A guest post from Tim Fagan, CEO of HomeFinder.com

A while back I was in the audience at an industry conference when a woman on stage asked this question: “At the end of the day, do any of these online real estate companies really help anyone buy or sell a home?”

My initial reaction – as someone running one of “these” companies – was to dismiss the question as gratuitous, and dead wrong.

She’s just trying to provoke the audience. We provide all kinds of information on our site – of course we’re helping. And that’s what a REALTOR is there for anyway. So what’s the problem?

But the question kept creeping back into my head in the following weeks, prodding me to dig deeper into our value proposition and think about what it would take to answer “yes,” unequivocally.

How could we at HomeFinder.com – and, for that matter, my colleagues and competitors elsewhere in online real estate – provide a more essential service? And while our REALTOR partners would always be the ones who would get properties bought and sold, what could we do to help them get to that goal more efficiently?

Doing this, of course, would not be easy. The online real estate category is a crowded place. Consumers can view listings on myriad sites, all of which offer functionality that is strikingly similar. A set of standards and best practices has emerged as a result – which is good – but with that comes a pressure to stick to proven formulas, familiar features and accept assumptions as to what an online real estate site should and should not do. And that can be quite limiting.

So how do we move forward? I don’t have clear answers yet, but here are some things I believe to be true:

We need to take more risks

This sounds trite, but it’s true. When is the last time an online real estate company did something that made you think, “Wow, that’s gutsy?” Putting real estate listings online in 1994 was gutsy; Zillow took a big risk offering home values online ten years later. But who’s sticking their neck out now? It’s been awhile.

At the beginning of 2009, we expanded from being a technology provider to major newspapers across the country, previously known as Homescape, to rebranding as HomeFinder.com and growing our business to become a world-class home search and information site. While this is a goal we continue to strive toward, the HomeFinder.com name change was both a catalyst and reminder of not only what our site and our competitor sites offer, but also what consumers truly want — to find a home.

Granted, this isn’t Page Six material. But we’re relatively new to the game and that also puts us in a position to more easily escape our own history than others. That’s an opportunity I plan to capitalize on.

Online real estate needs more big moves.

It’s not just about a house, it’s about living a life

Having all the listings – including FSBO’s – is something we at HomeFinder pride ourselves on. But we need to understand that for most people, the house is just part of what goes into a decision to live somewhere.

To make that important decision more effectively, consumers need to get a sense for what lies beyond the four walls of the home they see on the screen. Sure, most sites offer school ratings, basic demographic information and some high-level housing market data.

But today we can go beyond that. The emergence of the “Real-time Web” allows us to capture what’s happening now in any given place, to hear the ambient noise of a neighborhood. The number of new APIs (Application Programming Interfaces) makes exciting mashups of place-based images, video and data possible in ways we could online imagine just a year or two ago.

It’s time to innovate in these areas.

A more effective model: better connect home finders with home sellers

Recently, a small storm erupted over a pornographic advertisement appearing on Realtor.com. While this was entirely inadvertent (apparently the result of an error in their ad serving system) it did underscore a point: The largely ad-based online real estate category often delivers a less-than-optimal user experience.

Ads, featured listings and the like can be quite effective for our agent and broker partners. But for consumers, they often just get in the way.

How can we deliver a better experience that gets consumers where they want to go more efficiently, while also placing our broker and agent customers in the right place, at the right time, on the right platform?

We’re working on some of the answers at HomeFinder.com as I write.

Call to action

In the end, the conference panelist’s question was not an annoyance – it was a call to action. To deliver even more value to consumers and practitioners. To rethink the online real estate formula. To challenge ourselves to question those things we take for granted.

I do not have many answers at this point, just directional notions like those I list above. But I’ll get there.

If you’d like to have your writing featured on FOREM blog, please email us at futureofrealestate@gmail.com

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A guest post from Tim Fagan, CEO of HomeFinder.com

Things were simpler then, more familiar. You knew who to call, what to do and what to expect.

I’m talking about the good old days of real estate advertising.

Back then, you dealt with the sales rep for the local paper over a cup of coffee. Maybe you sponsored a little league team or bought a spot on the back of the church bulletin. And your audience? You could count on them to be in just a few places, at the same times, week in and week out.

Those days are long gone, a fact that has been amply documented. I won’t belabor that point.

The more important question is this: Now that the game has changed, how can we make it simpler for real estate advertisers?

Think about it: The average agent, broker or brokerage marketing director is faced with a panoply of media, formats and creative challenges these days.

