Interactive|
Interactive | November 17, 1999 |
Microsoft has just announced that its new study shows that MSN HomeAdvisor sends 11 times more leads to agents and brokers than Realtor.com, a claim that introduces a whole new dynamic into the Listings Wars. Brokers and agents live by leads as well as by listings, and leads may just become the new currency of the Internet. While the listings giants battle over who has the most homes for sale, the brokers may begin to close ranks around the vendor who delivers the most leads for the least cost.
Using a six-week sampling of 25 RE/MAX brokers from across the nation, MSN's HomeAdvisor says it recorded more than 11,327 qualified leads, compared with 1,076 leads from Realtor.com. The announcement said that many brokers showed a dramatic increase in Web traffic as a result of their relationship with HomeAdvisor.
"We compete directly against companies with significantly more marketing dollars, but still receive more leads from the Web each month, thanks to HomeAdvisor," said Cathy Werner, broker-owner of RE/MAX American Dream in Baltimore, Maryland. "By posting our complete contact information on every listing for free, Microsoft ensures that we're the first point of contact for potential home buyers in our area."
Many other brokers in the study are also receiving similar results:
Microsoft reported other brokers around the country as finding the same results. The Corcoran Group, New York City's leading residential real estate firm, recently announced that it received more than 1,100 leads from HomeAdvisor in a recent month, as opposed to 11 from Realtor.com. Similarly, John L. Scott Real Estate released data that shows HomeAdvisor consistently delivers more than 14,000 leads to its agents each month, as opposed to just over 1,000 from Realtor.com.
What is an Internet lead?
Ian Morris, product manager for HomeAdvisor defines a lead this way: "Someone who clicked from our site to their site."
"The only thing brokers and agents should care about is how many became their customers as a result of being on our site," says Morris.
The leads come from each listing in which the question, "Do you want more information?" is asked of the buyer. When the buyer clicks through, HomeAdvisor counts the pass-through to the agent or broker a qualified lead. Morris explains that the lead tracking data comes from data feeds provided from the Realtors themselves. "This study did not surprise us at all. The reason is simple, and under-reported. We are pushing customers to the real estate company. We put a branded link on every listing and we provide it free. Others charge hundreds of dollars for that link. If there is no link, they aren't driving the leads."
"We are proud of this information," he continues. "Realtor.com is getting money to drive leads to Realtor.com, and we're spending money to drive qualified customers to the real estate agent. Leads are the only thing that matters."
Karen Fulton, spokesperson for Realtor.com disagrees. "We've already seen that HomeAdvisor has had trouble counting their listings - it's documented by independent research that HomeAdvisor's actual listings are significantly less than what has been reported; therefore, can we truly believe they have accurately counted someone else's leads? A sample of 25 agents out of 730,000 Realtors across the country does not indicate overwhelming support. Bottom line, Realtors want their listings where the most traffic comes and that's REALTOR.COM which has a 79% market share of total minutes of usage on home listing sites."
Caught in the middle is RE/MAX International, who has an alliance with Realtor.com, but not with HomeAdvisor.
"I am not aware of the study, but I'm flattered that HomeAdvisor chose the RE/MAX trademark to enhance their reputation in the real estate space," said Daryl Jesperson, president of RE/MAX International. "But I am also concerned about some misleading statements in the press release. I think they could be confusing to the real estate industry."
"First, no relationship exists between RE/MAX International and HomeAdvisor," explains Jesperson. "It's my understanding that HomeAdvisor has agreements with individual offices. They are independent companies, and certainly as independents, they can choose to market their properties the best way to serve the consumer. Multiple marketing spots are often necessary to get the job done."
Are leads the new currency of Internet real estate?
Not according to Jesperson. "My reaction to the study is that I am not nearly as concerned with leads - I'm interested in closings," says Jesperson. "There are only two places where the consumer can go and see every RE/MAX listing - http://www.remax.com and http://realtor.com. The number of listings on HomeAdvisor are significantly less."
But is that comparing apples and oranges? Listings are a crucial currency for the listings sites, but online, brokers and agents, are more interested in generating leads. If listings have the same currency for brokers and agents, then how many listings on the Internet result in closings?
That figure is anyone's guess, and it may be something the online real estate industry isn't quite ready to find out.