Where Real Estate Gets Its Dirt

The Century 21 Super Bowl Ad I would have run.

I was a bit unimpressed with the line up of Super Bowl ads this year. I did think the Jerry Seinfeld ad for the NSX was very funny. But the “Its halftime in America” ad featuring Clint Eastwood was by far my favorite. It literally gave me chills. See below if you missed it.

There was a bit of buzz in the industry when Century 21 announced that they too were going to run an ad during the Super Bowl. At the best I would call the ad “cute“, but at least they were investing in their agents and for that I appauld them.

If I were going to do an ad I would position Century 21 as the real estate company that is going to lead this country out of the real estate crisis. A lofty goal? Yes, but done correctly it would position Century 21 agents as the brand to help rebuild the American Dream. To me that’s “Bolder”.

Here’s the ad. The narrator would be Morgan Freedman (of course!). He would be reading a poem adapted from “The Star Thrower” by Loren Eiseley.

OUTSIDE.

The sun is rising, its morning.

INT. A car is driving through a neighborhood. Views of houses going by thru the windshield.

NARRATOR BEGINS SPEAKING

“An old man had a habit of early morning walks on the beach. One day, after a storm, he saw a human figure in the distance moving like a dancer. As he came closer he saw that it was a young woman and she was not dancing but was reaching down to the sand, picking up a starfish and very gently throwing them into the ocean.

Images of Century 21 agents putting up signs for an open house. Getting stuff out of their trunk. Preparing a house.


”Young lady,” he asked, “Why are you throwing starfish into the ocean?”


The young lady replied, “The sun is up, and the tide is going out, and if I do not throw them in they will die.”

Images of Century 21 agents meeting with buyers, showing property. Kids running up stairs and down hallways.

“But young lady, do you not realize that there are miles and miles of beach and starfish all along it? You cannot possibly make a difference.”

The young woman listened politely, paused and then bent down, picked up another starfish and threw it into the sea, past the breaking waves,

Images of Century 21 agents shaking hands with young families.


saying, “It made a difference for that one.“


The old man looked at the young woman inquisitively and thought about what she had done. Inspired, he joined her in throwing starfish back into the sea. Soon others joined, and all the starfish were saved.

Image of thousands of Century 21 agents walking (wearing gold jackets?) along the shore hurling starfish towards the ocean.

Fade to Century 21 logo.

END

Put that in your pipe and smoke it Parsippany.

When REN?

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.

Market Leader pays Imprev 1.45M early termination fee

Market Leader, Inc Form 8K filed 12/30/2011

“The termination was effective December 31, 2011. As a result, Imprev has released Market Leader from future minimum contractual liabilities totaling $2.6 million, as well as any and all future revenue sharing payments related to the revenue generated from the premium SaaS solutions being provided to Keller Williams professionals. Market Leader will pay Imprev early termination fees totaling $1.45 million, which the Company expects to record as contract termination costs in the fourth quarter of 2011.
Concurrently, both parties entered into a transitional services agreement for the period January 1, 2012 through June 30, 2012 for which the Company will pay Imprev $600,000.

Starting in the first quarter of 2012, Market Leader will offer its own marketing, design, and printing capabilities as fully integrated components of its SaaS platform and products based on the solutions that were acquired as part of the August 2011 acquisition of SharperAgent.”

Ouch.

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