Centralized Showing Service Coming to SW Florida Real Estate
Buyer agents will love this new service because it will automate the showing setup process and save much time. Setting up showings is a painful process and takes many calls to coordinate. Let’s say a showing agent wants to setup 7 showings, and the first 3 say yes, and the next showing request says OK, but you must change the time. It throws the entire schedule off. The showing agent then may need to call back to the first 3 showings and modify the time. What happens when one of those sellers says no? It can start the whole process all over again.
Listing agents will love this new service because not only will it automatically setup appointments on your listings, it will also contact the buyer agent for feedback after the showing. It makes it easy for the buyer agent to respond and will do so up to 4 times so feedback should also increase dramatically.
Agents can also include surveys to other agents to gain market insight as to why the home isn’t selling.
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
Zillow-Trulia Deal Effects on Real Estate in SW Florida
The simple answer is probably not much. Zillow and Trulia are online portals meaning they take data from agents and brokers and display it to the public. This is nothing new as agents display the data as well on their own websites. Companies like Zillow and Trulia bank on the fact consumers will hit their site as they are nationwide versus agents who are in each local market.
Zillow Purchasing Trulia for $3.5 Billion in Stock
Zillow collects money from agents who pay to advertise on their site. They sell consumer leads to agents. Agents basically pay for views in a zip code, or to have their presence as a featured agent on certain listings.
In the past year Zillow has been raising rates significantly. So much so that agents are falling out and zip codes are becoming available right and left as agents decline to renew their agreements, so they look for new agents. I get calls weekly telling me zip codes are opening up.
Let’s say Zillow’s traffic increases in zip code 33919. Zillow sells chunks of impressions by the thousand, so if they find they have 3,000 more impressions in that zip code, they’ll sell 3,000 more impressions. Agents used to get overflow but not now. Zillow is diluting the lead generation and charging more for it.
If we used to pay about $400/mo for 10,000 impressions, Zillow has raised the ante. They call now trying to sell me 3,000-5,000 impressions for $800.
Zillow has a problem. They are raising prices and selling more impressions than ever before, but their net income is going the wrong way. In fact, revenue increased 70% while net income was a loss of 6.26 million last quarter.
So what does Zillow do, but up #2 competitor Trulia. I looked up Trulia’s financial situation and last year revenue was up 142% while their net loss was 11.1 million. So Zillow is purchasing Trulia for 3.5 billion in common stock. Both companies are losing money. How does this deal make sense?
Zillow says they can grow revenue and cut costs. Of course they mean they’ll cut employees. They intend to operate both businesses separately to try and generate more revenue.
If they raise prices too much agents will revolt. I predict they’re going to sell more consumer data to agents in segments. They’ll use more menu pricing whereby agents can purchase leads of sellers thinking about selling their home. If you fill out a Zestimate on their website, they’ll sell those leads. On Trulia if a consumer makes an inquiry on a home that lead info is sent out to multiple agents and it becomes a war as to who can hammer the consumer the fastest and most often to convert the lead.
We don’t think this is what the consumer is asking for when they go online. The consumer just wants information without talking to someone. They don’t want agents calling them hammering them with solicitation until they’re ready.
Consumers don’t like it when they’re information is sold. Agents don’t like it when they receive a lead and it’s also distributed to other agents. Real estate is a one on one transaction. It’s personal and about trust, and this business model doesn’t recognize that. It’s just money. If a consumer wanted to be contacted by lots of agents they could just signup on multiple agent websites. That way the consumer is consenting.
Zillow came to fame by providing home value estimates. In the beginning these estimates were way off, and still are in many cases. Agents and consumers alike complain that Zillow’s data is old and inaccurate. Zillow and Trulia obtain information from multiple sources and it’s not always accurate.
We provide home value estimates on our website. www.Topagent.com We also provide the MLS feed for searching the MLS. The difference is it is accurate because it comes directly from the MLS.
The other difference is we don’t sell consumer data to other agents. This is a big win for the consumer.
If agents spent the same amount advertising their own agent website that provides more accurate information as they do on Zillow and Trulia, that online business model would crumble. In fact it already shows signs of it as neither is producing a profit. As they raise prices on agents, agents may wise up and shift advertising dollars back to their websites, or sites like Realtor.com
You heard of the Internet bubble back in the 90’s full of online companies that had high valuation with no real net income. This could be Zillow and Trulia if they don’t find a way to turn a profit. They’ll try, and agents better be prepared to pay more. Consumers should be prepared to be bombarded. Whether this deal passes antitrust or not, these companies have to find a way to turn a profit. Wall St won’t continue to pour money in forever.
