From the seismic changes in the portal landscape to the ongoing debate over private listings, debates over access, control, and cooperation have intensified over the last week.
For years now, portal wars have been one of the topics that have consistently dominated real estate headlines. From jockeying for position to competing value propositions, Zillow, Realtor.com, and Redfin are constantly making moves that grab your attention.
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For CoStar, it took some time to decide on a strategy to leverage its commercial real estate advantage into residential acquisitions, including rumors of a possible acquisition of Realtor.com. But in the end, the portal went all-in on advertising the Homes.com portal, spending billions of dollars to become the second-largest portal (with a few caveats).
Now, one of the company’s investors is questioning that strategy and CoStar’s housing goals overall.
Hedge fund Third Point and its founder Daniel Loeb launched an attack in an open letter last week, calling CoStar’s board “reckless” and Andy Florance’s housing goals “bizarre.” Mr. Loeb asked Koster to consider stopping advertising Homes.com and threatened to “introduce to shareholders a slate of experienced new directors to be voted into the board to reverse the downward spiral that has become synonymous with this CEO and his supine enablers.”
CoStar, on the other hand, pushed back, questioning investors’ understanding of the company’s actions.
“Third Point’s request to abandon Homes.com reflects their complete misunderstanding of our business, our industry, and the significant progress we have made,” the company said. “Third Point would have you believe that Homes.com could be abandoned or closed without adversely impacting our business or competitive position.”
Read: Homes.com isn’t going anywhere, Koster says in response to investors
From the seismic changes in the portal landscape to the ongoing debate over private listings, the focus has shifted from consumer-facing platforms to the policies and power structures behind the listings themselves. The changes have placed the National Association of Realtors and multiple listing services in the spotlight as debates over access, control and collaboration intensify.
I read NAR’s 40-page annual report, so you don’t need to read it.
NAR communications continue to lack accountability and true transparency, and real estate agents deserve better recognition, writes coach Darryl Davis.
Liberating the Agent: How Non-NAR MLSs and Associations are Redefining Independence
Contributor and broker Holly Brink said alternative MLSs and associations across the country are providing agents with long-needed flexibility.
Who really benefits when “off-market” becomes the default?
Perhaps the MLS isn’t perfect, writes broker Dennis Norman, but it’s still the only tool we have to get listings out in front of everyone, not just those invited behind the curtain.
The Download is a column where Inman’s Christy Murdock takes a deep dive into last week’s most read articles to give you what you need to face Monday head-on.
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