Properazzi launches in the US with a focus on…

the international buyer.

I talked to the CEO of Properazzi (Yannick Laclau) the other day and mentioned my concern that they were entering a highly competitive space (and it appeared to me) without a plan to get comprehensive listings.   His response was that, at least initially, they would be appealing to a very international audience who would largely be unaware of domestic home search tools.

I’m not sure how much I buy this idea that it is enough to appeal to international buyers, but they’ve got to be the fastest expanding real estate search site in the world, so Yannick obviously knows a bit about what he’s doing!

Some choice words for real estate start-ups

This interview by Global Property exchange with Simon Baker, who just so happens to be the CEO of News Corporation-owned REA Group, features a few choice quotes about web2.0 start-ups in the real estate space. Here are the two comments that stuck out for me:

“You don’t have to look sexy to deliver.”

“Sites like Zillow.com get a lot of press and they look great but will they deliver? … I doubt whether they do more than US$3 million a year compared to Realtor.com’s US$300 million”

“Outside of Asia, South America and Eastern Europe, my advice [to would-be real estate portals] would be, keep your money. In fact, if you were given £20 million to start a new real estate portal, the best thing to do would be to [not to start the portal at all and] set up a consultancy to take the money from them.”

 (h/t to Yannick of Properazzi

Bob Hale gives a fascinating presentation about…

HAR‘s success in building up a consumer-destination site for Houston real estate listing information. The presentation (*.pdf) is well worth a read and Chris McKeever of NAR’s CRT does a great job summarizing the highlights

But the slide that stuck out the most for me was HAR’s local market share:

HAR Traffic Stats for Houston

It goes without saying that 57% market share for a MLS site is very impressive and takes someone leading the ship who can create a product that meets the needs of local consumers.

Rumors spread that Trulia is getting Prudential’s Listings

It started with the real estate coach and spread to Joel before hitting 4realz. And it all seems so believably that no one is really doubting the story.
However, I think it is worth nothing that there’s a bit of confusion over the total number of listings that Prudential would be giving Trulia… and I’m pretty sure the the confusion stems from the fact that Yahoo ran their real estate site as it if was an IDX feed from Pru so that Pru was “sending” all the MLS listings (Pru and others) for most MLS’. However, if Prudential is sending listings directly to Trulia, this would no longer be the case and I’m almost positive Pru doesn’t have anything close to 4M US listings as reported by the various sites.

Either way and any way, this would be another big win for Trulia, but as Joel notes, Michael agrees, (and I’ve said before), it is not self-evident that at the end of the day, the consumer wins with broker-fed listing sites.

The 1st 4RealzEd event was yesterday and…

4ealzEdI think I’ve recovered enough now to actually post about it! 🙂

Despite our best efforts to be prepared, the day started off a bit rough with a nearby mudslide taking out power in our building in the morning (meaning no hot coffee and no projector) and a 9-car pileup on a nearby freeway slowed me down tremendously. AHHH

So, to say it started rough would be an understatement… But once it started, things seem to get on a roll quickly.

I started with an overview of consumers expectations in a web2.0 world to set expectations for the day… Jim followed up with presentation on optimal features and design for a real estate website. Then it turned back to me for a presentation on social networking… lunch… then another presentation by me on creating value through blogging about communities. And we returned for the day’s finally with Jim giving a engaging presentation on measuring and tracking marketing results to ensure a positive ROI.

All around, it was a wonderful day! And, maybe they were just being nice, but the attendees who talked with me said only good things about the education.

Because I promised attendees I would give them a list of all the sites I mentioned in my presentations (so that they wouldn’t have to ask me to spell out each URL), here is the list for everyone’s benefit.

Consumer Expectations in a Web2.0 World:

Engaging in Social Networking to Earn Clients

Using Blogs to Build Communities

I wasn’t tracking the sites that Jim mentioned, but there were not nearly as many of them in his presentations…

And thanks again to all the bloggers who have helped spread the word about the event, the sponsors who helped us keep the price low and all the attendees who made the day possible!

I received some incredible feedback from all three groups, which is going to lead me to make some changes to the upcoming events (I’ll announce those early next week!). Great stuff all around. Thanks again to everyone!

The 4realz Interview with Pete Flint of Trulia.com

As I said to when I started the 4realz interviews, I reached out to four players in the real estate technology space and asked them a similar set of 9 questions.   I purposefully picked four people representing four different companies at different stages of development and different types/levels of funding.   First was Marty Frame of CyberHomes, then Alex Chang of Roost, and, today, I’m fortunate to publish this interview with Pete Flint of Trulia.

