Once again the first quarter of the year has passed, and as we have done for the past 10 years or so, John and I will summarize events of note, April1, 2016. This is an election year and we have breaking political news, as well as THE major stories in the real estate industry, which is where we will start…
The Perfect Storm:
In a blow to the real estate industry, President Obama issued an Executive Order today, effective immediately, eliminating the employment status of independent contractor in a number of industries, including the real estate industry. This represents a paradigm shift to the current model of real estate sales. All real estate licensees will become employees of their broker, have the right to organize and collective bargain, receive health care coverage, retirement plans, and be paid minimum wage.
In another major blow to the Real Estate Industry, the U.S. Department of Justice, today filed a complaint in federal court, naming every MLS in the U.S. as Respondents. The complaint alleges, among other things, actions involving conspiracy, accusing the MLSs of per se violations of the Sherman Anti Trust Act, as facilitators of illegal collaboration between competitors. “New online technologies, companies, and innovation make the structure and purpose of MLS obsolete” stated a DOJ representative, who agreed to speak with us with assurances of anonymity.
And for the Hat Trick, Google announced that it is returning to real estate in a big way, opening its “National Listing Service” to the public, and purchasing Move, Inc (the operator of REALTOR.com) from Rupert Murdock.
But that’s not all, keep reading!
If you ever wondered what Google planned to do with all of that “white space” on the search page, now you know, they are offering a free listing service, allowing real estate offered for sale to be advertised on the Google Real Estate Site, for free, launched off of the Goggle Search Page. Consumers are waking up to Google Real Estate…It will offer disrupting tools and applications to change the way real estate is bought and sold, virtually eliminating fees to buyers and sellers. This will redefine the role of the real estate professional, and fill the gap should the DOJ take out MLSs, as mentioned in an earlier story.
And, the world of politics leaves nothing to the imagination.
Our inside source has informed us that at 3:00 PM, EDT, Donald Trump will end his campaign and quest for the presidency of the United States. It is rumored, amongst those in the know, that Trump and Ted Cruz have struck a deal. In return for Trump resigning from the race, Ted Cruz, if elected, will build that wall Trump has been promising, along the border with Mexico. Ted Cruz, in turn, promised Donald Trump that he would deliver him the contract to build the wall, and Trump will be allowed to put the Trump brand on the wall, which will be able to be viewed from space. Masterful positioning, negotiating and branding by The Donald.
Also at 3:00 PM, EDT, we are told, the Department of Justice will issue indictments against Hillary Clinton, 27 different Causes of Action. Hillary could not be reached, but President Bill Clinton responded: “What difference does it make? She is the only one of the four remaining candidates prepared for the job of President. Are you going to let trust get in the way?”
Bernie Sanders was asked for his comments, but he could not be reached, taking the week off to celebrate Purim with his family.
And lastly, Jesse Ventura, and Arnold Schwarzenegger announced that they are running as President and Vice President respectively on the Peace and Freedom Party ticket. When asked why they decided to run, they responded that this is the year for outsiders. Hulk Hogan will serve as Secretary of Defense.
It is an amazing world and an amazing time, and once again we are happy to bring you the news, April 1, 2016.
This is about the data, not the politics. Why all of the fuss over data? With data, you can accurately predict the future. Being able to tell the future could be a great, competitive advantage.
Don’t be so quick to give your MLS data away to outsiders.
What is RealTown Labs Accelerated DesignLab
RealTown Labs Accelerated DesignLab is a joint venture with PredictionWorks, Inc. The laboratory is an environment with tools, models and processes that accelerate for start-up and emerging companies’ product invention, market adoption, financing and business building challenges 50% to 300% faster than conventional means.
On the Cutting Edge
RealTown Labs Accelerated DesignLab partner, PredictionWorks, Inc., is the second licensee of the GroupGenius™ suite of human performance technologies with the license covering start-up and emerging growth companies. This GroupGenius™ human performance platform has been implemented since 1998 with Fortune 500 companies by the first licensee, Cap Gemini, in 24 Accelerated Solutions Environments (ASE) worldwide. Over 1,000 events have been conducted with over 50% of the clients being repeat customers. 54 of Fortunes Top 100 companies are now using Cap Gemini’s ASE environment. The proven tradition of GroupGenius™ makes it possible for months of work to be reduced to just hours or days.
