KW’s Abrams: ‘No one should get angry if they have more choices’

The debate over listing ownership and distribution reached a fever pitch this week when Zillow debuted its pre-marketing platform, aptly named Zillow Preview. Texas-based franchisor Keller Williams was the first in a group of brokers to roll out the product to its agents, with KW executive chairman of the board and co-founder Gary Keller saying it was about respecting the seller’s choice while maintaining market integrity.

“If this approach ultimately helps sellers generate interest early, helps buyers discover homes earlier, and respects the role of the agent, then it represents a constructive step forward,” he said of Zillow’s pre-marketing system in an Inman op-ed. “And I applaud that.”

Jason Abrams, KW’s head of industry and learning, said the company’s affiliates were early excited about the opportunity to soon launch listings on Zillow, even navigating some difficult feelings agents have about the portal’s place in the industry.

“I think the views around Zillow vary. But what doesn’t vary is that everyone likes being able to make their own choices,” he said. “And I think the reason this has been received overwhelmingly positively is because we leave it up to the local market center owners to decide with their agents whether this program is right for them. And then they leave it up to each agent and their salesperson to decide whether Preview is right for their customized marketing plan.”

“And no one should be upset by having more choices,” he added. “I’ve received texts and emails from real estate agents, not at Keller Williams, saying, ‘Oh my gosh, we need that program. How can we get involved? Should we join Keller? How does it work?’ And when that starts to happen, I know we’re on the right track.”

The following conversation has been edited for length and clarity.

Inman: Let’s jump in. You shocked the industry this week with the Zillow Preview partnership. And one of the first questions that came to mind was why your team hasn’t built its own platform similar to Howard Hanna’s HannaList. KW certainly has the resources to do that. What made partnering with Zillow the better path?

Abrams: Well, thanks for asking. I think if you get to the point where you (and your seller) believe it makes sense to market an ad in preview status, then the logical next question is, “Why are you doing it?” The reason you do this is to draw as much attention to the property as possible before it goes live. And then you asked, ‘How would I do that?’

And the answer goes to where most consumers look. If you look at Zillow, you’re talking about 220 million visitors on a monthly basis. So I think it’s cool that some other companies are working with number 3, number 4 or number 5 [portal] or all three added together. But it’s so much cooler if you can work with the number 1 and draw the most attention to the property.

Zillow worked on Preview for about six months. Where did KW become involved in that process? What questions did your team ask about the platform and how it worked? Mainly to make sure it complies with local MLS rules.

I don’t think there’s anything new about previews or upcoming entries. If you look back, Zillow tried that in 2014. Real estate agents have been doing it since the inception of the MLS in the 1990s, and even before that.

We have always looked at every piece of marketing a real estate agent can do. As the industry conversation intensified, we may have perked up our ears and asked a simple question: “If an agent wants a preview as part of their marketing package with their seller, what is the best way to deliver it while adhering to all MLS rules?” I think this is a slightly different question than some others ask.

But we believe that if you join a network, you should follow the rules of that network. And we’re big supporters of the MLS and of sellers and agents making choices that are best for their clients. The good news is that Zillow is too.

So, Gary [Keller] wrote an op-ed for Inman mentioning the Compass-Redfin partnership, saying, “TThe conversation is no longer about private mentions. It’s about how ads are distributed.” With that in mind, what do you think are the most important questions that franchisors, brokers, agents and MLS leaders need to think about and ask themselves when it comes to how listings are distributed? Who do you think has the final say?

I think all of these conversations need to happen at the local level and real estate agents and their agents need to be involved. And [the answers] should always be that way in the end [based] in what is in the best interests of buyers and sellers. No. 2: If they are members of MLS, they should insist that MLS enforce all its rules equally for all brands. And No. 3: If the MLS enforces its rules equally for all brands, help create the rules that will best serve your customers.

In terms of local MLSs, there’s been a lot of talk about consolidating the system – whether that’s going to a more compact system of – and I’ll throw out a number that was proposed at ICNY: 25 MLSs or having a national MLS.

How do you think the wave of pre-marketing partnerships will impact this conversation? And how specifically does KW think about what the MLS system should look like?

To be honest, I don’t know that this discussion is anything new. You’ve already seen some MLSs that have become regional MLSs. Look at Bright, for example.

And yes. And I believe that the vast majority of MLSs, as they are set up, offer sellers maximum flexibility and agents the ability to create their marketing plan as they see fit, when the MLS enforces all their rules equally for all brands.

And I believe that because the MLS system, as we have it now, works so well, the United States is the envy of the real estate world for its transparency in housing. Yes. It is only when the rules are not enforced equally and one group decides to stop following them that we have a real problem.

Mhmhm.

And here’s the good news. I can rest easy because I believe the MLS is very aware of this and is working hard to do the right thing.

Let’s talk about MLSs that enforce all their rules equally. How would an MLS be held accountable?

To be honest, I’m not sure. Because all of these MLSs are local, and because there are so many of them, I think they each have their own accountability systems. But I would like them all to be working on that in conference rooms right now. This creates a stronger real estate sector.

Thank you for being candid with your response. What role do you think brokers should play within these local accountability systems?

I think if you look at most of these MLSs, they have boards or advisory boards made up of real estate agents and brokers. I think this is an incredible moment for advocacy. There needs to be a wide range of voices at the table. But all those voices should have the same goal: a fair and balanced outcome.

Life isn’t fair, but everyone wants to be treated fairly.

Yes, things aren’t always fair. But how does that shape this overarching conversation the industry is having about listings: who owns the data, who gets to decide how it’s shared, and so on? Some people talk about it as a zero-sum game; Others see a path where everyone can win. And you?

I’m so glad you asked. When the consumer wins, we all win. So, more often than not, having the most visibility around a listing benefits the home seller. And it can benefit the home buyer to be able to see all the available inventory. And when these groups benefit, brokers win too. I like this system.

As long as the rules on the books are enforced equally across all brands, and rules you’re not going to enforce are removed, and everyone has a level playing field, it’s the best system in the world, bar none.

Email Marian McPherson