On the table are:

• SEM/pay-per-click
• Brand display ads
• Direct response display ads
• Syndication
• Video
• Mobile
• Print

And this, mind you, is a growing list. Video wasn’t there three years ago; mobile wasn’t there just one year ago. Next year you may need to consider your strategy for Tweet ads, or feel pressure to get into the “augmented reality” game.

I know, it’s a little scary. And most brokers, and darn near all agents, don’t have the in-house talent to master all these platforms. Nor do they have the budget needed to hire a digital agency that does.

What to do?

Here are a few recommendations, from both the advertiser and publisher side of the business.

For advertisers (brokers and agents)

When Google launched Adwords back in 2002, thousands of brokers and agents jumped on the opportunity. After all, who wouldn’t explore performance-based advertising?

The problem was few practitioners had the time or skill necessary to optimize an SEM campaign. Results for many were disappointing.

My point: Pick media you are confident you can execute well in. If your marketing department has a good designer, you may want to focus on display ads. If you have a great headline/call to action writer on your team, SEM may be a good choice. If you or your broker performs well in front of the camera, start syndicating video.

Stick to that which you are capable executing well.

Secondly, for digital media, make sure you think beyond the click. By this I mean where the user is taken when they click on your ad. Whether this is a property detail page or a more conventional landing page, you have to make certain you present the user with something that is clear, consistent in message and look with the ad that got them to click, and loaded with a strong call to action.

If you can’t execute beyond the click, don’t bother.

For publishers

We as publishers – those site owners or media channels that sell advertising to brokers and agents – can also do our share to simplify the advertising ecosystem.

For one, we can offer cross-platform buys. At HomeFinder, we offer national exposure through HomeFinder.com combined with local placement on individual newspaper sites. Brokers and agents like this because it allows them to kill two birds with one stone.

Adwords now has a mobile offering. Several companies are marrying listings syndication with distribution to YouTube.

We are getting there. But we need to move more quickly to offer integrated packages that streamline the process for our advertisers.

Second, publishers should do more to share best practices with their advertisers. Many sales people take a consultative approach with broker and agent clients as far as structuring an ad buy, but I’m talking about something more.

For example, a strong case can be made that any large publisher would do well to hire an in-house marketing specialist available to help clients evaluate creative, craft messaging and optimize landing pages. If that sounds over the top, consider that newspapers sometimes create ads for smaller clients.

Moving forward

We will never again see a world where advertising is straightforward and audiences are concentrated. Our time is one of multiple, often blended, media channels and atomized audiences.

Our aim should be to make that reality more manageable.

If you’d like to have your writing featured on FOREM blog, please email us at futureofrealestate@gmail.com

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I’m slowly catching up from beneath a mountain of interesting news that was announced over the last week.

One such item is that HomeScape has rebranded itself as HomeFinder.com – presumably to respark some enthusiasm for a brand that, for all intents and purposes, has been off most people’s radar for the last few years.

HomeFinder.com is a product of Classified Ventures, the online conglomerate owned by media titans Belo, Gannett, McClatchy, Tribune and The Washington Post. Classified Ventures also owns resurgent HomeGain which, with the help of an orange ape, has successfully clawed back some mindshare from the big Web 2.0 ventures over the last several months.

HomeScape flew under the radar for a while since it was largely in the business of powering real estate website for newspapers, which included the Chicago Tribune, the LA Times, Newsday and The Arizona Republic.

But with the rebrand to HomeFinder.com I suspect it means the company intends to double-down and focus on building out the portal as a legitimate destination for consumer traffic. Indeed, with the help of their media parents’ reach, they could make a serious run at the top 10.

The fact that real estate brands’ ad dollars are now seriously starting to chasing online destinations (see Century 21 Ditches TV for Online) no doubt helped seal that decision.

According to company sources, HomeFinder.com has over 3 million listings, pulled from a mix of MLS sources and broker feeds.  They have over 2 million unique visitors a month — and, of that traffic, much of it is truely unique: 71% of consumers visiting HomeFinder do not visit Realtor.com and 84% of visitors do not visit Trulia.

Nevertheless, the new site is pretty generic; the design is inoffensive, but frankly pretty bland. Compared to Frontdoor (another Big Media play in this space) it lacks a certain splash of personality. However, that said, technically it’s quite competent.

What I’d love to see though is for these big media guys to take a long hard look of some of the innovators that are really pushing the envelope when it comes to search design (Estately for example) and see if there wasn’t a way to marry that technology with their marketing muscle. That would make for a truely interesting relaunch.

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