by Christian Ashley Harris | Aug 8, 2024 | Industry, News Feed
Dubbed Powered by Offerpad, the platform enables the iBuyers’s PRO and MAX agent partners to manage listings, get real-time transaction updates and directly communicate with Offerpad support staff.
Innovation is in our DNA at Inman — that’s why we’re excited about August’s Technology and Innovation Month. We’ll kick it off by celebrating the companies and individuals pushing the industry forward with an expanded slate of Inman Innovator Awards at Inman Connect Las Vegas. Then, we’ll continue to celebrate the brightest minds in real estate all month long.
Seven months after revamping its Agent Partner Program, Arizona-based iBuyer Offerpad has released Powered by Offerpad, a new platform geared at helping its agent partners manage their transactions quickly and seamlessly.
Brigham Weight | Credit: LinkedIn
“Offerpad is dedicated to empowering agents by offering robust support and enhanced incentives to thrive in today’s competitive market,” Offerpad VP of Business Development Brigham Weight said in a prepared statement. “Through our innovative use of technology, we aim to simplify transactions and partnerships across the real estate industry.”
Through the platform, Offerpad PRO and MAX members can view cash offers, access detailed homeseller and property information, and manage homeseller leads and referrals. The platform also gives members real-time updates on Offerpad listings and transactions and allows members to chat instantly with Offerpad support staff.
“Powered by Offerpad achieves this with an intuitive dashboard, real-time information access, and straightforward tools for obtaining the answers and resources agents need,” Weight added.
Offerpad said the launch of Powered by Offerpad comes on the heels of impressive Agent Partner Program growth during the first half of the year. From January to June, the program accounted for 23 percent of all Offerpad requests — a 91 percent increase from the first half of 2023 (12 percent).
Offerpad unveiled its revamped Agent Partner Program tiers, dubbed Offerpad PRO and Offerpad MAX, in January.
With Offerpad PRO, listing agents can earn a 4 percent referral fee through the “sell then list” initiative, which allows agents to receive a 3 percent referral fee when their client sells to Offerpad and an additional 1 percent fee by selling the home again on behalf of Offerpad.
The invite-only MAX tier offers the same “sell then list” opportunity; however, agents can also purchase designated zones, where they’ll list Offerpad-owned homes and receive exclusive access to the “Start with Sold” backup cash offer program for homesellers listing on the open market.
“Since our inception, our primary mission has been to streamline the home buying and selling journey for consumers,” Offerpad SVP of Growth Kyle Rush told Inman in January. “This dedication is the very reason our company was founded. Sellers opting for representation by an agent can still enjoy the advantages of receiving cash offers from us, as we continue to prioritize this foundational focus.”
“Agents who partner with Offerpad can not only expect to increase their earnings substantially but also gain access to an extensive suite of tools to diversify their consumer offerings,” he added.
Offerpad teased the launch of Powered by Offerpad in its second-quarter earnings report on Tuesday, which saw the company’s revenue decline 12 percent from Q1. However, Offerpad is gaining ground on slimming net losses and bolstering its gross margins and gross profit per home, which increased 10 percent to $29,500.
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by Christian Ashley Harris | Aug 7, 2024 | Industry, News Feed
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
Zillow Group’s momentum continued into the second quarter, as the Seattle-based residential portal’s revenue grew 13 percent year over year to $572 million — a performance that put Zillow 7 percent ahead of the midpoint of its outlook range ($533 million).
Zillow’s mortgage segment led the way in terms of percentage growth, with a 125 percent year-over-year increase in purchase loan origination volume pushing the vertical’s overall revenue up 42 percent year over year to $34 million. The company’s rental segment also logged double-digit growth, as a 44 percent jump in multifamily revenue pushed overall revenues up 29 percent year over year to $117 million.
Although the company’s residential revenue still lagged behind the rental and mortgage segments in terms of percentage growth (+8 percent), the segment — which includes Premier Agent, ShowingTime+ and Follow Up Boss — accounted for the lion’s share of Zillow’s success during the quarter with revenues reaching $409 million.
