Where Real Estate Gets Its Dirt

Thoughts on NAR’s iOi Summit

I had heard about this event a few months ago, and had been asked if I was going to attend. I was skeptical about it, but when I received an invitation to apply to participate in the “pitch battle”, I went ahead and applied. As I previously mentioned I was surprised that we were selected.

The event was designed by Bob Goldberg, NAR’s CEO to bring the disruptors “inside the tent”. To foster “innovation, opportunity & investment”. Basically Mr. Goldberg wanted NAR to be part of the conversation.

Color me impressed. Not only was the event very well produced, but I enjoyed meeting and seeing other vendors, some old (like me) and some new in the space. I loved vendors pitching agent safety apps, new CRMs, new front end of choice apps, 360 photo apps to help with disaster recovery efforts, real estate photo augmentation, using lockboxes help with in-home medical care, and a way to level up agent performance. What I found most impressive is none of these new startups seemed to be making money by selling ads. Bliss!

BoxBrownine won the “Pitch Battle”. And KW Labs won the Hackathon. You can read more about them here.

And true to his word, Mr. Goldberg did bring in a few heavy hitting investors to the conference too. Of course Mr. Goldberg couldn’t help himself in touting NAR’s own success in the investment arm of his organizations, Second Century Initiatives and REach. He interviewed Ron Hirson, Chief Product Officer from DocuSign. Which recently went public and made NAR a small fortune.

As Mr. Goldberg hit the stage to wrap up the conference, I was thinking about what was missing about the event. And then it hit me. Zillow. I heard nary a mention about Zillow from any of the presenters, or startups in attendance. Not from some sort of mandate, but just…because.

Which to me was the most impressive. Bob Goldberg did seemingly the impossible. He held a tech conference where nobody was talking about Zillow.

RPR lays off 10% of staff

Dynamic changes on horizon for Realtors Property Resources®

“NAR CEO Bob Goldberg established a clear vision for the Association and RPR moving forward,” said Young. “RPR’s core mission is clear, ensure that REALTORS® remain essential to the transaction through access to tools, features connected to nationwide parcel-centric data and reports. RPR’s growth in the future will be driven by programs which refocus the RPR team to develop a deeper understanding of the daily life and business of agents and brokers.”

Over the course of several months, RPR conducted internal assessments of its technical processes, organizational structures and strategic initiatives. As a result, the platform will reduce its overall staff count by 10%, allowing it to meet its 2019 budget directives, while reimagining its market level communications and support programs with its network of broker, MLS and association partners.

See you at NAR iOi Summit this week

A few weeks ago I received an invitation to apply to compete in the “Pitch Battle” at NAR’s inaugural “iOi Summit“. I thought it was a long shot but maybe good opportunity to get the word out about Cloud CMA’s new feature, Cloud Investor Connect. Surprisingly I made the cut. I’m told there were over 100 applications, but they choose only 16 to compete.

CRMLS, MRED and SFAR have sponsored to another portion of the event, a hackaton.

So if you are going to be in SF, I leave tomorrow morning, drop me a line.

Whistleblower claims RPR’s code is “very fragile” and “garbage”

Andrea Brambila writing for Inman News

Former contractor launches crowdfund campaign to sue RPR

“He worked on RPR’s core platform — the property database — not Upstream, but chuckled upon hearing that one reason RPR was chosen as the vendor for Upstream was because the company planned to build on its existing technology to create Upstream.

“They had to start from scratch because they couldn’t use a lot of the code from RPR because it was so bad,” Komar said, noting that that was likely a reason for Upstream’s delayed launch.

RPR’s technology is “very fragile” due to its “poorly architected system” and “poorly written” and “non-optimized” code, according to Komar.

In his opinion, RPR would have no chance of selling the platform. “Anyone who did their due diligence would give them a failing grade,” he said.”

I tell you who’s not “chuckling”, NAR members. Over 230 million dollars later, RPR and Upstream have both crossed over and have become Greek Tragedies at this point. Somebody should write a book.

Mark Lesswing out at NAR

Letter from Bob Goldberg sent out today….

With the creation of our Strategic Business Innovation and Technology (SBIT) team, it became increasingly clear to me that NAR’s need for a Chief Technology Officer and the advanced skill level that Mark Lesswing provided was no longer required, so we have eliminated that position as of today. Making reductions in the workforce is never easy, and I trust that you will join me in acknowledging the great contributions Mark made to NAR over the past 17 years and in wishing him great success in the next chapter of his career.

