3. 1. The MLS Becomes a Public Utility
House Financial Services Subcommittee
on Housing and Community Opportunity
“The Changing Real Estate Market”
July, 2006
4. 1. The MLS Becomes a Public Utility
“Second, because the MLSs
and Realtor.com so dominate
listing services, they function
as a near-monopoly and
should be regulated as a
public utility.”
Stephen Brobeck Executive Director
Consumer Federation of America
9. 1. The MLS Becomes a Public Utility
“The absence of relevant data for
use in RMBS modeling left the
credit rating agencies unable to
accurately predict mortgage
default and loss rates when
housing prices stopped
climbing.”
11. 1. The MLS Becomes a Public Utility
No National Coverage
12. 1. The MLS Becomes a Public Utility
Powered By
13. 1. The MLS Becomes a Public Utility
‣ Detailed listings data for everyone!
‣ Pay to use; get paid to add (see, electric
utilities & solar power)
‣ Rules & fees set by government regulators
‣ Compliance a matter of law
‣ No cooperation and compensation
15. 2. Realogy Acquires Zillow
vs.
Market Cap Market Cap
$6.35 billion $1.84 billion
Revenues Revenues
$4.7 billion $116.8 million
Core Operating Cash Flow Core Operating Cash Flow
$593 million* $32.3 million
* I estimated this figure in my premium Report on Realogy
17. 2. Realogy Acquires Zillow
+
Unparalleled footprint 50 million monthly uniques
Strong management Enormous technology
track record capabilities
Core part of industry; 30% of GCI Model
ultimate “insider” (see relocation)
* I estimated this figure in my premium Report on Realogy
18. 2. Realogy Acquires Zillow
‣ Massive recruiting & retention advantage for
Realogy companies
‣ Syndication no longer an issue
‣ Realogy gets more “broker leads” for
overrides & Zillow gets relocation-type
referral revenues
‣ Veteran leadership, meet brilliant young
entrepreneurs
21. 3. WalMart Realty Expands
‣ 2013 Forecast for Existing Home Sales:
4.98 million sales
$173,600 median price
‣ US Housing Market = $864 billion
‣ Industry GCI (@6%) = $51.84 billion
22. 3. WalMart Realty Expands
‣ NRT is largest brokerage in the U.S.
‣ 710 offices with 41,300 agents
‣ 289,409 closed sides in 2012
‣ $3.4 billion in revenues in 2012 (7.8%)
23. 3. WalMart Realty Expands
‣ 2.2 million employees
worldwide
‣ 4,637 stores in the US
‣ 100 million customers
every week
‣ Has brokerage licenses
25. 3. WalMart Realty Expands
walmart data center Area 71
colorado springs Caverna, MO
‣ World-class information technology
‣ Big Data & Predictive Analytics
‣ In 2004, WalMart had 460 terabytes of data
(twice the size of the Internet)
26. 3. WalMart Realty Expands
+
How’s that for a discount brokerage?
‣ Footprint + Technology + Management
‣ Dominant Cost Competition Advantage