Zillow improved its net losses, dropping from $35 million in Q2 2023 to $17 million. The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased roughly 20 percent year over year to $134 million thanks to higher-than-expected residential segment revenue.
Jeremy Wacksman | Credit: LinkedIn
In his first statement as Zillow Group CEO, Jeremy Wacksman said the company’s performance reflects the Zillow team’s dedication to creating the “digital future of real estate.”
“Zillow outperformed the residential real estate industry for the eighth consecutive quarter, delivering better-than-expected revenue across the business,” he said in a written statement. “We’re executing well, continually shipping exceptional products and services in Zillow’s housing super app as we build the digital future of real estate.”
“With an increasingly diversified and growing business, we are on our way to deliver strong GAAP profitability over time and meet our 2024 expectations to deliver double-digit revenue growth and modestly expand our Adjusted EBITDA margin,” he added. “We are well positioned to capture more of our total addressable market and help more people get home.”
In a shareholders’ letter, Zillow co-founder and former CEO Rich Barton laid out his hopes for the company’s next chapter as it leans into a new era of opportunities and challenges, including the fallout from the National Association of Realtors buyer-broker commission settlement terms and an ever-intensifying portal war.
“The Zillow business is in great shape financially, strategically, operationally and organizationally, consistently outperforming the residential real estate industry,” Barton said. “We are executing well and methodically shipping great software and services in the Zillow housing super app that aim to digitize and integrate home buying, selling, financing, and renting, empowering consumers and partners alike.”
“Jeremy is right and ready to be CEO of Zillow now, and I’m excited to support him as he leads us through our next chapter of building the digital future of real estate,” he added.
The company said its growth strategy continues to yield strong results as it expands its digitally integrated transaction experience to additional Zillow Enhanced Markets (i.e. markets with access to integrated financing, hand-picked partners, Real-Time Touring, etc.). At the end of Q2, Zillow had 19 Enhanced Markets, with the goal of reaching 36 by the end of August and 40 by the end of 2024.
Much like the previous quarter’s shareholder letter, Real-Time Touring and Zillow Showcase were the stars of the show as the portal behemoth shores up its value proposition to buy- and sell-side agents. Premier partners who connected with homebuyers through Real-Time Touring experienced conversions three times higher than average, with homebuyers embracing the introduction of short-term touring agreements.
The agreements are good for seven days and enable buyers’ agents and consumers to comply with upcoming changes to commission procedures, including the requirement that buyers’ brokers sign representation agreements with buyers before taking them on a home tour.
“The early indicators of success we saw in our pilot gave us the confidence to integrate it into Zillow’s touring experience, and just last week, the agreement became part of the “request a tour” flow on Zillow for nearly 80 percent of our tour connections,” the letter read. “We plan to roll it out to remaining tour connections in the coming months.”
On the sell side, Zillow said Showcase is driving higher views, shares and saves than similar non-Showcase listings on the site, enabling agents who use Showcase to win more listings and sell those listings for an average premium of $9,000. One percent of all new listings now use Showcase, with Zillow nearing its Showcase listing coverage goal.
“We are on our way to our goal of 5 percent to 10 percent listing coverage, which represents a $150 million — $300 million annual revenue opportunity,” the letter read. “And we believe there is potential for future growth beyond that.”
Wacksman said the company’s strides with Real-Time Touring, Listing Showcase, and developments in its rental and mortgage segments show Zillow is well on its way to delivering a completely integrated “super app experience,” as traffic to the portal’s mobile and app sites reaches 231 million average monthly unique visitors per year. Although 231 million visitors represent flat traffic growth, total visits during the quarter grew 4 percent year over year to 2.5 billion.
“As you’ll remember from previous calls, and our February investor presentation, about 80 percent of our users come to us organically, and they’re using our app three times more than anyone else in the category,” he said in a Wednesday evening earnings call. “Another way to measure traffic and brand strength is through ComScore, which is widely viewed among internet brands as a reliable, transparent, third-party source because it aims to capture the number of unique visitors while de-duping cookies.”
“According to ComScore, Zillow groups apps and sites [were] at 116 million average monthly unique visitors in Q2,” he added. “We’re pleased with the progress we’re making to transform and digitize the moving experience on behalf of buyers, sellers, renters, agents, and the broader industry.”
