by Lindsey Harn | Aug 23, 2024 | Industry, News Feed
The value proposition rests on owners publishing their home to the Lynn user community for feedback on its potential value to the market, but an immature user experience and lack of engagement incentives erodes the value prop.
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Lynn is an off-market property sales solution.
Platforms: iOS, Android
Ideal for: Consumers and agents
Top selling points:
• Direct market feedback
• Interest lists
• Consumer-focus
• In-app communication tools
Top concern(s):
The app comes across as passive in nature, a slow burn with good intent. I like the idea of getting to know what the market thinks of a home, but the app should do more to drive the interaction. I hate the term gamify, but more of it is needed here, as well as an emphasis on UI/UX, especially for a consumer-facing effort.
What you should know
Lynn is a mobile application primarily for consumers, with some agent benefits built in, mainly around lead gen.
The value proposition rests on owners publishing their homes to the Lynn user community for feedback on its potential value to the market. They can solicit feedback from the Lynn community on house color, landscaping, kitchen layout or whether or not the deck needs replacing, all under the auspices of maybe selling it.
The process starts with claiming your home once the app is installed, but I was unclear on the current verification process. For now, plans are in the works post-launch to use license photos and GPS photo verification.
Buyers use Lynn to make lists highlighting liked homes in the area, and sellers can use the list function to keep track of those who expressed interest in their homes.
An Attom data integration helps with an estimated value determination, though the seller can merely adjust that as they see fit, a sort of “make me move” function.
There’s a direct communication path between potential sellers and buyers, which I like a lot. There is zero reason these parties can’t be in direct talks with one another, even during an actual deal. And that is a potential issue in terms of the current way of doing things.
In short, listing agents may not be psyched to pick up a client who has already, in some ways, supplied the market with data about moving, especially “the why.”
There is an entire cottage industry in the space about seizing on life milestones for the benefit of a better deal, like deaths and divorces. Oh, and degrees, meaning a child may be leaving the house after high school or college or whatever. I’ve never liked this lead-gen tactic and find it pretty terrible. Lynn is not encouraging this — I’m just ranting.
An owner who uses the “announce home” feature means they’re more likely than another to sell soon and are actively seeking feedback. A visual icon system on Lynn’s map search indicates such intent and notifies viewers of new content on a home, the number of interested buyers and other such app activity.
In its current state, the icon notification system is a bit clunky. The alerts pile up around a home pin, making it visually cumbersome and requiring the user to remember what color means what. A simple universal notification will suffice because the user will act on it anyway. It’ll be cleaner and more modern.
On that note, the UI does need work. But, I give new apps leeway here, as functionality and sales should trump front-end design at first. Tweaks are needed, though, as the app feels overly social media-inspired. Dated confetti bursts and a somewhat uninspired experience didn’t engage me in our demo. I’d look to fintech apps for influence and aim for a more uniform content delivery.
Agents are pulled into Lynn based on their contact count and, thus, the potential to reach more consumers. It’s a scaling tactic, which I understand, but it means a person who doesn’t manage their CRM well might have an advantage to being recommended when the app asks them about representation. Rest assured that the size of a database does not equate to quality. Most agent databases are, maybe, 10 percent up-to-date.
The Lynn team would be smart to reach out to Revaluate to re-sell database cleansing prior to sign-up.
There’s certainly a Nextdoor vibe to Lynn, but at least this app invites the Karens to comment on the look of your azaleas this season. It could benefit by giving its homeowners access to relevant market data based on their location. A partnership with RealReports, which Lynn could upsell, would be a nice touch for sellers wanting to know more about how their home and for buyers, too.
I don’t at all question Lynn’s intent to put the pre-marketing phase of a sale on the seller, which is where I think this app is going to go if Percy.ai and DropOffer are any indication of what’s possible in this niche. Revive is a close competitor, too, minus the social outreach functionality.
