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Zillow & ShowingTime

Wouldn’t it be great if they published the number of showings publicly?  It would help buyers know how competitive the bidding will be (or not), and later it would help to qualify the comp. When pricing the next listing down the street, you never know if the sales being used were a result of open-market activity or if a crazy buyer paid too much when they didn’t have to.  Knowing how many times the home was shown would be quality intel for future buyers and agents.

SEATTLEFeb. 10, 2021 /PRNewswire/ — Zillow Group has entered into a definitive agreement to acquire ShowingTime.com, Inc., an online scheduling platform for home showings, for $500 million. Touring is one of the most important steps in the home shopping and selling journey, and ShowingTime’s technology has streamlined and dramatically improved the touring experience. They are an industry leader, and Zillow Group will continue to invest in ShowingTime and increase its engagement among agents and partners.

“We have been impressed with ShowingTime’s ability to simplify a cumbersome but critical part of the home shopping experience by integrating with MLSs, agents and brokers, and giving buyers’ agents an easier way to schedule showings with listing agents,” said Errol Samuelson, Chief Industry Development Officer at Zillow Group. “ShowingTime will remain an open platform available to all industry participants, and we expect to grow ShowingTime’s engagement through all channels to ensure touring is easier for the industry and consumers.”

ShowingTime has a network of nearly one million agents across North America and has developed relationships with hundreds of Multiple Listing Services (MLSs). ShowingTime coordinates schedules behind the scenes so that agents can seamlessly book a confirmed home showing online and focus on their clients, not coordinating a complicated process. In 2020, the company facilitated more than 50 million showings industry-wide. Agents can update their listings’ availability for showings through the network, enabling interested buyers’ agents to schedule home tours online with the click of a button.

ShowingTime’s industry-leading technology will help increase tour volume and transactions for industry partners, including Premier Agents. Many Zillow Premier Agents are already using ShowingTime and value the ease it brings in scheduling tours. Zillow shoppers who request tours are high-intent buyers, and ShowingTime’s service enables more seamless tours for those buyers and sellers.

“This is a pivotal moment in real estate, and customer expectations for a simplified, tech-enabled experience are rising,” said Mike Lane, President of ShowingTime. “The ShowingTime technology serves nearly a million real estate professionals, and we look forward to sharing our technology solutions with even more customers, enabling a truly seamless real estate transaction that is efficient and simple.”

The acquisition will accelerate adoption of ShowingTime’s technology as home shoppers and sellers, agents and industry partners move toward a more efficient, digital future.

Link to Press Release

Realtor MLS Club

Selling a house is different every time – it’s truly the wild, wild west.

Because there are no standard rules of engagement on how to sell a home, everyone does it differently.  I had an agent accost me on why my offer was so low (it was full price), to which I said that it’s my preference to save my bullets for the highest-and-best round. She responded, “WE NEVER COUNTER”.

You just never know what to expect.

With real estate, every house is different, and so are the players (sellers, buyers, and agents).  Mortgage rates go up and down, loan-qualifying affects buyers differently, and resolving the condition of the home is a wild card on every deal.  Even if there was a simple way to navigate those, you still have to contend with the emotions and egos of the human beings involved – which can be extreme when dealing with a life-changing decision that might have to last you forever.

Now add the low-supply/high-demand environment, and it’s never been so crucial to get good help.

Yet, Zillow, Redfin, and others want you to believe that they can dumb down the process into a paperwork shuffle. They pitch lower costs, but never consider that a home’s sales price depends on who is selling it – and there is a wide variance in today’s market.

The NAR doesn’t get it either. They are creating a national MLS to compete with Zillow, but unless they spend multi-millions of dollars on advertising (very doubtful) the buyers and sellers won’t know they exist.

What we need is for realtors to stand up and save the model that has worked the best for all parties.

Last year was all fun and games as we got used to the new intensity.  But now it’s obvious that the low inventory is causing a sea change among buyers. In the Under-$2,000,000 market, the comps don’t matter any more, and winning at any price becomes the only goal.

Once buyers figure that out, they will appreciate getting good help like never before – and hopefully before it’s too late. If a seller picks the wrong agent, it only means leaving money on the table, which is the cost of real estate ignorance.

