Simon Baker, the ex-CEO of REA has invested in bringing the Nestoria property portal to Australia. Nestoria.co.uk is the 4th most popular real estate site in the UK.

There are some interesting connections going on here. Firstly Nestoria is an aggregator of property listings. They receive listing data from a range of other companies. Ultimately they are just a listing service for other portals and real estate groups to display their property on. They compete for the eyeballs looking for real estate and then distribute them to other “destination”.

They specialise in creating a better and more simplified user experience. Nestoria also offers a range of widgets and an api for third party webmasters to utilise their data and embed functionality in their website ultimatley driving traffic back to Nestoria.

If this all sounds familiar it is and that’s because it is basically Google’s model to Real Estate although there are of course still some differences. Nestoria’s user interface is far better than Google’s minimalistic mapping approach but Google also brings synergies with its search integration that Nestoria can’t offer. Another difference is that Google’s income stream is through the display of ads on every page whereas I believe Nestoria is charging the data providers for generating traffic.

Now Domain has signed up as one of the foundation partners for Nestoria. That seems a little hypocritical when you consider that Domain has not partnered with Google over their real estate solution. Domain obviously does not have an issue with the aggregation model itself more the fact that Fairfax is a huge user of Google for its advertising products and thus they believe it should not be interfering in their “space”. Clearly they dont have those issues with Nestoria.

So what we have is the ex CEO and still a major shareholder of the Australian number one portal doing a joint venture (or white labelling) with the UK’s 4th largest portal to create a new Australian portal and partnering with Australia’s 2nd largest portal and others to generate them more traffic. Confused yet?

Something has obviously changed in Simon Bakers thinking. As the man behind REA’s stunning success he operated a strictly subscription based portal that now talks about increasing their “share of wallet” from real estate agents. At the end of Simons reign at REA it was a truly corporate beast complete with executive and middle management levels and a huge administration and sales force.

Nestoria on the other hand is a lean mean fighting machine that operates on minimal overheads and uses smart user friendly design and SEO to create substantial traffic.

Only days before Google launched the first stage of their Real Estate solution Simon was publicly stating on his propertyportalwatch.com blog that Google would not be effective and not enter the mix. In contrast we have him behind a remarkably similar portal whose current partnerships are actively working against his previous employer and his substantial investment in REA.

So can Simon Baker make Nestoria.com.au a real contender in the real estate space? Yes I think he can.

Nestoria certainly has a good pedigree and an established and proven site design, user interface combined with widgets and an api. Simon also brings a wealth of experience to the table and the combination should certainly provide some fireworks.

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Although the Gold Coast is not a capital city it is still the 6th largest city in Australia. The Gold Coast Bulletin is a daily News Ltd Newspaper that services the city. The weekend real estate section is the cash cow for the Bulletin and every saturday it dwarfs the rest of the paper combined. At its peak it can be close to an inch thick. This real estate section is cobranded Realestate.com.au in print just like many other News Ltd papers around the country.

Unlike Brisbane, Sydney and Melbourne we do not have a network of a regional or community based newspapers who focus on real estate providing pressure on the Gold Coast Bulletin. The southern end of the Gold Coast does have an independent in there providing competition but in the central and Northern parts of the Gold Coast the community newspapers are owned and operated by the Gold Coast Bulletin themselves. As you can imagine they provide virtually no market pressure to their parent company.

The Gold Coast Bulletin use to operate the website www.gcbulletin.com.au but in recent times they acquired the premium domain www.goldcoast.com.au which they have setup as portal. News features heavily on the site as you would imagine but there is also a substantial amount of other content such as locality guides, tourist information, accommodation bookings and much much more. The www.goldcoast.com.au website is clearly labelled “Copyright 2009 News Limited” and branded with the News Digital Media logo.

The portal also features a suburb profile on every Gold Coast suburb complete with suburb description, demographic information and property statistics. Included on the pages is a Google Real Map displaying properties for sale on Google Real Estate. There is absolutley no mention of the RealEstate.com.au connection at all on these pages. In fact links on the page to “All Properties For Sale” are linked to SuburbView.

The lack of Realestate.com.au branding on the site is really confusing considering their alliance and the fact that News Limited is a major shareholder in REA. Google Real Estate Maps on a News Limited website is a perfect example of how Google is making inroads into the industry because the top two portals are stuck in their old ways of doing business.

The web designers naturally wanted to add rich content for their website showing off property for sale in each suburb of the Gold Coast and realestate.com.au (or domain.com.au for that matter) dont offer any tools, widgets or api’s for websites to integrate their data, even sister websites in the same stable. But Google does so rather than have nothing they chose to use Google!

Gold Coast subscribers to Realestate.com.au who dont have their properties on Google Real Estate should be more than dissappointed.

Red faces all round I bet!

This again highlights the necessity for the top 2 portals to stop being so myopic and provide widgets and api’s for other websites to use which is something that we talked about a lot over the years here at Business 2.  Real Estate Agents, community websites and other local businesses would appreciate the opportunity to integrate property information into their website using these sort of tools. As far as I can see everyone is a winner in this sort of relationship which is why it is has been so popular with a range of websites including US real estate portals like Trulia and Zillow.  Apparently some News Ltd web designers would appreciate the opportunity as well!

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Slowly but surely Google Real Estate is making inroads into the Australian real estate market with the recent signing of LJ Hooker on top of most of the major players in real estate in Australia. It will take longer for all of the smaller independent agents to come onboard, however it is clear that this is the beginning of a new era and it is time REA and Domain stepped up to the plate and opened themselves up to the Google way of life!

