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Inman Connect Now - Session 5

Katie Kossev
Sales Manager at Compass
+ 9 speakers
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Inman Connect 2020
January 30, 2020, New York, NY, USA
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About the talk


00:46 Intro

02:40 Steering a big ship in stormy waters

04:10 Where are we going?

19:20 Navigating real estate’s upheaval

22:40 New listings

26:44 Supply and demand

35:30 iBuyers

40:00 From surviving to thriving

44:41 Advances in ways to buy a home

1:02:25 The value of the agent

1:26:50 Why money isn’t drying up for innovation

About speakers

Katie Kossev
Sales Manager at Compass
Adam Contos
Chief Executive Officer at RE/MAX
Clelia Peters
Venture Partner at Bain Capital Ventures
Mike DelPrete
Real Estate Tech Strategist at mikedp.com
Vishal Garg
Founder & CEO at Better.com
Adena Hefets
Cofounder at Divvy Homes
Michael Miedler
President & CEO at CENTURY 21
Kristin Hurd
Chief Strategy Officer: Consultant at AllTheRooms Analytics
Paul Levine
President at Trulia
Constance Freedman
Member Board Of Directors at Equity LifeStyle Properties, Inc.

18 years experience in real estate entrepreneur coaching, management, sales, marketing and recruiting. Helping Realtors with their vision, strategy and plan of action. Professional speaker, motivator and firm believer that when there's a will there's most certainly a way.

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As the Chief Executive Officer of RE/MAX Holdings, Inc., I oversee its four brands: RE/MAX, LLC, a top real estate brand in over 100 countries and territories; Motto Franchising, LLC, the first national mortgage brokerage franchisor in the U.S.; booj, an award-winning real estate technology company; and First, an AI firm specializing in maximizing client acquisition through the use of AI technology. Before joining RE/MAX, I ran a SWAT team. We’d kick in doors, blow things up, save people. Sixteen years later, my professional life is completely different, but my approach remains the same. My goal always is to break down barriers, blow up conventional thinking, and help as many people as possible achieve success. A two-time college dropout who got straight A's on my MBA, I believe in systems and habits to effectively achieve results. A student and teacher in leadership principles, sales tactics, and technology growth, I enjoy a good challenge. And building a great team.

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I am an innovator and investor working in the real estate industry. I am passionate about doing things better, exploring new ideas, and doing business in a way that is both effective and humane. I believe strongly in the power of women to shift paradigms of leadership and success in the 21st century.

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Mike is a global real estate tech strategist, and a scholar-in-residence at the University of Colorado Boulder. He's a former tech entrepreneur, CEO, strategy director, and head of corporate development with broad expertise in online real estate tech, and a passion for growing new businesses. Mike is internationally recognized as an expert and thought-leader in real estate tech. His evidence-based analysis is widely read by global leaders, and he is a sought-after strategy and new ventures consultant. He travels the world talking to and working with leading property portals and real estate tech businesses, gathering first-hand knowledge and insights on industry trends and themes. He enjoys working with startups, advising founders and executives, and working on challenging entrepreneurial projects.

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As part of the smartest, boldest, fastest and largest real estate company in the world I have connections to the best professionals anywhere on the globe. If you are in need of any information or services related to the complexities of a real estate transaction whether it is obtaining a mortgage for a first time home-buyer or a comparative lease analysis for your business expansion, I can connect you to the expert that fits your requirements. If you need insight, trends, excellent customer service, flawless execution or just simple advice for any type of real estate transaction, anywhere on the planet, I can connect you with the local expert.

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Entrepreneurial, visionary leader that brings seasoned abilities for transforming and guiding mission-driven teams and organizations to success |Ability to effectively synthesize the performance of people and systems through identifying and improving operational, organizational and creative inefficiencies | Inspiring, collaborative relationship builder, skilled in delivering creative and impactful marketing and sales tactics| Curates a culture of ingenuity and visionary thinking | Ability to simplify explanations for complex information | Fluid & effective communication skills across all types of personalities & scenarios My career has offered me the privilege to do everything from creating top performing real estate sales teams that have grown 120% their first year, to consulting for a tech incubator, assisting start-ups by creating productive strategies for data and marketing companies making a play in the Real Estate Vertical. I have also had the honor of launching a start up real estate office that grew to #3 out of 200+ corporate offices in its second year, to curating a small, luxury focused real estate team that would become one of the top teams at a Manhattan heritage real estate firm. I am of the opinion that I would rather try forward thinking ideas that may fail in the short term vs. dying in the long run because I played it safe and never challenged myself to step out of my comfort zone.

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Operator-turned-VC. Managing Director at Sapphire Ventures, investing in growth-stage companies ($5-10m revenue and up) -- especially in the SaaS, consumer, marketplace, fintech, and proptech spaces. Sapphire is a leading growth-stage VC firm with $4 billion under management, an active, collaborative approach, and over 50 company exits to date. Sapphire's consumer investments include LinkedIn (NYSE: LNKD, acquired by Microsoft), Fitbit (NYSE: FIT), Ticketfly (acquired by Pandora), 23andMe, DocuSign (NASDAQ: DOCU), and Sun Basket. Fintech investments include Square (NYSE: SQ), OnDeck Capital (NYSE: ONDK), IEX, Paytm, CurrencyCloud, and TransferWise. Prior to Sapphire, I was a leader in innovative high-growth organizations including Trulia, Zillow Group, Yahoo!, and E*TRADE. As Trulia’s President and COO, I helped lead Trulia’s growth from a private 100-person company with $20 million in revenue, to a successful standalone public company, to its eventual merger with Zillow Group to create a company with more than 3,000 employees, $1 billion in revenue and $10 billion in market capitalization. Specialties: Consumer internet, local marketplaces, fintech, real estate, small business, real estate, proptech, e-commerce, mobile, product management, marketing, monetization, customer acquisition.

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Constance Freedman is the Founder and Managing Partner of Moderne Ventures and the Moderne Passport, an early stage investment fund and industry immersion program which is focused on investing in technology companies in and around the multi-trillion dollar industries of real estate, finance, insurance, hospitality and home services. Constance has invested in almost 90 companies and actively partners with 700+ industry executives and corporations to help build strategic value and scale. She is active on several company boards, past and present, including DocuSign [NASDAQ: DOCU], Updater [ASX:UPD], Homesnap, Porch, TaskEasy and Equity Lifestyles [NYSE:ELS]. Constance has been the recipient of several prestigious awards including HousingWire’s Women of Influence, Crain’s Business 40 under 40, Crain’s Chicago Top Tech 50 (2014, 2017, 2018), 2019 Mavericks 50, Swanopoel’s Power 200 and Inman’s Top 101 in Real Estate. Constance is frequently an invited keynote speaker at nationally renowned venture industry, real estate and fintech conferences. Constance is a Board Member for Illinois Venture Capital Association. She has served on the Advisory Board for the National Venture Capital Association’s Corporate Venturing Group from 2010-2013 and was on the board of overseers for the non-profit, From the Top. She is also an active Mentor for startups at TechStars and other accelerator groups. Constance earned a BS from Boston University and a MBA from Harvard Business School.

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Good morning, everyone and welcomes to day 3 of Connect Now. I hope you're all situated and ready for a fabulous day. I wanted to give you a little bit of insight from what I'm experiencing and it just a huge shout out and round of applause to every single presenter every single speaker our Inman ambassadors This is so different for all of us. I think we've had Zoom meetings over the last three months or so, but you can usually see the faces of the other people that are you know, listening to you speak to my situation. I'm talking to a really fancy camera right now that they sent me. So

thank you guys for sending it to me, but it's so funny because I see people walking outside of my house right now waiting with her dog. So totally knew this is just been so awesome. And I'm so excited that I've had the opportunity to be a part of it. So, thank you for supporting everyone this ad this week. So, with that being said we have a jam-packed day 10 of great speakers are going to really enjoy it as always remember everything is going to be on demand. So, if you do need to let the dog out or do something else don't worry, you can watch it later anytime for years to come so I don't want to

wait anymore again. We have I don't know like 10-15 sessions if it's going to be absolutely great self. Let's Jump Right In we're going to start off on talking about steering the ship in Stormy Waters. The last three months have been pretty chaotic. So, leaders have and had the chance to really step up and show everyone what they've got in and I couldn't be prouder of brokerages across the United States on and how we've handled the the last 90 days. So, without further Ado welcomes the virtual stage. Clelia Peters and Adam Contos CEO of RE/MAX.

