An award-winning real estate law attorney recently offered a definition of “Agency” in the Word of the Day series he writes for real estate agents:
http://bit.ly/AgencyRETalk (share via social media)
Given his audience, no surprise his description asserted that there are times the homebuyer or seller may be required to pay the agent damages. That one-sided perspective begged some questions:
1. What about the opposite, for example, the agent’s failure to properly develop and implement a marketing campaign results in missing seasonal pricing premiums?
2. Or worse, the agent talks the seller into underpricing their home to generate a bidding war and none materializes?
3. And perhaps most importantly for the future of the real estate ecosystem, have there been any legal challenges yet to the growing practice of “Off-market as a Strategy?”
For Compass to become a consumer destination, it needs eyeballs. The most effective strategy — and likely the only possible strategy given the market dominance of Zillow — is to build consumer traffic with the draw of exclusive listings (emphasis added). It’s a similar strategy to Netflix and Amazon’s exclusive video content. If the Compass web portal advertises houses for sale that aren’t available anywhere else, it draws consumers to the platform.
The secret to building audience with exclusive content is scale: Compass needs significant market share for this strategy to work. Pocket listings, which are withheld from the MLS for a period of time, have been around for years, but never employed at this scale. Compass needs to advertise so much exclusive content, including coming soon listings, that consumers can’t afford to miss it.
The evidence that Compass is strongly promoting exclusive content is plainly visible on its web site. In fact, exclusive content is the primary call-to-action on Compass’ web site, starting with top billing on its site navigation.
Compass is encouraging agents and consumers to list properties as Coming Soon as an effective pre-sales tool. This agent team page touts specific benefits, such as fewer days on market and more visitors at the first open home, while this agent teamhighlights the benefits of increased exposure and pre-listing feedback.
When I grew up in the industry, pocket listing was a bad word; now Zillow has a category for pocket listings called ‘Coming Soon.’”
http://bit.ly/SmokingRE (share via social media)