by Mary Mancera | Jul 26, 2024 | Industry, News Feed
A longtime thorn in Zillow’s side, Left and his firm Citron Capital LLC face charges from the DOJ and SEC that they profited by taking positions in companies that were the opposite of what they told investors to do.
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Stock analyst and trader Andrew Left — whose Citron Research firm was a thorn in the side of Zillow and dozens of other companies whose business practices he questioned in influential reports — has been indicted by the Department of Justice for alleged stock market manipulation.
A frequent commentator on business programs on CNBC, Fox Business and Bloomberg Television, Left is accused of stating publicly that companies he’d researched were undervalued or overvalued — then taking positions in the companies that were the opposite of what he’d advised investors to do.
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The 19-count indictment, filed by the DOJ in a U.S. District Court in Los Angeles Thursday, claims Left used his social media following and public platform to earn at least $16 million by fraudulently manipulating the stock market from March 2018 to October 2023.
The Securities and Exchange Commission also announced charges against Left and his firm, Citron Capital LLC, on Friday, alleging in a complaint that Left engaged in a multi-year “bait-and-switch” scheme to defraud his followers of $20 million.
Citron Research did not immediately respond to Inman’s request for comment. On its website, Citron boasts that more than 50 companies it raised questions about in its coverage from 2001 through 2008 later came under scrutiny by regulators.
Citron initially made a name for itself by taking short positions in companies that it claimed had adopted unprofitable business practices or engaged in outright fraud. Short sellers profit by borrowing and selling shares in companies they think are overvalued, then buying them back at a lower cost.
In a 2013 report, Citron predicted Zillow’s stock would fall to $30 per share due to a “lack of appeal among their customer base” and the company’s allegedly “precarious position in the real estate industry.”
“The Citron report, written by a company known for being paid by short-sellers who stand to financially benefit from falls in Zillow’s stock price for such reports, is anything but accurate and thorough,” Zillow said of the report at the time.
In 2019, Citron Research flipped its position and said it was bullish on Zillow, touting the return of co-founder Rich Barton as CEO.
When news of Left’s indictment broke, Zillow co-founder and former CEO Spencer Rascoff posted, “This was a long time coming,” on the social media platform X.
In recent years, Citron expanded beyond singling out companies it thought were overvalued and good targets to short and also began touting companies it saw as promising opportunities for investors to take a long position in.
In its indictment, the DOJ characterized Citron Research as little more than “an online moniker” that Left created as a vehicle for publishing investment recommendations. In 2018, Left formed Citron Capital LP, a hedge fund incorporated in Delaware and registered as an investment adviser in California.
The SEC accuses Left of using the Citron Research website and related social media platforms on at least 26 occasions “to publicly recommend taking long or short positions in 23 companies and held out the positions as consistent with his own and Citron Capital’s positions.”
Once the recommendations were issued and the companies’ share prices moved up or down, “Left and Citron Capital quickly reversed their positions to capitalize on the stock price movements,” the SEC alleged. “As a consequence, Left bought back stock immediately after telling his readers to sell, and he sold stock immediately after telling his readers to buy.”
Left, 54, previously lived in Beverly Hills but now resides in Boca Raton, Florida, the SEC said.
“Andrew Left took advantage of his readers. He built their trust and induced them to trade on false pretenses so that he could quickly reverse direction and profit from the price moves following his reports,” Kate Zoladz, Director of the SEC’s Los Angeles Regional Office, said in a statement. “We uncovered these alleged bait-and-switch tactics, which netted Left and his firm $20 million in ill-gotten profits, and we intend to hold Left and his firm accountable for their actions.”
Andrew Left at Real Estate Connect San Francisco
When Left appeared onstage at Inman Real Estate Connect San Francisco in 2018, he was introduced as “a skeptic on equity markets and valuations.”
In a discussion with then-Warburg Realty President Clelia Peters and Mauricio Umansky, CEO of The Agency, Left was asked about the market capitalizations of publicly-traded companies seeking to carve out a bigger share of the real estate business.
“I mean, it’s amazing that Netflix is worth more than Disney, right?” Left said. “Obviously, if you look at, you know, Tesla and General Motors or Ford, it’s a phenomenon that happens across [industries] — which is that Wall Street pays a lot of money for disruption.”
“I think everyone knows that Tesla has disrupted,” Left said. “As a fact, the car industry, everyone is going to make electric cars in the next 10 years. And I think with the real estate business it’s still pretty much up in the air. Is it Redfin? Is it Compass? Is it Zillow? Who’s going to be the ultimate disrupter? So in the meantime, let’s just give them all big valuations.”
