Where Real Estate Gets Its Dirt

Enough!

If a listing is online, it should be online everywhere: Zillow’s new listing access standards

“Consumers should not have to wonder whether the home that might be perfect for them is hidden behind a gate they didn’t know existed. And agents shouldn’t have to jump through hoops just to show their clients all the homes available to buy. 

Zillow was founded on the principle of free and fair access to real estate information and listings and we have not wavered in that commitment. We are the most trusted consumer brand in real estate, with the largest audience of movers who expect to see all the publicly available listings on Zillow. We have a responsibility to deliver what consumers demand and deserve. We will continue to advocate for the best interests of consumers, as we always have. “

Zillow sounds like the Dad who… just about had enough of this bullshit. And I’m here for it!

Red Rocket

Rocket Companies to Acquire Redfin, Accelerating Purchase Mortgage Strategy

“Rocket and Redfin’s approaches to lending and brokerage service have always been two halves of one vision to make the whole home-buying process magical,” said Glenn Kelman, CEO of Redfin. “We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes. Varun and I see how much better real estate could be when AI guides customers not just through that first step in their search, but all the way home, through the sale, the loan and then a lifetime of accumulating equity and wealth.” 

Talk about attachment rate! But in the end, Redfin had to do something. I remember reading their last announcement about laying off 450 people due to their deal with Zillow Rentals and thinking, “Do they still have 450 left?” There were rumors swirling about Zillow acquiring Redfin, but I never took those too seriously.

I’m still processing what this means for Glenn Kelman—or GFK, as I affectionately refer to him. In an industry dominated by big personalities, Glenn was the guy who was going to fight the good fight. I’m sure the biggest reason this happened was that Glenn saw it as the best path for Redfin’s survival.

The consolidation continues…

REX gets vexed by Ninth Circuit Court

From Inman News: REX loses appeal in long-running lawsuit against NAR, Zillow

“A three-judge panel on the Ninth Circuit Court of Appeals has ruled against REX Real Estate, affirming lower court rulings that threw out its antitrust claims against the National Association of Realtors and Zillow and denied the now-defunct real estate brokerage a new trial against Zillow.”

Even the DOJ couldn’t help…

“On Feb. 13, the Ninth Circuit held oral arguments in the case, with each side and the U.S. Department of Justice getting a chance to speak. Alice A. Wang, counsel to the assistant attorney general at the DOJ’’s Antitrust Division, asked that the case be sent back to the district court, arguing that “an optional rule could be mandatory in practice,” “the adoption of an optional rule can itself be concerted action,” and “an optional rule can serve as an invitation for others to join in a common plan.”

But the three-judge panel disagreed.”

I’ve never fully understood REX. Always seemed like they had ulterior motives. 🤷‍♂️

Aligned Showings passes 2 millionth mark and introduces usage-based pricing

Aligned Showings Reaches 2 Millionth Showing and Introduces Usage-Based Pricing

“Having booked over 2 million showings across our MLS partners is a huge milestone for us. We continue to add new features to Aligned Showings, which has led to over 91% of active listings using the platform in RMLS alone,” stated Kurt von Wasmuth, CEO of RMLS in Portland, Oregon.”

Many MLS software solutions are bundled or provided at little or no cost. The drawback to these tethered solutions is that they limit choice and competition. Additionally, many of these vendors require licensing and terms that MLS organizations would rather not concede. As the saying goes, ‘When the product is free, you’re the product.’

With Aligned Showings usage-based pricing, MLS organizations can now offer more choice to their agents without surrendering unwanted or aggressive data usage rights.

Zillow President, Susan Daimler, speaks out against private listing networks.

Private listing networks harm sellers, buyers, and fair housing

“For the very few people who need maximum privacy over maximum price, there should be options to have a home privately listed. This practice should be the exception, not the rule, because it doesn’t serve the needs of most sellers. And most MLSs do allow sellers to opt out of having their listing online. But for those who believe they are making the decision to list with a private network for any sort of reduced hassle in the form of avoiding showings or timing delays need to understand the clear tradeoff they’re likely making in price and selling speed. “

Exactly. Many proponents of pocket listings argue that it’s about preserving the seller’s freedom to sell however they want. But that’s just a smokescreen. Sellers and buyers currently benefit from a unified marketplace, and dismantling this system would harm them, driven by the greed of larger industry players.