Adam you want to just tell us where you are? I am in a very small reading room in my basement in Denver. How you feel just the same way that he does that I miss getting to see the hole in the community from the stage. It's always such an important part of me. So, I don't we have a sort of weighty topic today and I'm delighted to be discussing this This has been such a complex turbulent time in so many different ways. Do you think we go from here? I love this question because this really helps us get to a point of understanding a direction in

in solution is a direction, not a destination because solving the challenges that we're dealing with in society today both COVID-19 as the race issues and things like that. We have to absolutely recognize and confront head-on in all of our hearts and souls and Minds this is not it’s not an endpoint. If there is this is a continuous destination that we have to understand in all of these things. You know, this is how we see another human being has to be reflected upon

every time we see another human being, you know, we need to be conscious where we're going. We need to be loving where we're going and kind and you know this all of the things that led up to this point kind of unfortunately put us to this point. We have to say no more and then understand that that is the Journey of the future instead of the destination of the future. Montague military and spending time with the police department and you explained it a concept that I thought was really interesting a

a little bit about that and how that's guiding you and some of your reaction to this. Sure and in and thanks for asking that question clearly. I think this is really important for all Business Leaders to understand because if we don't wrap our heads around where we're at will never be able to find on Norstar to head in the direction that we need to go. So in the 1990s, the army war College came up with a concept that describes post-cold War battlefields and they're multi-dimensional

and there are different pressures different aspects of both Community as well as the people that are on that chessboard volatility uncertainty complexity and ambiguity and I encourage everybody to go do a little research on this because it is is very much indicative of societal pressures. We are dealing with today and it helps you understand the direction that we can come of this in order to your makers make our communities a better place and there's a lot

of intelligence to the spot. So, there is a side to hookah, and I'm sure you want to get into that. But the reality is we are in a volatile environment a very complex environment unless we get our arms around that we're not going to be able to go in the direction. We need to get wet. The point that you made when we talked as well was that uncertainty can cause people to have a number of different reactions and that was helpful for me personally. Sure,

the reality is human beings’ function from two different emotions. We only have two emotions that we operate from our default emotion is fear. A lot of people are in fear of emotion right now. In fact, I would say most people are in the fear emotion right now and the fear response is fight flight or freeze response. It is genetically programmed in us and that is that's for self-preservation. That is, you know when you if you look at your kids and they argue with you and you argue back and

then they argue with you they're doing one of those three things fight flight or freeze. So that's the default response and when you have a fight flight or freeze you have rationalizing of behavior; you have people saying butt and then giving excuses as opposed to solving problems. So, the flip side to fear the intentional emotion is love is unconditional giving it is it is giving to others for the sake of giving to others, not for anything in return. So, you know, you look at that freeze emotion or that fight

emotion. You can't fight. That fear with another fight all it does is it causes more problems? I think we see that happening. You have to approach these things from a position of calm and love in order to solve these challenges that we're facing right now and put us in the right direction. really being mirror opposite of the challenges. So, look up rhyme is Advil shift and I've actually adapted it a little bit to my needs as has Harvard has adopted a little bit thing of that nature. But ultimately the

concept is the same and the first two words of hookah prime time. Have not changed the monk's everybody's out of adaptation. So, we need to really take note of these things. So, you know, what you do is you take the acronym VUCA and you add a different word that comebacks the original word in there that counteracts the original work. So, the opposite of volatility is Vision because volatility we have a lot of confusion. We have unknown changes going on all the time and unpredicted environment that causes

us a lot of stressful pressures and causes us to make judgments and causes us to make judgments and those judgments. Almost always wrong. We were making judgments based upon fears that are based upon love. So, what we have to do is we have to have a vision so volatility to Vision a vision of a future that we all want to be part of a vision of kindness a vision of gratitude a vision of okay. What is good for society? We have to think about that and have that Vision. So that's volatility

division. The second one is uncertainty is a misunderstanding. So we have to take the uncertainty and turned it into understanding other people understanding that. It's okay to have these all to be part of different parts of society. I mean, it's okay. We're trying to remove categorization in society through understanding and that's a huge part of fair housing right there is understanding and so you go from volatility to Vision uncertainties understanding the third one is

complexity to clarity complexity to clarity because right now A lot of people are overwhelmed, how do you how do you solve overwhelm clarity? Clarity solves overwhelmed it's interesting when you don't know where you're going you can't get there. But when you have clarity of the direction, you're headed. It's easier to move than wet so cream that clarity and then the fourth one ambiguity. Ambiguity is a significant amount of confusion as well. It's tying all

of these things together to stretches in so many different directions and if people are frustrated when that happens and they immediately again default to fear all these things lead to a feared default. So, if you take and get rid of the ambiguity and you go to action you go to action we can't in an action is my feeling of hookah Prime agility is what I shall shift uses agility is being able to take action in an in a flexible Manner and I agree with that, but I like to work action because if we sit and

we watch we're not taking action we can take all day long, but without action, nothing happens, so we have to make something happen in the environment that we operate be it COVID-19. does is it helps you understand and live to your values? How to understand lift your values and that's really what I think everybody's being asked to do now has a good solid grasp on your values instead of just existing in society and allowing Society to happen around you. I think we've become a little bit complacent in our values in society and I love I might have values on a t-shirt for

crying out loud. So, you know, it's it is absolutely something that we need to make sure that that that we go to and I think that's what Lucas starts with is. What are your values? And how are you going to implement those on a daily basis? So the values that I live by her the values of RE/MAX, we came up with these values couple years ago when I took over Emax and they spell out the word more. We're very proud of these values them stands for delivering to the max. We want to give so much to

do the delivery in this is this is really taking action. This is taking action in our communities taking action with our business partners with the industry with the consumer with society and being part of that delivering to the max in what we do and making that very intentional instead of just allowing us to existing business soak, they are delivered to the max always be customer-obsessed. You want to be obsessed with the right way of being in our business of being in our industry. That's what that's why we're so we're so

proud about talking about fair housing and you know, the discussions that we've had over the past year regarding that we certainly stood up tall and strong and said we absolutely believe in this is part of our values of being obsessed with the humanity in our system in our customers and Society in our community. So be customer-obsessed. This one is fantastic. You're the right thing. I mean this is one that I think everybody needs to have in their values everybody because we all need to pull

up the mirror in life. We need to hold it upright in front of our face and say are you doing the right thing here? And I think that would help a lot of people answer some questions is okay. I need to adjust where my NorthStar is if you don't answer that in a confident way that is that is a good input into humanity and the community. So, I do the right thing is very important in an e is everybody wins. Everybody wins. We are in a society where we should praise quality people should have the opportunities to be

as happy and as wholesome as they possibly can be and so I mean when you get when you live in our values, they absolutely fit on this and I love wearing that shirt. I've got it in my closet and it's one of my favorite things. So, I think we have to have we have to own our values and if you don't know what your values are thought it's time for everybody to reflect on that and make those your North Star. I need a beautiful way to start the morning. Thank you so much for sharing

your values in philosophy, and I look forward to continuing the conversation. Thank you. How amazing was that? I'm thinking if any of you are pondering what kind of tattoo you want to get this summer maybe Prime should be your choice. That was amazing. Really enjoy that very much. All right, let's move on with strategies on how we should be running our business right now. Let's talk about data all of the things that make us successful. Right and I am going to now bring

to the stage again virtually Mike DelPrete to inform us about navigating real estate. Nice to be here again. I might feel pretty great to be here always love speaking at Inman and it's my pleasure to do this virtually this time around and you know the song we could kind of all get together and I was up on stage surrounded by thousands and thousands of people now I'm working from my home office surrounded by my family and they know probably more than they need to know about I buyers and

real estate portals to be healthy for them. But here we are. So last time I was on stage I had this quote the industry is moving very slowly, but it's never moved this fast. This was back in January before all this happened and you can see as this code has never been truer than it is now things are moving super-fast in the industry. Iva over the past couple of months. I've been tracking data and looking at what's going on and I think there's there's a lot of activity, right? There's a lot of activity a lot of stuff has changed in the destructors the fast movers which are the real

estate market in general and not just nationally but also internationally so that the biggest thinking of occupying my time and what I was spending a lot of time on here is looking at what's going on. Like what affects is the pandemic having has had is having and we'll have on the real estate market all over the world and there's this interesting dip, you know, so I did a webinar a little while back and I held up this homemade craft and that's really illustrates that right. There's a dip in new listing volumes and real estate transactions from the pandemic. There's a drop, you know,

we're at the bottom and I can be quite significant and then there's recovery so that that theme is kind of what I what I'm focusing on now and what I want to share some data on that I've been looking at and want to tell everybody here. So, what I eat when I think about this right now the most important way that I think about it as supply and demand if I think about what's going on in the market what's happened what's going on right now? And what's going to happen? It's all about supply and demand and the way that I think about that now is new listings and pending sales new listings of

