Move cancels 'transformational' venture before it launches
By Glenn Roberts Jr., Thursday, May 8, 2008.Bookmarking Sites
Move Inc., which operates the most highly trafficked real estate search site in the country, reported a $4.6 million net loss in the first quarter and has canceled a project that had been led by the company's former Realtor.com president (watch Inman News for related story).
It has been a tough week in earnings for other publicly traded industry players, too. Yesterday, real estate brokerage company ZipRealty, which has operations in 34 markets in 19 states and Washington, D.C., announced a $7.3 million net loss in the first quarter. And the day before, national online real estate marketing company HouseValues Inc. reported a quarterly loss of $1.2 million.
Move announced in March that Allan Dalton, former president for Realtor.com, had "voluntarily resigned" his position with a secretive venture at Move for which the company had offered only nebulous descriptions during earnings presentations.
So it is perhaps no surprise the company has canceled this venture ... whatever it was. David Lereah, former chief economist for the National Association of Realtors, had also been teamed with Dalton on that venture, which Move officials had at one time referred to as a "transformational" project for the company.
Meanwhile, Move officials announced an upgraded automated home valuation tool that will couple information about active for-sale homes, recently sold homes and the real estate professionals who are selling them or have sold them.
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Submitted by Lenn Harley on May 9, 2008 - 5:34am.
Back in the olden days when Realtor.com was the only game in town, the guys at HomeStore could reach into the cookie jar at will. No more.
With the plethora of home listing sites on line, which was their "hook", this company no longer has the market cornered, yet the insiders continue to get caught with their hands in the cookie jar.
I wonder if the NAR will ever stop propping these guys up and let the market work?
Submitted by Rebecca Levinson on May 9, 2008 - 10:20am.
I have always wondered how a consumer would chose a real estate agent on Move.com. It is hard to find a compelling reason to chose one over the other with the thumbnail lists- unless you happen to just have the right listing. Consumers will still search listings on REALTOR.com because of the wide name branding, but now they will consider other vehicles not they wouldn't have in the past, and when they stumble upon a site that not only has listings but great content and the opportunity to have an engaging conversation- Well- Watch out.
Submitted by Ki Gray on May 11, 2008 - 12:57am.
Its interesting to see more of the big real estate sites losing money. I have felt that investors have been pooring way too much money into these sites. I wonder if sometimes they come to investors and have a line like "erealty" we are a real estate brokerage "online". And investors dont realize that instead of being an innovator they are in a very overcrowded market.
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Submitted by Joe Cline on May 12, 2008 - 8:05pm.
Great article, but better graphic. :)
Joe
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