It is:
· By invitation only
· There are no sponsors
· Attendance is limited to about 400 CEOs and other leaders
o Real Estate Brokerages
o Technology Companies
o REALTOR Association and MLS Leaders
· All the speakers are of incredibly high caliber (due in part to the composition of the audience)
· Speaking segments are the right length, not too short, and not too long
· All scheduled events started and ended on time.
What was T3 2019 about?
Much of what I have been saying was validated at this conference.
“Under all is the Data.”
Take a moment to look at the names of the people listed below, and then think about the industry as you know it, before we look at my thoughts as I listened attentively to each one, sitting in the front row, next to my friend of many years, Jeremy Conaway.
More than likely, one or more of these people have made decisions, or will make decisions in the future, that will have an impact on your life, if you list and sell real estate. They represent new companies, and companies and brands that have been around for more than 100 years.
Pointed out by Stefan is the fact that it once took a lifetime to build a real estate business to 10 Billion in annual sales. This is no longer the case.
Major concepts considered and discussed:
Technology, Data, Block Chain, Innovation/Disruption, Consumer Demands and changing expectations, On Demand Economy, Discounts, Partnering, One Stop Shop
The Conference kicked off with Stefan Swanepoel interviewing seven of the most knowledgeable and influential people in the industry:
· Richard Barton - CEO, Zillow
· Ron Peltier - Executive Chairman, HomeServices of America
· Robert Reffkin - CEO, Compass
· Gary Keller - CEO, Keller Williams
· John Peyton - CEO, Realogy Franchise Services
· Glenn Sanford - CEO, eXp World Holdings
· Glenn Kelman - CEO, Redfin
Interview #1 Richard Barton – CEO, Zillow Group
I think it is significant to look at and consider his past list of successes. He has great insight not only into technology, but into marketplaces, communities, and transactions, as founder of Expedia, Zillow, Glassdoor, and Nextdoor.
Rich was the initial Zillow CEO and then turned the company over to Spencer Rascoff. He has recently returned as the CEO of Zillow. It is not all that common for a founding CEO to return after an IPO, although Steve Jobs returning to Apple is a notable exception.
When asked why he returned, his comments were:
There are significant forces in the Industry today. Something is going on.
We are entering Online Real Estate 2.0.
Online Real Estate 1.0 was “Search and Find.”
Online Real Estate 2.0 is Transaction Revolution.
We are going from the web to super empowered consumers.
The Industry is like the next episode of “Stranger Things.”
New consumer expectations.
Travel and travel transactions were easy transactions to move online. Real estate is ready as consumers have every kind of information at their finger tips with their own personal Cyborgs.
He spoke of “Crossing the Chasm” as more and more consumers complete different and more transactions online.
How do today’s online consumers go from “Search and Find” to “Buy and Sell” real estate? Part of the solution is Zillow’s iBuyer program.
On Demand Real Estate Services.
Selling your old house is not a desirable process.
Price Certainty and Time Certainty can now be added to the real estate transaction.
“When you streamline the transaction and inject liquidity, you get more transactions.”
iBuyer program is a great seller listing lead generator for Zillow.
150,000 Home Shoppers per month. Only 6 million transactions on average per year.
“People will move more, with time and price certainty.”
“Selling as a service.”
How do we improve agents?
“One agent’s garbage is another agent’s gold.”
Anything else he would like to share? Yes. Bring back the startup mentality to Zillow.
Data play.
Air pods – Audio is the next virtual reality.
Zillow is investing in 3d technology.
“A start-up is a state of mind.”
Intrapreneuring – projects inside Zillow…”Elephants can dance, they just need to hear the music.”
“Data is the red blood cells of business.”
Zillow is building data models for more predictive analytical capability.
Interview #2 Ron Peltier - Executive Chairman, HomeServices of America
In 2018 HomeServices of America (HSA) had 346,629 Transaction Sides, with 44,363 agents.