So if you’re an agent and someone asks you how the Zillow-Trulia Deal Effects on Real Estate in SW Florida
In the meantime, just remember Topagent.com in SW Florida. We won’t sell your data and you can search away. Then when you’re ready, call us and we’ll have a one on one conversation. That’s a novel idea!
Local numbers were just released and June 2014 single family home sales were up 8.1% over last year with a median sales price of $200,000. That’s up from $185,000 last year and up from $195,000 last month.
SW Florida Real Estate Single Family Home Sales
Average SW Florida home prices have been holding steady all year around $300,000, bouncing between $299,000 and $319,000. Median prices are definitely up for the year while average sale prices are level.
Listing inventory is falling as it usually does this time of year, however it is up from last year about 5%. This is a positive sign and indicative of a healthy market. There will always be a level of homes that never sell because they are priced too high for what they offer. Having more inventory creates visible competition for sellers. When prices outpace the market, buyers shut off like a hose spicket. We have not seen that, but there is invisible competition coming to the market some sellers may not be aware of.
SW Florida Real Estate Market Listing Inventory July 2014
We’ve been warning sellers for months that new home inventory is arriving. Builders have been ramping up and we know of many new homes coming to the market and available starting in September. These new homes will add to the inventory, but they won’t show up in the numbers. Sellers won’t necessarily know about them, but buyers will.
Nationally inventories are at their highest levels in over a year which is tempering price gains. We could see the same here in SW Florida heading into next year. What’s different in SW Florida versus the rest of the country is the economy. Locally we have positive driving forces. Companies are hiring and relocating here. Bringing higher paying jobs to SW Florida helps our median income. Nationwide, wages are stagnant which keeps a lid on rising prices.
Traditionally SW Florida fares well against the national real estate market, although it does affect us to some extent. Some people need to sell up North before buying here. In the past 7 years or so SW Florida trailed the national market, so it’s kind of refreshing to lead again.
Rising inventory is leading to increased sales. We always said if we had more inventory we could surely sell it, assuming it’s fairly priced inventory. If a home is priced over the market then it’s not really on the market. We wish there was an index of inventory levels of correctly priced homes.
Several years ago we invented the Current Market Index which accurately predicts home sales going forward. We’re working on a new index that measures inventory levels by price so we can determine how much of the current available inventory is actually on the market and how much is over the market and not truly available.
Next season buyers will have choices between existing homes and new homes built and ready for delivery. We’ll be watching to see if builders can keep up the pace with delivery homes versus building on contract for a buyer. The bottom line is this will cause sellers who wish to sell an existing home to be competitive.
Builders can offer a new never lived in home with new features, but they can’t always offer the same location. There will always be a premium for location, i.e. west of 41 and closer to the beaches. Many new communities are inland so the land costs will be less.
As always, if you want to sell you’ve got to price it correctly. Many sellers are choosing to sell and purchase something else that fits their needs better today. Interest rates are still low so it makes sense to do it now. When rates change, some sellers may not want to make the move because the new home will cost more to finance.
The bottom line is the SW Florida real estate market is healthy and more balanced and our economy is good. We’ll keep an eye on shifting forces and see which way it directs SW Florida home prices and by how much.
Good luck and Happy House Hunting!
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
Fort Myers Real Estate Market Update July 2014: Prices Rise
Here is your Fort Myers Real Estate Market Update July 2014. June sales numbers are out for the Fort Myers real estate market and SW Florida real estate market and median home prices rose 8.1% over last year’s numbers.
SW Florida Real Estate Single Family Home Sales
Listing Inventory Rises:
Listing inventory is up 5% from last year. Actually listing inventory is down but it’s always down this time of year. Inventory levels are rising nationally and are at their highest levels in over a year.
SW Florida Real Estate Market Listing Inventory July 2014
Rising inventory levels is seen as a good sign as inventory levels have been dangerously low. This has caused prices to rise. as prices have risen more sellers can now afford to sell, and builders are bringing new homes to the market because prices have risen. Many sells don’t realize new construction inventory is about to hit the market starting in September. This should help level out prices.
The SW Florida real estate market is in good shape because our local economy is strong here. A weaker housing market up North can affect us here in SW Florida, but there is usually a lag.
We’ll be keeping a watchful eye on the Fort Myers Real Estate Market and providing you updates. In the coming days we’ll have a more detailed analysis on our Blog. Feel free to search the MLS if you have interest in buying or selling in SW Florida.
You can always call us at 239-489-4042 with questions.
Be sure to follow our Blog for timely updates to the Fort Myers real estate market.