Wacksman said Zillow and its partner agents are well-positioned to navigate upcoming changes — the largest of which is the Aug. 17 deadline for removing offers of compensation to buyer’s agents in Realtor-affiliated multiple listing services and requiring that buyers’ brokers sign representation agreements with buyers before taking them on a home tour.
“Our Premier Agent partners represent some of the best, most professional agents in real estate, who we believe are poised to take share in the evolution the industry is experiencing,” he said. “We’ve oriented Premier Agent around some of the best agent teams … The top 20 percent of agent teams handle 80 percent of transactions, and nearly four in five Zillow premier agent partners are in that top tier.”
Wacksman declined to predict how commissions may change after the deadline; however, he said Zillow and its partner agents have delivered a consistent performance throughout multiple market shifts — a trend he doesn’t expect to change.
“We believe we and our partners are the outsized beneficiaries of these changes coming in the industry. We have the most customers. We work with the best partners,” he said. “We provide the most technology, and we expect our Premier Agents will deliver and get paid because they provide great service.”
“So that’s how we’re seeing it,” he added. “That’s been very consistent for a while now, and nothing has really changed our minds on that based on the latest things that we can see.”
Zillow’s stock (NASDAQ: Z) experienced a post-earnings pop, increasing 12.52 percent to $47.00 per share. The company’s market cap stands at $3.47 billion.
Note: This story has been updated with commentary from Zillow’s earnings call.
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by Christian Ashley Harris | Aug 5, 2024 | Industry, News Feed
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
Nowadays, “recruiting season” seems to be extended to a year-round affair. While brokers and franchises are battling out splits, tech, and the latest and greatest shiny object to tempt top producers to their side of the street, coaches and team leaders know that training and education are a key element as well. However, there’s one area that even top managers fail to fix: hostile work environments.
Let’s break down what is considered a hostile work environment, common complaints from agents, and solutions to solve sticking points and keep that new agent you worked months to recruit working for your team longer than six months — and staying for the long haul.
Normal office problems or hostile workplace?
There is a big difference between your oblivious co-worker microwaving broccoli and salmon every day for lunch (and smelling up the whole office) and a hostile work environment.
It’s not that you have a few annoying agents sitting next to you making TikToks; it’s regular neglect from management and harassment from others occurring multiple times over a long period of time with no correction or attention from higher ups.
Indeed defines a hostile work environment as follows: “A hostile work environment is one where the words and actions of a supervisor, manager or coworker negatively or severely impact another employee’s ability to complete their work. Any employee can be responsible for creating a hostile work environment.“
Now that you have some context, here are six indicators that your “fun” place to work may be anything but.
1. ‘This is the best place to work. We are like family’
Here is what I know after years of speaking with agents and admins. If the manager or broker has a “We are like family” mentality in the office, it can often be a symptom of a bigger problem. It means that while there are many great aspects to working for that team, there are usually major issues with work-life balance and making excuses for long-term agents who have really terrible habits and behaviors that have gone unchecked for, potentially, decades.
- Are you going to get coached and mentored? Or are you going to get called into the “living room” and yelled at by someone who is correcting you like you are their child (instead of an independent contractor) when things go sideways?
- Is loyalty to the team pushed so hard that perhaps some team members are not getting fair treatment “for the good of the group”?
- Are there “family favorites” who get special treatment?
- When agent Bob says crazy inappropriate things in the office and comes in to drink coffee and harass the admin staff for an hour because he still can’t use the scanner, does the broker make excuses or do they actually do something about the agent’s lazy behavior?
This is where “we are like family” comes into play. Are there respectful work relationships, or are team members over-involved in your personal life?
Before moving to a new brokerage, make sure to ask current agents what the management style is like, and if there are any problem agents in the office. This will save you a ton of headaches. Always take some current agents out to lunch to get the real story.
2. You don’t take Diversity Equity and Inclusion seriously
There is no code of conduct, there is no official fair housing training follow-up, and someone is walking around the office repeatedly saying that DEI is what is ruining our country and that we need to get back to “traditional values.” Many real estate offices do not offer any type of HR support at all to make sure that agents have a place to check in with regular office and management issues, while the lack of support and oversight from a third party can also create issues.
