by Latham Jenkins | Aug 8, 2024 | Industry, News Feed
Realtor.com parent company Move Inc. saw its fiscal Q4 revenue decrease 2 percent yearly to $143 million as traffic to the site stalls at 74 million average monthly unique visitors.
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.
Realtor.com parent company Move Inc.’s fiscal fourth-quarter revenue decreased 2 percent year over year to $143 million, according to an earnings release issued Thursday.
News Corp — which owns Move Inc. — said higher mortgage rates and other macroeconomic headwinds were responsible for the decline. Real estate revenues, which account for 80 percent of Move’s total revenue, declined 2 percent annually. Realtor.com’s lead volume and website traffic growth were flat during the quarter, with the latter metric reaching 74 million average monthly unique visitors based on internal data.
Overall, News Corp’s digital real estate services segment performed well, with revenues growing 21 percent annually to $448 million. The segment’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 25 percent annually to $135 million due to a strong performance at the Melbourne-based residential portal REA Group.
Unlike most U.S.-based companies, News Corp uses a reporting method that ends the year on June 30. What most companies call their second quarter is referred to at News Corp as the fourth quarter.
Robert Thomson
In a prepared statement before the company’s earnings call, News Corp CEO Robert Thomson said News Corp is primed to “prosper in the [artificial intelligence] age as they leverage a multi-year global agreement that gives OpenAI access to new and archived articles published by News Corp’s subsidiaries, including The Wall Street Journal and the New York Post.
“Fiscal 2024 was an outstanding year for News Corp, as we not only delivered robust earnings growth and created substantial shareholder value, but took a significant step to prepare the Company to prosper in the AI age,” he said in a written statement.
“Our landmark agreement with OpenAI is not only expected to be lucrative but will enable us to work closely with a trusted, pre-eminent partner to fashion a future for professional journalism and for provenance.”
Thomson said Digital Real Estate Services — which includes Move — was partially responsible for the company’s full-year growth, which yielded revenues of $10.09 billion (+2 percent YOY).
Digital Real Estate Services’ full-year revenue increased 8 percent year over year to $1.7 billion; however, Move’s full-year revenues dropped 10 percent to $544 million. Real estate revenues, which account for 80 percent of Move’s total revenue, declined 11 percent as the referral model and core lead generation output declined in the face of continued market headwinds. Lead volumes declined 3 percent for the year, the earnings release explained.
“Our core pillars of growth — Book Publishing, Digital Real Estate Services and Dow Jones — inspired the increasing profitability, and their strength augurs well for Fiscal 2025,” he said. “We are confident in the Company’s long-term prospects and are continuing to review our portfolio with a focus on maximizing returns for shareholders.”
Susan Panuccio | Credit: LinkedIn
In the company’s earnings call, Thomson and Chief Financial Officer Susan Panuccio were bullish about Realtor.com’s recent moves, which include the “111 reasons” advertising campaign championing buyer agency; updates to the portal’s buy- and sell-side offerings, Advantage Pro, Real Choice Selling and Listing Toolkit; and a partnership with Zillow.
“Encouragingly, we are continuing to have notable success diversifying our revenue base with accelerating performance from our sell-side offerings; rentals, which includes our newly formed partnership with Zillow; and new homes,” Panuccio said. “Collectively, those businesses accounted for 19 percent of revenues in the quarter and grew substantially versus the prior year.”
“As we communicated last quarter, we are focused on best positioning Realtor.com for a housing recovery,” she added. “Our key strategic focus areas remain the same as we head into the new financial year and include modernizing our technology stack; investing in content for our product offerings, which most recently included the release of a new dynamic mapping feature; and leveraging News Corp’s network to drive audience share.”
Thomson didn’t directly comment on Realtor.com’s rivalry with CoStar-owned residential portal Homes.com, which escalated during the quarter as Move filed an advertising challenge with the Better Business Bureau Program’s National Advertising Division and a theft of trade secrets lawsuit in the U.S. District Court of California.
“… the market itself was sluggish and the competition more intense,” he said.
The CEO ended his comments by lauding Realtor.com CEO Damian Eales’ leadership while noting the portal is prepared to handle the coming change in commission procedures and take advantage of a market turnaround.
“The market does seem on the cusp of a revival,” he said. “I have to say that Damian has done an excellent job in taking full advantage of our media platforms to raise the profile of [Realtor.com] and drive traffic, and there’s much anticipation [and] excitement.”