What Goes on in the Accelerated DesignLab
Assessments. Realtown Labs offers a powerful due diligence tool for assessing a technology company and its market. This tool is called the New Venture Accessor and was developed by our partner, PredictionWorks, Inc. It covers the seven most critical areas of investor inquiry. Each critical area has over 15 levels of inquiry. The tool has over 1,000 best practice indices that are measured. The process results in a index rating for each of the critical areas of inquiry. This tool was tested as 100 percent reliable in 10 double blind backdated manual-based validation tests in Silicon Valley by Wilson Sonsini, Hitachi Consulting and FSX.
DesignLab. A powerful and integrated application of GroupGenius™ and the New Venture Assessor is DesignLab. Through DesignLab, the invention process increases in acceleration and accuracy 4x our conventional methods. Currently RealTown Labs is serving as “home base” for RealTown Labs invention work for build-to-flip technologies.
Build-to-Flip Inventions. One significant application of DesignLab is called the “Build-to-Flip” application (“B2F”). In this B2F model, DesignLab is used to invent a technology component that incumbent companies “got-to-have” for their core systems and these incumbent have neither the “time” or “talent” to invent themselves-so they will pay millions to own outright the B2F technology RealTown Labs has invented.
What Stakeholders Should Expect From A Realtown Labs Accelerated DesignLab Event
- What if…
- You could get all of a project’s stakeholders to not only talk about inventing a breakthrough technology, but to actually develop it together?
- You could unleash the full potential and creativity of a team, key suppliers, customers, and subject matter specialists all at once?
- You could accelerate all phases of discovering, designing and developing a build-to-flip technology reducing months to weeks to days?
You can do this and more. At Realtown Labs Accelerated DesignLab, we combine our world-class and patented decision-making process, innovative workspaces and unique best practices models to enable a team of innovators to discover, design and develop a build-to-flip technology.
- Participants can expect that event sponsors and facilitators are on the “same page” about goals, tactics and timelines.
- Participants can expect read-ahead materials. These materials are important. They ensure everyone has adequate context before going into a DesignLab event.
- Participants can expect professional and experienced Group Genius® facilitation on DesignLab days.
- Participants can expect the unexpected once DesignLab starts.
- Participants can expect the finest models, processes and tools for maximum creativity.
- Participants can expect that proper discovery and design constraints have been thought-out in advance by facilitators.
- Participants can expect that the best practices of Group Genius® will be followed.
- Participants can expect that there will probably be breakdowns during DesignLab before there are any breakthroughs.
- Participants can expect that there will be first-class capture of information and ideas generated during DesignLab.
- Participants can expect that DesignLab will move all the stakeholders in the right direction for accomplishing the goal of DesignLab, namely
Inventing for an incumbent provider/supplier a technology component that the provider/supplier considers a “got-to-have” core part of provider’s/supplier’s product or production systems and the provider/supplier has neither the time or talent to invent the technology component themselves.
Methodology Flyer – click this link
Connect NYC was preceded by Snomaggeden this year, but by the time I arrived at LaGuardia, the snow was all but gone. Inman Connect is one of the best events in the real estate industry and it is repeated in San Francisco in the summer. My recommendation is to buy your tickets now, make your plans, and be there. There are many events to attend in the real estate industry, many not worth the time or the money…Connect is one of the exceptions.
It all began 20 years ago at the first Inman Connect amongst the Redwoods in Northern California. There were about 50 in attendance, and I was one of the lucky ones. The Internet was first being commercialized and real estate listings were yet to be found in any numbers on the web. One of the biggest issues facing the Internet and its progress was bandwidth.
Twenty years later the attendance is in the 3,000 range. The technology vendors, industry experts, and speakers gives one an idea of how fast things are changing. As always, there were lots of new technology vendors, as well as many recognizable industry players.
The excitement grew prior to the opening, with the help of a live band.
Brad’s opening remarks are always a highlight of the event…here is how he opened this year…
The first speaker was author and marketer, Seth Godin…his message has changed little over the years and is excellent, as well as entertaining. “Be different, or charge less…and charging less is a race to the bottom you cannot win.”
The agenda includes panel after panel in many segments of the real estate industry, and some of the technologies being brought to the marketplace. Many of these technologies are adaptable to other verticals.
Major Challenges Facing MLSs Segment
A three hour session around MLS, consisting of a series of panel discussions, was enlightening.
David Charron, and a team of known MLS industry experts delivered.
Does the MLS Limit Progress?
How Many MLSs does the country need?
Today – 826
Tomorrow – 30 by 2030?
What Do Next Generation Real Estate Professionals Expect from Their MLS?
