Where Real Estate Gets Its Dirt

Elm Street Technologies announces two new acquisitions

ELM STREET TECHNOLOGY ACQUIRES CANADIAN TECHNOLOGY AND MARKETING SERVICES COMPANIES TO EXPAND NORTH AMERICAN OPERATIONS

“Elm Street Technology, LLC (“Elm Street Technology”), a leading provider of residential real estate technology and marketing solutions, today announced the acquisitions of Morris Real Estate Marketing Group (“Morris Marketing”), and IXACT Contact Solutions (“IXACT”), specialists in marketing solutions and repeat and referral lead generation conversion technology across the Canadian real estate sector. Both the acquisitions of Morris Marketing and IXACT complements and expands Elm Street’s Elevate platform, which provides an end-to-end suite of real estate technology and marketing services.”

Vendor consolidation continues. Now United States companies are buying Canadian companies? Things are getting out of control! ????

Congrats to Elm Street and the great people at IXACT and Morris Marketing.

Lone Wolf acquires Lion Desk and HomeSpotter

Lone Wolf acquires LionDesk and HomeSpotter, expanding real estate’s leading end-to-end technology suite

“Lone Wolf Technologies (“Lone Wolf”) is excited to announce the acquisitions of two leading real estate technology companies, LionDesk and HomeSpotter. With these acquisitions, Lone Wolf’s end-to-end technology suite now encompasses digital marketing, lead generation, customer relationship management (CRM), showings, comparative market analysis (CMA), digital forms and signatures, transaction management, back office and accounting, business insights, and recruiting. These solutions form the most comprehensive digital technology suite for agents, brokers, MLSs, and associations in real estate today.   “

Well, we might not be physically at the NAR Midyear meetings, but I’ve got to think this is one of the biggest announcements during NAR Midyear in a while.

I’ve written about our decision to sell W+R Studios and how we thought that a CMA was a natural fit to what Lone Wolf was trying to accomplish. You can call it end-to-end digital solutions or just simply software that works together. In this way, the acquisitions of Lion Desk and HomeSpotter also make perfect sense. And hopefully, this won’t cause too much consternation with our mutual partners since Lone Wolf has no aspirations of becoming an MLS participant. ????

Dan and I are also excited to work directly with David Anderson and Aaron Kardell and their teams. I know both of them and admire the companies they have built and the software they have created. I’ve interviewed both of them on my Listing Bits podcast. You can listen to my interview with David here and Aaron here.

It will be great to have these two industry leaders part of the Lone Wolf team.

MetroList Services increases footprint in Northern California

Largest MLS in Northern California acquires smaller neighbor

Bill Miller, MetroList CEO

“Sacramento, California-based MetroList Services, which has about 21,500 subscribers, acquired the Sutter Yuba Association of Realtors MLS at the end of 2020, adding four counties to its footprint. The deal is part of a multi-year trend of consolidation among MLSs looking to provide better services and achieve economies of scale for their agent, broker and appraiser members.”

All I really wanted to do with this post is wish Bill Miller a Happy Birthday! Bill has been a great friend and supporter over many years, and I can’t wait to see him and the rest of the MetroList gang again soon.

The MLS Miracle

NORCAL MLS Alliance Launches One-Stop Access to Property Listing Data for Northern California Real Estate Professionals

“Northern California real estate brokers, agents, and appraisers now have one-stop single-login access to thousands of listings throughout 22 counties* spanning from the Greater Bay Area and Silicon Valley, reaching as far south as Monterey County, and up through the Central Valley to Sacramento and Nevada”

For almost as long as I’ve been in real estate there have been several initiatives to organize a way for MLS providers in Northern California to properly share MLS data. MLS Alliance, Mercado, just to name a couple. They have all failed in one way or another. But here we are. This is a truly remarkable achievement. Hats off to these MLS providers and their leadership.

•   BAREIS MLS
•   Bay East Association of REALTORS®
•   bridgeMLS
•   Contra Costa Association of REALTORS®
•   MetroList®
•   MLSListings
•   San Francisco Association of REALTORS

One thing I find myself saying a lot is something akin to “we can do anything you want technology-wise, its the politics that get in the way.” But in this case the tech was a bit of a bear as well. This “cross pollination” strategy wasn’t easy.