Supply pending sales is demand cuz those are changing over time. I think those are both High intent lead indicators of activity in the US real estate market in internationally as well as really important. You can look at website traffic or leads but those are low and those are really top of the funnel think about it another way. We've all been stuck in our houses for 10 weeks. We are we're sick and tired of our house moving somewhere else like everybody stir crazy like yeah, you're going to go online. You're going to start looking

around. So, I don't know that that's the best lead indicator for a serious home purchase or so. That's why I'm focused on what I need self. So, to start out. Big internationally new listings. You can see here new listing volumes kind of year-over-year 2020 compared to 2019 across the number of countries. They all took a big hit, you know, run mid-March when a pandemic was declared took a big hit some countries like the UK and Italy were affected the

most some new listing volumes and those markings plummeted by 70 and 90% other countries that had that they adopted more of an intelligent lockdown like Sweden and the Netherlands Germany. They really didn't see an impact of a new listing volume has been pretty steady other up in the Netherlands there. They're just starting to go down now in Sweden right in the middle there. You don't listen to volumes down about 40% or so, but most of it right there. this is a new listing us listing

this year compared to last year right kind of threw out may we see that recovery and I'll things are going back up. So, you know that the supply side of the equation the listings are coming back after a significant dip into the US. So, this is a chart I have up on my website. It's interactive. You guys can play with us put in any cities any markets you want the day is coming over from Redfin the number of us markets. It's looking at the new listing volume in those markets a year-over-year what the comparison is

and it starts from when they saw their first line. So, some cities were literally some a little bit later, but you see the same general Trend the same jungle flow here right dropping those new listings overtime various recovery. He's in the different. I know some of them like some are cats like San Fran in Denver kind of popping above where they were last year. There's this surge of USA Philadelphia recovery Austin and Houston never really going to low but recovering nicely and NEC Los

Angeles. Can I find 60 70 days of a drop? I'm getting back up the parody from last year. So that's what happened in the US if we look at a couple specific markets will start with King County in Washington one of my favorites to look at that's the greater Seattle area. That's where the Panda Express to the US you can see that there's quite a significant drop right in 2020 new listing Lines Just plummeted down on they've been down for quite a while especially compared to last year that line 2019 enter starting to recover but still a couple of weeks ago down at

the bottom. Mark, I love to look at is Austin and Texas lotto Post Texas markets weren't affected as a sign is up there our markets. If you looked at just the Blue Line, you might think nothing, you know, it looks kind of the same it's relatively steady. But when you compare it to last year the greyline you do see that the client so Austin Canaveral, they're starting to see an uptick. But again, you know just a week or two ago. It's down it's coming up, but it isn't proven,

New York City so you can see volume March and really just staying at the bottom of those listing volumes down 76% the last that last week I have but at worst kind of down 80 to 90%. Such a huge drop has been absolutely hammered in a lot of ways and if you work a new list of the holy one of the worst the hardest hit in the US. I was I was looking around the other day and I saw this quote from a real estate broker in New York's biggest Market saying real States bouncing back

strong right now and were thriving in this environment included here cuz I don't know that I would use the word bouncing back strong and thriving if this to thriving or this is bouncing back strong on a date to know what you know the challenge in, or a disaster looks like so let's not get ahead of her skis like this is supposed to kind of what you hear in the media. So, the next part of the equation and demands now, we're going to look at them and I think the best proxy for buyer demand is pending sale. If not, people looking at the website is not people

filling out a form does all low in 10 high intent buyer demand and that's people going out looking at houses making an offer and having that offer accepted. I think that's the best we haven't that's what I'm looking at. So, I got a couple more graphs. I've turned up on my website. You can look at this for any market, but this shows pending sales in 2020. So, from the first of January up till nearly the end of May for a bunch of markets and you can see kind of what you'd expect to write this big dip in March and April and then starting to recover. I'd like to call your attention to a couple

different markets here that it'll pull out the first of the ones that are recovering strongly. So, Houston, Chicago, Tampa those all stand out to me, right? They all reached pending sale levels higher than before the pandemic covered well, can look at a couple other markets like LA, Philadelphia and San Francisco are still subdued. They're still low in many markets that are improving but they haven't recovered right and some work as a recovery much faster and much quicker than others.

Now that's just looking at pending sales over time. But we also need to do is look at it year-over-year because we do have the spring uptick in housing activity. So just looking at it on a week-to-week basis doesn't provide a complete picture of the market and what's happening. So, if you're out there you are looking for data, there's tons of data are too much data look for as many data points as he can't look for what's happening on an on a weekly basis, but also compare it to last year cuz I'm going to give you a really important for. So that's what this next chart does write.

This is showing pending sales compared to last year. And you see again what you'd expect this big drop in March some markets recovering some are cats not recovering again calling out a couple of highlights here. You can see Austin and Tampa recovered very strongly. So not only are they upon a weekly basis suck compared to last year. There is a higher level than they were there 2 higher-level today than they were last year at 10 to 20% Other markets like San Fran in Philly the recovering absolutely recovering and doing well there but they're still down here. They're still down compared to

where they should be or where they were last supply and demand let's pull it all together in a why is this important? So, let's get both of this and for me the ultimate question, you know, there's a lot of people out there looking at different things and in for me what kind of keeping me interested and engaged in this is thinking about the rates of increase and looking at its Supply increasing faster than demand increasing faster than Supply because if you have both of those things, that's a healthy marketplace, right? There are buyers and sellers and they're going to

interact with your missing one. That's an unhealthy marketplace. It's not operating on the buyer's or there are not enough Sellers and that you know, I'm sure everybody knows markets like that where the average time on market is 3 days as soon as the house is listed as gobbled up or a house sits on the market for a year. That's what we were talking about him and for me, you know looking for the next 3 6 9 12 months. That's what I'm paying attention to. I plotted some of the stuff out of this is something I'm still actively working on. None of us really published yet. But this is looking

at the supply and demand of the ratio of the new listing to pending sales over time to see what's happening does more new listings coming to market or is there more pending sale and if you're kind of bug this line that's where demand outstripping supply and below it. There's more supply than demand. So that blue line is kind of the one-to-one ratio. That means forever new listing coming to market. There's one pending sale in the same. Of time and you

can see if it's like Seattle, right? There's a lot of demand and there are not enough supply other markets like New York and San Fran a bit of a different story, you know buyers and they're still not back. And again, if you kind of plot this out as I've done you can see some markets for suppliers rising faster than the man in other markets were demands rising faster than supply. This is benchmarked against the numbers from last years. I'm trying to get a complete picture here. It is small. I don't really care if they can see it or not. That's not the point that the point

here is supplying commander changing their changing on a daily weekly monthly basis and it's totally different on every market. So, you see national it just doesn't matter. I'm not national but if you're in a particular market and you want to know what's going to happen over the next year, you got to be looking at supply and demand to come to see what happens over time. So that the sum of all these Market stats, right if you can kind of dozing off and

you just pay attention now, here are the key takeaways new listings the proxy for seller demand the recovering the most markets are still down, you know, many markets tend to 30% from last year Penny sales at a proxy for buyers a man that's recovering in most markets as well. But it's still down 20 to 40% from last year. And then lastly that supply and demand growth at MIT that metric there that's mixed. It really depends on the market. So that's a key metric to watch going forward. Let's talk about recovery. And when what this might look like Toby

image that I have in my mind is a river that's been damned. All right. So, if you have a river, you know, there's a flow of water a steady-state of the flow of water and that's kind of those are real estate transactions. If you damn it, which is what the pandemic does do and the associated lockdowns that flow stops, and you see that in those graphs right when the garage drops to the bottom. That's what's happening who's stopping? There's no new listings. There are no pending sales. There's no transaction. So that damn your bills up all that water for one to two months. And now it's

happened at the dam has been released in many Martin ever US market the dam has been released and there's just this flood of all that backed up water all that pent-up demand. So, when you look at the increase of new listings are pending sales, that's big and we're not just going to get him back to normal. We're doing with the pent-up demand that's been sitting there behind the damn for the past 2 months. I can illustrate that with some numbers here. So first this is looking at some of my charges this is looking at new listing volumes in Pennsylvania and Michigan and you can see you know,

