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Letters To NYC Real Estate Agents

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In Letters To NYC Real Estate Agents

Episode #13: To Beat StreetEasy and Zillow, Here’s Why I Am Refusing To Raise Money

To beat StreetEasy, I am refusing to raise money. Here’s why.   

First, where are we now?
2018 is going to be very special. It is the year StreetEasy’s stranglehold over the marketplace begins to show “cracks”.  The new REBNY RLS feed in particular has empowered all kinds of new competitive solutions, most of which have not even become public yet. I would argue that the RLS is the single biggest threat to StreetEasy’s dominance.  But these things do take time (months/years, not days/weeks).

But I know it can be frustrating.  It seems everyone is just “giving in” to StreetEasy and nothing is being done about it.  I assure you this is actually not the case. You will see an avalanche of new products and ideas coming out over the next two years. Many this year.  Zillow’s short sighted business decisions suddenly put the NYC residential real estate power dynamics back “in play”.  There will be significant shifts and big shakeups happening over the coming years.

Example of Good Stuff Coming: My New Website
For example, in the coming weeks I will be launching a new product in beta which will compete with StreetEasy in 12 month rentals.  Leasebreak became #1 in short term rentals (i.e. leases between 1-12 months).  We will apply similar techniques to become #1 in 12 month rentals with the new website (with a new name).  It won’t happen overnight, but it will happen.

And when it does, you won’t have to pay for posting rental listings ever again.  

The new website will also likely show “sales” listings down the road, but maybe we won’t have to.  There is a real chance the attorney general – or some other government entity – forces StreetEasy to change the Premier Agent Program because it is just so unbelievably deceiving to consumers.  

(By the way, please make sure you subscribe to my blog flowfreely.com so that I can give you first access to the private “beta” version of the new site in a few weeks.  I would welcome any feedback and encourage you to share the new website with your friends and colleagues.)

Why I Won’t Raise Money Now.
When I run into many of you in person or online (Instagram) you are so supportive of my stances on these issues.  Many of you encourage me to “keep up the good fight”. Thank you, this is so important to hear and means so much (but I also welcome criticism and suggestions too, fyi).

Many of you also suggest that I raise a boat load of money so I can compete with the deceptive monstopoly (monster + monopoly. I just came up with that LOL).

Many of you have even offered to “invest” yourself or suggest I speak to a VC friend of yours, etc.  I can’t tell you how much I appreciate this and your confidence in me.

But here is why I can’t accept that money.

Once I take money from investors or VCs, then those investors expect a “return”.  They expect me to focus on “maximizing profits”. Even if not right away, down the road for sure.

This means that I may have to do things I don’t want to do:  Things that are not right for consumers or brokers. Things that violate my vision of what a real estate marketplace should be: Honest, transparent, and functioning as freely as possible.

For example, as you will see, when we launch the new website there will always be a free option to list an apartment. “Always”, as in forever.  If you were an investor, you may not like the sound of this. But that’s too bad.

And once I do launch, it will be even more clear to all of you why I just can’t take any money right now.

This is about principles.  It’s about values. Having a NYC real estate marketplace which operates freely with transparency is the focus.  Everything else – including profits – is secondary.

I have lived in NYC almost 20 years, and I have been a NYC real estate agent for 14 years.  Zillow and StreetEasy are not going to destroy the NYC real estate marketplace we have all come to love.  Not on our watch.

Who’s with me? 🙂

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In To All New Yorkers

Episode #12: Zillow’s StreetEasy Can Easily Solve “Deception” Problem. But They Won’t Do It.

I have no problem with a company trying to earn money.   As the founder of a niche and successful NYC real estate marketplace (leasebreak.com) and with another more comprehensive one about to launch,  I understand full well the challenges of “monetizing” these kind of platforms.  

It is fascinating to watch how companies evolve as they try to monetize.   For example, recently Zumper became a real estate brokerage which now receives “broker fees”  and Renthop decided to expand nationally. 