Have a technology product you would like to discuss? Email Craig Rowe
Craig C. Rowe started in commercial real estate at the dawn of the dot-com boom, helping an array of commercial real estate companies fortify their online presence and analyze internal software decisions. He now helps agents with technology decisions and marketing through reviewing software and tech for Inman.
by Erin Krueger | Aug 22, 2024 | Industry, News Feed
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
Homie, a once-rising flat-fee brokerage that has since struggled with layoffs, has filed an antitrust lawsuit against the National Association of Realtors and other industry players, saying they “conspired” to prevent innovation and boycott low-commission listings.
The suit was filed Thursday in U.S. District Court in Utah, where Homie is based. In many ways, the suit’s claims mirror those made in other recent antitrust lawsuits: It argues that NAR and other organizations violated the Sherman Antitrust Act, along with other laws; it takes issue with NAR’s now-eliminated Participation Rule, which required listing brokers to offer buyer brokers a commission in order to submit a listing to a Realtor-affiliated MLS; and it asks for unspecified damages. The Participation Rule is at the heart of many other real estate antitrust lawsuits.
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The language is also similar to that in other cases.
“The anticipated wave of disruptive innovation and entry into the residential real estate brokerage market has not yet occurred because defendants conspired to prevent it,” the complaint in the case argues. “Using their control of the MLS, defendants imposed rules nationwide that erected substantial barriers to entry for new competitors, thereby elevating the price of residential real estate brokerage services well above competitive levels.”
The lawsuit goes on to claim that Homie was subject to both “express and tacit boycotts” that involved real estate incumbents “steering buyers away from” the company’s listings. The complaint also includes a transcript of an alleged text message in which one agent discusses not showing a Homie listing because it was only offering a 1.5 percent commission to the buyer’s broker.
Homie also allegedly received similar messages through the local MLS.
“If you up the commission, I will bring my buyers. If not, I will not,” one message stated, according to the complaint.
“[R]aise Commission to 3%,” another allegedly demanded.
In addition to NAR, the suit names a handful of other defendants: Anywhere, HomeServices of America, RE/MAX, Keller Williams, and the Wasatch Front Regional Multiple Listing Service, which operates the locally popular UtahRealEstate.com website.
News of the new suit was first reported by HousingWire.
Asked for comment, a Homie spokesperson directed Inman to a statement on the company’s website that describes the suit as “”shining a light” on “unjust practices.”
“Our fight is about so much more than savings,” the statement adds, “it’s about every homebuyer and seller who’s had to endure a system that puts profits over people.”
Asked about the lawsuit, an NAR spokesperson said in a statement to Inman that the organization’s “goal is to promote local real estate marketplaces that provide fair and equal access to property information and promote competition while empowering Realtors to serve clients on their homebuying and selling journeys. We will respond to these claims in court.”
HomeServices Executive Vice President Chris Kelly said that “while we cannot comment on the specifics of the complaint given its recent filing, the claim that competition within the real estate industry has been stifled is simply unfounded.”
“The industry has undergone significant evolution over the past decade, with dynamic changes in the competitive landscape,” Kelly continued. “For example, of the top 10 brokerages by closed sides in 2013, only three remain in the top 10 in 2023. Notably, seven of the top 10 brokerages in 2023 were not in that group just 10 years ago. There has been an ongoing and continued introduction of new brokerages, models and platforms, such as iBuying, that have emerged over the past decade.”
Keller Williams and Anywhere both declined to comment.
In addition to alleging a conspiracy, Homie argues in the complaint that NAR’s Clear Cooperation Policy is “exclusionary.” NAR rolled the policy out in 2019 in an attempt to crack down on pocket listings, or homes that are for sale but not entered into the MLS. The policy has been controversial from the get-go and still faces criticism today.
For Homie’s part, it argues in the complaint that Clear Cooperation “tends to prevent the creation of rival listing networks that might arise to challenge the dominance of the NAR-affiliated MLS system.”