Detroit Grand Rapids, Philadelphia, Pittsburgh. They were all down seventy to eighty percent for weeks and weeks at a time. But once those restrictions were lifted in Michigan, you see what happened to Detroit and Grand Rapids just shut up. That's the surge of all that pent-up demand all these folks that wanted to list their homes but couldn't are now able to get to the market. So, there's this huge surge. If it's time. This graph was made Philly and Pittsburgh real estate was still non-essential in Pennsylvania. So, they're still at the bottom, but the same thing you can see it in the updated

numbers. They jolt rights of the top and we go International we look at the UK blue line here is new listings new inventory. I, you can see once the UK shut down the housing market. The new listings are down 80 to 90% huge decline. But once the government reopen the market you see exactly what happens there. Same thing. There's this shot up the rank of the dams. Just been holding all that pent-up demand and now I can finally get to Market and Arthur going up, you know quite quickly. And then lastly, we go back to one of my earlier charge looking at new listing volumes internationally see

Italy here in the light gray line. It was in lockdown for eight- or nine-weeks new listing volumes plummeted by 78% in the span of one week when restrictions were lifted. They surged right back up to normal levels just in one week. So, it sure feels like it there a lockdown horror Italy, the UK, Michigan, or Pennsylvania. There's a big surge of new activity but that serves as just that it's a surge being dammed up that surge of water is temporary, right? That is not the new level there. So that's right. Now the game has been listed in there's

a surge. That's where we are in the US. We don't know what the next month to give us. But I think it is reasonable to expect when getting back to those new normal levels. So, it's going to be super interesting to track that going forward. Birds in the metrics look like over time. No, I want to talk about 5 hours every time I'm up on stage, but I buy hours. So, I think it's worth talking about what this somewhat the pandemic kind of is impacted the I buy a marketplace and what's happening with his company for the I buy our industry

has survived a pandemic and a lot of business models around the world in the US. In real estate and I buyers are no exception II is the path to profitability. This is something I've said it out for the past year. So, it's still true in the last is this key theme of further integration with the traditional industry. So, I'll talk to reach one of those briefly. This is what happens when it turns out my buyers stopped buying you cannot be, and I buy her without buying houses. They call started purchasing again and they're

back active the point the key for them as relevant. Write the world is change. The real estate market has changed the eye buyers need to get back to the market and prove that their model is still relevant. They need to prove that I can work both for my health and safety standpoint, but also from a business model standpoint, so they have to get back to the market and that's where we're seeing right now is okay what fees are people willing to pay in this environment? How many houses can we actually buy? What's the risk you're willing to take. So that's where we going to be tracking going

forward second is this half the profitability business models unprofitable right? I'm not talking on a unit economic basis are in certain markets, you know, if you strip out all your expenses, you can be profitable but in a high-level, I'm is it a profitable business model and you know, it hasn't been an easy question. Can we get a couple of things to know, you know first off Zillow’s flatten the curve in terms of their losses for their Zillow offers business. I'm you can see in q1 2020 which was all creep. Tienda, Mexico for the last two weeks of March.

It's not lost went down if it's Latin the curve things are starting to improve that's interesting. And then also looking at Zillow you can look at the rum net loss for a home for their home segment and it's continuing to drop right as they scale up to get the volumes things are getting more efficient. So, they're losing less money. So, is that worth celebrating? It's a pain but if you want to get the efficiency and scale-like yeah, I think it is. It's worth a note to see that things are improving over time. But the path to profitability for a lot of the eye bars has not

revolved around kind of the core unit economics of buying and selling but also attaching ancillary revenue streams like a mortgage and title insurance if you think about 2019 univ just last year, it seems like a hundred years ago. But in that year both Zillow an Open-Door launch mortgage and title businesses, you know, so they're serious about it is they open or acquired OS National, you know, Zillow acquired a mortgage company and then rebranded and watch that is Zillow home loan. So, these aren't kinds of miscellaneous things to do. I need to keep busy. These are Big

initiatives and we're going to have to see what happened. So that path to profitability is totally dependent on mortgage and title which is the Battleground. I think of the next 12 18 to 24 months here. Everybody's going after that not just by buyers not everybody can win those big incumbents in that space. So, what's going to happen? MS-13 is the traditional industry and I buy hours kind of continuing to integrate and come together and what I mean by that simply is I think over time I buyers will look more like traditional brokerages and the traditional

industry will look more like I buyers in and there's the good to be this overlap of services. So, you know chances are you're going to be able to go to your local agent or broker and they will give you some sort of instant sale option whether it's something they're doing or facilitating on behalf of an eyeball, right? They're going to be giving you all those options. You don't have to go to a buyer or a real estate agent. You can kind of go to either one and we'll give you that whole picture and then same with buyers. I see them kind of tacking back to the traditional industry and saying

call us up and we're going to help you sell your home by your home whenever it is, we're going to help you wear the One-Stop-Shop for all of that. The the last leader so much change going on the industry. It's happening so fast. I want to talk about what it takes to move from just surviving to thrive who's going to win in this market. I got three principles. The first is moving fast the companies that can move the fastest or best position to win and thrive in this environment as an example. Think about, you know, virtual tourist the thing everybody can't stop talking about over

the past two months. So, in a pandemic and a lockdown, I wear a week that feels like a year's time is really important. So virtual tours, there's companies out there that launched virtual tour Solutions in March and there's some that launched them in May. What does it mean to move fast? It means doing it in March. So, the companies that want something to mark your moving really fast. Second, invest if you can write everybody's going to be pulling back and there are layoffs and marketing budgets are being cut but the companies that are able to actually invest whether that's hiring spend

more money on marketing. They're going to be able to accelerate out of this faster than everybody else and the third point is meeting consumer demand. So consumer demand is changing whether they want a virtual tour or online notarization, whatever it is, you got the meat consumer demand and the companies that do that better and faster or going to win the space. So fine all those together. You actually get kind of a nice sentence or an equation, right? You're going to thrive companies and individuals and teams will Thrive if they can invest and move fast to meet consumer demand.

That's the key Industries moving fast now on we got a tile this together. So, I'll wrap up today by going back to where I started this quote right from January. The industry is moving very slowly, but it's never moved this fast still true today, but I want to amend it a a little bit and say this the industry is moving very fast right now. There's a lot of stuff changing. You know, now it is important to understand even more than ever what's happening what the impact is and figuring out what you can do to stay out of that curve. Thanks a lot. I'm so pretty. We'll

I've met probably 300 companies and about a hundred of those probably in real estate proptech have been one investment and that was inside to look for companies of consequence. My mind side really is in a league of its own. The future of brokerage is really where the agent and the agent team are the center of the universe and is empowered by technology and operations behind the scenes. What is your brand has been helping you succeed? I believe it. We ask readers and members of our Coast to Coast Community on Facebook to nominate acts of service and Leadership by industry figures during

the pandemics that are worthy of commendation hundreds of nomination port in the spirit of inspiration, we're choosing to honor 10 agents and brokerages as going above and beyond the above and beyond these are the 2020 Inman innovator honorees. As an industry we have reacted brilliantly and valiantly to the pandemic with acts of kindness and support spanning the Spectrum. Let's talk about advances in purchasing a home thing are changing completely Online ways to go and find a house with someone. Maybe you've

never met. I mean that the Future Has dramatically taken in taken a change in the last 60 90 days, but there have been people working on this for years and some pool companies have emerged. That's for sure. So, I'm very excited about this panel advances in a way to buy a home. We have some Dynamic and incredibly intelligent panelist. And so, I wanted to welcome him to the stage right now. We have Vishal Garg, CEO and Founder of Better.com and Adena Hefets,