I first met Pete thanks to an introduction from Paul Rademacher before Trulia had launched (and they were going by the name RealWide!).    Thanks to my experiment with gHomes, I had started up a conversation with Paul and he knew I was looking to get out of  transportation engineering and into the wild world of online real estate.

During this initial conversation with Pete I was immediately impressed because he was doing exactly what I wanted to be doing:  starting up a consumer-oriented real estate search site.   However, he was way ahead of me…   Whereas I was still in idea-mode, Pete had teamed up with a fellow Standford MBA grad, Sami Inkinen, to get the funding and team in place necessary to build a top-notch website.

During that first conversation with Pete, we chatted about all kinds of opportunities in the industry and I developed a tremendous respect for him because I could tell that he “got it.”  I’ve always, always enjoyed my encounters with him since. He’s a true professional and after only a few years in the real estate space, he’s proven that he has all the necessarily executive skills to create a product that has already had an undeniably huge impact on our industry.

Dustin: Can you briefly tell us a little bit about the products and services that your company offers for real estate professionals?

Pete: At Trulia we have a great selection of free and premium tools for real estate professionals to drive more online traffic to their listings and to expand their online audience. With approximately 4 million monthly unique users, Trulia.com is second to Realtor.com as a leading residential sites site for agents to get in front of an active audience of home buyers and sellers.
Free products:
Trulia Voices: Join the Conversation. Answer questions. Engage directly with active home buyers and sellers and share insights. Learn from other real estate professionals. How? Set up your profile for free, upload your picture and contact information, and sign-up for email alerts to find out when consumers ask questions in your area!
Listings submission: Get free exposure to your listings and significant traffic back to your own Web site. How? Build your feed, submit your site to be indexed, work with our listing feed partners or get your brokerage to send a feed to Trulia.
Trulia Tools: Add value. Get free, easy to install maps or charts for your Web site.

Premium products:
Agent Featured Listings: Get around 3x the traffic and exposure for up to 10 listings for $50 a month, email traffic reports and your photos on listings.
Banner Advertising: Buy banners in your neighborhoods or ZIP codes to enhance your personal brand.

Who do you view as your main competition and how do you differentiate yourself?

Other real estate sites that are supported by advertising dollars are our most obvious competition. Ultimately we think there will be a couple of big sites with a comprehensive set of tools that compete for traffic and advertising dollars. Competition is healthy which is spurring innovation that in the end will help both consumers and home buyers and sellers.

At Trulia, we think that to be successful you have to both attract a large audience of consumers by providing useful tools delivered in a great user experience and be a trusted and cost effective marketing partner for the real estate industry.  Our strategy from the start was to do both. Other sites have either alienated the consumers by not delivering a great online experience, or they have alienated the real estate industry by attempting to marginalize their role. Establishing personal relationships on a broker and agent level helps us understand their needs. We are always listening. You’re seeing the big sites wake up now and change their strategies.

Between Move getting $100M, Zillow getting $87M, Redfin at $20M, Trulia at $18M, Terabitz at $10M, and NAR looking to invest approximately $30M through their 2nd Century Fund, there’s a lot of investment money floating around the real estate space at the moment. Do you see this as a good thing for the industry?

The VC and private equity money is a great thing for both consumers and the real estate industry. All these dollars flowing into the industry will ultimately lower the marketing costs for agents and also drive competition for consumers by delivering a great online experience. The online real estate industry is still in its infancy and may seem a little confusing right now, but the combination of capital, advertising dollars and ambition is a powerful combination and will move the industry forward for the better.

That said, I’m a little bit skeptical about the NAR fund, seems like given the current climate and their history of technology investments the NAR members might prefer those dollars to stay in their wallets.

Besides the venture capital money mentioned in the first question, there are also a few big players from related industries who are jumping into the listings game… Such as Fidelity with CyberHomes and HGTV with FrontDoor. Why do you think there are so many companies chasing the listing side of this industry?

Homes for sale are the number one thing that consumers search for in the real estate industry. Hence it’s natural that these companies with some existing real estate assets are moving into this space. They see the innovation and opportunity and are working to catch up. We all know that the online advertising dollars in the real estate industry are significant and so we’re all chasing a piece of that.

I don’t think it is a stretch to say that the big brokerages are only just beginning to use their websites to create a compelling consumer experience that competes with REALTOR.com. Why do you think it has taken the national brokerages so long to complete on this front?

