The document discusses disruptive innovation in the real estate market, highlighting how new technologies and platforms, like Airbnb and Zillow, are reshaping consumer access to property information and services. It details the rise of mobile apps and social media in facilitating real estate transactions and the changing dynamics for traditional agents and companies. By providing transparency and consumer-desired information, these disruptors challenge established competitors and redefine market practices.

1. A process by which a product or service takes root
initially in simple applications at the bottom of a market
and then relentlessly moves ‘up market’, eventually
displacing established competitors.
An innovation that is disruptive allows a whole new
population of consumers access to a product or service.

2. $12 Billion $16 Million
$93 Billion $655 Million
$362 Billion ?

4. Rent nightly from real people in
19,716 cities in 196 countries.
Airbnb.com – Air mattresses and donuts
Listings worldwide from a room to a home
Implications for hotels and real estate?

5. • Mobile
• Social
• Ratings & Reviews
• Videos

6. • Mobile – Disrupts traditional websites
• Now more minutes are spent searching the web on apps than
browsers
Google Android – 150,000 apps –
2 Billion downloads
Apple – 425,000 apps – 15 Billion
downloads
• 1/2 of all searches will be via mobile devices within a year

7. Real Estate Apps - National Search

8. AppStore – Local App Search

9. Android Market – Local App Search

10. Apps for Consumers
& MLS Subscribers

11. 800 Million Users
3 Billion videos are
viewed a day
200 Million Users

12. HAR Powers 800+
Agent’s Facebook
Business Pages
with their Listings

13. HAR Tweets
Your Listings
87,000 Tweets

14. HAR Promotes
Your Social
Presence

15. 140,000 Views - Agent/HAR Videos
88,000 Views - Listings Videos
HAR Promotes Your
Video Profile &
Listings on YouTube

22. 70,000 Ratings

23. 3,556 Agents have Surveyed Clients 4.93/5.00
Total Surveys Sent to Clients 102,448 (49% Response)

26. Chicago Quarterly Market Ranking -
12 weeks ending 8/27/11
Column1 Websites Visits
1 Realtor.com 7.95%
2 Yahoo! Real Estate 7.69%
3 Zillow 5.89%
4 Trulia.com 5.35%
5 Homes.com 2.67%
6 Rent.com 2.62%
7 Redfin 2.18%
8 AOL Real Estate 2.00%
9 Midwest Real Estate Data LLC 1.78%
10 ZipRealty 1.72%
11 Apartment Guide 1.68%
12 Apartments.com 1.60%
13 RE/MAX Northern Illinois 1.56%
14 MSN Real Estate 1.48%
15 MyNewPlace 1.43%

27. Houston Quarterly Market Ranking
4 weeks ending 8/27/11
Colum
Websites Visits
n1
1 HAR.com 26.74%
2 Yahoo! Real Estate 6.84%
3 Trulia.com 4.10%
4 Realtor.com 3.49%
5 Zillow 3.15%
6 Homes.com 2.69%
7 Apartment Guide 1.90%
8 Rent.com 1.87%
9 ZipRealty 1.64%
10 Apartments.com 1.54%
11 MSN Real Estate 1.50%
12 LoopNet 1.33%
13 ApartmentRatings.com 1.32%
14 AOL Real Estate 1.25%
15 MyNewPlace 1.01%

29. MLS Consumer Websites:
It’s Not Just HAR.com Anymore
779,450 Agents Belongs to
MLSs w/Public Websites

30. 2010 – Broker/Agent Listings
Viewed 145,881,434 Times

31. 2010 – 438,782 Email Leads
to Brokers/Agents

32. 2010– Broker Phone# was Clicked
419,222 times

33. 2010– Click-Thrus from HAR.com to
Broker/Agent Websites
2,724,954 Times

34. $5.01
2010– Click-Thrus from HAR.com to
Broker/Agent Websites
2,724,954 Times
$3.00 x 2,724,954 = $8.18 Million

35. Key Characteristic of an
Innovative Disruptor is Providing
Consumers What They Want

41. Not Listing Agent

54. Disruptive Innovation
Uber app-town cars, taxi Assn tried to stop it, 10 seconds for
driver to accept, passenger rates driver & driver rates passenger,
$10 fee if passenger is a no show

55. • Top 1, 2 or 3 sites according to Hitwise and ComScore in almost
every market in the US except Houston
• Ratings of agents
o Over 70,000 agent reviews by consumers
• Source for housing articles in Wall Street Journal and USA Today
• Achieved $1 Billion market cap
• 1/2 of agent leads may not be responded to
• Zillow gives consumers what they want
• Zillow is Innovative

56. Internet Information provider that
we call “Desired Monopolies.”
Well, your average realtor (we interviewed several as part of our
research for this report) doesn’t quite “hate” Zillow, but the
realtor-Zillow relationship is complicated. Realtors generally
admire Zillow’s web site and its ability to efficiently (and
prettily) provide a wealth of real estate information.
However, realtors loath Zillow’s price estimates, invariably
describing them as wrong and bemoaning the friction they
cause when prospective clients cite them, only to have the
realtor "set them straight" with local knowledge Zillow never
catches.
But the biggest thing realtors hate about
Zillow is that ... they don’t own it.

57. We can’t resist Zillow’s free, voyeuristic window into our neighbors’
homes, what they paid for them, and what they’re worth now. Zillow’s official
business model calls for signing up more subscribing real estate
agents, facilitating more mortgage originations, and selling more of its highly
targeted advertising.
Overlaid graphically data on the classic Zillow aerial presentation :
Crime statistics
Health statistics
Immunization rates at schools
Sewage treatment plants overlaid with arrows representing the predominant
wind direction
If Facebook charts our social graph, then Zillow clearly has the lead in
charting our environmental graph. And as a Desired Monopoly, Zillow can be
the trusted middleman, aggregating nice-to-have information into a must-
have whole.

58. By only pursuing “sustaining innovations”
that perpetuate what has historically helped
them succeed, companies unwittingly open
the door to “disruptive innovations”.

59. Providing Consumers What They Want
Sold Prices & Dates
Listing History(Price Reductions)
Days on Market
Nearby Homes for Sale
Nearby Homes Sold
Price Estimates & Trends
Contact a Buyer’s Agent
Post Homes for Sale
Compilation of Features from Above Websites