on RealScout’s Buyer Graph

Rob’s argument that coming soon programs will take down the MLS

Greg’s counter that exclusive listings are not a new phenomenon

How residential real estate may be moving to a commercial model

Greg’s take on the brilliance of the Redfin & Opendoor partnership

How the new partnership with Opendoor will impact RedfinNow

Rob’s view of the partnership as a concession on the part of Redfin

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

Resources:

Inman Connect

Notorious R.O.B. Blog

RealScout Buyer Graph

HAR YPN

Howard Hanna Find It First

Top Agent Network

Redfin & Opendoor Partnership

RedfinNow

Offerpad

Our Sponsors:

Boost Summit

Notorious V.I.P.

Redfin and Opendoor – Wonder Twins Activate!

Teke Wiggin for Inman News:

“Hi-tech residential real estate brokerage Redfin is partnering with Opendoor, the private Silicon Valley startup that makes cash offers on homes directly over the internet, in a move that is likely to raise the eyebrows of many competitors in both the traditional real estate and fast-growing online cash offer (or “iBuying”) space.”

So smart. I just love these kind of partnerships. To me it also represents Opendoor fully embracing agents. And I hope it will help more agents to consider what a great tool/option iBuying can be for them and their clients.

“Redfin, which maintains a highly-trafficked home search portal that includes for-sale listings from numerous other brokerages, will also offer special marketing perks on the homes listed for sale by Opendoor that appear on Redfin’s site and apps. The companies will evaluate expanding the partnership to other markets outside of Phoenix and Atlanta.

The partnership looks like a bid by Redfin and Opendoor to jointly counter Zillow Offers, Zillow Group’s iBuyer program, which also lets customers request all-cash offers on their homes over the internet.”

I’ve written about this before. The war between Zillow and Opendoor is one of workflow vs. lead flow. Zillow is obviously winning on lead flow and catching up on workflow. This move by Opendoor (and I expect others) helps them on both sides. Lead flow by putting Opendoor’s “Get a Cash Offer” button on listings (lead flow), and “special marketing” for Opendoor’s own listings on Redfin’s site (work flow – getting homes sold quicker).

“Its integration with Opendoor, however, lets the high-tech brokerage extend instant offers to many sellers whose homes Redfin Now isn’t prepared to buy yet.


Opendoor operates in 20 markets nationwide, while Redfin Now is available in only a fraction as many. For example, Redfin Now currently isn’t buying any homes in Phoenix and Atlanta, the two markets where the Redfin-Opendoor partnership is going into effect.


“Just as traditional agents are our partner for brokered sales our own agents can’t handle, Opendoor is our partner for giving customers reliable, competitive offers on homes we ourselves can’t buy,” said Redfin CEO Glenn Kelman in a statement.”

Simpatico baby! Redfin also wins by expanding iBuying services in areas it doesn’t currently cover. I also think that by expanding the number of properties it can extend a cash offer helps them with seller leads as well.

“The partnership demonstrates striking synergies between Opendoor and Redfin that a merger could fully consummate.
Opendoor CEO Eric Wu had kind words for Redfin and wouldn’t rule out a future marriage.


“What I can share is that I’ve known Glenn for years, and I have a great deal of respect for him, and from my perspective, I’m a fan of the product, use the product that’s built, and so in this chapter, we’re focused on the success of this partnership, and we’ll look for ways to deepen our relationship if it’s successful,” he said.”

Inman News was really baiting both Kelman and Wu on this merger question. In my opinion I don’t think a merger would ever happen. We are all still in the first inning of this game.

As I said in the beginning, this to me is the first real deal representing iBuying going “main stream” in organized real estate. While Redfin isn’t your typical broker, it could be the sign of things to come.

The worry I would have at Redfin is if this move would jeopardize any current relationships, à la the RE/MAX kerfuffle around Redfin Direct.


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