Mark is an incredibly talented guy with an enormous curiosity and really one of the nicest people I’ve met in the industry. I always enjoy seeing what the guys at CRT are working on. I have a CRT Labs sticker on the MacBook Pro I’m writing on now.

These transitions are tough, but sometimes the best thing too. Good luck to Mark on his continuing adventures.

NAR reveals plans to renovate Chicago Headquarters

It’s got a “Daily Planet” kind of vibe if you ask me. ????

More details at Inman News.

HAR clarifies position on dues increases and comments on recent MLSListings retracted op-ed

From H.A.R. Chair Kenya Burrell-VanWormer

REALTORS® Are Stronger Together

I didn’t expect to write anything else on the topic of the proposed NAR dues increase, but with the situation as it now stands, I feel I must speak to make sure people don’t jump to the wrong conclusions.

First, let me start by reiterating once again that we have the utmost respect for Elizabeth Mendenhall, John Smaby, and Bob Goldberg, as well as the rest of the NAR Leadership Team and staff. We consider them all to be friends. This isn’t a “fight” as some people have characterized it. We believe they are trying to make the best out of a bad situation that they inherited. We’ve been in near constant contact with them during the past few weeks. In fact, when we took a particular action, we informed NAR leadership before we did it. We have had an open dialogue with them, which we appreciate.

HAR’s opposition to the proposed dues increases, including opposing the 2.5% annual automatic escalator, simply comes down to a question of how to fund the budget in the most financially prudent way. Some have said that $30 isn’t that much money, and many of our members agree. This isn’t about $30 though. It is about $39 million. They feel it would be throwing good money after bad.

We have asked questions about the budget, but they have always been professional and respectful. These questions have resulted in a thoughtful dialogue with respected leaders of our industry, such as Sam DeBord and Bill Lublin. That’s a good thing and was part of our real goal; get people talking and looking at all sides. We don’t believe it is ever appropriate or warranted to make reckless claims against anyone in volunteer or staff leadership.

The op-ed I submitted to Inman News, as well as letters sent to HAR members and association leaders across the country presenting our positions, were written as a collaborative effort among the HAR executive officers and executive staff. A small group of us drafted each of these documents and then sent them out to our executive committee, boards of directors and local NAR directors. This list totaled about 37 people reviewing each of these communications before they were sent to anyone outside of HAR. Some people had very valuable suggestions, which were incorporated into the letters. If our original letter expressing our positions was somehow twisted into the accusations that were made about honorable NAR leaders, then I personally apologize. That would never be our intent.

No consultant was involved at any time in our process, including preparation of the member survey, Inman op-ed or any other communications related to the proposed NAR dues increase.

The fact that we surveyed our members has also come into question. NAR invited member feedback, which is what led us to survey our own members, which are also NAR members. We are all on the same team and want to do what is best for REALTORS®. We have a robust research program, which includes regular surveys of consumers and members. We are a membership-based organization, so we want to know what our members think. Does it mean you have to follow exactly what they say? No. But it does provide helpful insight and give you a sense of the sentiment among the members at large. When 97% of the respondents say they oppose something, then that is hard to ignore. There are literally thousands of comments that they submitted, all of which may be viewed at www.har.com/NARDues.

Even though we have been sidetracked by the other (now retracted) op-ed, we stand behind our original proposals for funding the budget. We fully support the REALTOR® Party political advocacy efforts at which NAR usually excels. Note that HAR is well on its way to raising more than $1 million for RPAC for the third year in a row.

We don’t necessarily expect the vote to go our way on May 19, but we do hope that it has opened a constructive dialogue about priorities and how to fund them. All of our communications with Elizabeth, John, and Bob lead us to believe that this coming year will be one to review these activities, and we believe they are the right people at the right time to make NAR stronger.

As I also keep saying, we want NAR to succeed because its success is our success. If there’s one thing we learned from the aftermath of Hurricane Harvey, it’s that REALTORS® are stronger together. I, along with everyone else from Houston, look forward to a productive NAR Midyear and Board of Directors meeting.