Regarding the Participation Rule, the complaint argues that the defendants “understood and intended” the policy to result in steering to properties with higher commissions. The complaint refers to the policy as the “Buyer Broker Compensation Rule.”
The lawsuit comes amid a period of tumult for Homie. The company was once among the most prominent flat-fee brokerages in the U.S. and employed hundreds of people. In 2021, the company announced plans to hire 1,000 buy-side agents.
However, Homie eventually experienced multiple rounds of layoffs and, earlier this year, announced it was moving its agents to contractor status. The company had no CEO at the time. A spokesperson said Homie was undergoing a “shift” and would continue on with only a “handful” of W2 employees.
Antitrust lawsuits such as the one Homie filed have dominated the real estate industry for the last year. Many of those lawsuits were filed by consumers who objected to the way sellers’ and buyers’ agents traditionally shared commissions. The situation led to a jury verdict last fall against NAR and major franchisors, followed by a slew of major settlements from those franchisors.
NAR announced its own settlement in March. The settlement included an agreement to pay $418 million and to enact a variety of new rules. Those rules went into effect on Saturday.
Though Homie’s suit resembles previous cases in many ways, it is also atypical because it was filed by a corporation instead of a homeseller or homebuyer.
The suit ultimately describes the brokerage landscape as a “stagnant industry” and says Homie took legal action to “recover damages suffered as an excluded competitor foreclosed by the Defendants’ conduct.”
Homie additionally argues in the complaint that if it weren’t for the defendants’ actions, the company could have taken market share from real estate incumbents. Instead, the complaint claims, both consumers and the company suffered.
Read Homie’s full complaint here (refresh if you have trouble viewing):
Update: This story was updated after publication with comments from the various parties involved in the suit, and with additional details from the complaint.
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by Lillian Dickerson | Aug 22, 2024 | Industry, News Feed
Seattle-based brokerage and portal Redfin laid off almost 100 Redfin Concierge support and sales managers on Thursday. The company said agents will now take the lead on Concierge services.
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Redfin laid off about 100 employees on Thursday, according to a report from GeekWire.
The layoffs impacted support and sales managers with Redfin Concierge, the company’s pre-listing home improvement service. A Redfin spokesperson said the layoffs were spurred by an increasing focus on Redfin Next, the company’s hybrid compensation plan that enables agents to keep full-scale benefits while earning competitive commission splits.
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“This morning Redfin had a targeted layoff of fewer than 100 people, primarily in our Concierge service and support and sales managers within the real estate brokerage,” a spokesperson told Inman. “No agents are being laid off. In fact, some of the impacted employees are being offered jobs as agents.”
As for Concierge operations, agents will take the lead.
“As we hire more Redfin Next agents and our current agents become more entrepreneurial and self-sufficient, Redfin needs less support and managerial staff,” they added. “Additionally, Redfin is decentralizing operations for our Concierge service. Redfin will continue to offer Concierge service for sellers but in a more decentralized form with local agents taking the lead.”
The layoffs come on the heels of a stock market rally for the Seattle-based brokerage.
Redfin’s stocks have risen 30 percent over the past month due to improving existing sales and mortgage rates, according to a MarketWatch analysis on Monday. The Aug. 17 change in cooperative compensation rules also contributed, as Redfin CEO Glenn Kelman predicted more consumers will embrace the brokerage’s pricing structure in the face of a more complicated commission landscape.
“We’ve tried in the past to recruit buyers by offering them a better deal, and mostly they’ve been confused by that because they haven’t been the ones paying their agent. (Now) we think we can use price as a weapon to gain share,” Kelman said during the company’s second-quarter earnings call.
The layoffs haven’t seemed to impact Redfin stock (NASDAQ: RDFN), which rose 3.10 percent to $9.32 per share by market closing. The company’s stock is still rising in after-hours trading, rising 0.75 percent to $9.39 per share.