But how is Zillow trying to monetize with StreetEasy?  Well, Zillow did what it does best: Achieve monopolistic power (i.e bought Naked Apartments, StreetEasy, then launch a multi-million dollar ad campaign).  Then, take advantage of consumers and brokers, making things less transparent and more deceptive in the process.  

To be clear, capitalism –  when done right – is a wonderful thing. If you want to sell leads, fine.  If you want to charge for your services, fine. We have no problem with that.  

But capitalism without transparency is disastrous.  Generally speaking in a true capitalistic environment these deceptive firms would just get weeded out in a truly competitive market.  But when there is a monopoly power, you can’t rely on this to happen. 

Google and Facebook to a large extent have set transparency standards by  disclosing “paid” ads (See screenshots below, respectively).  Zillow’s StreetEasy has done nothing of the sort.  

Google discloses a “paid ad” when a user searches on google.com
Facebook discloses a “paid ad” when a user is scrolling through their Facebook feed

 

 

 

 

 

 

 

 

In fact, Zillow’s StreetEasy has reset the bar of transparency so low with its Premier Agent program, we can safely call this another name: DECEPTION.  The terms “sponsored” or “paid ad” are nowhere to be seen.  

Quick recap on the Deception: In order to contact an agent, the buyer see a “CONTACT AGENT” button.  We have provided video evidence (See episode #3) of just how misleading and deceptive this is by interviewing random consumers on the streets of NYC.  Buyers wind up contacting a buyer’s agent who is paying big money to get that “lead”, instead of the expected listing agent. This summarizes what is at the heart of the deception on Zillow’s Premier Agent Program.  

Believe it or not, even  many real estate agents who represent buyers find this so deceptive, they refuse to participate in the Premier Agent program.  They refuse to start off a relationship with a potential client (buyer) in a less than genuine way.   

Easy Solution They Will Never Implement: Label Premier Agent a “Paid Ad” 

But there is an EASY solution.  All Zillow has to do to alleviate this incredibly damaging “Deceptive” practice is to make it crystal clear that this is a paid ad. My Instagram post two Fridays ago, February 2/16/2018 (pictured here) shows an example of what this could look like. 

But I would bet money Zillow never implements this, unless they are forced to do so by the Federal Trade Commission or NYS Attorney General Eric Schneiderman (These are real possibilities by the way).

Why wouldn’t Zillow make such a simple change which would make things much more transparent?  

Because most of the revenue achieved by the Premier Agent program hinges on deception.  By being more transparent, they would lose almost all revenue for this lucrative revenue generating program.  For example, if buyers understood that they are contacting a “paying” buyer’s agent, most of them would choose instead to simply contact the the listing agent (who is posting for free).  And Premier Agent’s revenue would crumble.

One other thing we would be remiss if we did not point out.  What really has angered so many in the real estate industry, as well as consumers who are following this closely, is that everyone in NYC knows StreetEasy would never have become a dominant player in the industry if it had started initially with this deceptive Premier Agent program.  But they are able to make money from the program now because StreetEasy implemented it after gaining monopolistic power in NYC, and currently consumers have few other choices (We promise.  This will change)  

In other words, they are only able to make money from their deceptive Premier Agent program because they built their near monopoly first.  

So, does it get any shadier than this?

I am 100% confident that honest and transparency will prevail.  We want to be part of the solution, and we think most of you do as well.  The new website we will launch will be founded on these principles.  NYC real estate needs to be forever protected with a real estate marketplace which flows freely.  A pure and honest marketplace is the only way.  

To follow this journey, kindly subscribe to this blog as well as follow me on Instagram.  Make sure to also follow the hashtag #bringransparencyback.  

And as always, I LOVE to hear from you and I always respond.  EVERY voice is important in this battle for transparency in NYC real estate.

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In Letters To NYC Real Estate Agents

Episode #11: Zillow/StreetEasy Doesn’t Want You to See This Video (Consumers Confirm Deception)

My objective here is to prove with spontaneous video interviews of consumers that Zillow/StreetEasy does not pass even the most basic “smell test” for transparency.  I took my video camera to the NYC streets and asked random people about Zillow/StreetEasy’s website.  EVERYONE  whom I spoke with had the same reaction!  (See video clip at top or bottom of post). 

