After the Trulia / Zillow merger announcement of a few months back, this one is easily the second most significant in real estate this year.
What implications do you think this will have for the online real estate space?
It will impact Realtor.com, but I wonder what the knock-on effect to Realtors will be.
I am waiting for the big announcement. News Corp buys Bigger Pockets for ?? Billion dollars.
I see this as a cash out for Move. The major real estate sites are moving more towards marketing to home owners than Realtors. I think Zillow's "make me move" is a perfect example of this. It's soft touch marketing at it's finest. It's getting the next generation comfortable with selling their home online and Auction.com is at the forefront of this. The majority of these sites get their listing info from RETS feeds distributed by every real estate associations. I don't think NAR/CAR realized they back-doored themselves when they started providing data to third party sites. They had a perfect monopoly but the individual organizations were blinded by temporary profits so they sold their data. Now Realtors are no longer gate keepers. Their value is shifting to where it started, local, legal, and financial advisement. Most people I talk to about this look at me sideways but it's because they don't know how real estate is sold around the globe.
Hop over to Europe and ask about the MLS. It's doesn't exist. Every broker owns their own listings and sells their own listings. The way things are going here, no one will own any listings. Mark my words. One day Move and Zillow/Trulia will flip a switch. They will launch a site dedicated towards marketing to home owners and listing their homes. The RETS feeds will slowly get cut off in defense. The associations will make themselves obsolete. Realtors will stop paying dues. Brokers will have to completely restructure. In 10 years real estate will looks completely different than it does today.
So what does the future of real estate look like in my opinion?
Owners: will pay to list their home on Zillow/Trulia or whatever site holds the majority market share. They will pay for enhanced listings, videos, additional photos, placement, etc. I'm sure we'll see an option to have professional videos and photos taken too.
Brokers/Realtors: will have to be much better at their job. No need for increased licensing measures. Peer review sites will help or destroy realtor reputation. They will have to work in teams to ensure the client gets the best possible service. These companies will likely be a la carte. Buyers will need a neighborhood specialist, inspector, document preparer/legal services, negotiator, and a financial professional. Sellers only need legal services and negotiation. The busy buyers/sellers will be able to choose services based on their needs. We are going back to an unbundled business model in every sector and I think we are all much happier with services that already function this way.
So, what do I think of News Corp acquiring Move? It's par for the course. The real question is, who's next and who will own the monopoly when it's over?
There is such big bucks in full service online real estate providers, and I think they are just getting started. For example, I just learned not too long ago that Redfin got into listing houses for 4.5% commission (or less). Full CMAs are soon going to be at everybody's fingertips. What is next? Full integration with local/county records? They are already public right? Could the old fashioned realtor be in trouble?
I guess if anything changes for the worse for Realtors, the NAR can always pull the plug. Depends how much the plug costs, compared to Realtor dues.
Interesting tidbits: Move has to license the use of the name Realtor.com from the NAR and the NAR feeds Realtor.com listing information directly, every 15 minutes, as it's used as their "official" site, even though they don't own it. Zillow, Trulia and similar have to rely on syndication for their listings, which is why their information isn't as accurate.
I'm would think the NAR would have the sense to have a good exit strategy, even if it meant using the courts to take the domain name. It seems like they'd have every right to given the information hosted on there.
My thoughts so far. Busy day.
I believe its too late for NAR to make any move to pull the plug.
Its the direction of the tide, to maximize the leverage of that information.
I say it is much more likely to accelerate the assimilatiom of that information into "mainstream". I am saying it would surprise me if zillow is not swallowed up by someone like Google and that whole thing becomes another layer in Google Maps. You have a real estate layer that you can turn on and off, that's all. It will allow the user to search for properties in conjunction with other layers of published data layers as well as timelines. So then you can search for things like properties within this price range inside a city with crime rates in 2013 less than a certain number, weather wise less than so many inches of rainfall, and within one mile of where sea turtles nested. Anything.
BALA CYNWYD, Pa., Sept. 30, 2014 /PRNewswire/ -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Move, Inc. ("Move" or the "Company") (MOVE) relating to the proposed acquisition by News Corporation ("News Corp").
Click here to learn more about the investigation http://brodsky-smith.com/829-move-move-inc.html, or call: 877-534-2590. There is no cost or obligation to you.
Under the terms of the transaction, Move shareholders will receive only $21.00 in cash for each share of Move common stock they own. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Move for not acting in the Company's shareholders' best interests in connection with the sale process. The transaction may undervalue the Move as the Company is an online real estate platform whose sites include realtor.com and is positioned to successful compete with Zillow. In addition, an analyst price target for Move stock of $23.00 per share.
If you own shares of Move common stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at [email protected], by visiting http://brodsky-smith.com/829-move-move-inc.html, or calling toll free 877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and case action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
Originally posted by @Stephen McKee:
The real question is, who's next and who will own the monopoly when it's over?
Fantastic post Stephen. The answer to your above question: Google.
I sold all my shares of MOVE. Not bad I bought at $12.
Wow...the things I don't know. I feel so new and uninformed. thank you all for the insightful information. Got me thinking now.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!