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by Michael Zaransky | Aug 22, 2024 | Industry, News Feed
Mauricio Umansky shares five key strategies for making (and modeling) more meaningful choices as a brokerage leader.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
When it comes to making smart decisions in real estate — and in life — it’s essential to balance personal intuition and hard data.
As professionals in a position of leadership, we must demonstrate ways of thinking and assessing that will not only support our own success but that of our colleagues as well.
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Here are five key strategies to consider when making (and modeling) effective decisions as a brokerage leader.
1. Cultivate a data-driven culture
Foster an environment where data informs every decision. Educate your team on how to track client engagement and encourage them to leverage analytics to identify trends, understand client needs, and optimize marketing strategies.
Track key performance indicators (KPIs) and return on investments (ROIs) for all activities, including social media posts, email campaigns, and open house events.
However, it’s essential to remember that data is best assessed in concert with other factors—it’s crucial to interpret data in context.
For instance, analyzing engagement data from virtual tours can reveal which property features captivate potential buyers. This insight can guide agents to focus their presentations and marketing materials on the most sought-after aspects, enhancing the property’s appeal and driving more targeted outreach.
2. Trust your instincts
While data provides a solid foundation, intuition, shaped by experience and industry insights, is invaluable. Don’t underestimate the power of a gut feeling, especially when navigating complex or unprecedented scenarios.
Luxury real estate often involves unique situations where strict reliance on data may not capture the full picture. For example, a seasoned agent might sense a buyer’s hesitation despite favorable “data points” and need to pivot to provide more personalized support and private discussions.
In another instance, an agent’s familiarity with local market idiosyncrasies could suggest a property has untapped potential, even if it doesn’t align perfectly with current market trends. In these moments, you should trust your instincts and use your real-life experience and judgment to make informed decisions.
3. Take a holistic approach
The truth is simple: Data can’t capture the full emotional and psychological landscape of the luxury market. Complement quantitative analysis with qualitative insights from clients and agents. This holistic approach often reveals nuances that numbers alone can’t capture.
One of our core tenets is collaboration, so when faced with uncertainty or challenging decisions, I always encourage agents to consult with a trusted colleague or mentor. These perspectives can provide clarity, validate your intuition, and offer new strategies for moving forward. Combining data-driven insights with personal experience and collaborative input ensures a well-rounded approach to achieving success.
4. Prioritize open communication
Encourage open dialogue within your team. As mentioned earlier, our human experiences are a key element in smart decision-making — and diverse perspectives can bridge the gap between data and intuition, leading to well-rounded decisions. Create a culture where data and instincts are valued in equal measure.
One way to foster an environment of open communication is by hosting regular team meetings and brainstorming sessions where agents of all experience levels are encouraged to share their insights and experiences. Consider holding a special video or in-person workshop with a mix of very experienced and newer agents where participants discuss recent transactions and highlight how different approaches (be it data analysis or intuitive judgment) contributed to closing deals.
By openly discussing successes, challenges and their processes for problem-solving, agents can learn from each other and feel more confident in blending analytical and intuitive strategies in their own work. This practice not only enhances decision-making but also builds a cohesive team culture centered on mutual respect and a growth mindset.
5. Continuous learning and adaptation
The real estate market — and its luxury sector — is ever-evolving. Stay ahead of the curve by staying up to speed on new tools and methods and updating your data strategies with the latest technologies and methodologies.
To support our agents in their ongoing education, we have The Agency University, which offers (and could be recreated in your own brokerage) training videos, webinars, and workshops on a number of topics, from new agent training and business coaching to email marketing, client management, and personal branding.
Everything is designed to accelerate our agents’ success and provide them with the full training support they need to meet their potential. After all, you shouldn’t expect your teams to excel without at least providing systems and programs to support their success.
Balancing intuition with data isn’t about choosing one over the other; it’s about blending them to enhance your effectiveness as a leader. When you value and utilize both, you can make well-informed, confident decisions that drive success for your brokerage.