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by Mauricio Umansky | Jul 26, 2024 | Industry, News Feed
July is Luxury Month at Inman. Tune in as we survey the evolving luxury market, explore emerging trends, and talk to top producers and influencers in the ultra-luxury space about how they got where they are today and the insights they’ve gained along the way. The month culminates with the announcement of the expanded Golden I Awards live onstage at Luxury Connect (July 29-30) in Las Vegas.
After a bustling season of international sporting events, the capstone is finally at-hand: The 2024 Paris Olympics.
Officially beginning today, the Paris Olympics will bring tourists from across the globe eager to take in the sights, sounds and tastes of one of Europe’s most popular destinations. But will it also serve as a springboard for travel — and real estate transactions — farther afield?
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As a longstanding model for tasteful luxury, France embodies “quiet luxury” in its lifestyle, and in more remote regions, “quiet life” travel trends that have risen in the past several years. These trends reflect a growing demand for understated luxury living, and its travel counterpart, which has travelers seeking out calm countrysides and secluded beaches to encounter a more peaceful travel experience.
As individuals travel to Paris for the Olympics this summer, will they latch onto these trends, and embrace them when it comes to real estate?
France-based luxury agents said that, given reports of unusually low tourist demand, positive impact on the market may be delayed, but could still arrive later in the season as a “showcase effect” after seeing the city’s assets highlighted on TV. Many Parisians have fled the region amid the Games, according to reports.
Clinton M. Perrot-Schwartz | Engel & Völkers
“My feeling is that things will remain relatively calm during the remainder of the summer months, with a likely increase in activity expected in September and October as people return to the city,” Clinton M. Perrot-Schwartz, an advisor with Engel & Völkers France, said in an email to Inman.
Even with fewer physical visitors this summer, the Games have the potential to serve as a bridge to the country’s quiet luxury market.
Demand for travel to the Games is less than Olympic-sized, but agents aren’t fretting
The Games are the first that Europe has hosted since the 2012 London Olympic Games, and it appears that Paris overestimated tourist demand for the event. As of early July, occupancy rates were down 25 percent compared to previous years and hotels have slashed rates by about 40 percent from a year ago in an effort to book rooms.
The city has also implemented a variety of restrictions on moving about, designating numerous zones and regulations for traveling through them, depending on the mode of transit. Remarkably, all three Paris airports will also be closed Friday, the evening of the opening ceremony, as the area becomes a no-fly zone.
Agents said the city has been quiet, with few locals or visitors milling about.
“As of today, there has been a noticeable reduction in apartment visits, as many Parisians have left the city for the duration of the Olympics,” Perrot-Schwartz said in the last week of July. “It also appears that the usual influx of tourists has not materialized to the expected extent, with many international visitors, including many of my American clients, choosing to defer their trips to Paris until after the games to avoid the anticipated crowds.”
Historically, cities that host the Olympic Games can experience a boost in tourism after the fact, however, in response to visibility from media coverage of the Games and resulting infrastructure improvements. Perrot-Schwartz pointed to the extension of Paris’ metro Line 14, which now directly links to Orly Airport, an improvement helpful to locals and tourists alike.
“Overall, I believe these developments will bolster Paris’s reputation as a prime destination for both tourism and real estate investment,” he said.
Marie-Claire Sangouard | Engel & Völkers
Marie-Claire Sangouard, managing director of Engel & Völkers Côte d’Azur, added, “For the Olympics, the cities put on their best face, which has the added benefit of renovating and extending the property stock and its surroundings. In the end, property prices are all the better for it.”
Other France-based luxury real estate experts told Inman that the country, and Paris in particular, has such enduring appeal among American and other international investors that something like the Olympics was unlikely to move the needle much among would-be buyers.
“American buyers have always been present in Paris,” Marie-Hélène Lundgreen of Belles demeures de France Fine Residences Christie’s International Real Estate told Inman. “They represent 25 percent of our international buyers, so it’s the most important quota after European buyers, [which] represent 32 percent.”
Frederic Barth | Sotheby’s International Realty
Since there’s already such a strong affinity with American buyers in Paris, and the country more broadly, Frederic Barth of Côte d’Azur Sotheby’s International Realty in the south of France said that the Olympics would essentially be irrelevant to his local market.
“The Paris Olympic Games are unlikely to have a significant impact on real estate in the Côte d’Azur, and even less so among American investors, who are already familiar with Europe and frequently visit destinations like Italy, Paris, the Côte d’Azur and Spain,” Barth said in an email. “The Côte d’Azur already enjoys a strong reputation and does not need the boost from the Olympics.”