There is real outrage out there caused by Zillow/ StreetEasy’s antics. But it is much more serious than most people believe.  By almost any definition, Zillow/StreetEasy has monopoly power in NYC,  and probably enough abuse to warrant investigation by the powers that be.  

But we can’t wait for that because that day may never come.  It won’t happen until consumers are just as outraged as the brokerage community.  But most of the outrage comes from those who are the most familiar with StreetEasy’s website;  Those who use it day in and day out, like the brokerage community.  Consumers don’t use real estate websites every day like real estate agents do . After all, how often are consumers really in the market to buy or rent?  Also, some of these issues (buyers agent vs sellers agent, dual agency, etc) are complicated to understand, especially to new buyers or renters.  

This is what makes the deception “brilliant” but so “dangerous” at the same time.  That is, most people  – even a lot of agents – are just not paying attention nor do they understand how dangerous this deception is to a free flowing and open real estate marketplace.  However, the good news is this:   

Even consumers who have limited buying or renting experience in NYC understand what should happen when you attempt to get information about a property on a real estate website, right?   Try asking any consumer this question:

“When you click “CONTACT AGENT” on a property listing for sale, where you would expect your message to go?”

Note that I have played this game with many of my friends who are NOT working in the real estate industry.  EVERY one of them is really surprised to learn that your message goes not to the listing agent but to a RANDOM AGENT WHO IS PAYING THOUSANDS OF DOLLARS FOR THESE LEADS. 

But producing a video showing you what my friends say is not going to convince anyone of anything.  Therefore, I decided to just go up and ask random people on the streets of NYC to prove just how misleading things are on Zillow / StreetEasy’s website.  

And of course, the average New Yorker is just as surprised to learn that they are being “tricked”.  Everyone I went up to had the same reaction:  They all just assumed that the message would go to the listing agent.

To be clear, I did NOT show you only certain interviews.  I showed you EVERY interview.  I could have interviewed 1000 people and the results would have been very similar.

Aren’t we all just tired of being bait and switched?

Aren’t we all just tired of being bait and switched?  The internet is supposed to make things MORE transparent, not less.  This is deceptive and misleading, and when you have monopoly power, potentially illegal. 

Let’s be clear, without having this monopoly power, there is no way consumers or agents would be putting up with this.  

But what can we do about it?

We know that national companies who have listing real estate marketplaces have historically really struggled to gain market share in NYC. The NYC market is just so unique.  This is why people are not holding too much hope in companies like Realtor.com, Apartments.com, and Homes.com to come save us.  Ironically, even Zillow tried to gain share in NYC before failing miserably which is why they decided to buy StreetEasy in 2012. (And a further irony is that StreetEasy did so well in New York back then because StreetEasy was such a transparent marketplace before all of these dramatic changes last year.)

So, we can’t necessarily wait around for a big national competitor to sweep in (although no doubt that the more competition the better!).  The only way we would ever compete with a billion dollar company is to eventually support a solution for a transparent, honest, free flowing real estate marketplace which can never be turned into a greedy deceptive one.  

I believe that ultimately consumers won’t put up with a greedy deceptive platform focused more on profits than on advancing the consumer and agent experience. 

Let’s work together to make something great.  I am posting every day on Instagram (@philiphorigan) and trying to engage with as many of you as possible.  Please meet me there, and subscribe to this blog.

 

 

 

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In Letters To NYC Real Estate Agents

Episode #10: The Deceptive Zillow/StreetEasy Premier Agent Program

Zillow / StreetEasy’s Premier Agent Program Could Be Shut Down By Regulators
Zillow/StreetEasy’s Premier Agent program will likely be shut down by regulators at some point, or at least forced to be changed in a MAJOR way.  The program in its current form is just so egregiously deceptive and misleading to consumers.  

And the program is much more deceptive than you may think, especially if you look at it from the consumer’s perspective.  

