At Inman Connect New York, real estate executives Chris Kelly, Stuart Siegel, and Joe Skousen discussed artificial intelligence, integration, and whether private listings can help consumers.
Chris Kelly isn’t buying what Compass is selling.
The CEO of HomeServices of America said proponents of Private Listing Networks (PLN) aren’t doing it to help consumers, they’re doing it to help themselves. He compared PLN’s strategy to the streaming model in the television industry, where consumers are forced to subscribe to multiple platforms just to watch their favorite movies and series. Consumers who were once obsessed with Netflix, Hulu, and HBO Max are now looking forward to the era of cable.
“Well, I think we all pursue our own agendas from time to time,” he said Thursday on Inman Connect New York. “I mean, we were all so excited to cut the cord, right? We probably said to our friends and family, ‘I want to cut the cord.'” Now we have Apple TV, Disney+, Netflix, Paramount… and how many of us are now saying, “Can someone bundle these together?” ”
“We’re in the same position, right? We’re running down this path, but they’re thinking short-term. If I do this with content or do that with content, what does it mean for my personal interests right now?” he added. “And I’m a consumer who’s staying in the middle of New York City, Omaha, Kansas City, Miami or wherever… and now I have to go to 12 different locations to see the shows I want to watch or to see the listings that might be for sale. Tell me how that puts the consumer first or how that’s a good experience.”
Kelly said he agrees that brokerages should try to regain the “leverage” they have lost over the past 10 to 15 years. But he’s not convinced that privately listed networks are the way to go. “Is it ultimately better for the consumer? I don’t see that picture being painted yet,” he says.
Stuart Siegel, president and CEO of Engel & Felkers Americas, echoed Kelly’s sentiments, saying brokerages are ultimately falling into the trap of prioritizing transactions over relationships.
“I think that’s where we sometimes get sidetracked as an industry. It’s, ‘How do we close deals?’ Instead of, ‘How do we maintain relationships with our customers?’
Kelly and Siegel said technology (another hot topic at ICNY) is an important part of improving the consumer experience.
Joe Skousen, CEO of Inside Real Estate, took the baton from the pair, noting that 55% of all software tasks people do today will be automated. But he asked conference attendees to think carefully about how they use artificial intelligence, saying most brokers don’t have the financial wherewithal to simply throw money at the latest shiny object.
“Finding technology-enabled transformation requires commitment from technology people, and it’s not just about technology,” he said. “What matters is the clarity of that strategy, the clarity of those metrics, and how the technology solves that particular problem.”
“And if you don’t know that, you can buy your own technology and still not solve the problem, as we’ve been doing for decades. That’s your biggest question: Why are you an enemy to yourself?” he added. “Don’t make it obvious, and a year from now you’ll still be in the same place you are now.”
Skousen said brokers who learn how to effectively leverage AI can “triple their productivity” this year and lay the foundation for long-term consumer trust. In addition to technology, Kelly said the next generation of real estate winners will be those who embrace difference.
“We’ve been talking a lot over the past month about industry consolidation and what’s next,” he said. “This is a great opportunity for everyone to be different. The worst mistake we make to ourselves is trying to be or compare ourselves to the real estate agent or agent across the street.”
“When you see consolidation happening, that means homogenization is happening. Similarity is growing,” he added. “This is a great opportunity to be different and be different from everyone else. The last thing you want to do is try to be the same as the other three companies or the other three people.”
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