(Personally) I think what needs to be asked here is what percentage of the subscribers and participants of your MLS are NextGen…before rediging the future for a handful of the customers.
And concluding with:
Upstream from the Source
UpStream – What is it, what isn’t it?
What is the value of online forms to the owners of the online form companies in real estate transactions? Plenty. John and I have been singing the song of the value of data for years now.
Forms are where the most authoritative data resides pertaining to a buyer or a seller’s progress and seriousness of buying or selling a propery. When someone buys a property, all sorts of things occur, other purchases occur.
Underlying an offer of free forms, is the question of what will the forms provider do with the data. It is a potential goldmine…but no one talks about it.
>>After vigorous debate, the board of directors of the National Association of Realtors approved a proposal Monday to provide the trade group’s 1 million-plus members transaction management software from Realtor-owned firm zipLogix at no cost to members.
NAR’s three-year agreement with zipLogix charges the trade group $10 per member for the first two years and increases the rate by no more than the increase in the federal Consumer Price Index in the third year, according to NAR CEO Dale Stinton.
The deal is estimated to cost between $11 million and $12 million per year from NAR’s reserves. NAR’s membership count stood at just under 1.17 million at the end of October.
Starting in the first quarter, agents and brokers will have free access to the firm’s zipForm Plus software, transaction forms specific to their area, document storage through zipVault, and zipLogix’ transaction management system, zipTMS (formerly known as relay).
ZipLogix is a joint venture between the National Association of Realtors and California Association of Realtors subsidiary Real Estate Business Services Inc. (REBS). As of the end of 2013, NAR owned an approximately 30 percent interest in zipLogix, carrying a value of $4 million.
The proposal was approved by a vote of 455 to 217, but not until after a spirited debate ensued among board members. Several dissenting members — though not all — were from Florida, where the state association has its own forms company, Form Simplicity.
John and I have seen lots of different abuses of the MLS data over the years, in our various rolls in the Industry. Many entities receive the MLS data for specific purposes…and sometimes that mLS data is redistributed to entities that use the data, in ways not agreed to or anticipated by the owner of the data. “Gray Market” Data.
To support Participants and Subscribers in utilizing social media as part of their internet presence.
Rule Revision: 12.16 Use of Active and Sold Listing Information on Internet
Also know n as Internet Data Exchange “IDX”). (d) Listing Attribution. All listings on a Broker Participant or R.E. Subscriber’s site displayed by framing or other electronic means shall identify the name of the listing firm in a manner designed to easily identify such listing firm. Such identification shall be in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display of the listing data. No listing broker names will be required for a one-line or thumbnail search result display format on Participant, Subscriber or Brokerage site as long as there is one or more additional display formats available for the listing and each subsequent display format identifies the listing broker. Information displayed in a one-line or thumbnail search result, text message, and/or on sites where consumers view, “follow” and/or subscribe to the Participant or Subscriber’s feed, (e.g. Social Media) are exempt from this requirement only when linked directly to an approved IDX site that includes all required disclosures. Social Media posts shall not be misleading to the public and must represent a true picture as defined in MLS Rule 12.10. IDX display does not extend to internet advertising sites and/or third party sites that do not belong to the Brokerage, Participant and/or Subscriber.
Rules Revision: Mandatory Arbitration.
CAR added language to the existing arbitration rule to incorporate NAR’s mandated enhanced arbitration enforcement requirements. This revision expressly provides that failure to submit to arbitration and abide by the arbitration award can lead to penalties, including suspension from the MLS. Staff is looking for a recommendation to the Board of Directors to adopt the language added to 16.1.
16.1 Mandatory Arbitration. By becoming and remaining a Participant or Subscriber in the MLS, each Participant and Subscriber agrees to submit disputes arising out of the real estate business which also arises out of, or is in conjunction with, any listing filed with the MLS or any appraisal, to binding arbitration with any other Participant or Subscriber of this MLS, or Participants or Subscribers of any other MLS who are authorized to have access to this MLS under Section 6 of these rules. Such arbitrations shall be governed by the California Code of Ethics and Arbitration Manual as from time to time amended which is hereby incorporated by reference. This shall be deemed an arbitration agreement within the meaning of Part 3, Title 9 of the California Code of Civil Procedure. Failure to submit to arbitration and abide by the arbitration award, including but not limited to timely payment of the arbitration award as provided herein shall be a violation of these MLS rules and subjects Participants and Subscribers to possible suspension from the MLS and/or other penalties.