The Internet Was Making NYC Real Estate More Transparent…Until Zillow in 2017.
The internet changed the real estate buying process dramatically.  Up until 2017, buyers could see ALL the apartments for sale, and they could easily see the agents who are listing the property, along with the listing agent’s contact information.  Buyers or their agents could contact the listing agent or owner directly.  

Buyers LOVED this transparency.  In fact, this transparency is what fueled StreetEasy growth in the early days.  Also, in 2011 New York State began requiring brokers and buyers/sellers to sign disclosure forms. This was to ensure that buyers and sellers understood who was representing their interests in a particular transaction.  The age of transparency was upon us!

But in 2017, that all changed.  

Zillow’s StreetEasy’s decided to abuse their monopoly-like market share in NYC.  The potential existence of a monopolistic position was even hinted at by Zillow CEO Spencer Rascoff when he said last year referring to Zillow’s presence in NYC:  “Our audience size really dwarfs the competition.”  

So, here is what changed.  In March 2017, Zillow’s StreetEasy dramatically changed the listing page for homes listed on their website and removed all of the listing agent’s contact information!  (Here is a “before” and “after” shot on my Instagram feed).  Instead, they added a new form which tricks consumers into contacting a random buyer’s agent; That is, an agent who is bidding thousands of dollars to get the “lead”.

This resulted in a HUGE step back in transparency, mixed in with a healthy dose of misleading and deceiving consumers.

Why would the Zillow / StreetEasy monopoly do this?
Because they are making SO much money doing it, while taking advantage of brokers and consumers along the way. Since the website has had a near monopoly on sales traffic for years, implementing a program to get buyer leads would of course draw the attention of thousands of agents.  As an agent, if your colleagues are paying for these “leads” you have to consider it too, or so goes the thinking. 

Of course we don’t blame the agents. After all, what a great way for a newer brokerage firm to start getting million dollar buyer leads their first day in the business? Or for a more seasoned agent to “protect” his or her own listings by paying enough money to do so.  

Either way, all of these new incentives disrupt a free flowing transparent marketplace.  They create a “pay to play” scheme, all at the expense of consumer transparency.  

This is deceptive to consumers.  And here may be the worst part.  Zillow’s StreetEasy is doing it under the guise of “protecting the consumer”, as if by tricking them into meeting with a buyer’s agent is somehow in the buyer’s best interest.  

But this really distorts the reality.  Let’s be clear.  Most NYC sales deals already have TWO agents, a buyer’s agent and a seller’s agent.  It has been this way for at least the last 14 years since I have been in the business.  So, consumers seem to be having NO problem finding buyer’s agents.  

So, can StreetEasy/Zillow really make a case that buyers need this and that it helps them?  Not a chance.  

It is beyond deceptive for a monopoly-like enterprise to build a money making scheme based on this faulty premise, especially one that is misleading to consumers.   

In sum, the Premier Agent program exists to enrich the pockets of Zillow (and its shareholders), and it misleads and deceives consumers.  And even agents are not going to benefit in the long run.  While some real estate agents may get lucky with the program, most agents are wasting their money because these consumers are being deceived.  And a real estate deal never starts off on the right foot when a consumer is misled.  

Because I have been appalled at this lack of transparency, I decided to launch a competing real estate marketplace later this year.  Please follow me on Instagram (@philiphorigan) and subscribe to this blog for updates. You can also subscribe to my YouTube channel here.

 

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In Letters To NYC Real Estate Agents

Episode #9: Let’s Bring Transparency Back to NYC Real Estate

Let’s bring transparency back to New York City real estate.  While some may joke that “transparency” never existed in NYC real estate, the truth is that technology and innovation have been making things more transparent.

But that all changed in 2017. Real Estate in NYC has become less transparent. This is because of some disastrous and unethical business decisions made in 2017 by the near monopoly StreetEasy (owned by  Zillow).

While agents and landlords are well aware of what is going on, one of the purposes of this blog (www.flowfreely.com)  is to make sure consumers are up to speed as well.

