Update on MS Real Estate Strategy

[The Real Estate Cafe <bwendel@realestatecafe.com>]

Here is the latest on MS' real estate site.  Formerly known as
"Boardwalk" their site has been renamed "HomeAdvisor" and is rolling out
at least seven months behind schedule.  Watch for more news following
the National Association of Realtors mid-year meetings next week in
Washington, DC.

"Microsoft has raised the bar of competition," said Gregg Larson,
co-founder of real estate consulting firm Clareity,
... "They'll be one of the top three brands, and other companies will
have to spend tens of millions to be able to compete. Microsoft will
force the other guys to spend more money or get out."

"Microsoft wants to be the leading source of consumer home loans on the
'Net. They'll become an online mortgage broker and get referral fees --
it's a multibillion-dollar business."

For Full Text see below or original site
http://realtimes.com/rtnews/printrtpages/19980414_microsoft.htm

Bill Wendel
The Real Estate Cafe
221 Concord Ave
Cambridge, MA  02138
(617) 661-4046

Microsoft Preparing $5 Million Ad Campaign for HomeAdvisor

 The rumors have been buzzing for several months now. The real estate
industry surmised that it was just a matter of
 time before Microsoft, the true king of all media, would enter the home
buying process in some capacity,
 undetermined to the rest of the world, but destined to be of epic
proportions. We weren't left in the dark for long.
 Microsoft later revealed -- though not formally -- its plans for the
HomeAdvisor, an online godsend that would guide
 consumers through home-purchase process, connecting buyers with
lenders, agents, builders, and suppliers of
 new-home products.

 "Microsoft has raised the bar of competition," said Gregg Larson,
co-founder of real estate consulting firm Clareity,
 in an earlier interview with Real Times. "They'll be one of the top
three brands, and other companies will have to
 spend tens of millions to be able to compete. Microsoft will force the
other guys to spend more money or get out."

 And although it's early in the game, Microsoft already is beginning to
demonstrate how deep its pockets are. The
 company is spending $5 million on a print, radio, and online
advertising campaign for HomeAdvisor. Yet the
 company isn't spilling the beans on any details of the site.
Microsoft's CarPoint site, however, might give consumers
 an inkling of what lies ahead with HomeAdvisor. The CarPoint site
provides car reviews, pricing data, buying
 advice, and a link to dealers who pay a fee for listings and agree to
sell cars at discounted, no-negotiation prices.

 Larson says Microsoft will not only have to prove itself financially
capable, but also creatively capable of tackling the
 venture it proposes. "The MLSs are running around in circles wondering
if they should trust Microsoft with their
 listings," he says. "Microsoft could eventually cut out the middle man
-- the MLSs -- and strike deals with Cendant or
 RE/MAX, for example. Microsoft wants to be the leading source of
consumer home loans on the 'Net. They'll
 become an online mortgage broker and get referral fees -- it's a
multibillion-dollar business."

 San Francisco-based advertising firm Anderson & Lembke was awarded the
Microsoft account. The advertisements
 are scheduled to begin making their appearance in July. Coupled with an
additional $5 million in new or incremental
 business, the Anderson & Lembke has boosted its Microsoft billings to
an estimated $80 million. A&L works with
 nine Microsoft product groups or divisions.

 So in July, be looking for clues as to what lies ahead for Microsoft.
The company's precedent guarantees it's sure to
 be big. And it's going to keep the real estate industry on its toes.



Written by Courtney Ronan



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