CEO of HomeServices on Private Listings: “Is it ultimately better for the consumer?”

Chris Kelly doesn’t buy what Compass sells.

The CEO of HomeServices of America said proponents of private listing networks (PLNs) are not out to help consumers, but to help themselves. He compared the PLN strategy to the TV industry’s streaming model, which forces consumers to subscribe to multiple platforms just to watch their favorite movie or series. Now consumers, once enamored with Netflix, Hulu and HBO Max, long for the days of cable.

“Yes, I think we all pursue our own agenda sometimes,” he said Thursday at Inman Connect New York. “So we were all really excited to cut the cord, right? You probably said to your friend or family, ‘I want to cut the cord.’ Now you have Apple TV, Disney+, Netflix and Paramount… And how many of you are now saying, ‘Can’t someone just bundle these things together?’”

“We’re at the same point, right? We’re going down this path and they’re thinking in the short term, what does it mean for my personal benefit right now if we were to do this with content or do that with content?” he added. “And then I’m a consumer staying in the middle of New York City, Omaha, Kansas City, Miami or wherever… And now I have to go to twelve different places to watch the shows I want or see ads that I think are for sale. Tell me how that puts the consumer first or how that’s a good experience?”

Kelly said he agrees that brokers should try to regain “the leverage” that has been lost over the past 10 to 15 years. But he’s not convinced that private listing networks are the way to go. “Is it ultimately better for the consumer? I haven’t painted the picture yet,” he said.

Engel & Völkers Americas President and CEO Stuart Siegel echoed Kelly’s sentiment, saying brokers have fallen into the trap of ultimately putting transactions over relationships.

“I think sometimes as an industry we move sideways. It’s, ‘How do we get the deal done?’ instead of ‘How do we maintain the relationship with the customer?’”

Kelly and Siegel said technology – another hot topic at ICNY – is an important part of improving the consumer experience.

Inside Real Estate CEO Joe Skousen took over from the duo, noting that 55 percent of all software tasks people do today will be automated. However, he asked conference attendees to think carefully about how they use artificial intelligence, saying most brokers don’t have the financial power to simply throw money at the latest shiny object.

“Finding transformation with technology is all about – coming from the tech person – it’s not just about the technology,” he said. “It’s all about clarity on that strategy, clarity on those metrics, and how the technology will solve that specific problem.”

“And if you don’t know that, you can buy your technology like we’ve been doing for decades and still not solve that problem. That’s your biggest problem: how are you the enemy of yourself?” he added. “Don’t make that clear, and a year from now you’ll be in the same place you are now.”

Skousen said brokers who learn to use AI effectively can triple their productivity this year and lay the foundation for long-lasting consumer trust. Beyond technology, Kelly says the winners of the next generation of real estate will be those who embrace their differences.

“We’ve talked a lot over the last month about industry consolidations and what comes next,” he said. “This is a great opportunity for everyone to be different. The biggest mistake we make is trying to be similar or better than ourselves, or comparing ourselves to real estate across the street, to the brokerage across the street.”

“When I see consolidation happening, that’s homogenization. It spreads the similarity,” he added. “This is an incredible opportunity to be different and discover what makes you different from everyone else. The worst thing you can do is try to be the same as these other three companies or these other three people.”

Email Marian McPherson