After all, consumers are not involved in the real estate markets every day.  So we have to make sure that these huge greedy billion dollar corporations  – who have already demonstrated their intention to push profits over ethics – don’t take advantage of consumers (nor agents for that matter).

We need a platform that ensures consumers and agents will never be taken advantage of again, promising a free flowing real estate experience.  Consumers and agents deserve this.

This is just the beginning.  I won’t stop until we have a NYC real estate marketplace that flows freely; one that all consumers, landlords, and agents can be proud of.

If you want to stay updated and see more video episodes and blogs, please follow me on instagram, twitter, and subscribe to this blog, flowfreely.com 

Sincerely,

Phil Horigan

p.s. If you want to see the 8 letters I sent to real estate agents about this over the last year, I re-posted them on this blog for your reading pleasure.  Look for the “older posts” or “prev post” link below.

p.s.s. Here is the text of the video:

“Look, everyone knows it is not easy to buy or rent an apartment in New York City. The process is a pain in the “a**”.  But the internet was making things easier, and the process was getting more transparent. Until last year. You know why? Hold that thought.  This is a river.  It’s the Hudson River. And even on the coldest day of the year, notice how it’s flowing freely, no hidden obstacles, no obstructions. We can jump in there right now if we wanted to.  For free! This free flowing transparency is where New York City real estate was heading.  It was slow.  But we were heading there. But this all changed last year, when market leader StreetEasy, a near monopoly owner by Zillow, decided to take consumers and broker for granted in a big, big way.  If you have any doubt, check this out.  Last year people were so upset by their antics, that they pulled half of the apartments off of StreetEasy’s website.  So, we’ll have a lot more to say about this in 2018. For now, follow me for updates on my new blog at Flowfreely.com as well as follow me on instagram and twitter. “

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In Letters To NYC Real Estate Agents

StreetEasy’s Traffic Down 50% Since June: Letter #8 to Real Estate Agents

Dear Real Estate Agents,

There was a lot of well deserved outrage about StreetEasy’s business decisions in 2017.  As we all know, the straw that broke the camel’s back was the MONOPOLY TAX they started charging on July 18th which caused brokers to pull almost half of their listings off the site.

But we are starting to see the real consequences of these disgraceful greedy business decisions which are hurting consumers and brokers alike.

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In Letters To NYC Real Estate Agents

Agents to StreetEasy: Thanks for Making Me Stronger: Letter #7 to Real Estate Agents

Dear Real Estate Agents,

The real estate agent is now much stronger.  Thanks StreetEasy!

The value the real estate agent provides has increased dramatically since StreetEasy lost its status as the “go to” real estate marketplace.  It became impossible for StreetEasy to remain the “go to” when they lost 50% of their rental listings and 30% of their sale listings 3 months ago.

So – thanks to StreetEasy – now there is one more reason to use a real estate agent:

The agent knows where to find all listings.  

But we as agents have to help get the word out and educate consumers about this.  After all, unlike agents the average consumer is not thinking about real estate every day.  This is where you come in…

How Two Agents Are Getting the Word Out
Here are just two simple examples (out of many) demonstrating how real estate agents are getting the word out about the changing landscape and how agents can add value.  If you have more examples, I would love to hear about them!

1. Kristin Hurd from Brown Harris Stevens
Several weeks ago Kristin Hurd and her team from Brown Harris Stevens posted this on Instagram.  Wow, what a great summary of the current situation and what a great way to educate clients, and make new ones!

2. Christine Toes from Compass
Christine Toes from Compass puts this message near her signature in every email she sends out. Great way to spread the word about the changing landscape!
“Did you know, StreetEasy no longer aggregates all of the listings in NYC? The New York Times is the “go-to” website once again! Or check out our site, Compass.com for all of New York City’s available homes.  

Some Agents Frustrated: Is Change Happening?
Some agents are frustrated because change is not happening fast enough.  Why is StreetEasy still the dominant player, they ask.

