HAR President and CEO presents on the different disruptive forces impacting the real estate industry at HAR's Strategic Leadership Conference.

1. Disruptive Forces Impacting The
Real Estate Industry

2. Disruptive Forces
207 Cities
45 Countries
33,000 Cities
192 Countries
1 Million Listings
100 Million Consumers
103,000 Premier Agents
31,000 Restaurants
62 Million
Subscribers
+50 Million
Users

3. Disruptive Forces Impacting The
Real Estate Industry
1 Regulatory Pressures
2 Wall Street Influence
3
Internal Forces –
Organized Real Estate
4 Market Forces – The Portals
5
Changing Consumer Demands
& Agent Behaviors

4. Regulatory Pressures
CFPB – Lenders, Title, Appraisals, Brokers

5. Regulatory Pressures
Employee VS. Independent Contractor

6. Profitable
Accountable
Innovative
Wall Street
Influences
$450M $7.3B
$4.9B $5.6B
$318B

7. Internal Forces –
Organized Real Estate
AMP
• A parcel-centric database to power MLS services
Upstream
• A single point of listing entry, management, and
distribution for brokerages-powered by the RPR
platform

8. Internal
Forces –
Organized
Real Estate

9. Internal Forces – Organized Real Estate
NAR Core Standards
MLS Consolidation

10. Internal Forces – Broker Public Portal

11. Market Forces – The Portals
Combined $150,000,000 Advertising Impact
realtor.com The Zillow Group

12. Market Forces – The Portals

13. Austin, TX Key Measures – Local Market
Geography : AUSTIN, TX
Time Period : July 2015
Target : Total Audience
Key Measures (Local Market) Media : Real Estate [Undup.]
Real Estate [Undup.] Date : 8/28/2015
©2015 comScore, Inc
Media
Total Unique
Visitors (000)
Total Minutes
(MM)
Total Visits
(000)
Average
Minutes per
Visit
Average Visits
per Visitor
Total Internet : Total Audience 1,045 2,064 80,144 25.8 76.7
(u) Real Estate 410 31 3,721 8.4 9.1
1[P](U) Zillow Group 188 4 992 4.5 5.3
[M](U) ZILLOW.COM 163 3 865 3.3 5.3
[M](U) TRULIA.COM 108 1 316 4.6 2.9
2[P](U) Realtor.com Network 72 3 253 10.1 3.5
[M](U) REALTOR.COM 70 3 248 10.1 3.6
3[P](U) RentPath Network 26 0 35 4.4 1.4

14. San Antonio, TX Key Measures – Local Market
Geography : SAN ANTONIO, TX
Time Period : July 2015
Target : Total Audience
Key Measures (Local Market) Media : Real Estate [Undup.]
Real Estate [Undup.] Date : 8/28/2015
©2015 comScore, Inc
Media
Total Unique
Visitors (000)
Total Minutes
(MM)
Total Visits (000)
Average Minutes
per Visit
Average Visits
per Visitor
Total Internet : Total Audience 1,340 2,485 96,119 25.9 71.7
(u) Real Estate 440 19 4,016 4.9 9.1
1[P](U) Zillow Group 211 8 1,710 5.0 8.1
[M](U) ZILLOW.COM 173 5 1,507 3.6 8.7
[M](U) TRULIA.COM 103 2 356 6.5 3.5
[C](U) TRULIA.COM Rentals 26 0 78 4.4 3.0
2[P](U) Realtor.com Network 88 3 505 6.5 5.7
[M](U) REALTOR.COM 85 3 495 6.5 5.8
3[M](U) ForRent.com & Homes.com Network 55 0 126 3.5 2.3
4[P](U) RentPath Network 44 1 124 5.1 2.8
5[P](U) Apartments.com Sites 35 1 122 4.5 3.5

