Keller Williams Mega Camp Meeting 2014
Ordinarily, I don't comment on the goings on at a particular company meeting. However, this one featured an very powerful question and answer session between Keller Williams Director of Research Brett Smith who acted as the moderator. Greg Schwartz, chief revenue officer for Zillow; Nick Bailey, senior vice president of strategic partnership at Trulia; Russ Cofano, senior vice president of industry relations at Move; and Jason Tang, KW’s executive director of technology.
If you are an agent, you doubtless have either heard, or have some pretty strong feelings about the joining of Zillow and Trulia. From my work on my Real Estate Podcast, I hear a lot of concerns. They generally fall into a few categories.
- They don't appreciate the listing info being transferred to a third party to have the leads it generates sold to others.
- They feel that Zillow's different "Make me Move" and easy ability to put their home on the Internet (notice I did not say market) is irritating.
- They dislike the inaccuracy, and feel as though that they may be legally responsible for errors contained therein.
- Inaccuracies in pricing. For example, Zestimate.
- Perceptions as to the "Decentralization" of the agent role.
- People having trouble paying their mortgage, or danger of foreclosure getting incorrect information
While our feelings, accurate or not, are certainly ours to have; as a Real Estate Professional, our concerns should always be first and foremost on those of our clients. On that, I think we would all agree.
Now that we all agree that the needs of the client comes first, now we must address the more "Sticky" issues of "How" in an Internet world.
The reason why Zillow has grown to such epic proportions is because they have accurately identified a major need in our industry. A need for easy, quick, no hassle information.
With the advent of the Internet, our industry has been slow to adopt a more progressive attitude towards customer service as it relates to the Web 2.0 world. Evidence of this is clear as Realtor.com has suffered a shocking loss of confidence as Realtors® still pour money into their ad campaigns in Zillow.
In short, people have voted with their pocketbooks.
While the nice platitudes sounded by the clarions on social media compel and cry out for a restriction of data being sent to Zillow (currently, Zillow is in a disagreement with a MLS in Tennessee.), they fall hollow in the face of the cooperation between agencies like Keller Williams have made agreements with Zillow to ensure that their customers do not suffer from a short sighted MLS.
That's right. I said it. A short sighted MLS.
Now, from the article I've read in Inman News about this, I've probably aggravated at least 49% of you.
Now that I've Got Your Attention...
Your Centers of Influence use Zillow and sites like it to find out various information. Many times, it is about the value. As a matter of fact, here is a screenshot of just how many times the words "Home Value"; "Value my House"; and "How much is my home worth" are used in a search on Google alone.
As a buyer the searching on Google is clearly a lot more active...
So then the question seems to be... with over 55,000 searches on Google alone per month on the process, Why do we get so worked up over Zillow taking data (which we want out to the public), sharing it, and then making money on it?
The answer is clear.
Agents are scared.
You should be.
If your sole claim to fame is that your business is directly derived from the Internet or Internet Leads, then yes. You will be commoditized. After all, isn't that kind of what you expect? If all you really do is drive people around and write out a pre-filled contract and collect a check, then you bet. You can expect companies like Allre to take your place. It's simply inevitable. I mean, how many telephone operators do you really need these days?
The "Dirty Secret"
Here's the dirty secret I've learned in 18 years of "in the trenches" with you. I remember a time before the Internet. When you actually had to go outside the office to sell a house. You have to see the people.
When you develop the relationships in Real Estate, between the Buyers and the Sellers as you develop your career, the seasoned pro's know that you become their Zillow. Through constant communication, education, and service AFTER the sale, then Zillow becomes nothing more than a distraction.
For the professional salesperson, The Zillow and Trulia merger is not a threat to their business. They know that if anything, the merger of the two will ultimately result in their Zestimate Accuracy going up which could certainly benefit the market.
However, every listing agent knows, no matter what Zestimate, or your CMA, or the appraisal you just got from the buyer says, it's only worth what the Seller thinks it's worth. This usually depends on the number!
For the Distressed Homeowner
For the distressed homeowner facing foreclosure however, looking for their home's value quickly without trying to be scientific about it... (They do that) Zillow is their first pick to get a 30,000 foot view. The more motivated they get, the more likely they are to contact an agent locally, or get an offer from an investor.
In the final scheme of things, our value as an agent depends largely on our sales skills, as well as our abilities to negotiate, and get what our clients want. Which is either a property bought or sold.
How do you respond when you disagree?
The success of that will depend on how we respond as an industry. We can be gracious in this apparent "setback" in this emerging technology, and then come back stronger by improving our platforms and what we offer as an industry (which is a lot).
Or will we act out of fear by restricting data, and playing games that do nothing but distract us from the real issues?
I fear however, it will be up to individual Brokerages taking the leadership role from the MLS and ensuring that our customers and clients have every opportunity to find their home, or sell their home.
Squabbles within the industry over data and MLS feeds only serve to convince the public that the Realtor® community is more interested in it's own protection, than the advancement of our clients. As such, our leadership must make serious commitments to the advancement of our membership in a Web 2.0 world else we suffer even more loss.
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