Well, despite tectonic shifts happening behind the scenes, StreetEasy WILL be the dominant player at least for a little while.  The main reason is because real estate is not a daily activity for most consumers (unlike agents) so it will take a while for consumers to figure out that the lack of inventory on StreetEasy is actually a “StreetEasy” problem as opposed to a “market” issue.

This is why it is so critical to educate clients and consumers like Kristin and Christine are doing.  Heck, if it makes it easier for you, feel free to copy and use any part of this newsletter (or any other past newsletters) as your own.  I am fine with it.  Whatever helps you!

Yes. Significant Change IS Happening.  
However, when you look at the dramatic changes in just the last few months, you can’t help but get excited about the prospects ahead.  Let’s have a quick look:

  • StreetEasy Website Traffic Down. StreetEasy’s traffic has declined every month since July, the month they instituted the monopoly tax on rentals (according to SimilarWeb, a company which tracks website traffic)
  • StreetEasy Inventory Still Way Down.  A lot of people thought by now brokers and listings would come back to StreetEasy in droves.  It hasn’t happened. StreetEasy’s inventory hasn’t changed much since the dramatic declines in July/August.
  • Brokers Unite Around RLS. Almost all brokerages have opted into RLS syndication within the last month, which is going to reshape the real estate landscape for years to come.
  • REBNY Builds Big Team. This year REBNY has dramatically beefed up their RLS department and their technology. Leasebreak has interacted with the new team many times and we are quite impressed.
  • The NY Times. The New York Times started taking the RLS feed this month and should be showing all of your listings. They used to be #1 in the city.  Give them some time.  They will be a force.
  • Realtor.com. Realtor has a lot of money and is making a real play to gobble up market share in NYC. They also don’t seem to like Zillow/StreetEasy very much. They could also be a force.
  • Don’t Mess With NYC Brokers. Many brokerage firms continue to refuse to pay the StreetEasy $3 daily monopoly tax on rentals or send them their sales listings.  This continues to have a dramatic effect and ensures competition will rise up.
  • Leasebreak.com + Others.  Leasebreak and other companies are working ferociously behind the scenes. For example, Leasebreak will launch a new product soon. Stay tuned!

So, the transformation is happening. I see positive steps every day.  But the big change will happen in months and years, not days and weeks.

At the end of the day there are HUGE consequences when a firm takes advantages of its customers, especially when most of those customers happen to be principled NYC real estate agents and brokerage firms…

…And more competition in the marketplace will ensure they never take advantage of us again. 

To remind you, here is the Facebook group where brokers discuss the current changing landscape and share tips.  The Facebook Group has almost 400 agents as members!

And here are my previous emails about the changing landscape:

Brokers Unite: RLS “Opt-In” Surges – September 26th, 2017
StreetEasy Bows To Corcoran (After Elliman) – September 8th 2017
Zillow/StreetEasy Stock Down 20% – August 17th 2017
5 Ways We Can Crush The StreetEasy Monopoly – August 3rd 2017
Agents To StreetEasy: No, We Don’t Need You – July 18th 2017
Our Response to StreetEasy’s Greed – July 13th 2017

Phil Horigan
Dedicated NYC Real Estate Agent for 13 Years
Founder, Leasebreak.com

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In Letters To NYC Real Estate Agents

Brokers Unite: RLS “Opt-In” Surges!: Letter #6 to Real Estate Agents

Dear Real Estate Agents,

Boy, a lot has changed in two weeks.  The RLS “opt-in” started with a trickle in August…and then turned into an avalanche in September.  Believe it or not, brokers are indeed working together.  Like one big locked arm hug!

As of today, most brokerage firms large and small have opted into the new REBNY RLS syndication feed.  Case in point, Leasebreak.com  – an approved RLS partner – now has over 9000 rental listings and growing every day.  You will pretty much find every REBNY rental exclusive on our website (and you will find them on the other RLS partner websites too!)  If you expect your listing or another firm’s listing to be on our website and it is not, please let me know. 