Email Marian McPherson
by Latham Jenkins | Jul 30, 2024 | Industry, News Feed
Andy Florance suggested rival portals are more interested in selling leads than houses and called a lawsuit against his company a “PR stunt.”
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.
Perennial portal warrior Andy Florance, who leads Homes.com parent CoStar, said Tuesday that his company’s differentiator is an interest in getting homes sold — and added later that a high-profile lawsuit against his firm is a “PR stunt.”
The comments came during Florance’s appearance on the main stage of Inman Connect Las Vegas — a platform that Florance has used multiple times in the past to call out rival portals such as Zillow and Realtor.com. Florance’s comments this time were less explicitly pugnacious, but in response to questioning from moderator Brad Inman, he did say that “what we’re focused on is selling the house.”
Florance drew a contrast between that approach and other portals, which he said are focused on selling leads, not homes. He compared the situation to old classified ads in newspapers, arguing that companies such as Zillow made every “ad” — in this case, a home listing — the same size, and then included a phone number for an agent who doesn’t hold the listing itself.
Homes.com, on the other hand, can put agents’ listings “front and center” and give agents tools “so they could demonstrate to the seller that they’re adding more value,” Florance said. He added that agents who use Homes.com “are getting 50 percent more listings,” which translates to “about $100,000 a year.”
The comments were a reference to CoStar’s “your listing, your lead” strategy, which aims to funnel consumers to the agents who hold listings, rather than agents who pay a portal for lead generation.
Brad Inman, left, and Andy Florance at Inman Connect Las Vegas on Tuesday. Credit: AJ Canaria Creative Services
Florance also weighed in during the session on a legal battle between his company and Realtor.com parent Move, Inc. The battle began earlier this month when Move sued CoStar for theft of trade secrets. At issue is an editor who previously worked for Realtor.com but later took a job at CoStar. That editor, James Kaminsky, spoke out just days ago to say he is innocent.
While on stage, Florance described Kaminsky as a “poor guy” with two special needs kids, who didn’t have a non-compete and is not running Homes.com.
“I frankly think it’s just a PR stunt,” Florance said of the lawsuit. “We have paid for his counsel, and we have put him on leave indefinitely. We’re not going to let him be the fall guy for this.”
At another point in the session, Florance also discussed CoStar’s recent marketing campaign, which has involved paying for ads during high-profile events such as the Super Bowl and the Olympics. The ads are designed to raise the profile of Homes.com, though Florance’s rivals have expressed skepticism of the campaign’s efficacy. Florance, however, pushed back Tuesday, saying that the ads have increased consumers’ unaided awareness of the brand and that they have resulted in billions of impressions.
Florance ultimately concluded his remarks by offering advice to entrepreneurs in the audience, suggesting that the key to success is perseverance.
“The folks who stick with it beyond a certain point,” he said, “just begin to learn how to surf.”
Email Jim Dalrymple II
by Latham Jenkins | Jul 26, 2024 | Industry, News Feed
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.
We’ve all heard listings are the key to success in this business, but listings are only one side to the transaction. Every successful transaction involves the buyer’s side and in most cases an agent working with the buyer.
TAKE THE INMAN INTEL INDEX SURVEY FOR JULY
There is a significant difference between average buyer’s agents and exceptional buyer’s agents. Here are the differences, and the 11 things great buyer’s agents know before they ever show property.
1. They know the value of a buyer
Great buyer’s agents understand the buyer has more value than just the one transaction. They understand that a happy buyer sends referrals. They also understand a closed buyer transaction creates a marketable event that can lead to other buyer referrals.
The old saying “birds of a feather flock together” absolutely applies to buyers. The great buyer’s agents understand that if they provide world-class service to their current buyer, odds are they will be able to attract or receive referrals for other buyers just like them.
2. They know whether this buyer is working with another agent
One of the biggest mistakes real estate agents make when working with buyers is not knowing whether they are already working with another agent. Most agents have learned this lesson the hard way and found themselves finding the ideal home for a buyer only to realize right before writing an offer that the buyer has a friend in the business that they will be using as their agent.
The great agents ask if the buyers are working with another agent early to save unneeded time, effort and frustration. This question will become even more valuable as we head into a post-NAR settlement era where a buyer’s broker agreement will be required for a buyer to see a home listed in the MLS.
3. They know what the buyers can afford through pre-approval for a mortgage
Another mistake most agents make is not knowing how much the buyers qualify for before showing homes. The best agents understand the pre-approval process is not just to make sure the buyers can buy, but also to make sure the buyers see homes that are in a price range that is doable for them.