Mauricio Umansky is the founder and CEO of The Agency in Los Angeles. Connect with him on Instagram.
by Victoria Kennedy | Aug 22, 2024 | Industry, News Feed
CEO Brian Bair told National Mortgage News in a recent interview that agents no longer view Offerpad as a threat, noting they can make 4 percent if a client takes the company’s cash offer and the home is updated and resold.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
Offerpad CEO Brian Bair sent a message of confidence in his company’s business model and ability to turn a profit in a recent interview with National Mortgage News.
The company’s shares fell to all-time lows after it shared details from its second-quarter performance earlier this month.
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The company reported a $13.8 million net loss in the second quarter on $251.1 million in revenue. That was slightly better than the first quarter, when Offerpad lost $17.5 million.
Around the same time, the company laid off employees in sales, marketing and operations as it sought to contain its expenses in a bid to regain profitability.
CEO Brian Bair told National Mortgage News that Offerpad was focused more on fewer transactions and wider margins.
Offerpad is focused on expanding its offerings past its cash offer and renovation systems, adding in-house lending to its product list.
“Integrating mortgage with some of our other technology solutions is going to be really important,” Bair told the outlet. “We’re pausing just to figure out when and how to do it, and frankly, making sure that the customer is getting the same experience with mortgage as our other products.”
Offerpad executives have been working to pivot from a sellers to a buyers market by shrinking the company’s “buy box” — narrowing the scope of the homes that it evaluates for purchase, and adjusting the input variables in its underwriting model to be more conservative.
“What we’ve been doing is staying very disciplined and being more specific about the inventory we’re buying. Making sure there’s not a bunch of active (listings) in the area,” Bair said.
The company picked up 831 homes in the second quarter, down slightly from 840 homes purchased in the second quarter of 2023.
Bair said Offerpad was leaving its homes on the market longer, rather than lowering its prices to meet potential buyers. Meanwhile, the company is leaning into its renovation capabilities to offer homes that will appeal to buyers, Bair said.
“We’re focused on having a really nice, renovated product we can put on the market, and that’s an advantage to some of the other homes in the area,” Bair told the news outlet. “New carpet, new paint, new appliances, new fixtures.”
Offerpad views its renovation business as an advantage and a money-maker, offering its construction and remodeling services to investors in the markets it operates in.
Bair said he thought agents no longer viewed Offerpad as a threat, noting they can make 4 percent if a client takes the company’s cash offer and the home is updated and resold.
He said he thought that more buyers would begin working directly with listing agents as a result of the settlements related to the antitrust litigation brought by homesellers.
“If somebody goes to a platform [and] they want to get into a house, I think they’re going to get more comfortable with it, and the listing agent is going to get more comfortable with showing the home,” Bair said. “Whether that takes six months or six years, I don’t know. But I do think you’re going to see a pretty significant transition.”
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by Lillian Dickerson | Aug 22, 2024 | Industry, News Feed
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
Times of disruption provide a unique opportunity for agents to create life-altering change for their businesses. Most people understand that a few bad decisions and careless actions today can negatively impact their future. But they often forget that the reverse is true as well. Good decisions and purposeful actions today can positively alter their future as well.
However, there is a process, and this article breaks down the SIMPLE steps you can take to build the business of your dreams.
S: Sick and tired of being sick and tired
There are two emotions that lead to change. The first can happen when you get sick and tired of the way your business and life are going. Maybe your business has stalled or even been declining. You might be burnt out and not sure if you even want to continue in this business.
This is the emotion that leads to agents either leaving the business or coming to the realization that to get different results they must do different things. If you decide to push through and make a change, the first step is to choose your pain. Will the pain of regret, or not doing what needs to be done to regain your momentum, be worse than the pain you are currently facing by being sick and tired of your current situation?