The quiet life
Agents agreed that France, of all places, knows how to do “quiet luxury,” the understated luxury trend that displays wealth and taste in a more restrained fashion and has taken the luxury world by storm. Its mastery of the trend could help bring even more attention on the country’s way of life as its popularity continues.
“Isn’t the definition of ‘quiet luxury’ the epitome of French luxury, all refinement and discretion?” Sangouard in Côte d’Azur mused.
Delphine Gibert-Avitan | Sotheby’s International Realty
The trend, Delphine Gibert-Avitan of Propriétés Parisiennes Sotheby’s International Realty said, is indeed “embodied through an emphasis on timeless elegance, quality craftsmanship, and discreet sophistication” in the French real estate market. “Properties often feature high-quality materials, historical significance, and thoughtful design that prioritizes comfort and privacy over ostentation. The trend aligns with the French appreciation for subtle refinement and enduring value, favoring serene, private residences over flashy displays of wealth.”
The quiet luxury trend has also permeated the travel sector in a fashion with the rise of “quiet life” travel, Pinterest noted in its summer travel report. Searches for “quiet places” and “calm places” have increased by 50 percent and 42 percent, respectively, since last summer, with many travelers searching for a digital detox. Other top-desired components of quiet life travel include solo travel, wellness retreats, “village vibes,” the countryside and island life, according to Pinterest.
Travelers who decide to explore Paris and other parts of France either during the Olympics or in its wake may find themselves falling into the quiet life of luxury.
“As for the south [of France], thanks to the continuing favorable climate and the massive influx of Parisians who preferred to leave the capital during the Olympic Games or simply took their holidays, rentals and sales are not being outdone either,” Sangouard said. “Tourists from all over the world are also taking advantage of the Olympic Games to continue or start their journeys in the south of France and come to enjoy the French lifestyle.”
Those seeking out quiet luxury and the quiet life may be drawn to the hinterlands, Barth said, with their stone houses, wooded plots and tranquility. Because their quiet attractions have drawn more visitors, some of these areas are seeing a bump in development, he added.
“Regarding real estate activity, this trend is now fostering development in charming villages that were previously overlooked.”
Americans, don’t be fooled
When working with Americans, France-based agents said one of the biggest misconceptions they encounter is that the transaction will play out in similar ways as it does in America. But things are done pretty differently.
Sonya Clarke | Engel & Völkers
“Things in France are slower, less transparent and very bureaucratic, so they should take time to choose a good agent who can take them through everything in their own language and who understands the meaning of ‘service,’” Sonya Clarke of Engel & Völkers Côte d’Azur said in an email. “The French way of life, which is the ‘charming,’ ‘quiet-luxury-life’ is perfect once you are settled, but can be frustrating when looking to buy a property — if everyone is enjoying a long lunch and not working evenings and weekends … well, you can see how it could be.”
At the end of the day, that “bureaucratic” process is made to protect buyers and sellers, Sangouard said, which is good for American investors to keep in mind.
Once an offer is accepted, it can take several months for a transaction to close, Gibert-Avitan added, and most documents are written in French, which means many Americans may need to enlist a translator or the services of a bilingual lawyer.
Perrot-Schwartz, an American who married into a French family, has gone through the process first-hand of learning how the French transaction is conducted differently than the American version, and draws on his dual experiences to help American clients.
Marie-Hélène Lundgreen | Christie’s International Real Estate
“I try to bridge this gap with my clients so that their purchasing experience is as seamless and stress-free as possible,” Perrot-Schwartz said. “For me, there are few things as satisfying as helping fellow Americans successfully and skillfully navigate the French real estate market.”
Those differences and potential added hoops aside, Lundgreen said that Paris, especially, represents the dream lifestyle come true for many Americans, which makes it all worth it.
“[Americans] don’t buy in Paris to make an investment for business reasons,” Lundgreen said. “It’s just for pleasure, because it’s Paris. It’s the clients who tell us it’s the most beautiful city in the world. It offers everything.”
The 2024 Paris Olympics may serve to fuel that dream further.
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by Lillian Dickerson | 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.
Looking for a quick catch-up on the buzziest stories of the week? Here’s Inman Top 5, the most essential stories, according to Inman readers.
And don’t miss The Download, our weekly column that breaks down one of the top stories of the week and equips you with what you’ll need to meet next Monday head-on.
A much-discussed listing agreement update reflects upcoming NAR rules, but it doesn’t bar sellers from offering compensation to buyers’ agents.