Why is the RLS important? What is it?
The RLS is NOT new.  It has been around for years.  In fact, it is how brokers share listing information with each other, usually through a third party vendor (i.e. OLR, RealPlus, etc.)

So what is new about the RLS?  
Here is what is new about the RLS:  For the first time the RLS is making your precious listing data available through syndication to 3rd party websites like Leasebreak.com and The New York Times (see below).  This will create more competition in the marketplace instead of relying on just one profit hungry firm whom you have to pay to get leads.

But this takes time.  For Leasebreak and other firms to be on an equal footing with StreetEasy in rentals and sales won’t happen overnight. But companies with experience are making progress.  For example, Leasebreak will apply the same efforts for 12 month rentals as we did to become #1 in short term rentals and leasebreaks…and the rest of the impressive competitors coming down the pike are also pushing hard, like the New York Times.  Speaking of which…

The New York Times and the REBNY-RLS Feed!
Did you hear? Wow. This is huge! The New York Times also signed up to begin taking the new RLS feed sometime in the very near future.  Smelling an opportunity to regain the throne, The New York Times is getting into the action.  Since having more competition in the consumer-facing listing space is the goal, this is gigantic news.

Those of you may remember when the New York Times was the ONLY PLACE to find an apartment in NYC (pre-StreetEasy).  Having the New York Times sign up to the new RLS feed is an indication that things ARE different this time.  Things are really changing.  History will be written that there are serious consequences when you confuse the consumer and take advantage of real estate agents and their pocketbooks. 

However, only when all broker firms “opt in”, will there be real competition in the marketplace.  

So, we will have some work to do until every last brokerage “opts-in” to the new REBNY RLS syndication feed. But we are making amazing progress in just a few months.

In sum, the unbelievable broker surge to “opt-in” in the last 2 weeks has been exhilarating and a testament to how well brokers can work together.  Keep up the good work!

To remind you, here is the Facebook group where brokers discuss the current situation with StreetEasy and share tips.  The Facebook Group has about 350 agents as members!

And here are my previous emails about the changing landscape:

StreetEasy Bows To Corcoran (After Elliman) – September 8th 2017
Zillow/StreetEasy Stock Down 20% – August 17th 2017
5 Ways We Can Crush The StreetEasy Monopoly – August 3rd 2017
Agents To StreetEasy: No, We Don’t Need You – July 18th 2017
Our Response to StreetEasy’s Greed – July 13th 2017

Phil Horigan
Dedicated NYC Real Estate Agent for 13 Years
Founder, Leasebreak.com

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In Letters To NYC Real Estate Agents

StreetEasy Bows To Corcoran (After Elliman): Letter #5 to Real Estate Agents

Dear Real Estate Agents,

The spin you are hearing is incorrect.  Here is what is really going on:

StreetEasy is the one in panic mode.  They are the ones who have cracked, and who are being forced to renegotiate their $3 Daily Monopoly Tax.  But it makes sense.  If your entire business is predicated on having all listings, and then in one month you lose 50% of your rental listings and 30% of your sales listings overnight, wouldn’t you be panicking?

And wouldn’t you do whatever you could do to give “sweetheart” deals to the two largest firms in the industry (Corcoran and Elliman) to at least slow the bleeding?

Check out this recent quote from media analyst Mike DelPrete of Aim Group:

“The amount of backlash Zillow is facing in New York seems to be the biggest, strongest, and most concerted battle against Zillow I’ve ever seen”. 

So keep up the good work brokers!  And this is just the beginning.  We are only in the first inning of this dramatic industry shake up.  These things take time.

By the way, doesn’t it really rub you the wrong way how StreetEasy is giving “special deals” to certain brokerages, a firm that was founded on authenticity and transparency? However, they are now in survival mode.  Zillow/StreetEasy’s stock has now lost 25% of its value since June.  I don’t think they are sleeping too well over there.

Why hasn’t the new REBNY-RLS syndication saved us yet? 