Founder and CEO of Divvy Homes, very cool. And of course, our moderator Clelia. Does it is my pleasure to be here now with Adena Hefets and Vishal Garg of Better.com, we're going to be talking about how this moment is impacting financing. So maybe you can both start Adena that start with you by just giving a little introduction to who you are your company and also tell us where you are. Sure, so high on my name is Adena Hefets the CEO of Divvy Homes. Divvy creates homeowners what we are as an

alternative to a mortgage for those who maybe can act as a mortgage today. And what we like to do is we pick out a home will purchase it on your behalf will let you know how to rent the home back from us rap 2. Of three years and during that. We are charging Market rents and then on top We let you buy equity in the house while you're renting yet and that if we can then be applied towards a down payment if you want to buy the house back at any point during that time or you can walk away and get the cash that actually portions at any point inside the real value we do is we give you the

flexibility branching with the waltz building power of homeownership, and we let you get into your house today. If you can only access one through mortgage and I'm in Oakland, California, so working at working from home. The great result you want to jump in and let us know where you are. And you know, thank you so much for having me. I am here in my Terrace. We're still working from home in Tribeca down in Manhattan with all the craziness is taking place

here in New York feels like we're somewhat removed from it. Also, wait, we're very thankful for that. Better is the fastest growing homeownership company in America today were fighting open into consumers making it better faster cheaper for them to afford a better house in a better school district in the way. We do that is by removing the bulk of the paperwork involved in the process by automating the process by closing faster and by leveraging our network of 32 + investors to have some of the highest approval rate and the lowest interest rates in the

industry. About a billion and a half a month now of mortgages at about 5000 homes a month that was financing every month and that's grown about Forex in the past year and we expect to Triple that again in the coming 12 months. Awesome. I'm so just for contacts for the audience. You guys know, I love to bring you companies that we think are kind of best-in-class and I think Vivian better guys seeing Broadway? What I think what we're seeing in general, is that a number Bank of pulling back. So, we have things like Wells Fargo Chase and

others that have increased lending standards have backed away from the business that is basically saying well we might be going into a very deep recession post-obit. And so, they're taking off credit risk and then a lot of the independent mortgage banks are pulling back because of concerns because of the or parents and delinquency that have happened or consumers that have been impacted by coveting the really deeply concerned about the value of gas that they already own. So, we see sort of the worst of all worlds happening in terms of consumers having limited Supply, even if they're great

credit and really know Supply at the bottom end of the market but also at the high end of market sell jumbo bar work number Banks up like pulled back from Jumbo mortgages because of concern about where real estate prices will end up being and I think that's that compounds the already the fact that we've seen from people not being able to walk into a bank branch or a loan officer. And be able to talk to their issues with mortgages. So that's what we're seeing in general in the broad market today. Yeah, so I'm probably just breaking that down into a few different areas the first areas

generally what happened with combined with covet head and what we saw was that who buy essential just paused and showing volume was down 50% and on average Across America in some places. It was down almost 75% most votes were putting new listings up but also inventory was holding because at most they were going out that we're going pending despite this because there wasn't a ton of volume, actually held up pretty well as the price at which homes are being sold that actually help remarkably. Well for the cove in. I'm so scared in the hole by infections in the mortgage

section. They look Michelle said which is worse thing lending requirements fighting and more people are looking towards other Alternatives. I take kind of been the last piece which cultural I'm we're sitting actually a big migration from multi-family apartment out to single-family homes, and we're just staying in covetous ring want their own little space in the world and look, how to purchase a home more now than ever one thing we talked about a little bit when we are getting things

closed. The procedure is pretty significant. So, we've had transactions where consumers found the house that they wanted to buy but the seller was afraid to let the appraiser in the house. Or where are people are doing refinances, but I had some of the notaries and some of the offices of the county court recording offices are closed or you know, people are finding out how to do remote notarization, but it's not actually legally valid in the number of states. So, all of those challenges is the

only compounded the effect last lie, like refinance volume is through the roof. So, a lot of people are focused on doing refinances which are generally a little bit easier less time-sensitive. So, if you already own the house, you already have a mortgage. If you refinance today versus that, you know, it's getting delayed in 3 days. That's not such a big deal. But if you're trying to figure out all the stuff that has to happen in Life or on moving from one place to another, you know time changes can be a really big thing by Thunder the mover’s town. When do you know that the guy was

going to fix the roof come all that sort of stuff. So, we've seen a lot of the transactional infrastructure that has been built around the real estate business that you know that basically, the time had forgotten is broken down. So, I think that's a So I would say I think those are going to look for alternative sources of financing. It is harder today to get a mortgage than ever. What we're seeing track the percent of our customers who have had a mortgage decline. So, I've applied for a mortgage within the last 6 months and weren't able to get one

and what we're finding is that actually increasing really significantly so I actually think now more than ever before people are, you know if they can get a mortgage and hang out with Michelle are going to look for other Alternatives with something like Debbie or moving even more towards the rental product. I'm in order to actually be able to access it. You know, you're a city girl when you hear the sound of like sirens in the background and you feel good. What is not a pretend background totally I

think. Videos of really smart Authority for renters compared to renting because home still managed to get in at a 4% cap rate on a mortgage or with Debbie Tech financing on a home and you know, the landlord is you know earning 67% That's what's a huge thing. So, having the option of owning is very big. I think there was a dialogue over the past 10 years that Millennials were going to prefer experiences. They prefer an Airbnb experience. The only their

own home. I think that is something that probably has proven totally wrong and it and what we're seeing actually out. There is the desire to own your own home and realizing, you know, your Gram isn't your home like where you actually live in as it is becoming more and more. We've seen the average age of someone getting a pre-approval letter on our house in our platform to go potentially go to buy a house has gone down from 39 as of January 20-22 35 as of May 2020 about the average, right? So that just means there's a

ton of people from the age of 27 to 32 were coming into the market and thinking about buying a home more than ever before experienced in the way that they engage with the financing process that can you guys talk a little bit to what you think. So I definitely think the way that you ultimately be you and close a home is going to change pretty significantly. So, I'd say one more moving more towards virtual showing some you've ever seen before we stayed open actually during the code. And what we saw with our agents, there's a lot more

going to a house taking a video and sending it to your customer closings. We lose with title companies who typically we always have to say there's the second issue of financing and home purchases, which is where are home prices going to go wherever I'm going to go home prices as well as what we saw during the Great Recession was that home prices on employment rate today or unemployment rate is actually extremely high right now and that you would see that home prices are going to decline Whoever you have to offset that

with the fact there's been a lack of inventory for the last decade and we haven't had enough home since it up for sale. So even if there's a lot of homes being put up for sale now, I'm sore. So, think the first question that I constantly get from her thing by buying a home is where do we think home prices are going to go, and I think it just depends on your assumption of how long and the government continues to stimulate the economy where unemployment goes where the unemployment rate those and ultimately what happens with coronavirus, right?

If we get a second. On the mantelpiece, I think that where we're staying right now is Renton Health relatively steady were seeing in some places multi-family rental coming down with single-family rental prices have held more left. I would say yes, if you see beyond the profile of people trying to get mortgages with that or is that changing broadly. The profile changing actually really interesting leads you're totally right is changing. There are all these people that previously were

what we would call Bank Loyola send only going to do business with my bank and are banks closed for business. So, if they want to do a refinance they're coming to us through all these people that previously would only do business with their guy or gal that they knew their mortgage broker, but that person isn't able to fulfill because they don't have the technology, or they don't have the remote notarization the appraisal or they can't buy the rights to it as quickly. So, I feel like what's happening is almost like that future is being pushed forward much my and there was a

while changing but you know, I'm 57 years old. I'm retiring in 8 years. I'm just going to keep doing this with my old way until I retire and you know what? World's going to be different like if you know, Mr. 30-something person or are going to have to deal with this not me and now those supposed to be forced to use that is kind of like I remember my mom when she realized it's the only way to get ahold of me but not by calling me and leaving me a voicemail but like and so she eventually wife finally got on iPhone in like started texting and doing all that stuff and I think it's

just, you know, we have different populations of the market that have chosen it that at that are that are going to adopt. Secondly, I think there's just going to be this question of Supply. There's going to be a lot of people I think you know; you see this in Connecticut you see this ending in places like Westchester you see it on Long Island there. A lot of people who are retired were holding onto houses are just too big for their too hard to maintain and so on so forth. I think there's got to be some innovation in financing there or I think to be able to get them out of those houses and