HSA sales volume in 2018 was $135.90470 Billion.
The Conference kicked off with Stefan Swanepoel interviewing seven of the most knowledgeable and influential people in the industry:[jr1]
The name, HomeServices of America says it all…buying and selling, lending, insurance and more, and it all centers on real estate.
“The consumer wants simple and professional.”
“People should look at the real estate industry in context, it is a journey, not a snapshot.”
“Real Estate is 20% of GDP and the gateway to the consumer, it triggers financial activity.”
“The industry has 70,000 Brokers and 1.2 million agents…it is fragmented and inefficient, and until recently, it has been capital starved. Maybe there are too many brokers and too many agents.”
HomeServices concept is “one stop shop.” (my thought: Expand your offerings).
“Too much focus on volume.”
“Take a deep breath and don’t panic.”
“Don’t underestimate the resilience and resolve of brokers.”
What’s next for HSA?
“Data aggregation – Owning, controlling, and delivering information.”
“Expanding the value proposition to consumers, post-closing.”
Interview #3 Robert Reffkin - CEO, Compass
Compass has raised over $1.2 billion and has been buying agents and market share to grow to one of the largest brokerages in the US. The companies Compass is purchasing could be described as “traditional” real estate companies, some of the best in the country. There is nothing innovative or different about buying talent and market share, but the plan is to add super technology for the Compass Agents.
A lot of capital allows for a lot of experimentation, which can work to push the rest of the industry in a certain direction (whether the tactic of the spending enterprise is successful or not. Compass is a major player and arrived on the scene rather recently by historical standards, and continues to grow, with lots of money in the bank.
In 2018 Compass had 34,644 Transaction Sides, with 8,155 agents.
Compass sales volume in 2018 was $45.54476 Billion.
I found this quote of interest:
“Agents need brokers less and less each year.”
“One stop shop”
“We need to find ways to work together”
“The future of real estate is the handsome agent.”[jr2]
“Harmony and simplicity.”
“No need to reinvent the wheel.”
“Building what agents want.”
“You will either be a platform, or compete against one. You don’t want to compete against a platform.”
“What are the things we can do together?”
Interview #4 John Peyton - CEO, Realogy Franchise Services (NRT)
Franchising in real estate began around 1970 and over the years, the early successful, “traditional” brands, along with new brands serving specific audiences and markets have been added to the Realogy portfolio of Brands.
In 2018 Realogy had 336,806 Transaction Sides, with 50,200 agents.
Realogy sales volume in 2018 was $176.29302 Billion.
The Current Realogy real estate brands are:
· Better Homes and Gardens
· Century 21
· Climb
· Coldwell Banker
· Corcoran
· ERA
· Sotheby’s
· Cardus
· Zip Realty
“For agents, belonging to a tribe is important.”
“Realogy is working on incubators within the company.”
“Agents will see Alexa integration into their businesses.”
“Realogy is a real estate company that embraces technology.”
“We are building Applications for consumers and agents.”
Realogy’s BHAG (Big Hairy Audacious Goal, from Jim Collins and Good to Great) is “To Grow.”
“End to end technology, one stop shop.”
“Reinventing while honoring our legacy.”
“One Stop Shop.”
Zap – Realogy provides for its agents. In this context, John mentioned:
· Lead Management
· Customer Relationship Management
· Transaction Management
· Sphere Management
Interview #5 Gary Keller - CEO, Keller Williams
I had never heard Gary Keller speak before this event. I have read the industry press and many social media conversations about him, and about his technology development efforts. I took my seat in the front row with my pen ready for some quotes and my camera to catch a few images.
As first, someone commented on a picture on social media, Gary’s arms were folded and his “body language” indicated that he was tense. I too noticed his folded arms, but I thought his demeanor relaxed after a minute or two.
My greatest takeaway from listening to Gary Keller was “he gets it.”