It will.  These things take time.  But here is one reason it is taking a little longer:

Many of you – including us – thought that every brokerage who is already an RLS/REBNY member would be automatically “opted in”.  THIS IS NOT THE CASE.  If your firm wants your listings to appear on the new “REBNY approved” listing portals, there is a final step some firms do not know about.  Each firm has to individually go in and “opt in”.  It turns out some firms who thought they were opted in, were not!

And only when all firms “opt in”, will there be real competition in the marketplace.  

Take heart! The REBNY effort has been quite impressive.  I am seeing it first hand, as Leasebreak is now accepting the feed, and REBNY is putting a lot of resources behind this effort.

If you are not sure if your firm has taken this final step and “opted in” to syndicate to Leasebreak and other sites, just ask me.

We have to get every brokerage to opt in.  It is the best way – possibly the only way – to create a more competitive marketplace.  I am seeing more and more firms opt in each day.  It is all very exciting.

Let’s do this!

Phil Horigan
Dedicated NYC Real Estate Agent for 13 Years
Founder, Leasebreak.com

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In Letters To NYC Real Estate Agents

Zillow/StreetEasy Stock Down 20%: Letter #4 to Real Estate Agents

Dear Real Estate Agents,

Zillow/StreetEasy’s stock is down almost 20% since their earnings call with investors last week.  The drop in price is being attributed to a lower than expected sales forecast in the coming months.

Could the StreetEasy boycott be a contributing factor? We think so…  

We got a transcript of Zillow’s earnings call from last week and the CEO spent 25% of his time talking about the New York City market (We provide some direct quotes from the call below). In other words, in case it wasn’t clear from their rash actions—Zillow/StreetEasy is making an all out unrelenting push to squeeze as much revenue from New York City real estate agents as possible. This will continue.

July 17th was a high water mark for StreetEasy.

But, StreetEasy is simply not “the place” to look for real estate anymore. July 17th—the day before the $3/day fee was enacted—was a high water mark for StreetEasy. They now have half the rental inventory, and about 20% fewer sales listings (getting less every day) thanks to some very principled real estate firms and agents who either refused to pay StreetEasy or stopped sending them their listing feeds. More consumers are figuring out what is going on each day.

We need competition, and we need it fast. Leasebreak.com and others are going to be taking REBNY’s RLS feed, and I am sure others (like me) are working on launching other products to more directly respond and provide better alternatives for agents and consumers.

Real Quotes from Zillow’s/StreetEasy’s Earnings Call Last Week

Below are some exact quotes from the conference call.  Please join me in helping Zillow/StreetEasy EAT THESE WORDS. We can only do so by creating competition. To remind you, here is the Facebook group where we discuss StreetEasy issues (we now have over 300 agents as members!) and here is a link to a post suggesting the 5 ways we can embolden competitors to StreetEasy.
 

“We’re more excited than ever about our potential in New York.”
-Zillow/StreetEasy CEO Spencer Rascoff

“…we’re excited about many aspects of the rentals business, including the new New York City paid listings product.”
-Zillow/StreetEasy CFO Kathleen Philips

“Our audience size really dwarfs the competition in New York”
-Zillow/StreetEasy CEO Spencer Rascoff

“…..a boom and boon of Premier Agent sales over the last couple of months in New York, and it continues on the for-sale side in New York as well.”
-Zillow/StreetEasy CEO Spencer Rascoff

And—finally—a question was asked of the CEO Spencer Rascoff to respond to REBNY’s pushback and the launch of the $3 paid program:

QUESTION: “Do you expect your rental listings to come back onto StreetEasy?”

ANSWER: “They effectively already have. The decline in our rental listings count when we switched from free to paid inclusion was expected, desired and on forecast.”

Note from Phil to Zillow CEO: Sorry buddy, but they have NOT come back. Your rental inventory is down 44%, which represents a whopping 14,000 rental listings that have been removed from StreetEasy. Ouch. Next time think twice before you mislead people, most of all NYC real estate agents.  Let’s just say real estate agents have a nose for smelling a bad deal.  

Let’s do this!

Phil Horigan
Dedicated NYC Real Estate Agent for 13 Years
Founder, Leasebreak.com

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