Zillow comes to its senses

Zillow finalizes lawsuit settlement with ARMLS, Metro MLS

“In December 2023, Zillow filed suit against ARMLS and MetroMLS, claiming both MLSs violated antitrust laws when they planned to disable their integrations with ShowingTime in favor of MLS Aligned’s Aligned Showings platform. ARMLS shuttered its integration with ShowingTime on Dec. 27, with MLS Inc. following suit in February 2024.

Zillow questioned the timing of ARMLS and Metro MLS’ decision, claiming it was an attempt to give MLS Aligned “a monopoly” in the MLSs’ respective regions.”

Marian Mcpherson, Inman News

I’m a little biased but Zillow declaring Aligned Showings, a brand new showing service, which effectively added another choice for MLS organizations to choose from now had a “monopoly” has to be one of the most “WTAF” moments in real estate history. Never mind the fact that Zillow was basically strong-arming MLS organizations into integrating ShowingTime on their MLS systems by default.

Great to see leaders at ARMLS and MetroMLS having the courage to fight against this nonsense.

If anything Zillow should look at the recent ruling where a federal judge ruled that Google engaged in illegal practices to preserve its search engine monopoly.

But hey, I’m not a lawyer or giving any legal advice.

Move sues CoStar over trade secrets

CoStar hit with trade secrets lawsuit over dueling real-estate websites

“According to the complaint, Kaminsky headed Realtor.com’s “News and Insights” platform until he was laid off in January. The lawsuit said that Kaminsky took a similar role at Homes.com in March.

Move said it discovered last month that Kaminsky had stolen documents related to business strategy, industry contacts and “a vast array of other competitively sensitive and valuable information” for CoStar.”

Blake Brittain, Reuters

Shades of 2014 when Move sued Zillow over the departure of Errol Samuelson and Curt Beardsley. That was pretty messy and Zillow finally settled (without admitting any wrong doing) for $130 Million. Someone once told me that you are never really successful until you start getting sued. So I guess it’s official that Homes.com is getting traction.

Funny that it’s usually CoStar doing the suing. It will be interesting what tidbits come up in discovery if things get that far.

Zillow settles with MLSs

Zillow, MLSs reach settlement in ShowingTime lawsuit

“A court document filed on June 13 stated that Zillow Group and the defendants — Arizona Regional Multiple Listing Service, Wisconsin’s Metro Multiple Listing Service, and MLS Aligned, an MLS collaboration which developed Aligned Showings — have reached an agreement in principle that will result in the dismissal of claims once finalized.”

Real Estate News

Zillow should have never sued their own customers in the first place. One the worse business decisions this space has ever seen.

A new home search portal swoops in to the mix

Flyhomes Launches World’s First AI-Powered Home Search Portal

“Developed over the last two years, ‘Flyhomes AI,’ is a proprietary technology which brings the first conversational real estate search and research to the market, dramatically expanding the amount of information home shoppers can find online.”

Flyhomes

The company has some legit pedigree too.

“The technology integration was overseen by ZeroDown co-founders, Laks Srini and Abhijeet Dwivedi, who joined Flyhomes as chief technology officer (CTO) and chief growth officer (CGO), respectively. Srini and Dwivedi previously served as Co-founder/CTO and as COO at SaaS HR platform, Zenefits.”

Flyhomes

One of ZeroDown’s major investors is Sam Altman, CEO of OpenAI, the creators of ChatGPT.

The new portal will be live in 28 states and Washington D.C., which they claim covers 75% of the listings (I think that sounds right). I got an early sneak peak at the site and it’s pretty rad. Along with the typical portal things you can also ask it questions like

“Show me homes in Los Angeles that have recently dropped in price”
“Provide me an overview of recent t sales in 90210”
“Show me homes in 92648 that are having an open house this weekend.”

To me this could be what a future MLS system interface could look like.

I’m hoping to have someone from Flyhomes on my podcast, I’ve got a ton of questions about their business model, and how they plan to expand coverage.

But my biggest take away is just when we thought that there was no innovation left in the listing portal space, a new competitor enters the ring. Congrats flyhomes! Can’t wait to see more!

Zillow’s “touring agreement” may be illegal

Virginia Realtors: Zillow’s touring agreement may not be legal

“While many in the industry have been intrigued by Zillow’s new pilot program, Virginia Realtors is taking a tougher stand.

In a notice published on Friday, Virginia Realtors wrote that “upon analysis of this ‘touring agreement’ form, Virginia REALTORS does not believe it is in compliance with the requirements of Virginia law.”

The trade organization also advised members to discuss business practices and any agreements and forms they are going to use with their broker to ensure that they are in compliance with state law.”

Brooklee Han, HousingWire

Oopsie

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