into the junk family previously. A lot of them were holding on because you know, or they want to live in Park Slope. And so, I think there's going to but I'm wondering a quick spot from both of you about the realtor. How do you think the relationship is potentially going to shift with their clients around financing and what day needs to be thinking about just stay relevant in this environment? You got to get creative. We're not living the same world who were in three months ago and your customers are depending on you

there depending on you to be able to help them access a home out whether it's for rental or for a home purchase. And I think that there is a hope that as a realtor, you know, you're going to be able to look at the financing options to move away from just taking them to their traditional in a Bank of America or Community Bank down the road and required to do more than just work with your attritional broker. But instead of paying for these new technologies, some people have

capitalized on that opportunity by starting to offer potential sellers the options, like the look even at I buy in pricing, I think that we may be moving Meijer's where we should be total, I think people want to know how much something is going to cost them and they want to know instantly, and you know, the mortgage industry is built around a traditional loan officer who, you know called you with a quote and then called you one thing changes and has to call you 20 minutes later and so on so

forth. I think people are going to want to compare. What's my monthly payment for different houses all at the same time. And I don't think you just rebuilt for that. I don't think we have an industry that's going to be forced to change. We haven't had an event like obit probably since the combination of the Vietnam War + like the OPEC crisis basically lets you, you know the really cataclysmic sea change in what has happened, and we've been the real estate industry has been built on what happened in 1980 onwards right where they supposed to come

down slowly like this are basically 18% the nearest 0% and have brown and everything's happened. Now, we're going to go to this other thing. All the symptoms are coming into the market today. They have no memory of anything about the prior will sitting. So, it'll be interesting to see who the winners and losers but usually when you have volatility in any Market in this is through 6000 years of humanity, you guys so much is always such a pleasure. Thank you so much for having us. Appreciate it.

I told you that was going to be good right now. We have a special treat for you in just a moment. I am going to welcome with me, Katie Mike Miedler CEO at Century 21 and excited to talk about leadership and I'll come back then and how valuable we are as the agent. Hi Mike, how are you? Hey Katie, how's it going to be today? Yeah, absolutely. You know, we talked a little bit last week and it was a delightful conversation and it was nice to see just the positivity radiating out of you and you have the ability to share your thoughts Century

21 is everywhere. Right? Is it 80 countries? I feel like there's no place or not. We can we just announced that we're well over 11,000 office is 135000 sales professionals globally and you know, it's an interesting organization and certainly every Market is a little bit different but you know, I think the title of this slide is just so true especially right now as Marketplace, we're not just our country, but the entire world's been challenged with the know-how to make that the real estate agent be not just the center of the transaction. But of the communities are values

as high as it's ever been an in our communities near this morning. You're speaking of community. I think it would be would almost be inappropriate for me not to ask you this as they see you in the position and in that you hold to talk to me about it. If you don't mind just the current state of America in general and considering turning my TV off this morning before we started this and seeing and brutality and racism and it's just it's finally at the Forefront we're talking about it do anything that you'd like to share with you all that

weeks ago. When not just the United States not just a real estate Community, but the whole world was dealing with that kind of felt like we're all in this together, right since we talked last week current state of the nation change, you know, people are angry people are upset people are emotional and they deserve to be I mean, there's no racial inequality going on. Out there that we can't stand for not just as a country, but as an industry him and that's why I think again R-value is

so important because you know whether it's us giving back were trying to provide the dream of homeownership. We are the ones setting the tone for equality and small-business equality in our local neighborhoods a quality in Fair Housing. I mean, it sucks to have to set that tone. I was lucky enough yesterday to welcome a new black-owned company literally in your Marketplace in Houston. And you know before I started with you know, why Century 21 is so great and welcome aboard I touched upon at in and how we at Century 21 have for 50 years been on the Frontline fighting for that

need to do more, you know, we all need to do more not just in talking about accord in our actions. And so, you know that's going to be Michael's for the foreseeable future, you know, we've always been involved with not revved and now rap and novel rap and all of the industry trade associations that we just have to do more as an organization. We have to do more than a mystery. I agree and thank you. Thank you for that. I feel like there's there's finally some momentum and people are listening which is going to make for you a world of difference. Especially people like you are standing

up and talking about it. Talk to me about what you said about China. I'm can you give me some insight into what you're saying there and how things are changing because there are so much further ahead than we are when it comes to coated is one of our biggest regions. In fact, we have 5,000 offices close to 30,000 sales professionals that are January their CEOs giving me updates on kind of where the country was at and you know, this is kind of virus does not eat at the point thinking that you know, oh my gosh, it's so horrible that you're dealing with this and

not thinking that it would never touch our shores right in and then bam March come so, you know what's been great about our leadership team was been almost back to where they were in early November from a sales volume perspective and you know, they took a lot of just things that they could control were there for Organization for their sales professionals and obviously helped the safety was number one. I don't pretend that the US or any one of our state's or other countries took the same measures that China did order or have a will, but you know Century 21 China as seen her way out

of it. They had tremendous growth believe it or not as it has been a flight to Quality during the South pandemic for entrepreneurs and agents and you know, they put in place a lot of cool things which we actually adopted and kind of duplicated from them. One of them is a hundred-day plan. So kind of recovery and Replanting are businesses with our agents and kind of giving them the activities things again. I think they can control in order to back into and get to what their personal goals are for you’re, so you know, we did a lot of learning with China and you know, they seem to be

headed in the right direction and you know, we're here in a lot of that good news stories around our country and from the other regions in other countries in the central point with family right now, which is great. I'm right. I mean, it's fantastic. I think about 3 months ago. We were all we didn't know what was going to happen. I can read out jobs in 3 months. I have no idea what's happening right now and to see that they come back across the world, isn't it is so great. So wonderful, and you know, there are some say it's inside, you know, what we do is not essential and it's essential

another area time in Houston and we were essential the entire time and which was fantastic as long as we were staying safe. So, I think it's even during a pandemic when it talks to an agent is, I'm happy to see that there is absolutely no question. So, let's talk about a little bit and how the agent really stepped up and situations like this and how are value is so much. It's just incredibly valuable. Yeah. If you don't tell him different case all around our country, right and in all around the world, did you know that Michigan and Pennsylvania are an example, where

is non-essential, you know, things were shut down and Which were like you said that a job, how am I going to put food on the table? I'm going to make money. Am I going to get to my work, you know things started busting open in Pennsylvania in Michigan, which is great news to hear and I think it just shows the point in this country that as long as having a roof over your head is in style and info we will be extremely important to the economy, right? You know, there are so many folks out there right now who absolutely have to

buy and sell I've heard; you know stories of a certain town in Pennsylvania where they just built the hospital they have 40 nurses moving into the community and like this is right in the middle of pandemic they needed a place to go and so happy you're having a roof over your head and shelter are absolutely essential and so, you know what people don't recognize is just how long and how many Dexter are in the process that we are real estate professionals help the consumer navigate, right? I mean from the time that you make an offer you see a home

online and you make an offer through the closing date today. Did you get the keys? I mean, there's generally anywhere from 150 steps to 200 different steps. And I love the last panel that was on talking about navigating the different components to it whether VA appraisal for mortgage or any of those things. It really comes back to the agent to be front-and-center in that process and pull the entire team together. So that eats treats for the consumer becomes one that they enjoyed and wasn't as stressful as it could possibly be sometimes right. Yeah, it's really

about it. I think we had the opportunity to see what's important because we're all four years. Now. We've been worried that technology is going to come in and take over and some new asking to like wipe us out and we just have no relevance any longer everybody does what you can until the world explodes and ends. No, whatever you say is going to be much more interesting play technology and disrupt all of us and they're going to disintermediate us, and we don't need real estate agents will just do it all online and I

laugh at that fact because I'm not to say that you know, like look at I buy just one you would think that I am buying is the safe alternative to you know, selling a home because you can just do it online. Somebody's going to appraise your house and give you what your body is. Your house is worth I buy an option went away. And so, you don't I think that folks don't recognize how much actually goes into what we do as professionals every single day. You know, we're like Chief cook bottle washer marriage counselor sales negotiator market knowledge expert and it