3. Tantrums and tea
There’s a now classically famed scene in the movie Office Space where frustrated employees take the fax/copy machine that never works and destroy it with a baseball bat. If there are folks in your office (including yourself) who have regular violent tantrums, sprinkled with profanity — this is a major red flag and can be a compounding issue of why other members of your team do not stick around.
Unfortunately, as fun as it may be to dish some piping hot tea with your friends, an office atmosphere that is constantly embroiled in the latest gossip can also create a hostile environment that serious professionals will quickly decide they don’t have time for.
If there is constant drama in the office, and you are not on Bravo, you probably need to get a handle on the work atmosphere.
4. Room for activities … and parking
One thing that creates hostility quickly in a workplace is workstations that do not allow for privacy, are poorly constructed, uncomfortable, contain messy conference rooms that no one wants to clean, and — the worst of the worst — don’t include enough parking for team members and customers.
The cleanliness (and smells) in the space can also contribute to a hostile environment. Don’t cut corners on professional cleaners; no agent wants to be assigned a chore chart when they come into the office.
Make sure that essential office supplies are available, and if you can provide a few healthy snacks, it shows your crew that you are invested in their well-being.
Make sure that your office space is not so posh that it is not ADA-compliant. Creating a cool, hip boutique brokerage is, of course, the “fun” part of developing your brand, but if the furniture is uncomfortable, and someone with a wheelchair can’t access your restroom, workspace or conference room .. then you have a major problem.
I have also had agents tell me that they have not chosen a brokerage because of the style and culture of the office; they felt like they wouldn’t fit in with the “clique” that worked there.
5. You constantly have a vacant admin position
If you cannot keep an admin working on staff for you, you may have all of the problems above and then some. I find that the best-run offices are not looking for an “office mom” and a “babysitter” but understand that a great admin who is a pro at transaction management is worth their weight and gold — the secret sauce to attracting and keeping top-producing agents who get things done.
6. Bullies, bros and hazing
When it comes to sales coaching and motivation, if your office looks more like a frat house or the bullpen from Wolf of Wall Street, there is a major problem in your office. It’s not Rush Week, it’s not the ABC’s, and you shouldn’t be forcing agents to cold call or door knock against their will. If the antics in the office are out of control, then you may have a serious problem.
A beer fridge and a video gaming system, cigars and a whisky room shouldn’t be the selling point in your recruiting strategy. Professional training, an agent conduct handbook, and educational resources should be available and easy to access for all members of your team. The drinking problems in our industry are out of control, and every brokerage should offer a sober option for agent events and social occasions.
Final thoughts
One of the top stories recently was about some less-than-flattering ways agents make themselves look unprofessional. As a broker or team leader, it’s your responsibility to have a handle on the level of professionalism you expect in and out of the office.
If your office space is “hostile,” then it doesn’t matter how great your guidance, and packages are. You cannot put a price on a clean, safe, and peaceful place to bring clients to or to come into and quickly knock out essential tasks.
It’s up to brokers and team leaders to make sure that their office is not a chaotic or less than comfortable space. Try to find the Zen for your agents. They will appreciate it.
Rachael Hite is a former agent, a business development specialist, fair housing advocate, copy editor, and is currently perfecting her long game selling forever homes in a retirement continuing care community in Northern Virginia. You can connect with her about life, marketing and business on Instagram.
by Christian Ashley Harris | Jul 30, 2024 | Industry, News Feed
HAPPENING NOW! At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. JOIN US VIRTUALLY.
National Association of Realtors President Kevin Sears stepped on stage at the Aria Resort & Casino in Las Vegas Tuesday, looked out at the crowd of spectators — many of them NAR members — and sent a message of resilience in the face of industry-derailing commission lawsuits and scandals from within.
“I hope — at the end of the day, at the end of the two-year term — to be able to look back and say there was some stability and calm brought back into our organization and our industry,” Sears told a crowd of hundreds of onlookers in his first public appearance at an Inman Connect event.