The best chance to ensure that the traditional model endures is for realtors to create our own private listing club, and these guys are on to it. They had 700 agents on this call, which is impressive but it’s early and they would need to commit massive resources to reach the entire country.  The word-of-mouth among agents could take them a long way, however.

Here’s a peek behind the scenes.  Decide if you think they can sell it, or if they might hit the eject button when the heat gets hot – because the outsiders are going to challenge this idea:

Get Good Help!

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Zillow vs. Realtors

We wondered what might happen when Zillow changed from a search portal to a brokerage last week.

Zillow showed us who’s the boss.

They deleted the last 50-100 sales from EVERY agent I checked, and ALL active listings were wiped off the agent profile.

They also tweaked my headshot!

None of my past sales on Zillow had any connection to the MLS – they were all manually uploaded, so this wasn’t a MLS-related event.  So I guess Zillow deliberately removed the past sales and active listings!

They haven’t responded to requests as to why, or whether they will put them back.

The MLS-listed properties used to have the listing agent plus the three-headed combo of Premier Agents who were prominently featured in the right-hand column.  The PAs pay hefty advertising fees for placement, but now they are listed below the schools which is down towards the bottom of the listing.  They are called ‘personal guides’ now:

The listing agent does get a one-liner mention too.

Zillow demonstrated their killer instinct previously when they tried to squash Trulia by out-spending them on advertising. Then Zillow bought Trulia and made them a sidekick. Has anyone heard of Trulia lately?

The days of Zillow playing nice with agents are over.

Today’s realtors might survive as long as the baby boomers, who are the only people left who might remember – and appreciate – getting good help. After that, Zillow will declare that the cabal has been broken, and convince you that all you need is a transactional brokerage to handle your paperwork.

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Listing Photos Gone Wild

More crazy listing photos!

Thanks to the new fan-favorite Instagram page “Zillow Gone Wild,” we now have this hand-picked collection of seriously odd real estate findings that’ll make you look twice, thrice, and think of something nice to say about it. Because many times, money can get you a mansion, but it won’t buy you taste.

https://www.boredpanda.com/zillow-gone-wild-real-estate-company-findings/

https://www.instagram.com/zillowgonewild/

Buyer-Agent’s Commission Exposed

This is nothing. What would be entertaining is if they required the listing agent’s commission to be exposed too.

The Department of Justice today filed a civil lawsuit against the National Association of REALTORS® (NAR) alleging that NAR established and enforced illegal restraints on the ways that REALTORS® compete.

The Antitrust Division simultaneously filed a proposed settlement that requires NAR to repeal and modify its rules to:

  • Provide greater transparency to home buyers about the commissions of brokers representing home buyers (buyer brokers),
  • Cease misrepresenting that buyer broker services are free,
  • Eliminate rules that prohibit filtering multiple listing services (MLS) listings based on the level of buyer broker commissions, and
  • Change its rules and policy which limit access to lockboxes to only NAR-affiliated real estate brokers.

If approved, the settlement will enhance competition in the real estate market, resulting in more choice and better service for consumers.

“Buying a home is one of life’s biggest and most important financial decisions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Home buyers and sellers should be aware of all the broker fees they are paying. Today’s settlement prevents traditional brokers from impeding competition — including by internet-based methods of home buying and selling — by providing greater transparency to consumers about broker fees. This will increase price competition among brokers and lead to better quality of services for American home buyers and sellers.”

According to the complaint, NAR’s anticompetitive rules, policies, and practices include: (i) prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn; (ii) allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free; (iii) enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered; and (iv) limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for a NAR-affiliated MLS. These NAR rules, policies, practices have been widely adopted by NAR-affiliated MLSs resulting in decreased competition among real estate brokers.

