The Insider: Issue 018
Happy Monday, folks. Have you joined our LinkedIn group yet? It’s the perfect place to network with your fellow Insiders, ask questions, and get insights.
Last Week This Week
The Battle of the Balance Sheets continues. Opendoor secured another $3 billion in debt, raising its overall borrowing capacity to 9 Billion. Zillow has recently raised $700 million selling bonds backed by homes it owns.
Flat-fee brokerage/franchisor HomeSmart announced a multi-level commission plan called HomeSmart+. HomeSmart is among a wave of low-cost companies that grew rapidly over the past decade (others include Realty One Group, United Real Estate, JPAR), largely at the expense of big, traditional, split-based shops. Then EXP happened. Stock grants. 100% virtual. Recruiting residuals. HomeSmart’s move here is a reaction, showing us just how quickly today’s innovator can, tomorrow, be innovated upon.
MooveGuru, a company that helps people manage the process of switching their home related stuff (utilities, etc.) when moving, announced that it has begun to franchise this service for brokers looking for another ancillary service. TBH, we can’t decide if this is dumb or brilliant. What say you?
Have You Heard About This?
Talk Normal To Me
We recently caught wind of an online lender called Beeline, which promises from its home page the ability to get a home loan from your sofa. We can’t vouch for the service firsthand, but think the execution of their messaging is top-notch. Getting a mortgage is right up there with getting a root canal. This company talks to us like we’re human, and gives us a web experience free from schlocky stock photos. Dig it.
What's Inside
In case you missed it, be sure to check out the new Spotlight Interview featuring Michael Martin of Avenue 8.
Coming this week: new Original Research on the MLS and commissions. You won’t want to miss this one.
Agent Pulse
Yeah, we went there: offers of compensation and steering.
We asked 676 agents 2 questions...
Question 1: “Do you feel that agents might be more likely to show a property that has a higher co-broke commission?”:
Yes: 77%
No: 23%
Question 2: “In your professional opinion, do properties with a higher co-broke commission sell for more money?”
Yes: 38%
No: 62%
Surprising? No. A problem? Yes. We’re gonna dig deeper on this issue. More to come.
Inspiration Point
Better with Age
LA-based women’s fashion brand AYR caught our eye this month when they featured a co-founder’s grandmother throughout their catalog, not in a special “aged” collection, but in the same clothes as her younger counterparts (and looking fly AF). This is the brand’s way of expressing timelessness and accessibility — two hallmarks of their clothing. AYR stands for “all year round,” so something tells us this was no chance experiment, but rather a strategic move to express and add dimension to their brand’s core meaning. Bravo!! People don’t want to be categorized and marketed to according to their numerical demographics. Truth is we all just want to look this dang iconic in a black turtleneck.
In A Perfect World
“The world would be a much simpler, more reasonable place if we could abandon the habits that make life livable in the short run, and precarious in the long run. Sadly, the world doesn't work that way.” < ======= This nugget is from Bob Hoffman, aka “The Ad Contrarian,” a brilliant writer born from the advertising industry who now occasionally gives us the hard truth through his blog of the same name and numerous published books. In the post quoted above, Hoffman highlights one of the most powerful benefits of a successful brand. Brands eventually have the money to support strategic advertising efforts, which often get tossed aside when you’re in the rat race of simply making it through the week or year (an understandable and relatable position). Check it out.
Quote of the week
“Nobody reads ads. People read what interests them. Sometimes it’s an ad.”
— Howard Gossage