Early in my career I made the mistake of assuming a buyer could afford a certain price range only to find out they qualified for homes that were $75,000 less than the ones I showed them. The buyers never could get satisfied with a home in the price range they qualified for after seeing the higher priced ones. This is a mistake I learned from and never repeated.
The best agents don’t show property until their prospective buyers have been pre-approved for a loan.
4. They know what the buyer wants and needs
Great buyer’s agents understand how valuable their time and the buyer’s time is. They ask questions to understand what the motivating factors are for the buyers. They ask them if there is a specific time deadline when they need to be in the home. They ask them where they will be spending most of their time outside their home to uncover if there are amenities, schools or offices they need their home to be near.
By understanding the buyer’s wants and needs, they can provide them with the homes for sale that best fit their desires and make sure their wants/needs are met.
5. They know and can communicate the local market trends
Great buyer’s agents understand and can easily communicate the current local market trends to the prospective buyers in a way that they can understand how they will affect their buying process. This process of educating them on the local trends provides insights that shape the buyer’s expectations.
If there is limited inventory, the great agents provide the buyers with an understanding of how that might affect their need to move quickly and offer above asking price when they find the right home for them in order to win in potential multiple-offer situations.
If the days on market are growing and the average list-to-sale price is moving towards 95 percent, then the agent will educate them on how this might affect their ability to negotiate price in a manner that is reflective of these market trends. Although each home and each negotiation are different, understanding the trends is knowledge that can bring value to the buyer.
6. They know and can communicate specific neighborhood market trends
Occasionally specific neighborhood trends can deviate from the overall local market trends. Great buyer’s agents understand which neighborhoods are demanding a premium and which lend themselves for more aggressive negotiation. This knowledge can pay big dividends for the prospective buyers.
7. They know the history of the homes they are showing
Great agents have a good idea which houses the buyer will be most interested in, prior to showing them, based on their understanding of the buyer’s needs/wants. The next step great agents take is gathering historical information about the homes they are confident the buyer will be interested in.
This includes when the home was built, who the builder was, any renovations that were done and when they were done. They know the details of the last few sales, including sales price and when the homes were sold. They gather property tax information and estimated homeowners’ insurance costs.
Great agents don’t wait for the buyers to ask questions and then gather the answers. They educate themselves on the homes and are ready when and if the questions come.
8. They know the value of relationships with other agents
Great buyer’s agents understand the relationships they have with other agents can affect how smooth the transaction will be or how tough it may be. They understand their job is to advocate and negotiate for their buyers, but they also realize their professionalism with and respect toward the other agent can make a difference for their buyers as well.
9. They know how to represent buyers at a high level
Great buyer’s agents know that to represent buyers at the highest level, they must develop their skills. They understand their skill level in presentation, communication and negotiation will have a direct impact on the transaction and the experience the buyers they represent will have in that transaction.
The National Association of Realtors has encouraged agents to develop these skills by offering free access to the Accredited Buyer’s Representative (ABR) designation course through the end of 2024. For more details on the free access provided, check out this page.
10. They understand the value of good communication
An article in Forbes states the three biggest complaints about real estate agents are that they “lie, are lazy and don’t communicate well.” Based on this article, poor communication is viewed in the same way as lying and laziness. Great agents understand providing good communication is a way to separate themselves from their competition and one of the most common complaints people have of agents.
This should start from the beginning. Sending a text the morning of your first meeting reminding them of the meeting and making sure the time and place still works for them sets the tone for your communication throughout the process.
Emailing, calling or texting the buyers with the agenda for the time you will spend with them provides clarity for what to expect. Consistent communication from the search process all the way through to post-closing follow-up will deepen the trust and relationship you have with your buyers.
By turning what the public views as a negative into a positive, great agents understand that great communication is the path to lifelong clients and referral partners.
11. They understand the value of a lifelong client relationship
The first point in this article was that great agents understand the value of a buyer, and it is only fitting that we close with the fact that great agents understand the value of a lifelong client relationship. The best agents understand that everything begins and ends with the clients.
This business is about them and how you serve them. When you focus on becoming the agent that not only deserves their business but an agent that earns their business for life, your business can’t help but grow.
Buyers need and deserve you to become the best version possible of yourself. Our industry needs great agents to step forward in this time of change and show the value we bring to the process of purchasing a home. This is a pivotal point in our industry and in your career. Now is the time for you to step forward and be the great agent you have the ability to become.
Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.