NAR is a trade association of more than 1.4 million-member REALTORS® who are engaged in residential real estate brokerages across the United States. NAR has over 1,400 local associations (called “Member Boards”) organized as MLSs through which REALTORS® share information about homes for sale in their communities. Among other activities, NAR establishes and enforces rules, policies, and practices that are adopted by the Member Boards and their affiliated MLSs.

https://www.justice.gov/opa/pr/justice-department-files-antitrust-case-and-simultaneous-settlement-requiring-national

More Frenzy Fuel

San Diego didn’t make the NAR list of vacation-home areas (counties where 20% of the housing stock is for seasonal use), but our market should be enjoying some additional second-home purchases:

Vacation home sales are outperforming total existing-home sales. Sales of homes intended for vacation use rose to 109,100 in the past three months of July-September, a 44% gain from the level of 75,600 sales during the same period last year, according to NAR estimates based on information gathered from the monthly REATORS® Confidence Index Survey and NAR’s existing-home sales estimates. In comparison, total existing-home sales during July-September rose 13% year-over-year (1.72 million in July-Sept 2020 vs. 1.52 million in July-Sept 2019).

The pandemic and low mortgage rates have increased the desirability and affordability of owning a vacation home. Buyers may be desiring a vacation home as a weekend getaway as urban-based leisure activities are still constrained by social distancing. The ability to work from home also means buyers who can work from home can spend more time at and enjoy their vacation home. Historically low mortgage rates have also made a home purchase more affordable, while rising prices in past years have yielded larger home equity gains that can be tapped (through say a home equity loan) to use for a down payment.

Link to Full Article

Agent Referral Networks

Have you been seeing more of this guy lately?

He wants to hook you up with the top agents in your area – AND only charge you a 2% commission.

They keep the 2% circle at the bottom of the advertisement for the entire 30 seconds to engrain in your head that they have some magic network of top agents who will work for the discount rate.

Don’t believe it.

The agreement they have with agents is that you will be presented with a 2% option, which is the typical For-Sale-By-Owner plan – if you find your own buyer, then the agent will handle your paperwork for 2%. At that point, you’ll probably wonder about the more traditional plans where your listing agent handles the whole process. The next thing you know, you’ll be signing the listing agreement at 6%.

Why will these listing agents insist on the more-expensive plan?

It’s because they have to pay a finder’s fee to the advertiser.

Whenever a corporate third-party is referring you to an agent, there is a fee paid by the agent – and it’s hefty. Whether it is a TV-advertiser, an internet pitch, or relocation company provided by your employer, they all take a big cut out of your agent’s commission – usually 25% to 30%.

The great listing agents – the ones you hope will sell your house for the most money – will pass along this finder’s fee to you. It means you’ll be presented with 6% or 7% options, and/or a commission that drastically discounts the buyer-agent’s side of the commission.

The agent-referral industry relies on the bait-and-switch.

If this guy said that he had the top agents in your area that charge 6%, would he get any calls?  No.

Coming-Soon Fines

The home-selling business is known for being the Wild, Wild West.

There are a few rules and ethics filed away in a drawer somewhere but there is no enforcement unless you do something really bad, like this guy – who only lost his real estate license a couple of months AFTER he was convicted and sentenced to three years in jail.

So when the Clear Cooperation Policy went into effect in May that stipulated an agent could input a listing into the MLS as ‘Coming Soon’, as long as they didn’t show it to anyone until it was marked as an active listing, many of us scoffed.

But apparently for our local association, this is the hill to die on:

  • During the short-sale era, agents defrauded banks out of millions of dollars, and all the association did was to produce a video of realtors talking about how to do short sales properly.
  • Bidding wars are regularly abused by listing agents who tilt the table in favor of themselves or a favored realtor, and the association doesn’t offer any solutions.
  • And the Clear Cooperation Policy still allows off-market listings to be sold within the same brokerage – and never offered to outside agents or the public.

There are plenty of more egregious violations of the consumers faith and trust, so why is the association selecting this rule to be the one to enforce, and issue heavy fines? They are dependent upon other agents ratting out the violators, so it’s not like there will be a MLS police, but will they start enforcing any other rules – and issuing heavy fines – while they are at it?  The agents who get convicted of other violations only get a letter in their file for six months.

If agents want to show their Coming Soons, they can always join the San Diego Association of Realtors instead, where the fines are limited to $500. Or if the purpose of your Coming Soon is to test the market, just enter your new listing as Active instead and answer your phone for a couple of days and you will have ample evidence of how the market feels about it.

Here’s another tepid response to an issue that bugs consumers and agents alike:

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