THE BIG BREAK--UP??...OR WISHFUL THINKING??

By
Real Estate Agent with Douglas Elliman Real Estate 30HA0800896

THE BIG BREAK--UP??...OR WISHFUL THINKING?

Sometime in 2006--2007, a successful technology team decided that real estate was the next obvious target to take on: The multi-billion dollar brokerage industry was a treasure that no one, not a soul had ever even thought of trying to control outside of the individual states.

If they could do it to the Travel Agencies across America, they could do it to the real estate market. But, those same technology experts also knew that they had to protect themselves from the States Licensing laws by never obtaining a license! These technology guys would just take or scrape the listings off all the brokerages websites, use the data for their own platform and they would be protected from the regulations that the states freely assign to their licensed agents and brokers, because they were not licensed!

Just what was it that they took? Read on: 

The real point of what is causing most of the chaos that is driving the big changes in real estate brokerages today are non-licensed companies that have claimed the real value in brokerage and that is it's original, authentic and high quality content....Don't forget the term: "Content Is King!"

Content controls everything real estate on the Internet!

  • Just as all content must be original, authentic and high quality in order to attract SEO from all search engines, listings must be made up of the same "stuff" in order to attract buyers.
  • Sellers must be sure their properties are made up of this high quality content in order to get them sold.
  • Listings are the "content" needed in real estate to stay in business! Otiginal listing data; not copied or scraped!
  • and brokerages no longer hold that content....They gave it all away and now are scrambling to try to re-capture something that cannot be re-captured!

This idea of capturing the original, authentic and high quality content of the real estate game is what drove Z to run down these big brokerages and convince them to become "partners"!

They Bamboozled the big Corporate Brokerages!!

...These technology giants are NOT licensed so they do not have to follow the strict state licensing laws like we do--and they need the Google Juice that comes with OUR original content. No more scraped -(Copied and pasted) listings for Z, as they used to do!

NO! They now have the ears of the Corporate leaders, the big companies, the ones who came to this community and many other smaller resort communities around the country and  bought out all the Mom and Pop real estate offices. They are the ones who brought the concept of "Branding" into the way of thinking of real estate brokerages here in the Hamptons and this branding was created to attract celebrities and other big spenders into the Hamptons, Big Time!

These are the companies who took the position of market leaders as they marketed to the celebrity. They have literally changed the face of this quiet country side into a honky tonk sort of existence for most who choose to live here full time. It's "Hollywood" glamour and "party time" appeal in their advertising and marketing efforts that has made this lovely, historical sea side resort a zoo for 4 months out of the year...and longer.

I see we are closer than ever to becoming the one thing that none of us wanted out here, at least in the summer season: A slick, big city  "conglomerate" attitude with more money than taste!

The Big Box Corporations, seeking to tap into the  budding wealth equity of new development in the real estate industry in the mid 2000's, saw their opportunities here in the Hamptons. And then the bigger, sophisticated building trades saw the same thing.

Together, they have literally altered the demographics overnight and we now are watching as the priciest properties are sold right here in the middle of the most fertile soil between ocean and bays--pushing farmers out, forcing them out or into bankrupcy if they didn't sell their farm fields to developers.

There are heart breaking stories--stories about 200 and 300 year old farms whose ancestors are being shaken down by the courts on behalf of bigger, wealthier land developers. But that is for another post, another day.

The Big Corporate Brand of real estate is what attracted Z,S and T. These tech guys saw an opportunity as well, and they created an offer the big box real estate companies could NOT refuse: They offered them the best SEO in exchange for giving those technology theives all their data---ALL their listings!!!

The big brokerages sold us all out and now,  after having given away the life blood of the entire industry, they think they can shift the focus away from agents and listings (content) to technology and algorithms!

How unaware they are--Z got what they wanted from all the brokerages and left the skeletons of these firms in place. Now they are just waiting like vultures to step in and clean up the mess after the collapse! 

UPDATE: New York State is taking a strong stance now going after agents who advertise incorrectly and do not properly identify themselves and their sponsors in every ad they run--19 NYCRR Section 175.25. This includes their ads run on Z, S and T!!

Now, this is no big deal to me because I don't run any ads anymore (and I don't pay Z for space)--But the agents who are on Z and other sites, they do put YOUR INFORMATION on an ad AFTER YOU HAVE PAID THEM!! 

Guess what? If you are that agent you can be fined $500 for the first offense, $1000 for the second and $1500 for the third and it goes up incrementally if your information is inaccurate and if you have your face plastered next to another agents listing!!

How's that for Irony??. We have been totally duped into thinking we are somewhat protected by our licensing laws and we are anything but!

According to a State administrator working for one of our Real Estate Associations here, there is real anger at the brokerages who have given away the precious life blood of the prized Exclusive listings. Homes are being watched and owners are being contacted to see if they have given permission to advertise by these agents. It is NOT Z, S or T who will be fined for this false advertising!

