Brokers, REBNY, Zillow/StreetEasy At Odds In 2023

David Goldsmith

All Powerful Moderator
Staff member
Not sure what Citysnap is offering agents exactly? I "registered" (admittedly, I have yet to enter my first listing; I expect to do that later this week) and all I've gotten is ads offering me hundreds of dollars "off" a Google listing -- one that it looks like I could sign up for myself if I cared to.
I'm curious what others are finding lately:
It seems to me that since Citysnap had started things have become more fractious and rather than moving in the right direction (i.e. having one place where one cand find all the information they need) it's taking more energy to search multiple places because not only isn't it "all in one place" but each place seems to have less of a complete picture than it used to.
 

nicolebeauchamp

Well-known member
In theory whatever someone is inputting into their listing system, ends up being in citysnap. The problem is, I think, that people are not , for example, entering things (open houses) into both, after a few snippy , can't you see I have an open house responses, I have now,particularly when doing weekend scheduling, made it a habit to look at both.

The upsell for the Pro - is nearly nonstop. What it's supposed to do, is give easy access to the data that's in the system - I don't really find a need to search citysnap, however I will say clients have found it easier to use and navigate than when I send invitations on Perchwell....not sure why that is so far....

Changing consumer behavior is HARD. I think it will take a long time for citysnap to have the same sort of brand recognition that something like SE has in this market...
I'm curious what others are finding lately:
It seems to me that since Citysnap had started things have become more fractious and rather than moving in the right direction (i.e. having one place where one cand find all the information they need) it's taking more energy to search multiple places because not only isn't it "all in one place" but each place seems to have less of a complete picture than it used to.
 

David Goldsmith

All Powerful Moderator
Staff member

REBNY plans sweeping rule changes for 2023​

New UCBA points clamp down on “off-market” and “no-fee” listing language​

The Real Estate Board of New York is ringing in 2023 with what the group called “significant” changes to its universal co-brokerage agreement.
The new rules, which are effective Jan. 1, are tightening the language used to advertise listings. Brokers won’t be able to use the term “no-fee,” which the group said misleads customers who don’t understand the term only applies to the listing broker.
The label “off-market” will be prohibited from exclusive listings and those omitted from the RLS by an owner’s opt-out agreement, often used by wealthy clients for discreet marketing.
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In cases where an open listing is being advertised as off-market, REBNY can ask for documentation proving the listing is open.
“It’s co-broke or go broke,” a representative for REBNY said.
REBNY is also instituting a “coming soon” status for listings on the RLS, which will give brokers 14 days to switch them to active. The addition comes in response to brokers using the term as a marketing or staging tool without a clear standard, so it’s unclear when a property will hit the market.

Under the new guidelines, brokers will have 14 days to change their listings to active after first posting them under the label, and they won’t be able to show the property until the listing is changed to active.
A third rule clarifies language around commission splits, encouraging brokers to come to a written agreement if they’re pursuing an uneven split for a transaction.

A final rule change implements the Residential New Development Brokerage Agreement for new development buildings of all sizes. The agreement previously applied only to buildings with 10 or more units.

The change to the RUNDBA makes the agreement universal to all new developments, not just ones with 10 or more units. The rule, previously updated in 2019, was aimed at making life easier for buyers’ brokers by laying rules for commission payments.
The organization approved the changes in October and has since been working to spread the word before they go into effect and has reached roughly 500 member brokers, a representative for REBNY said.

While REBNY publishes yearly updates to the UCBA, it’s rare for rule changes to go beyond minor clarifications. It’s unclear why the organization chose this year to make sweeping changes.
While penalties for violating UCBA rules vary depending on the severity, the punishment for a first-time offense is generally a fine of $500, followed by a fine of up to $2,000 for a second offense and up to $10,000 for a third offense within the same calendar year.
 

David Goldsmith

All Powerful Moderator
Staff member


Meta updates property listing policy, riling agents​

Listings can no longer be shared on Facebook Marketplace with business profile​

Facebook Marketplace is becoming a less friendly hunting ground for real estate agents selling properties via social media.
Facebook’s parent company, Meta, announced late last month a policy change to the social media site’s virtual selling hub, that users can no longer share property listings on Facebook Marketplace with business profiles, upsetting some agents, Inman reported.

Agents still have the ability to use Facebook Marketplace to share their listings — they just can’t do it with a business profile. Utilizing their personal pages (which some may be uncomfortable with) remains fair game.
Agents can also continue posting listings on business pages. They simply can’t pose as their business on Facebook Marketplace as Meta looks to return the selling spot to an idealized person-to-person platform.

While agents may be disappointed or angered by the shift, they’ve always been at the mercy of social media companies, who can bend platforms to their whims, as evidenced by the widespread changes at Twitter since Elon Musk took over.
“Social media is rented ground. You don’t own it,” social media strategist and consultant Katie Lance said in a recent YouTube video, according to Inman. “We don’t make the rules. All you can do is adjust.”
Facebook has been embroiled in controversy regarding the housing market before. In 2016, the Department of Housing and Urban Development launched an investigation into how the platform’s ad filters could allow users to target ads based on protected characteristics, creating the potential for Fair Housing Act violations.