takes a lot to deliver on what's usually the largest investment that an individual or family. He's going to make in their lifetime and it's why you know, we as serving our communities every single day is so important because how much fiscal power there is in the real estate transactions and how much are additional Financial power. There is in a community around what happens in that real estate transaction all driven by into us industry. So, I think it's a great point that the technology side another great example they were mentioning remote

remote notarization, right? I just read by my house during you know, this pain. I know we're in a great spot in Kearny, New Jersey right my home and my Marketplace didn't qualify for an online appraisal and there's no way I could go and use my phone to take pictures and send it to me. Please accompany. We have an adopted online notarization. So, you know, the notary had to come to my house from the title company and sit in my backyard and close. A transaction for a mortgage refi. So, we as an industry. We need to keep

pushing ourselves forward we need to as a lot of the guests of sad using the top technology become more effective and efficient so that we can provide a better overall experience for the consumer 'cos at the end of the day, that's what really matters and that's where our value is as real estate professionals. Yeah, it's it. It's funny the Texas Real Estate Commission or Association. They pushed out and then they look at it again done and to assist with buyers and sellers going through this if they are the situation, we needed to extend contingency. And so on and I was

thinking of your children, you know, our clients become our family and I feel like God this is strengthened our industry in our community more than I've ever seen or heard of Who besides the real estate professional gives back is much in a local community than we do. I mean that you have this is why I love this industry obviously. Obviously, you know, I've been raising it from a business perspective and there is nobody outside the real estate Community who not just with you know, not just with their money providing for the local community for their schools for the charitable organization, but

then the firm Wide with a hands-free actually doing the work right now me free stories of you heard on things that you guys are reported on Inman about your people giving back to Frontline responders and nurses and Healthcare professionals and everybody else to try that, you know to move them their communities for a few weeks ago one of our agents Misty Dowling. She works for Century 21 the broken team in the Midwest. She basically took a single mother who was in

trouble with her work and just couldn't figure out how to make payments on it. She took her through the political aspects of banking aspects and counseled her all the way through this three-month process so that she can get some cash out of her house and get herself back on her feet and into something else. You know, we had you guys reported on this a gal down in Florida Ibis Suarez in Lakeland, Florida. She actually has a marry a couple at the Century 21 office that they could qualify for the mortgage. Right? So, I mean how many internet systems are Technologies

in the process in order to provide that type of experience, right? It’s just people don't understand how much we have to do in order to get it, you know a real estate transaction and deliver that tree in our local communities every single day. Yeah, I need to say it can't be provided by anything else. But what they are really real estate agents. It said you know, sometimes it's the greatest thing that someone will ever buy their largest investment ever. And for us to be a part of it is just said it's very essential. I must say it is funny. How do you look like in the 50s by Imagine

agents caring pies like door-to-door and that was like me to the value that they thought they had but now it's what you're saying. I can't believe you had someone marry someone who wanted their offices. That's amazing. That is what we got. Somebody's personal stories that you can tell us about how you service your clients. The truth of the matter is that the top Echelon right that the folks you really represents this industry. Well the ones who were continuing to get repeat and referral business, they're the ones who are out there providing an

extraordinary experience every step of the way every step of the client interaction, you know, if there's a survey that recently came out, that's 73% Can worry about their real estate were staying at a hotel or flying on an airline then we do about the cost because that's what they're paying for it. They want the value in that experience, and I think it's ultimately important for how and where we're headed as an industry and I think the real estate professionals who continue to put their people first their consumers first, they're going to continue to win in this industry just like 50 years ago.

Yeah, it was really cool, and I've seen so many agents go out there and help the community and they're not doing it at all to for anything in return. They're not going out there like doing it to prospect or route or not to do this or that they're doing it genuinely because we have an industry this platform that others don't have when we are in our communities in our neighborhoods. And God has brought me so much happiness to see how incredibly authentic we are being, and I mean the volume that's why I love the title of the session is just we are so valuable right now,

and I'm just happy to see how healthy it is always a real estate professional in their local communities who are stepping up and trying to get back no matter what the cause my base and then there are so many great ones out there. And then I think you're dead on with the fact that you know in the real estate professional is the fact that we can People and that's why I think it's so important to the point you started with that. We as an industry push forward on the equality side push forward on Fair Housing push

forward, you know, just how we diversify small business and our real estate industry and at the end of the day to deliver the dream homeownership because it is what truly Williams our economy. But again, where else besides your home are going to have some of the most intimate moments in your life create some of the most spectacular memories raise families in teenagers you and I were joking about last week, you know teaching kids lifelong lessons like, you know that the blue jay that fell out of the tree, right? I mean, it's just you know, it's this is this is

where our memories are created, and I think one of the other folks just mentioned it having shelter and shelter over your head in and what you're doing inside is even more important given scenario. Situations like the Cobra pandemic that we met right here. I'm sitting my basement my home office, right down the road here like 15 have my treadmill my table over there has become you know the place where I eat my lunch my cafeteria, so, you know, I think our industry and as one of the last panels saying I think you're going to see a lot of folks refiguring out what

they want out of their home what they want out of their shelter and it's going to drive a lot of bananas at night. I think the biggest point to every week to what I've heard a lot of so far as how we get that inventory after we got to find a way for consumers to understand that they could sell their home safely and again R-value so high right now because of the uncertainty in the marketplace, what's my home worth? How do I sell it safely? It's up to us to help that consumer navigate to Market navigate to government hurdles navigate to local processes so that we can truly deliver on that

experience for them. I agree completely. We have a platform. We're here to deliver to our communities. Bring our neighborhoods together. Everyone should be reaching out and say hey, this is what we stand right now. This is where is a value is on your home and Engine. Outside for them for the rest of forever Mike. Thank you so much. I sincerely appreciate you being here at Brad does as well, and I hope you have a wonderful day in your basement office. Everybody that I can take care of. Thanks. All right. That

was great. I appreciate him very much. And by the way, when he was referring to the other day when we were chatting my daughter ran in cuz she found a It's kind of reputation works as hard as you do remaking is a digital marketing platform built for great agents to harness the power of verified reviews from the free profile to collect and gather reviews to the digital Pro Tools that bring refused to live through targeted online ass listing reports integration with Google my business and more each review creates, its own unique page to improve SEO and grow your digital footprint. You can

normally connect events. We invite entrepreneurs and startups to pitch their companies to the MN Community from the main stage. But this year we're doing it a bit differently here to pitching their companies are few of your 20/20 New Kids on the Block. Hi, my name is Kristin Hurd and I am the Chief Strategy Officer for AllTheRooms and before I jump into my pitch. I do want to say and acknowledge that I hope you and your loved ones have been safe during this pandemic now about all the rooms. We are a global data company and we have multiple patents on a technology that analyzes an

aggregate short-term rental data. Did you know that banks are actually starting to use short-term rental data to create valuations when they are doing refunds for the clients. Most people in the industry don't know this and it's just a matter of time before Banks actually expand the use of short-term stay data when they're doing appraisals and valuations of homes. Why is it important it's going to actually create opportunities for agents to create sales. They would not have been able to create long term rental data. And again, we have multiple patents in

order to deliver precise validated information that Banks investors in the common home and owner can use. We are looking for funding we've had a little and we were looking for more funding. You can reach me at Kristin, which is Kristin at AllTheRooms. Com. Thank you for your time. Find and CEO and founder Rela is the first social platform for Real Estate Discovery agents in fire are used to visually share connect and discuss real estate opportunities that best fit their needs. We want to

help any Asian grow their clientele without having to pay huge fees agents can become area experts just by posting engaging content of their listings for properties that they visit Rela offers a more authentic way to discover properties because buyers can like comment and engaged listings this engagement helps the Asian Community discover richer insights into a listing target leads much more efficiently. We have a ton of innovative features in the pipelines that are truly going to help agents know exactly what their clients are looking for drastically reducing the time and effort agents been

prospecting and closing deals. Thank you so much for checking out Rela and start at Valley. I can't wait to see your content and all your contributions on the real app. When I was talking to Pete Flint, I believe yesterday. It was very interesting to me that he was so passionate about how just riding companies can come out of Times Like These. This is the time where entrepreneur is can really flex and bring things that help the community and neighborhood in the world, but typically a what do I need to make that

happen and they need capital and it turns out it is not dried up at this time. So, I'm excited to hear from Clelia today as she moderates this wonderful panel with Paul and Constance, please welcome the three of you in this case the past I've been working at the intersection of real estate and technology for about 15 years ran real estate Yahoo years ago and than most recently with the CEO and president to truly are from our start updated to a public company in the three-door acquisition by Zillow

soul of a combination of real estate in Innovation, and then the firm has been around for about fifteen years. We are generalists and so just look for Innovative tech companies really across the landscape art, Tennessee more Mantra is finding companies in consequence that we love to help build abs, Global category leader. And we have done some real estate-related a number of real estate and related investments your investors and DocuSign real me and most recently side, but we invest really a prostitute the full Tech landscape.