This is war folks--and we may be the direct target for being fined and therefore responsible for the whole mess!

There is real intent by New York State to re-take the controls of this ship that is so off course--The states may start to regulate the AN HONORABLE THINGpublic as well, I hear. In other words, the states may find regulations to try to control what Z,S and T are doing with our content in the way they advertise! Let's hope that is in the cards--I don't know if it is even possible.

This would be the most noble of efforts on behalf of our profession on the part of the state governments, ever!--It just may end up to be the straw that broke the camels back.

I can't wait to see how it all unfolds.... 

Maybe anti-trust laws come into play? We will see...

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Active Rain Newbies
The Lounge at Active Rain
Real Estate Tomato Bloggers
Addicted to Active Rain
Bananatude
Tags:
breakup
high priced listings
big box firms bought the smaller brokerages
developers forced out the farmers
big breakup
marketing to celebrity
gave away the life blood

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,292,830
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Paula,
If, somehow, we could only make the consumer (and all agents) understand they are being duped! But, no, for the most part the industry just rants and raves and then carries on as the landscape changes! I look forward to the time real change can take place through transparency. 

May 20, 2018 07:33 AM #10
Rainmaker
1,292,830
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Congratulations!  You've been Featured in Bananatude

May 20, 2018 08:25 AM #11
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Debb and Bernie: I suspect their plan is to soon sell off their company just as they did with Expedia to another firm and let them pick up the pieces, using OUR CONTENT to build an even bigger problem for those of us in real estate. There will be more ways to get us to do the work while they, or someone who buys them out, reap the rewards!

May 20, 2018 08:30 AM #12
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Carol: The more I think about it the more suspicious I am of what the ultimate goal is here: Do they want to destroy the game they play with getting the agents to do the hard work of getting the listings and then paying them to get leads off them? I think there is another goal--perhaps the goal is to gather as much really good content--our listings--and then sell the whole she-bang to China or another entity who can take it even further!!

UGH, maybe I have gone too far with this but it is a monstrous company now and they have lawsuits coming out their ears--how much more will they want to take before they do something that will REALLY damage the profession of real estate.

Thanks so much for the Banantude Feature!! 

May 20, 2018 08:35 AM #13
Rainmaker
2,494,862
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

These are interesting developments and interesting times that real estate professionals are dwelling in.  Thanks for the update!

May 20, 2018 11:59 AM #14
Rainmaker
1,978,848
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Paula Hathaway, REALTOR, LBA - We cannot afford to stick our heads in the sand and pretend it isn't going to affect us. It is. It will. It is pathetic! We all need to be better informed and prepared. I hate to say the sky is falling, but it's falling!

You're 100% right about big box. Many drank the cool aid: "They offered them the best SEO in exchange for giving those technology thieves all their data---ALL their listings!!!" Agents were fed garbage, many have since left the business while the survivors try to survive. Unfortunately, it just made the fat cats fatter, bigger, and bolder. 

Texas has also taken a strong stance toward advertising. Hefty fines for people who violate the rules. The case in IL is disheartening. And NAR just approved a $30 increase to our annual dues.  

May 20, 2018 03:47 PM #15
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Mryl: Yes they are--and more to come I'm afraid! I just watched 60 minutes and they covered the Google issues --there are all kinds of charges against them as they grow to over 3/4 of a Triilion dollars in value and as they control 90% of all searches done on the World Wide Web....they have a huge lobbying presence in Washington and the anti--trust charges go nowhere! They keep getting bigger and bigger--no one can do anything about how they control the internet. Now, the reason I bring this up is that soon the same tale will be told about Z and all the websites they have bought out---I used to show up on the first page of Google all the time because of my blogging---Now I'm nowhere. The only things that come up when you search Southampton real estate are those sites that Z owns!!! thanks for reading and commenting!

May 20, 2018 04:45 PM #16
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Patricia: Thanks for reading and commenting here. I am so concerned for our profession! There are really no answers and if you read my commnet above to Myrl you'll see why. There is nothing being done with Z and their ownership of the largest share of search engines for real estate because of their lobbying efforts in Washington---just the same as Google only in the real estate sector---That is why they have the judges on their side---we really need a National lobby against them in Washington and soon!

May 20, 2018 04:49 PM #17
Ambassador
3,937,288
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Paula

Very interesting read - thank you. Making money and pleasing the investors an stockholders is what it's about. But may, just maybe, some things will change.

Enjoy your weekend!

Jeff

May 26, 2018 06:08 PM #18
Ambassador
2,347,801
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      In the midst of our justifiable anger and angst with Zillow, let us remember that is was NAR who sold us out.  NAR sold our brand (Realtor dot com).  It was NAR that encouraged local Boards and MLS's to syndicate to Zillow and other sites.