Building a great site is REALLY tough and it is hard for large brokerage to attract the engineering and design talent to do all this effectively. Brokers should be building strong online experiences, but they shouldn’t be distracted from their strengths and core competency— selling homes!

ActiveRain, Trulia, Zolve, Realtor.com and others have created social networks that use real estate professional content in order to better inform consumers and (theoretically) drive more business to these online professionals. Does your company have any plans to either create your own social network or engage in these existing networks? If so, how?

At Trulia, we believe that the real estate transaction is the ultimate social transaction, in that you speak to more people before during and after the process for longer than any other purchase I can think of. As consumers and professionals have become more comfortable with sharing and socializing on the web, it is natural for social networks in the real estate industry to pop-up which take some of the normal offline conversations and activity online. We think that Trulia Voices is the best example out there of a consumer real estate site delivering a compelling user community for consumers and agents. And having an active dialogue with the community helps us understand our users’ unique needs. The Q and A format is just the beginning.

To date, many of the most successful real estate professionals do most of their marketing off-line. If one of these experienced real estate agents wanted to jump-start their online marketing, where would you recommend they begin?

Reading and watching are two of the best things someone new to the scene can do. This will help them understand the culture of social networks and blogs. Then start with the free stuff to learn how the online tools work. Participate in Trulia Voices and other online social sites or blog networks. Make sure you work with sites that are near the top of search results in google, as they will get the most traffic to you. I would hold off on launching your own blog due to the technical complexities and time involved. As you get more comfortable you can decide whether or not a blog is for you, sign-up for premium services, buy advertising on Trulia, Google and others.

Would it be different for an agent who is just starting out in the business? If so, where do you recommend they begin with their online marketing?

I would recommend pretty much just the same, but clearly new agents will have to work harder as they don’t have the existing contacts and reputation. Read and watch first. Then participate.

What do you see as some of the biggest changes coming to online real estate in the next two years?

Social networking will start to deliver an increasing portion of business for agents, it will take time, but these efforts will really pay off as consumers will increasingly use these services.

It is natural there will be some consolidation of the consumer audience and probably 2-4 major large online sites will exist, plus another 2-4 specialized sites serving specific, but large niches and then some large national franchise/broker sites. Competition among these sites will be fierce and innovation will continue to accelerate.

We don’t see the real estate transaction changing that much, but the consumer research and agent marketing will be permanently changed.

Thanks, Pete, for the fascinating interview!  

Rumor has it that Windermere is going…

…to start sending all their listings to Trulia at some point in March.

Considering the rough relationship between Realtor.com and Windermere, that would be a huge win for Trulia and would probably give them the most comprehensive listing coverage in the Seattle area of all the national real estate search sites (and in Zillow’s backyard!).

The 4realz Interview with Alex Chang of Roost.com

After interviewing Marty last week, I thought it would be interesting to turn to Alex Chang (CEO of Roost) in order to get the perspective from someone entering the real estate search space from a different place in terms of timing, funding and resources…

Roost LogoI first met Alex while we he was setting up shop at NAR (in Vegas) outside of the blogger’s lounge at a table right next to mine. He was holding court with some interesting players in the real estate space, so when a free moment for both us turned up, I introduced myself and was pleasantly surprised to find out that Alex not only knew who I was, but that he had a strong command of the players in the RE.net (score a point for Alex!).

A few months later at RE Connect, Alex was nice enough to give me a demo of Roost, and I was immediately impressed. His team is obviously focused on doing one thing right (real estate search) and they have the money and talent to do it. However, seeing as they are relatively new to a fairly crowded space, I don’t think it will come as a surprise to anyone that they have their work cut out for them.

Dustin: Can you briefly tell us a little bit about the products and services that your company offers for real estate professionals?

Alex: Roost is an open and inclusive marketing platform for all brokers, large and small. Roost’s goal is to help broker partners drive more business for themselves and their agents in a way that puts them in control. To do this, we provide two services that operate in parallel. First we offer brokers of all types & sizes a powerful, IDX-compliant property search site that they can use at their discretion. Second, we send qualified home buyers to their sites via the Roost.com search engine. Our model is transparent and performance based. The broker only pays for the traffic they want by setting a monthly budget that meets their needs.

Who do you view as your main competition and how do you differentiate yourself?

There are a lot of companies out there doing related things in different ways.