Why? Because not doing so will slowly end their dominance and when the decline occurs it will be so fast that no maneuvering will make a difference.

Some may argue that Google Real Estate has not made a difference as yet, but these people live in complete denial and it will only be a matter of time before visitor numbers begin declining and Google Real Estate begins its upward March.

Remember, Google only has to get comparative data to make a difference. Google also have a far greater capacity to let people know about it than all other real estate portals in the world combined.

Recently a number of videos have been produced that well and truly show how serious Google is about maps and real estate.

Finding a house on Google Real Estate Maps

Here is one to showcase real estate listings throughout Australia

Here is one on how to refine your real estate search on Google Real Estate.

Real Estate API’s
Realestate.com.au and domain.com.au must open their databases up to the general public to create a whole new wave of web and mobile applications.

I have been pushing API’s with these portals for over 2 years and yet we still have nothing. Maybe Realestate.com.au’s big announcement will include an API?

What can an API do?
As an example any website would be able to carry listings through this API, so community websites, industry websites, councils, agents, even business2.com.au would be able to carry listings, sales data etc. Portals do not need agents permission as agents have signed away all rights to the data when they join these sites.

Signing up should be simple and approval rapid and it should be accompanied by rapidly evolving documentation and examples.

Boon for portals
One other thing we will see is innovation across the board, even things we have not even thought of will take us by surprise, but the biggest boon will be for the portals. It will extend their listings and sales data reach and allow that data to be ingrained across 10′s of thousands of websites across Australia and the world.

Versions
There should be two versions of the API, the free version which carries 3rd parties adverts from the portals and is a little limited and then a paid version that carries no advertising and allows the user to do whatever they want with the data!

Flow on
The flow on effect of this will flow across the industries to jobs, cars and classifieds.

Will this happen?
Don’t hold your breath, large organisations are slow at moving on these opportunities, usually waiting until it is too late. We are fast approaching a time where I think realestate.com.au and domain.com.au will start going backwards unless they really innovate with API’s.

One only has to look at the music industry and the movie industry to see how stubborn incumbents completely ruin their own industries by not embracing and innovating.

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One of the big complaints by real estate agents when the Google Real Estate service started up was that the 2nd and 3rd tier real estate portals were actively pushing the agents properties to Google as well. Agents where uploading property portals like Homehound, Myhome and Onthehouse who were then turning around and re-uploading the same properties to Google

When several sources upload the same property to Google they apparently use the Pagerank system to work out who is the default page to display. Whilst all options are available when you press the “more info” option the majority of the traffic would be to the default link and in most cases the default link is not back to the agent, but to one of these portals. Ideally an agent wants this traffic to come back to their own website.

Many agents found the only way to guarantee their own link was seen on Google Real Estate was to stop uploading to these free portals. This was a little bit like cutting your nose off to spite your face. The free portals might not bring you the same enquiry levels as the top 2 subscription portals but as a value proposition it’s hard not to use them. It really became an either/or situation and unfortunately for the Free portals the power of Google’s reputation won out and they were shut off by an increasing number of agents.

We currently use Portplus and it’s as easy as unticking a box to shut off a feed to one of these portals.

There has been enough agents switching them off that Homehound now offers the option not to re-upload your properties to Google if you ask them and Myhome should have the option in place by next week.

If your considering canceling the free portals to improve your own results on Google Real Estate then I would suggest you give them a call first. Now you might be able to have your cake and eat it too!

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I recently wrote about using Google Insights to compare the relative strength of each real estate brand in Australia. I showed how you could compare each brand against each other and how you could also see the strength of each brand across the states.

When I shared this, it was in fact the second way I had found to independently compare the major brands around Australia. As I chose to explore the first option a bit more before writing about it I shared here about the Google Insights method.  It’s now time to share the first method I found which uses Google Maps Real Estate and approaches it on a completely different basis.

Realestate.com.au and Domain will have you believe that Google has only a small percentage of the total number of listings.  From my experience that is not the case and Google has far  more listings than domain and much closer to Realestate.com.au. Back in August I actually spent a bit of time analysing the matter for an article on our agency blog about the subject. In our area at least the numbers were very close.

The one group of real estate agents that  are all featured on Google Maps are the major real estate groups. Now using Google Maps, or even the maps sections of any of the portals you could always view all the properties in an area, but there was no easy way to determine which listings belonged to which agents. Ideally each agency should be in a different colour much like different coloured pins on a large wall map.

In a little know addition to Google Maps you can now plot multiple searches on the one map.  To show you how to do this I have created a video comparing some real estate major brands first in South East Queensland and then scroll  down to the  southern states.

Very soon to be released on the market is a free online tool that will take this concept to a local level and allow you to plot individual offices against each other. You will be able to view the property your agency has in one colour and listings for sale each of your competitors have in other colours.

*****UPDATE*****

I was just sent this update on the mapping service I referred to above. This will go down to the local agent level and allow  you to identify hot spots and opportunities and will provide excellent market intelligence for the agents that use it right.  I believe the service will be free with possibly some advertising on the side and your settings can be saved so you can look at it live any time you want.  More details when it launches and I think that is goign to be early next week.

In case your interested we (Nerang First National) are the green, LJ Hooker Nerang is the Red and Ray White Nerang is the blue. There are about another 7 other agents in the area but ourselves and Hookers are the dominant market players.

Click to Enlarge

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