This change starts by identifying the actions in your business that you know need to be done, but that you have been avoiding. These could include making more phone calls, investing in marketing, shooting video content or any number of activities agents avoid doing despite knowing they will help their business. Whatever it might be for you, coming to a place where you will fight through the short-term uncomfortableness to change your business and life is one of two ways your mindset can change and lead to success.
I: Inspiration
The second factor that can lead to change is when you are inspired by an outside force to strive for something better. This can come through a speaker, a video or by spending time with someone who is truly inspirational. This rarely is a one-time event.
Inspiration must be consistent and sustainable to create true change, but it is one of the most powerful emotions for those desiring more.
Once you realize you need to change, whether through being sick and tired or through inspiration, the next step is to move into the practical activities and specific actions you can focus on to regain the momentum you desire.
M: Create a movement
People want to be a part of something that is bigger than themselves. If you’re a broker or manager this means creating a movement that agents want to be a part of.
By creating an aspirational culture, you will attract the agents you’re looking to build your business with. If you’re an agent, create a movement where buyers and sellers desire to work with you.
Whether you are a broker, manager or an agent, a movement in your business can be created by following my three C’s of movement creation.
Create community
People are drawn to community. This can be done in a company via a collaborative culture or developing a culture where the agents are proud to be associated with the company.
Agents can do this through client appreciation events, by donating to local charities in honor of their clients or any number of additional community activities that bring the agent’s clients together. The key is to create a community people are proud to be associated with.
Be the connector
Whether it be connecting your buyers with local business owners, homeowners with handymen, landscapers or any other needed services, your ability to be the resource and connector is invaluable. If you are the person who connects your agents or clients with the people they need, others will naturally be drawn to you and your business.
Captivate your ideal client
The best way to captivate your ideal client is to provide them with information and guidance in a unique way that attracts them to you. Be specific in your marketing by calling out your ideal client.
Here are a few examples:
- If you’re a first-time homebuyer wondering about what price home you can qualify to buy, this video is for you.
- If you’re thinking about selling your home, this video shares the three biggest mistakes most homeowners make and how to avoid them.
- If you’re an investor who has been looking for the best income-producing property in [your city], this video is for you.
When you create content that educates and entertains your ideal client, they will find you.
P: Focus on people and your purpose
To change your life, you must be focused on other people and be anchored in a higher purpose. Let me start with the focus on the people portion. Dreams come true through the assistance of or in service to other people and, in most cases, both.
I touched on captivating your ideal client in the previous section, but understanding who your ideal client is leads to clarity in your messaging. It provides an understanding of what your marketing should be focused on and where it should be distributed. Become obsessed with servicing your ideal clients, and you will never lack for business.
The second group of people to focus on are the employees and service provider partners that can assist you in providing world-class service to your ideal clients. Building a mutually beneficial lender relationship, inspector and insurance provider is a great way to build a trusted group of people you can grow alongside.
From an employee standpoint, transaction coordinators, personal assistants or client care coordinators provide leverage for you to be able to serve more people at an even higher level.
The reason focusing on your purpose is so important is that this business will test you. There will be disappointments and difficult transactions.
The key is to focus on the true reason you are in this business. Maybe it’s a better lifestyle for your family, to make more money or even, in some cases, to prove someone wrong that doubted you in the past. Whatever it is for you, your ability to stay focused on your purpose will enable you to overcome any obstacles this business throws at you.
L: Learn continuously
When you decide to become the most consistent student in your market, it’s only a matter of time before your business grows. Learning how to become a better negotiator, marketer or communicator increases your value to clients and, in turn, will lead to more business.
E: Execution
Execution is the key to everything. You can learn everything you want to learn, and you can focus on your purpose as much as possible, but until you execute, nothing happens. For things to change, there will have to be a season of hard work. To create momentum and change in your life, there will be a season of struggle. But it will be worth it.
This is the time and opportunity for you to change your future. Whether your change is being initiated via pain or inspiration, this is the season for you to move from the level you are currently on to the level you were destined to reach. Make decisions, and take action now in a way that your future self will thank you.
Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.
