T3 Insight

The future of real estate, finding great talent + leading MLS systems

Articles in this Edition

In this edition of T3 Insight, T3 Sixty's latest monthly analysis of the residential real estate brokerage industry includes articles on The future of real estate, finding great talent + leading MLS systems. Take a deep dive below.

Released December 22, 2021

2022 and the future of real estate

by: Paul Hagey

The dynamic, often overlooked, secret to finding great talent

by: Kelly White

The 2022 MLS system technology landscape

by: Clint Skutchan

What We're Reading

In addition to the articles, here are a few items we are reading from across the internet.

Bright MLS launches new product to support teams

Bright MLS, the nation’s second largest MLS with over 94,000 subscribers, announced a new product, Teams by Bright, that helps real estate teams build brand recognition and visibility on listings and better track production. The MLS says a premium version of the product is coming in early 2022 that will help team leaders better manage goals and productivity tracking. Real estate teams are an undeniable force within the industry. Vast opportunities remain for technology and models to support them, and this move by Bright, represents a forward-looking approach by an MLS to meet subscriber needs. As MLSs look to maintain relevancy, this is a great example by Bright of an innovative way to do so.

Bright MLS

NAR passes policies for listing attribution and buyer broker commission displays

At its annual conference, NAR’s board of directors voted to require the display of listing broker phone number or email next to listings that appear on broker and agent websites. The policy that passed had been revised from a previously considered on that required the name and contact information be as prominent as that of any other contact on the page. In addition, the NAR board of directors passed a policy that will require MLSs to publicly display buyer broker commissions on their public-facing websites and to make that information available in IDX feeds to brokers and agents. The board also clarified that buyer agents are prohibited from marketing their services as free. These policies help add valuable transparency to residential real estate consumers.

Inman

Hawaii luxury real estate market soars to all-time highs

In the first three quarters of 2021, the number of Hawaii homes selling for over $3 million more than doubled from the number sold in the same period 2020. For homes above $10 million, the sales increased sixfold over that period. In many ways, Hawaii represents a larger trend fueled by the pandemic – homebuyers looking to focus on securing and finding a serene home. While the luxury market shifts for many reasons, this data reveals that the pandemic’s impact on home demand and homebuyer preferences spans across price points.

CNBC

CRMLS launches venture fund

The nation’s largest MLS, CRMLS, announced that it has launched a venture fund it will use to invest in technologies that can benefit its over 100,000 subscriber base. Along with the announcement of the venture fund, CRMLS announced its first venture investment, in Perchwell, a startup that makes MLS front-end technology. CRMLS says it will offer Perchwell as an option for members. This step represents part of a larger movement by MLSs looking to player a larger role in the technology they depend on. In October, four MLSs partnered to acquire MLS tech provider Remind, and, in May, MLS group MLS Aligned acquired messaging tool Agent Inbox.

PR Newswire

At World (@properties) acquires Christie’s International Real Estate

@properties, fueled by private equity firm Quad-C, continues its recent acquisition spree as it builds its At World holding company with the acquisition of global real estate network Christie’s International Real Estate, which has over 900 affiliate offices around the world. The acquisition includes the network’s corporate team and company-owned brokerage operations, in addition to the long-term global license of the Christie’s International Real Estate brand.

Chicago Agent Magazine

Realogy and Sotheby’s partner to acquire Concierge Auctions

Realogy and Sotheby’s partner to acquire Concierge Auctions Realogy and the luxury auction house Sotheby’s, with which it has a long-term license for use in its Sotheby’s International Realty brand, partnered to purchase and 80 percent stake in luxury real estate auction marketplace Concierge Auctions. Founded in 2008, Concierge Auctions reported it fielded over $3.4 billion in luxury home bids in 2020 with the average home selling on its platform for $3.5 million. Auctions have always remained a fringe way to buy and sell real estate, but with the nation’s largest real estate enterprise jumping into the fray, they may become more common. As the big companies navigate and increasingly competitive market, differentiations like these emerge as a way to gain an edge. We expect to see innovative moves like this from other large brokerages.

The Real Deal

Communities experiment with new ADU models

ADUs, or accessory dwelling units, are small housing units built on the lots of single-family homes used as rentals, studios, in-law units among other uses. They have become a popular way for towns and cities to increase their housing density and provide homeowners with valuable space for additional income and hosting options. The percentage of homes with ADUs is growing and some communities are looking to develop policies that give them even more flexibility for local housing, such as allowing them to be sold separately from the primary single-family home on the property. As inventory remains low and home prices creep higher, ADUs provide a compelling opportunity for communities to increase their housing stock without sprawling. Innovative policies around ADUs look likely to continue in areas throughout the country. Brokerages and agents are smart to investigate and know the local regulations around them, where they can be rented on a short-term basis, where they are prohibited and under what conditions they are allowed.

New York Times

2021 home sales poised for 16-year high

Realtor.com expects that 2021 home sales to measure approximately 6.0 million sales, a 16-year high. The portal’s economist team expects 2022 will see a 6.6 percent increase in sales as well. Increasing sales, along with increasing home prices, are fueling a boom market in the residential real estate brokerage industry. These productive times are helping fuel industry investment and helping give smart brokerages the revenue to innovate and build the systems and models that will sustain them when the market turns.

Realtor.com

IBuyers account for 1.9% of Q3 home sales

The 27,244 homes that iBuyers purchased in the third quarter represents 1.9 percent of all homes sold in that period, according to Zillow’s Q3 iBuyer Report. IBuyers sold 10,728 homes in the quarter. Both tallies are record quarterly highs for iBuying services. IBuying had a record third quarter, but with Zillow Group sunsetting its home-purchase activity this market share is likely to dip in future quarters as the company winds down its operations. Regardless, the model has shown traction, and, while iBuyers continue to broaden their alternative financing services, the core practice remains a promising endeavor.

Zillow