I have been trying to drive the message of the importance of data to the industry for the last 20 years. My motto lately has become “Under all is the Data.” In the last year, I have brought back my old data mantra: Protect – Control - Monetize. He validated our efforts to socialize the value of data in the industry.
“The industry was hijacked by tech applications over 7 years ago. It is still hijacked.”
He then “swiveled” his seat, walked to a blank flip chart and drew the following picture, which summarizes the issue and suggests the solution.
“There is no such thing as “end to end.”
“Agent websites are going away.”
“You must own your technology and your data.
Interview #6 Glenn Sanford - CEO, eXp World Holdings
Stock in eXp is traded on the NASDAQ
eXp has grown to over 17,000 agents in a relatively short period of time and is ranked #4 in Sales Volume in the T360 Mega 1000. This is an amazing accomplishment in such a short period of time.
In 2018 eXp had 74,678 Transaction Sides, with 15,570 agents.
eXp sales volume in 2018 was $19.84000 Billion.
In June of 2007, I read an article on an airplane about Virtual Worlds and something called “Second Life.” On July 1, 2007, I wrote and published the following…I wish I had known Glenn then:
Virtual Worlds are for Real
A growing number of people today (millions) are spending time on the Internet in "Virtual Worlds" creating and leading "Virtual Lives." This includes, among other things, buying "Virtual Clothes" for their "Virtual Selves" and buying and selling "Virtual Real Estate," and running "Virtual Businesses."
On another level, some companies are using this technology to develop real life solutions in a virtual environment.
People are learning business and even real estate concepts by “playing” in these virtual worlds.
Before you write this off as trivial and inconsequential, know that MTV, IBM, Reuters and other major players are investing time and money into the emergence of what some are calling the "MetaVerse." But don't take my word for it, check it out for your (virtual) self. You may want to set up your virtual real estate office while virtual real estate is still affordable (at least while the good "locations" are still available and affordable). Last time I looked, there was a Coldwell Banker Office in Second Life and an “OpenMLS.”
In his interview with Stefan, Glenn talked about:
Having a “remote work force” is common today in other industries. The ability to work from anywhere exists and more people are taking advantage of it.
“Brokers and agents are addicted to bricks and mortar.”
“We will all have our own individual “AI” helping us through the day.”
One of the powers of eXp is the community that gets created in a virtual space is more cohesive than many people believe. An online community meeting in real life is a “happening.” I know this to be true based on our virtual community experiences with our RealTalk Community over the last 25 years.
Interview #7 Glenn Kelman - CEO, Redfin
Redfin was the first real estate company to take advantage of, in a big way, the Virtual Office Website (VOW) Settlement between NAR and the Department of Justice in 2009.
Redfin had access to more data for public consumption and it built fantastic technology to serve up that data to consumers. The site is praised by many in the industry, including competing agents who have reported sending their clients to Redfin to search for homes.
In 2018 Redfin had 42,954 Transaction Sides, with 1,419 agents.
Redfin sales volume in 2018[jr3] was $25.81200 Billion.
I first met Glenn Kelman at the NAR MidYear Meetings in Washington DC around 2012. We both had a concern with real estate syndication at the time and met to discuss. Glenn had not taken his walk that day so our meeting was conducted on a walk around NW Washington DC in the sweltering heat and humidity ?
In his interview with Stefan, Glenn talked about the importance of the buyer broker, digital closings, and iBuyers.
Redfin offers a buyer program, to give the consumer the choice they are looking for. Some day every agent will go into a listing appointment with a check in one hand, and a listing agreement in the other.
Glenn seems like he is now an advocate for the MLS, and he understands its value to an orderly market.
One of the most interesting aspects of Redfin for me is its employment model. Its agent count is 1419 agents and it placed #5 in Sales Volume on the T360 Mega 1000 with $25.812 Billion.
I have heard many say that the Redfin web site is second to none, and that other agents send their clients to the Redfin site.
Conclusion:
Great conference. We will attend again next year.