 

May 26, 2018 06:33 PM #19
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Jeff: Thanks for reading and commenting--I do value your opinion. This debacle that we are in the midst of is only going to get larger; it will encompass all states and it will include all forms of real estate brokerage. We will not survive if we are left to battle this; it is not for the uninformed to battle but the hardened of those amongst us who will help the ship to right itself so that we can go on with our lives, selling and listing real property for the masses! This is what matters! This multi layered profession is on it's death bed and you can almost hear the death rattle as we all take a deep collective breath, and move forward....We will survive; we must survive! Otherwise, real harm will come to the innocent home buyer and the less than sophisticated seller who believe the lies they are told by these big sites! We are the final bastion of aid to the uninformed--we are the only source of careful analysis and research of real property---those others pretend; especially right now as they try to capture the attention of the  unaware victims of their deception.  It is bad out there--the public is no longer a sucker for the Zestimate; they know something is wrong and they are reacting by stepping on the brakes! They have stopped buying here and other areas as well.... I blame the chaos on those giant techno-nuts who think they can take us down by "opening" up that which was never closed to the buyer or the seller! We are NOT keeping information from the public; we have been the only source of complete transparency about real estate! Sorry for running on about this but it does have my complete attention now!

May 26, 2018 06:57 PM #20
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Fred: I don't really understand how NAR has allowed to happen what we are now understanding---I was not watching NAR as I was Zillow and those folks! It is really time to figure it allout an dmove on to doing the corrective things that are needed---we are dying here! They say this is the year of the Boomerang! What you have thrown out there is coming back at ya big time! Anybody who has carelessly done something that they knew to be a bit underhanded or sloppy or hurtful to others, thinking "No one will ever know that I did this" or "never mind the consequences years from now--who cares anyway?". This is the same thinking that got us the morgage crisis in the 2007-2008 recession--We have really not fully recovered from that and this year is when many people are getting the final blow--I see more and more houses going to foreclosure--more than in 2009-2010 here in the Hamptons. 

May 26, 2018 07:19 PM #21
Rainmaker
397,762
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Paula, thanks for keeping us in the know about what is going on in our business.

We have too often taken the attitude that it does not affect me so why worry.

Now we find out that we need to be more aware than ever, as the potential is so great. Fines, loss of business, etc.

I do not lose heart, but rather look for the opportunities that disruptions can bring.

Thanks, and keep us posted.

May 29, 2018 06:11 AM #22
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi John: Unfortunately as you may know, the latest effort on the part of the public to stop Z and their Zestimates in Illinois has failed as the Judge again threw out the case that was brought by indivuals who suffered losses to their property values. This is such an outrage--and the failure of these lawsuits is attributable to the huge lobby in Washington that this monopoly has. I appreciate your reading and commenting--let's hope our efforts here on AR make agents more and more aware of just what is happening with this and other comapnies like it.... 

May 29, 2018 06:43 AM #23
Rainmaker
576,790
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

You are one smart cookie and I appreciate you sharing this information with us. It may be wishful thinking but oh wouldn't it be grand??!!

May 29, 2018 08:03 AM #24
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Pat: Thanks--glad you read it and thanks for the comment! We all need to hope and pray that this comes to an end and the faster the better. But I think it is a bigger problem than we can comprehend--hope the state is paying atention to the right  parties too!

May 29, 2018 08:23 AM #25
Rainmaker
1,522,319
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

When I first started in real estate in 1985, no one in this small town was on line - and we weren't even Realtors(R). There was no MLS here to share the listings.

Buyers and sellers picked up the phone or walked into individual real estate offices.

Looking at the mess you have now - was that so awful?

May 29, 2018 10:34 AM #26
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Marte: NO it was perfect as a matter of fact. As we have found out, the internet has brought ease of connecting to agents  and presenting  listings for sellers--but what of the ill-intentioned few who want to destroy entities through developing technology to do just that?? That is what Spencer Rascoff and his minions have done---and Amazon and Expedia (which was created by Rascoff, et al) and on and on---it is shameful that the government which  claims to be out for the good of the people sit by and watch as those individuals destroy our very way of life!! They told they would do it! They even gave us fair warning in 2006!! Talk about feeding the beast that kills us!

May 29, 2018 11:33 AM #27
Rainmaker
972,136
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Ugh - another reason I don't want to run any advertising on any of those sites!  My contact information is on everything I create otherwise.  Ugh!

May 30, 2018 03:28 PM #28
Rainmaker
491,040
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Hi Jan: Thanks for reading and commenting--I too don't want to be on those sites--Look how this is affecting all of us! I m beginning to trust that things will change though. It is time for the states, the NAR and the lot make the changes and the regulations that are now needed.

May 30, 2018 03:34 PM #29
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
491,040

Paula Hathaway, REALTOR, LBA

...The Most Informed Agent In The Hamptons!
Ask Me About Luxury Townhouses In Southampton Village
*
*
*
*
Spam prevention

Additional Information