The Insider: Issue 034

This week, we’re feeling the whimsy. We caught a little inspiration from unexpected sources like a Boise library, a sandwich shop bench, and a bowl of pho. Enjoy!

Last Week This Week

Rex, the alt-brokerage seemingly put on this earth to roast the “traditional” industry in court and in the press, has decided to join the MLS in some markets. Until this point, Rex has marketed properties off the MLS, without offering buyer agent compensation. Some observers saw this as a win for incumbent players. We do not. This move supports Rex’s narrative that what they claim is a monopolistic MLS system forces conformity. Moreover, we expect playing in the MLS will give Rex plenty of opportunity to document buyer agents steering their clients away from Rex listings, which, despite being on the MLS, will offer very little in the way of co-broke compensation. One wonders if the whole Rex project is little more than an elaborate litigation strategy. Sigh...

Invitation Homes, one of the largest institutional buyers of single family homes, pumped $250 million into a new rent-to-own company called Pathway Homes. Last year, private equity behemoth Blackstone, which created then sold off Invitation Homes, bought Home Partners of America, another rent-to-own company (Home Partners of America is also Realogy’s partner in RealSure, RLGY’s ibuyer play). If one were inclined toward cynicism, this could all perhaps be viewed as an PR move by big institutional buyers, who are increasingly facing backlash for vacuuming up scarce inventory and driving up prices. And no, it’s not just you: this is all very confusing.

Redfin dug deep into MLS data in 32 markets and found that buy-side commission rates have dropped to their lowest level since 2017, but that commissions, buoyed by insane appreciation, actually increased in dollar terms. Appreciation, it seems, is the performance enhancing drug keeping many market participants ripped and rockin’. The come-down, whenever it finally happens, will be rough.

Have You Heard About This?

‘The Adventures of Dillon Helbig’s Crismis’
An 8-year-old in Idaho recently showed us all how to do life — without permission, on your own terms, and with major creative risks. Dillon Helbig wrote and illustrated a book using a red-cover notebook and colored pencils. He wanted to share it with others. So on a trip to the Ada Community Library’s Lake Hazel Branch in Boise in December, he secretly slipped his book onto a shelf of illustrated children’s books and happily walked away. Library staff eventually found it, read it amongst themselves and even read it to their kids, who gave raving reviews. They decided it was good enough to become a permanent member of their shelves, barcoded it, and now feature it in the graphic novels section for kids, teens and adults (with permission from Dillon’s parents). The library then gave Dillon the first ever Whoodini Award for Best Young Novelist, a category created just for him. And, get this: his book now has a years-long waiting list! We like your style, Dillon!

What's Inside

Car brands create concept cars that will never make it past the racetrack or whatever world stage they are set on as part of a brand activation. The payoff exists in other forms. Marc has a great riff on what it means to stretch creative muscles and get into deep brand work. Join the conversation in the LinkedIn Group.

Agent Pulse

A happy marriage?

“Mega __________ team jumps to ________.”

“________ recruits _______ away from ________.”

Sometimes it seems like non-stop churn, infidelity, and dissatisfaction in agent/broker world. But is it?

We asked our nationwide panel of 600+ agents the key question:

Is your brokerage worth what you pay in split and/or fees?

81% said yes.

19% said no.

That’s quite a few people with the itch, but not nearly as many as headlines suggest.

Maybe things are more stable than we’ve been led to believe?

Inspiration Point

Noodles, Happiness, Action
If a restaurant can be more than a restaurant and a laundromat can be more than a laundromat, a real estate company can be more than a real estate company. We liked this food for thought (there’s an unfortunate pun here) for you all. A pho restaurant in our neck of the woods in Oakland, California, is opening a larger space and taking its original idea of positivity and fun to a new level. Monster Pho has always aspired to be a family-friendly and fun place for parents and kids to have a great meal together. Its original mascot was a big-eyed green monster, which owners said recently will be morphing into an assortment of monster-themed amusements to keep kids entertained during dinner. New additions will include a refurbished robot ride from the ‘80s, arcade games, a toy-dispensing claw machine, a “monster pho(ne)” charging station, and more. And, the restaurant will become the East Bay’s first to feature robot servers. This a feel-good story about breaking out of the box and putting creative action behind common modifiers like “family friendly.”

‘Are You Happy?’
Simple question. And this guy eating his lunch has a simple answer. We’ve been sharing this TikTok amongst ourselves and with clients this past week. What is it about this? The simplicity. The levity. The imperfection. We think there’s potential for strong brand plays in short, light videos like this. With the rise of TikTok, we’ll likely see more quick, unproduced and non-product-focused videos woven into big brand stories. This one sparked some creative ideas for us. Life isn’t all about your product or your company. Often, it’s just enjoying a sandwich in a t-shirt on a warm day. Acknowledging that without trying to make a sale can create the type of brand affinity you can’t get from a detailed marketing plan.

Quote of the week

“It was naughty-ish.”

—Dillon Helbig