Respectfully,

Kenya Burrell-VanWormer

Kenya Burrell-VanWormer is the chair of the board of directors of the Houston Association of Realtors, which is the second largest local Realtor association in the country, with more than 37,000 residential and commercial members.

Together. Yup.

Will the Feds shut down Upstream?

Government staffers question Upstream CEO on antitrust ahead of launch

Lange confirmed to Inman that he spoke with staffers from the DOJ and FTC yesterday and has separately spoken with staff attorneys for the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights on two other occasions in September 2016 and January 2017, including a trip to Washington, D.C., to answer questions surrounding whether Upstream would violate federal anti-competitive laws.

So the government has questioned UpstreamRE on 3 separate occasions, in 2016, 2017, and now 2018? Does that sound normal? Does that inspire confidence?

“David Kully, a former staff attorney in the DOJ’s antitrust division, spoke at an MLS forum hosted by Zillow in Dana Point, California, in late April. He said if he were still at DOJ, he might ask whether Upstream “is something that is going to help facilitate brokers overcoming the competitive forces that have caused them to share data and to change from that.”

“I do not mean to say that the intent of Upstream was to allow brokers to stop competing on where they send listings and to reach a potentially illegal agreement to boycott listings portals, but I wonder whether it might unintentionally have that effect by making it easier for brokers to do so,” Kully said when reached by Inman.

“I haven’t spoken to anyone at the DOJ or FTC about this and don’t know whether this is on their radar screen.”

Real estate giant Zillow Group confirmed that it speaks with government officials regularly and has specifically pointed to Upstream as a company it has concerns about within the real estate ecosystem.

Mr. Kully has raised this same issue last month.

So the DOJ/FTC has questioned UpstreamRE 3 times over the past 3 years. The former lead attorney for the DOJ (who fought successfully for the DOJ and forced NAR to change it’s listing policy) says a side effect of Upstream could make it anti-competitive and Zillow (the 6,000 pound gorilla in the room who’s CEO regularly visits Washington D.C.) also “has concerns”.

Is anyone paying attention? Upstream is already two years behind schedule, and if it ever launches (and that’s a big IF) it appears there’s a good chance the government may shut it down. This after, less than a year ago, NAR approved an additional funding of 9 million dollars (I’ve lost count on how much already had been spent).

I think Will Rogers said it best.

“When you find yourself in a hole, stop digging.

Or maybe Kenny Rogers,

“You gotta know when to hold them, know when to fold ’em”

Or maybe Bruce Springsteen,

“It’s a death trap, it’s a suicide rap
We gotta get out while we’re young”

But hey, whatever man, roll the video…

Get ready to rumble!

Op-ed piece from Jim Harrison on Inman News…

It’s time to stop ignoring the crisis at NAR

“Over the past 90 days these issues have intensified over events related to NAR finances. Questions have been raised internally and externally about a pattern of unsuccessful NAR efforts and exploits. These include HouseLogic, the Realtor Credit Union, Realtor Radio, The Realtor University, RPR, Upstream, AMP, the almost childlike, “Logo-gate,” NAR’s lackluster performance at the recent T3 conference and, most recently, NAR’s wholly-owned Second Century Ventures entity.

Get your popcorn ready, next week is going to be fun!

UPDATE: NAR Responds!

NAR ‘furious’ over criticism of leadership, denies profiteering

“We are not afraid of criticism and welcome an open respectful dialog and honest discussion. However, this type of bullying is unacceptable and no volunteer or staff should be subject to this. It discourages participation and involvement. The future of our organization is strong and we want our members to be fully engaged with their National Association of Realtors.”

Seriously zipLogix?

Below is a few of “questions” sent out by zipLogix as part of a “survey” to NAR’s Board of Directors. Apparently it’s part of an effort to help secure zipLogix’s renewal at the upcoming budget meeting at NAR Midyear.

If you can’t read the questions, here’s what they ask….

1. Please choose the answers that most closely describe the value of zipForm(r) to your business.

– I couldn’t do business without it
– It’s the most valuable membership benefit
– I use it regularly and find it valuable
– I would regret not having access to zipForm(r)

Fucking shameless.

The third question is basically a phishing scam to gather intel.

3. If the vote to keep zipForm in the NAR budget was held today, how would you vote?

-Yes
-No

This is just embarrassing. Puts them and the whole renewal process in a bad light.

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