His message to ICLV attendees came in response to a direct question about the very nature of his job at NAR, raised by moderator Clelia Warburg Peters, a managing partner with ERA Ventures, during a session entitled, “Okay, Seriously: What Now?”
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Sears’ aim was to offer transparency to members in the audience and share his accomplishments since being named president of the 1.5 million-member organization six months earlier. And he had to do it in front of an audience with strong or mixed opinions about how beneficial NAR has been for dues-paying members.
The tension was on display when Peters asked Sears to explain his job requirements.
“I’m asking that in part because I think a lot of people feel you haven’t done the job,” Peters said, prompting cheers and modest applause from the audience 2 minutes into the on-stage interview.
“The job is to be the voice for real estate,” Sears said in answer to Peters’ question. “I’ve been getting on the road and having conversations with members. God willing, I’ll be president for two years.”
“It’s been very tumultuous over the last 12 to 18 months,” he added.
Sears took the reins at the organization in surprise fashion in January after the abrupt and mysterious resignation of Tracy Kasper. Kasper had been in the top job of the nation’s largest trade organization for just four months when she resigned under threat of blackmail.
Sears was the third NAR president in a four-month span, as Kasper had assumed the office early following the resignation of former president Kenny Parcell.
During his tenure, Sears and members of leadership at NAR brokered an agreement to settle a wave of litigation that targeted the status quo of how Realtors get paid.
NAR must pay $418 million and the industry must make sweeping changes to settle the cases. In exchange, the group covered about 1 million of its members from liability in the existing and future lawsuits and provided a pathway for other brokerages and members to settle, as well.
It’s still not clear how NAR will pay the settlement, and Sears said there would be pain ahead for the organization. (“What I said to staff is, unfortunately this is going to hurt everyone, but we can’t cripple anyone,” Sears said.)
And that’s not the only force posing a threat to the organization, Realtors and the industry broadly.
The Department of Justice has been sending signals around the type of marketplace it wants to see moving forward. It has continued to push to reopen investigations into NAR policies.
Sears pointed out that Assistant Attorney General Jonathan Kanter specifically asked to meet with him and other members of NAR leadership.
That’s when he began to earn applause lines of his own.
He said NAR will remain focused on its efforts around advocacy and education on behalf of the real estate industry. He took sole credit for the Department of Veterans Affairs changing its long-standing rule blocking veteran buyers from paying any compensation to a broker. (“Do not let somebody else, some other group, try to take credit for this,” Sears said. “This was done solely by the National Association of Realtors.”)
“I can tell you we are very, very effective in our advocacy,” Sears said. “
Sears took issue with statements by DOJ attorneys who want commissions to be “decoupled,” or completely separated between the seller and the buyer.
“But it’s expressly allowed by law in over 40 states. If they don’t like it they should do the hard work of going to state legislatures and change the law,” Sears said to applause from members in the room.
“Commissions have always been negotiable,” Sears said. “We’re going to continue to have the conversations with buyers and sellers about how we’re going to get compensated. We need to educate, especially the seller and consumer.”
Work with the DOJ will continue, and Sears said Realtors need to stay focused on the value and benefits they provide to consumers. That, he said, was the “common ground” that NAR and the DOJ have broadly agreed on.
“Their vision of what is good for the consumer might be a little different than ours, but so long as our focus is on the consumer, that’s going to be a helpful defense with the Department of Justice,” Sears said.
He sent a warning to any agents or brokerages that might find ways to operate in ways that aren’t in line with the settlement agreement, possibly referencing a wave of new startups that are offering brokers ways to market offers of compensation.
“Don’t get cute,” he said. “Don’t try and do an end-around when it comes to commissions, offers of compensation, that sort of stuff. Look at the letter of the settlement and the spirit of the settlement. Be consumer-centric and that will be your ultimate defense.”
“Unfortunately, I think the Department of Justice is going to be looking very closely,” Sears said. “I don’t want to see any of my members and any of my brokerages get caught in their crosshairs.”
The crowd gave Sears two more rounds of applause during his appearance, including once when Peters thanked him for getting on stage at Inman Connect and facing hundreds of members after a rough patch for the organization.
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