Sure. So, we invest in technology companies around real estate Finance insurance and Home Services. Now while we are very focused on the sector. We do take a generalist approach to this as well. So, we really do like companies that are outside the industry that can be applicable inside the industry and so company like DocuSign or a good example, or you would never call that real estate Tech but surely like a ball and a number of other companies that and I'm sure we'll talk about here, but we have been around since about, so we started investing in this strategy

in about 2008. So, we've certainly invested through the cycles and I think that that's a point of Molly topic that we'll talk about here and we have both the fun in which we generally invest in companies to 220 million in Revenue as well as in-network that we've built up over the last decade of about 700 Executives and corporations in the industry and money. I know we're in the audience. And then finally we have what's called a passport program which is a 7-month program that we run to help bring companies into the industry and connect them with us

partners across the industry. So, you know very Hands-On operational in the industry at but you know, I would just know that in the past five years or so. We've seen an explosion of sector-specific farms focused on them words in the last few years, I think will happen in kind of the generalist landscape and the prospect landscape over the course of the next couple of years. Yeah, so I'll start that out. So, having invested in space since 2008 we were doing it before your proptech was cool. But when I

it through cycles and I think Paul, you know, it'll be really sitting here having operated through Cycles you one of the things that I that that drove our philosophy right away was you. These markets are a really big show in real estate makes up about 17% of the US GDP. But about 4% or less than 4% of all venture capital dollars are being used to invest in real estate technology the really big difference. And so yeah, there's a lot of sort of there's a lot of green space and I think people finally realize that and

so some very specific proptech funds popped up, which is really addressing this big gap in the market to try to help bring what is a largely Antiquated processes into the modern world and help innovate. So, I think that's fantastic in 2016 or is about 2 billion dollars of investment going in a real estate Tech last year of some estimates that say as much as 32 billion, but that really big number and so you're some of that coming from the prop text Bae some of that coming from more General has funds, you know that Paul you're having had so much

experience in the space and clearly are you Now I'm moving into General has funds to also address it now. I think people are just really recognizing that there's a lot of opportunities to like I said, you know to bring these industries into the future. And so, it's really great to see kind of are a fact of life in any investing business and it's never fun when the cycle changes but it are kind of inevitable this particular moment is unique in a lot of ways but I think generally Venture investors. Are you

not here that can Onyx I post I would say in the moment, you know, we've been very focused on us existing portfolio helping our existing portfolio companies’ kind of adjust to the new real money makes make the changes they need to make because the plans they don't for 2020 in December or January, you know, this just in most cases has been a lot of changes in the market that are serving in and what's going on in immediate Focus for us and I think for a lot of venture investors

We're the ones going to be over the next 5 to 10 years and you know, we continue to believe that technology and Innovation is just a transformative force in a whole different Industries and it is a bit of a truism, but you know, some of the best companies are built-in times like this, right? There's a there are signs you think about like the significant changes for the last few months on how consumers interact with different services like the number of people that are now using Zoom or Skype, you know in our case or UberEATS or door dash or you know using DocuSign

these are services that have been around for a long time and often it this kind of dislocation that involves these companies on to a new grocer jockey. So, we're quite excited to partner with transformative businesses and really help identify how this Change at the moment has painful it is as it feels right now will lead to massive do business isn't the future the way that funding a venture funds work most of the funds that have a lot of funding today will continue to have a lot of funding for the next year or two. So, it really, you know, it won't be for a couple

of years that will see a massive pull back on the capital side in terms of what acceptable to venture funds and to Candice's point about you. No 69 Rose in investment in project. I do think that we can continue to expect meaningful investments in the process space from that will Capital that accept some people have suggested. Oh, you know, it was like the Innovation is going to stop for the funding is going to pull back and I would be very surprised if but maybe we can talk about where we think that investment is going to happen. Cuz I think another

distinction is different people invested in different phases in a company's life. And I know I've spoken to both of you about the fact that we think that there will be sort of good positions to be in right now and maybe more challenging conditions to be in in a company's life cycle does either one of you want to jump in for Papa. Paul. I know we talked about this one. Maybe I'll jump in if that's all right. You're right in this there is so much Nuance in the world of Adventure. I think people think Adventure car industry, but actually really are flavors in different fonts of different

strategies and so on so I'm on the topic of kind of stage and where Venture investors are investing. I would say it's been kind of amazing how late-stage venture Has continued to remain really active through this change in a cycle. And I think if you think of it as kind of like early mid and late, we've essentially seen this sort of barbell and the fact we're late-stage Venture seem to be quite active businesses that have clear product Market fit and that product Market fit has held through COVID-19

piano being chased by investors with all the same intensity that they've been for the last several years. The IPO Market looks like it's kind of reopening ZoomInfo had a successful IPO this week. So that kind of like late-stage investing appears to remain quite active. I also think you're too early seed station best thing. You're most investors who are investing at the seed stage. Are basically investing in a team and a market opportunity with the expectation that it's going to take a year or maybe a couple of years to kind

of Gatorade and figure out a product instead of seed investing continues to be quite active it seems because they really matter exactly what's going on in the market right now to found it to you in an idea. You love two million bucks in and give them the next year or two to just focus and Bill and then a ton of the in-between I'd say where we see the most change and dislocations companies that had product Market fit and now have lost it FaceTime COVID-19.

Never seen a lot of layoffs and cost-reduction trying to conserve pass to be able to power through the downturn not run out of money or not. To raise money in this environment. Where can I see my barbell continued, you know pretty early and late and then not the middle stage is where there's seats. You must change the medication that we need to wrap up a little early. So, I don't know if you have any answer to the final note that you want to make about this or what you think is going to be happening. Yeah, maybe I

can bring it to the specific to the real estate space and I think that the companies that I've seen do really well and it and I'm back to that kind of cycles and maybe by Design are those that with for example when we look at any company with say like how this will perform during a downturn? And so, I think that those companies will be there any ideas that are thinking about that or thinking about using technology to help you really bring come out of the sound turned faster are the ones that are going to succeed most so, you know, I'll give you a couple of examples in

Bradenton and I had a podcast with one of our company is called easy knock, which is providing liquidity. So, providing cash to homeowners, but then immediately renting the home back to them so they can get the cash that they need but they don't actually have to sell, or they don't have to sell now during a downturn and the beautiful thing about that for the realtors in the Easyknock is actually paying commission to help navigator to get those referrals on in a sort of the front end. But then also in the eventual sale in the back end and it's so, you know, you can

imagine that a company like this where people in you might need some liquidity, but they don't need it. They don't want to sell or don't want to sell in a down market and this is really valuable or Orion as an example company called home Snapware and we saw a lot of listings got pulled off of portals. Homesnap has a coming soon listing feature. And so, if you remember of Homesnap, you can see a tremendous number of listings are about to come on Market once things start to open up again, given the location and geography and how things are proceeding. So, I think there's a lot of companies

out there that are thinking really smart lying about little Tibbetts or new business models themselves that can really do well in an up to in a downturn or you're more specifically create value for the professional. I'm in the market. And so, I think that if you're a technology company looking at this or you're professional in the market looking to figure out how to grow your business faster. These are the type of companies that you should be looking for. Thank you so much. Thanks so much.

That's it for the first part of day three at the beginning of our first session where I can take a break really quick. We're going to come back at 2 p.m. Eastern to let me tell you and if he's you a little is the office gainer like we're to talk about what's going to happen to the real estate brokerages this entire situation going to make it to where we were from home forever. And also, I will be speaking to a CEO of NAR and you have the opportunity to ask questions as well, but I'll be fine. So, take a little break to be back here at 2 p.m. Eastern. See you then.

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