“The NORCAL MLS Alliance unites four separate MLS operating systems and databases—Rapattoni, Black Knight’s Paragon, dynaConnections’ connectMLS System, and CoreLogic’s Matrix systems—in which each respective MLS maintains its existing platforms and protocols. While the transition will be a complex technical feat, NORCAL MLS Alliance staff have spent months testing, planning, and preparing for a smooth and successful launch on January 20, 2021”

They say the pandemic hasn’t started new trends, just accelerated existing ones. I’m hoping to have a podcast episode with some of the players to really do a proper deep dive. Also hoping to see these same players speaking at upcoming conferences telling their stories about making this achievement happen.

Yes MLS is now MLS Now

Ohio’s largest MLS rebrands with an eye on consolidation

“The new moniker reflects “its members’ tenacity for action in the present moment,” MLS Now said Wednesday in a press release. The rebranding does not come with operational changes, though the MLS made the announcement with an eye toward future growth. Yes MLS was formed in 2018 when Cleveland area-based Northern Ohio Regional MLS (NORMLS) and Akron-based Centralized Real Estate Information Service (CRIS) dissolved to form a new, consolidated company that would serve 36 counties in Ohio, West Virginia and Pennsylvania.”

If consolidation is what they looking towards, then NOW is the time. See what I did there? ????

Smarter Agent shuts down

Keller Williams is shutting down Smarter Agent

“Smarter Agent, which was founded more than decade ago by brothers Brad and Eric Blumberg in Philadelphia, boasted on its website that it counted approximately 25 percent of the real estate industry among its clients.
That includes more than 3,000 brokerages and 300,000 agents, according to the company. If those numbers are accurate, the end of the platform would create a chasm in the real estate industry when it comes to mobile application services.”

I think this was only a matter of time. As Inman News correctly states this is par for the course when a franchisor acquires technology. Compass with Contactually, RE/MAX with booj and now Keller Williams with Smarter Agent.

Brad and Eric are two of the savviest businessmen and innovative vendors I’ve met. They were the first to give brokers and agents a white label version of mobile apps to help them compete with the larger real estate portals. They (still) own numerous patents on location-based search.

This also opens the door of opportunity for other companies. Homespotter is a good example as it offers not only mobile technology but also the workflow of generating leads. It seems gone are the days of stand-alone apps. Agents are now being pitched the entire solution.

CoStar set to acquire Homesnap for 250 million in cash

CoStar Group Agrees to Acquire Homesnap, a Digital Residential Real Estate Solutions Provider Used by 300,000 Agents Responsible for More Than Half of All US Residential Real Estate Sales

“Homesnap has great relationships, data, software, and tools for residential real estate professionals that are complementary to our existing offerings,” continued Florance. “The tools and functionality developed by Homesnap for residential property agents, such as lead generation, client collaboration, and digital advertising, have direct applicability to commercial brokers. Our goal is to make these enhanced capabilities available to all of our audiences. Combining forces with Homesnap is also expected to enable us to expand and deepen our collaboration with MLSs nationwide. A very large percentage of CoStar’s clients such as investors, banks, government agencies, appraisers, suppliers, and brokerage firms are active in both commercial and residential real estate, so we believe that they would welcome a more comprehensive solution for their needs across all real estate segments.”

The consolidation trend continues as larger players recognize the power of access to agent tools and partnerships. The deal is listed for $250 million in cash, Homesnap had received at least $32 million in venture capital funding.

No mention of the Broker Public Portal (BPP) by name in the press release. But a huge part of the stated “45%” growth, is due to the participation of MLS providers/brokers across the country, which also gave them access to a lot of top-line revenue via advertising.

The ownership structure of BPP has always been a bit murky to me, but hopefully, those MLS providers and brokers participating in the BPP will get some checks in the mail.

CoStar is essentially a private MLS and exerts massive control of the commercial real estate market. Not clear what CoStar’s play is here, other than diversification, as the commercial market starts to face major challenges due to COVID-19.