In order to differentiate, we need to appeal to the fact that buying a home is one of the most important life decisions consumers will make. We need to offer a comprehensive, easy, fast and fun way to search for homes. We feel that Roost has cracked the code on providing comprehensive data on top the fastest and most intuitive way to search for homes. That’s our biggest differentiator.

When we think about our competition, we think more about the demands on a consumer’s time than we do about other companies. Between work, kids, home maintenance, etc consumers only have so much time in their day to dream about their next home and actively research it online or off. Roost’s mission is to create an experience that works despite these demands.

Between Move getting $100M, Zillow getting $87M, Redfin at $20M, Trulia at $18M, Terabitz at $10M, and NAR looking to invest approximately $30M through their 2nd Century Fund, there’s a lot of investment money floating around the real estate space at the moment. Do you see this as a good thing for the industry?

Without question. That capital is fueling innovation. And in most cases that innovation is an effort to provide the industry with better/more efficient marketing tools for brokers and better services for home buyers. Ten years ago it would have been about trying to disintermediate the Realtor. But that’s not the case today. The more options Realtors have to market their services, the better. Competition keeps everyone honest and striving to provide better services.

Besides the venture capital money mentioned in the first question, there are also a few big players from related industries who are jumping into the listings game. Such as Fidelity with CyberHomes and HGTV with FrontDoor. Why do you think there are so many companies chasing the listing side of this industry?

I doubt your average adult site would be very successful without the porn. Consumers want access to listings plain and simple. Other bells and whistles around home buying are nice, but when my wife Beth and I sit down to think about our next home, 90% of that time is spent checking out listings of homes we could go visit. I’d imagine that’s pretty common. That’s the focus of Roost and we’re solely concerned with filling that need. And besides, listings one of Gary Keller’s “3 L’s of the Millionaire Real Estate Agent” – so you know they’re important.

I don’t think it is a stretch to say that the big brokerages are only just beginning to use their websites to create a compelling consumer experience that competes with REALTOR.com. Why do you think it has taken the national brokerages so long to complete on this front?

It’s a question of core competency. It took a long time for retailers to get good at building e-commerce sites which is one reason why Amazon has done so well. Clearly, forward thinking brokers get this and are investing in their own websites. But the bottom line is that building great customer experience online is hard, even if that’s all you focus on all day long. And it’s not cheap. Also, I think it takes a little while to start to be able to measure and see a return from a broker’s site in this industry. So you have to have the appetite to make longer term investments in technology. That can be a tough pill to swallow.

ActiveRain, Trulia, Zolve, Realtor.com and others have created social networks that use real estate professional content in order to better inform consumers and (theoretically) drive more business to these online professionals. Does your company have any plans to either create your own social network or engage in these existing networks? If so, how?

No, we don’t. Our sole dedication is on search and building the Roost platform for brokers. That means we have to say no to lots of other seemingly cool and sexy ideas. I won’t say that we’ll never expand past this focus, but right now, being excellent at search is enough of a challenge and something that we believe the market is lacking.

To date, many of the most successful real estate professionals do most of their marketing off-line. If one of these experienced real estate agents wanted to jump-start their online marketing, where would you recommend they begin?

It starts with your own Web presence. First, create a couple great websites and blogs that get across why you are the best at what you do in some specific ways. Ensure that there are all sorts of ways for consumers to contact you on these sites, and obviously make sure you have some excellent ways for consumers to search for homes on these sites (you knew we were going to say that). Second, get some tools that will help you actually see what return you’re getting from traffic to these sites. Where is the traffic coming from? What leads is it generating? When those are done, find targeted marketing vehicles that send traffic you can actually measure to these sites at budget levels you can afford.

Would it be different for an agent who is just starting out in the business? If so, where do you recommend they begin with their online marketing?

I don’t think it’s a different set of steps for new agents. In fact, I’d say following the above list is even more important for a new agent who may not have an installed referral base.

What do you see as some of the biggest changes coming to online real estate in the next two years?

I see three things on the horizon. First, I think there will be a shakeout of wheat from chaff. Businesses that can’t add real value to both the consumer and the Realtor in a way that proves profitable, are not going to make it. Second, I think there will be a real premium placed on great product. This industry needs to catch up (and we’re seeing that happen). Sites that offer excellent experience will rise to the top. Finally, like many, I think mobile is going to become a huge force in this industry both from a consumer and Realtor perspective.

UPDATE: Joel just published a video interview with Alex on Inman News that is definitely worth checking out!