In 2019, HUD and the Justice Department charged Facebook with discrimination. That year, Facebook announced it would no longer allow housing ads to target users by ZIP code. The company also disabled targeted ads by age and gender, expanding those restrictions to job and lending ads.
The decision came out of a settlement of five discrimination lawsuits filed by the National Fair Housing Alliance, the Communications Workers of America and others. It also included nearly $5 million in payments.
 

David Goldsmith

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Staff member
Monopolies are never good for the consumer. And over the last few decades our government has become increasingly impotent in curbing them.

MIKE DELPRETE - REAL ESTATE TECH STRATEGIST

Predators and Prey
October 24, 2022 Mike DelPrete
Screen+Shot+2022-10-24+at+7.35.51+AM.png

The real estate industry is in the midst of a massive financial reckoning: public company valuations down by billions, widespread layoffs, and a rush for venture-funded disruptors to conserve cash and demonstrate sustainable business models.

Why it matters: Amidst this turmoil, the industry is bifurcating into predators and prey -- companies that have the resources to expand through acquisition, and those burning cash that are vulnerable to takeover.
  • Companies with dwindling cash balances and high cash burn will be forced to raise funds or face insolvency (for example, Reali closing operations).
The predators have the financial resources -- namely, vast amounts of cash -- to take advantage of the current market situation and acquire vulnerable businesses.
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Companies like Zillow, CoStar, and Rocket are certainly predators: flush with cash and opportunistically acquisitive in their outlook.
  • Opendoor is the outlier; although it has plenty of cash on hand, it’s about to enter (at least) two quarters of massive financial losses.

  • Private equity firms with plenty of cash to deploy are the other opportunistic predators.
The prey are the businesses that are vulnerable -- diminishing cash balances with high cash burn. In other words, a typical real estate tech disruptor.
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The majority of prey are the hundreds of private companies whose financials are not publicly available.
  • The severity of their situation depends on when they last raised money, how quickly they're spending it, and how much they have in the bank.

  • If a company doesn't have at least 12 months of runway, they're prey.

What to watch: The name of the game for the next 6–18 months is VUCA -- volatile, uncertain, complex and ambiguous.
  • Expect to see a larger amount of mergers, acquisitions, consolidation, and liquidation.
The bottom line: Cash is king. In today's market, a company’s cash flow determines if it is in control of its own destiny.
  • If a company is burning cash and needs to raise additional funds, it will be forced to do so on someone else’s terms.

  • But, if a company is cash flow positive with a solid balance sheet, a VUCA environment presents incredible opportunity.

  • "Only when the tide goes out do you discover who's been swimming naked."
    - Warren Buffet
Discover more from Mike DelPrete - Real Estate Tech Strategist
 

David Goldsmith

All Powerful Moderator
Staff member

David Goldsmith

All Powerful Moderator
Staff member
https://www.realtrends.com/articles...-com-seems-a-little-low-spencer-rascoff-says/

CoStar’s rumored $3B deal for Realtor.com “seems a little low,” Spencer Rascoff says

Reuters report revealed that CoStar is in talks with News Corp. to acquire Realtor.com parent company Move Inc.

CoStar appears to be looking to up its residential real estate game. The commercial real estate giant is in talks to acquire Realtor.com parent firm Move Inc. from News Corp., according to a report on Tuesday from Reuters. The report cited three anonymous sources and confirmation of the news from News Corp., but noted that there is no guarantee a deal will actually go through.

The Rupert Murdoch helmed firm purchased Move in 2014 for $950 million. CoStar, which has a market cap of $30 billion, larger than rival Zillow’s, is in talks to acquire Move in a deal that values the portal at $3 billion.

“To me it seems a little low,” Spencer Rascoff, the co-founder of Zillow, said Wednesday morning on the Inman Connect New York stage. “News Corp. bought it almost 10 years ago for roughly a $1 billion and it feels to me that it has more than tripled in value over that period of time.”

As searching for homes online has become standard fare, Realtor.com has become the second largest real estate portal behind Zillow, with 90 million unique monthly visitors.

“It makes total, logical sense,” Pete Flint, the managing partner at NFX, told Inman attendees Wednesday morning. “CoStar has very clear designs on residential real estate. Realtor.com is a mainstay. It has amazing content, and it has a big brand and from CoStar’s perspective, this acquisition should happen. This feels like the worst time to be selling a company — tech is down, real estate is down — but if the prices if fair then it makes sense.”

The acquisition of Realtor.com, which announced layoffs in late 2022, would be CoStar’s third foray into residential real estate, as it acquired portal maker Homesnap in 2020 for $250 million and Homes.com in 2021 for $156 million.

This news comes after Murdoch proposed reuniting Fox Corporation and News Corp. in October 2022, roughly 10 years after he split the two firms.

In a note to investors, analysts at Keefe Bruyette Woods said the immediate financial impact of a deal for Realtor.com “is much less relevant, in our view, than the transformational strategic value that Realtor.com would bring to CoStar’s residential marketplace strategy under Homes.com, where one of the key uncertainties has been the company’s ability to build consumer traffic.”

Said KBW’s Ryan Tomasello, “Realtor.com’s strong brand awareness and nearly 90mn monthly unique visitors (>10x CoStar’s existing residential traffic) would accelerate CoStar’s residential strategy by numerous years, catapulting the company to the #2 residential portal spot behind Zillow. We believe CoStar would ultimately fold the Realtor.com brand under CoStar’s flagship Homes.com portal.”
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