Are you spending time on things that simply don’t matter to your professional growth or the growth of your business? Jimmy Burgess offers a list of things you may be doing that are counter-productive.
Taylor Anderson for Inman Intel
NextHome CEO James Dwiggins shares his thoughts on agents who use websites designed to advertise offers of compensation from listings after the NAR settlement takes effect next month.
Crystal globe and chess pieces on chessboard
Judge says Top Agent Network “adequately alleged” NAR’s Clear Cooperation Policy is a “group boycott.” Meanwhile, NAR signals it may be open to repealing the rule.
Veteran KBW analyst Ryan Tomasello will be talking about the “watershed moment” that could lead to consolidation and innovation across the real estate industry at Inman Connect Las Vegas.
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by Joseph Santini | Jul 26, 2024 | Industry, News Feed
Real estate software company MoxiWorks has been building its 150-plus member MoxiCloud network for years to help users solve challenges its products may not address. The latest to be selected is SOCi, a powerful online marketing solution.
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Real estate software company MoxiWorks has selected SOCi, a powerful online marketing solution that works with some of the business world’s most recognized names, as the latest in its 150+ member MoxiCloud network, according to a July 25 press release. The release describes SOCi as “the leading co-marketing cloud for multi-location enterprises.”
The digital marketing company’s software automates everything from social media and display advertising to customer surveys and product reviews, among other marketing tactics. It also tackles online reputation management and SEO strategy.
“This partnership enables brokers and agents to effortlessly post real estate listings — whether they’re new listings, open houses, price reductions, or closings — directly to their social media channels,” MoxiWorks said in the release.
While there are a number of real estate-specific companies that handle such needs, even MoxiWorks itself, SOCi’s advantage is that it brings case studies, feedback and business intelligence from customers like Ford, Jersey Mike’s, KOA, Ace Hardware, Rent-A-Center, SportClips and Marcos Pizza, among many others. External insights can be powerful drivers of improvement for real estate brands.
“Everyone knows how important social media is for promoting not only a real estate listing but an agent and their brand as well,” said Krista Hannahs, MoxiWorks’ Senior Director of Strategic Partnerships, in a statement. “We’re excited to have a powerhouse tool like SOCi in our MoxiCloud partner program to offer agents technology that truly simplifies their social media management, especially for large brokerages with multiple franchises and locations.”
Of specific interest to MoxiWorks customers may be SOCi’s Genius Social, an AI-driven social media content planner and assistant. Hyper-localized content and marketing insights can be assembled into sequential posts with a centralized calendar, optimized for long-term engagement and focused on specific zip codes or regions within one.
Because of the deep integration, users are assured that all listing data, copy and relevant marketing assets are pushed through to SOCi’s interface. There’s a full automation option for those with more listings than time, as well as total manual oversight for those who want to be more deliberate with how messaging is disseminated.
Richard Lumsden, senior vice president of business development at SOCi, said in the release that his company’s suite of features can help new agents become market authorities, and established agents scale “without lifting a finger.”
“This powerful partnership ensures maximum efficiency and effectiveness in social media management for brokers and agents,” Lumsden said.
In March, RealReports joined MoxiCloud, and in February, it was custom app builders HomeStack.
SOCi set up a website on the partnership at www.meetsoci.com/moxiworks-integration. MoxiWorks is based in Seattle and states that it powers more than 800 brokerages and 400,000 agents.
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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.
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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.
by Stephanie Alfonso | 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.
Navigating the complexities of downsizing can be a daunting task for anyone, but it becomes especially challenging for people who have spent decades in the same home or who might be facing normative changes associated with age.
As the largest group of home sellers in recent years, baby boomers (ages 59 to 77) are at the forefront of the downsizing trend, making up 45 percent of home sellers in 2023, according to the NAR’s 2023 Profile of Home Buyers and Sellers. Meanwhile, the silent generation (78 and up) accounts for 6 percent. Combined, these two groups comprised over half of all home sales in the U.S., a trend expected to continue in the coming years.
This shift means that real estate agents are increasingly encountering clients who need more than just transactional assistance. Those selling homes they’ve lived in most of their adult lives tend to face unique emotional and logistical challenges associated with relocating. These obstacles are tied not just to age but to the profound life changes involved in letting go of a long-term residence.
Age-related physical limitations and cognitive declines sometimes associated with aging or illness can add layers of complexity to the downsizing process. Coupled with the sheer volume of possessions accumulated over decades, these factors can turn what might seem like a straightforward move or home sale into a significant emotional and logistical undertaking.