Big congrats to Guy Wolcott and John Mazur and the rest of the Homesnap team. From Sawbuck Realty to CoStar is quite a journey. This sale is a testament to their ability to execute on a vision. Well done.

NTREIS expands services to Northwest Louisiana

NTREIS Welcomes the Northwest Louisiana Association of REALTORS® as it Expands

With NWLAR, there are 15 diverse REALTOR Association Shareholders in the NTREIS family. The regional MLS contracts with vendors for services and wholesales to the Shareholders who provide direct services to their membership.

John Holley, CEO of NTREIS added, “Our decentralized model is attractive to Associations that wish to provide a high level of REALTOR services to their membership but have another entity to do the heavy lifting of the technology and data services of a multiple listing service.”

Makes sense. Fits NTREIS’ model, plus NWLAR members get to take advantage of NTREIS deep member services. These cross-state consolidations are becoming more common.

Back to the future for Palm Springs MLS members

Palm Springs Regional Association of REALTORS® listened to their members

“VESTAPLUS™, the newest MLS system to enter the MLS industry and serving over 20,000 REALTORS® to date, inked a deal to bring back their software to the members of the Palm Springs Regional Association of REALTORS® (PSRAR) due to strong demand from PSRAR subscribers. The MLS™/CLAW a luxury MLS services provider in Beverly Hills and Malibu is the provider of VESTAPLUS™. The VESTAPLUS™ software will be delivered via a 3-way agreement between the Palm Springs Regional Association of REALTORS®, The MLS™/CLAW and California Regional MLS (CRMLS)”

With CRMLS latest expansion it looks like they have 4 MLS System of Choices: VESTAPLUS, Matrix, Paragon, and FlexMLS. It’s good to be an MLS Vendor these days.

Industry Relations Episode 41: 10 Defining Moments & Trends in the Last Decade of Real Estate

On January 1, 2010, organized real estate was still reeling from the recession. Dale Stinton was steering the ship at NAR. Zillow was seen as the enemy of the MLS. Real estate software was meh. Agent teams were rare. Nearly all brokerages took a split. Selling your house online seemed outrageous. And we still signed documents in pen.

On this episode of Industry Relations, Rob and Greg are looking back at the last 10 years in real estate. They discuss the passing NAR’s MLS Statement 8.0 Clear Cooperation Policy, debating the significance of the office exclusives loophole and how it might lead to government involvement. Our hosts also express their disappointment around the Newsday investigation in Long Island, Testing the Divide, challenging brokerage leadership to make a strong statement against the egregious racism it uncovered. 

Greg and Rob go on to share their top 10 defining moments and trends with the biggest impact on the industry over the last decade, describing how the rise of agent teams, 100% commission brokerages, the iBuyer model and consolidation have transformed organized real estate. Listen in for insight into how NAR’s decision to fund RPR and Upstream changed the way the MLS saw Zillow and explore how the space has evolved from 2010 through the end of 2019.

Editor’s Note: We did record an Episode 40 that was never aired. It was about Policy 8.0 but wasn’t ready before the vote. After the vote passed we decided it didn’t add to anything to the issue.

What’s Discussed: 

NAR’s passing of the MLS Statement 8.0 Clear Cooperation Policy

Rob & Greg’s take on the Newsday investigation in Long Island

How the loophole in 8.0 could lead to government involvement

The 10 defining trends/events in the last decade of real estate

  1. The end of poorly designed software
  2. The rise and domination of agent teams
  3. The transition in leadership at NAR
  4. Opendoor pioneering the iBuyer model
  5. Zillow’s acquisition of Trulia
  6. 100% commission brokerages
  7. Consolidation and the influx of capital
  8. The practice of buying agents/agent teams
  9. The mainstreaming of digital signatures
  10. NAR’s decision to fund RPR + Upstream

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

Resources:

MLS Clear Cooperation Policy

Compass Pre-Litigation Letter to Bright MLS

Bright’s Response to Compass

Newsday Documentary: Testing the Divide

Rob’s Blog on the Newsday Piece

1000watt Article on Real Estate Software

The Millionaire Real Estate Agent by Gary Keller with Dave Jenks and Jay Papasan

Ben Thompson Interview with Rich Barton

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