15. Geography : DALLAS-FT. WORTH, TX
Time Period : July 2015
Target : Total Audience
Key Measures (Local Market) Media : Real Estate [Undup.]
Real Estate [Undup.] Date : 8/28/2015
©2015 comScore, Inc
Media
Total Unique
Visitors (000)
Total Minutes
(MM)
Total Visits
(000)
Average
Minutes per
Visit
Average Visits
per Visitor
Total Internet : Total Audience 3,912 7,148 279,048 25.6 71.3
(u) Real Estate 1,231 47 9,733 4.8 7.9
1[P](U) Zillow Group 561 16 3,501 4.5 6.2
[M](U) ZILLOW.COM 450 11 2,992 3.5 6.7
[C](U) ZILLOW.COM Rentals 82 1 389 1.9 4.7
[M](U) TRULIA.COM 230 4 796 5.0 3.5
[C](U) TRULIA.COM Rentals 33 0 86 2.6 2.6
[M](U) HOTPADS.COM 32 0 59 5.4 1.9
2[P](U) Realtor.com Network 278 10 1,498 6.6 5.4
[M](U) REALTOR.COM 251 9 1,468 6.4 5.9
3[C](U) Yahoo Real Estate 104 1 182 7.2 1.7
Dallas/FT Worth, TX Key Measures – Local Market

16. Geography : HOUSTON, TX
Time Period : July 2015
Target : Total Audience
Key Measures (Local Market) Media : Real Estate [Undup.]
Real Estate [Undup.] Date : 8/28/2015
©2015 comScore, Inc
Media
Total Unique
Visitors (000)
Total Minutes
(MM)
Total Visits (000)
Average Minutes
per Visit
Average Visits per
Visitor
Total Internet : Total Audience 3,325 5,672 237,645 23.9 71.5
(u) Real Estate 1,222 92 12,231 7.5 10.0
1[P](u) HAR.com Network 483 22 2,134 10.3 4.4
[M](u) HAR.COM 482 18 2,066 8.5 4.3
[M] HARMLS.COM 50 4 438 9.5 8.8
2[P](U) Zillow Group 453 20 3,789 5.3 8.4
[M](U) ZILLOW.COM 393 17 3,726 4.5 9.5
[C](U) ZILLOW.COM Rentals 75 1 292 3.7 3.9
[M](U) TRULIA.COM 157 3 667 4.9 4.2
[C](U) TRULIA.COM Rentals 53 1 182 6.9 3.4
3[P](U) Realtor.com Network 246 21 2,040 10.1 8.3
[M](U) REALTOR.COM 220 20 2,037 9.9 9.3
4[M](U) ForRent.com & Homes.com Network 146 2 314 5.8 2.2
Houston, TX Key Measures – Local Market

17. Rank Website % of Texas
Visits
1 Zillow Group 28.50
2 Realtor.com 10.19
3 HAR.com 6.77
Texas Real Estate Visitors – July, 2015
(Source: Hitwise)

18. Changing Consumer Demands & Agent Behavior
90% of consumers want agent ratings.
1 Million
Agent Reviews
5,142 Agents Survey Clients 4.94/5.00
Total Surveys Sent to Clients 215,773- 54% Completed

19. Changing Consumer Demands & Agent Behavior
96% of consumers
want to view agent production.

20. Changing Consumer Demands & Agent Behavior
Consumers want home values.

21. Changing Consumer Demands & Agent Behavior
92% of consumers want transaction management.
$108 Million Costs
162,118 transactions opened in SureClose

22. Changing Consumer Demands & Agent Behavior
NAR
$155 (Y) x 1,000,000 =
$155,000,000
Zillow
$4,200 (Y) x 103,000 =
$432,600,000

23. Changing Consumer Demands & Agent Behavior

24. • High def images of homes
• Video in new Zillow TV
Channel
• New Apple TV available in
October
Changing Consumer Demands & Agent Behavior

25. Disruptive Forces
Regulatory
Pressures
Wall Street
Influences
Internal
Forces –
Organized
Real Estate
Market
Forces – The
Portals
Changing
Consumer
Demands &
Agent Behaviors