A look into the current LoopNet concerns, reactions, and alternative online real estate marketplaces to consider.
In this article:
- Reactions from LoopNet Competitors and More
- How People Reacted to My LoopNet Post
- LoopNet Alternative You Can Look Into
My LoopNet Experience | The LoopNet Story
A few months ago I wrote about a disturbing trend of posts I was seeing on various portals regarding LoopNet’s recent price increases. My objective was not to lead a revolt — but simply to let the brokerage community know you are not alone. Others are also frustrated with the lack of competitive alternatives in the property data industry. At the same time, I thought just maybe my message would get to LoopNet (and by matter of affiliation, CoStar.) And, just maybe they would tune into what their customers are saying, before their customers tune them out.
Reactions from LoopNet Competitors and More
While I certainly expected some feedback, the amount of feedback received far exceeded my expectations. The comments shared on my post (and with me privately) came from: frustrated brokers, clients, peers, the general brokerage community, possible LoopNet competitors, and yes — even CoStar.
How People Reacted to My LoopNet Post
Once again, the brokerage reaction was strong – in both directions. Sample posts include:
- It’s a good business model. Don’t knock it!
- I use it because I have to. We get fewer leads from LoopNet every year.
- Nobody who relies on any Internet service to conduct business can control outcomes, which is truly what our clients deserve.
- Yes, seriously. LoopNet’s info in our region is so old and inaccurate it’s laughable. I can count on one finger the number of times that I received an inquiry on listings that I posted…and that was before and after CoStar bought them.
- Our industrial division lists a ton of property, and our projected LoopNet costs for the industrial group have tripled with the new pricing. They now count a property that is for sale and lease as two listings, among other things.
LoopNet Alternatives You Can Look Into
Which brings us to the competitors (or at least wannabe competitors) that have offered readers an alternative. Note, I am not endorsing any of these, and know little about them — I am simply sharing the posts.
- NAR has a free software system real property resource, but commercial brokers don’t use it.
- Yes, we are mad as hell and I don’t see how that business model is sustainable. We are switching to CREXI.
- The investor deck for ApartmentBuildings.com will be completed this week. We will be raising capital starting next week.
- Shameless plug: QuantumListing.com
- Realnexmarketplace.com. Free list and search. Incredibly advanced marketing, dashboards, CRM and deal room integrations.
Should you be using LoopNet? Here’s a video on the topic by US Prime Lending:
There is no doubt that CoStar and LoopNet provide a service to the commercial real estate brokerage community. The value of their services is measured by what folks are willing to pay. As of now, they remain the king of the road — albeit, a road with seemingly only one lane.
To join other dedicated commercial real estate brokers and agents, you can visit our private Facebook group, CRE Mastery.
Get known, connect instantly, and win more business! In this webinar session, Bo Barron will show you how presence, a great value proposition, and a targeted prospecting campaign can grow your business without chaos! You can watch the webinar here.
Up Next: CRE Community Reacts Strongly to CoStar’s TKO of Xceligent
Editor’s Note: This article was originally published on May 15, 2018, and has been updated for quality and relevancy.
9 Responses
Worst buyout I’ve ever seen. Less service, fewer tools available, triple the price. Wish there was a viable alternative for prospects (not brokers) to use.
CoStar for 3 is cheaper than LoopNet for 1; and everything a broker needs is on it, unlimited access vs 15 premium
Recent LoopNet searches have revealed a banner that reads something to the affect POTENTIAL COMMISSION, with an associated $ amount. IMO, this calculation is how they are justifying all their increases and even emboldened them to do more. It’s troubling for a few reasons: Most of us are IC’s and a transaction commission supports the infastructure, which we all know is substantial. For LoopNet to suggest that it is their vehicle that supplies this commission is very troubling. Next again IMO 90 % of all LoopNet leads I receive are not represented by another broker , which they THINK means more commission, but IRL they are 99% a total waste of time. Experience has revealed again IMO, that customers represented by a Broker are better prospects period. Someone like Google needs to step in give this monopoly competition. It’s scary.
I find it disturbing that as a past Costar user (and present) that I must also subscribe to Loopnet to try to get the most up to date complete listings. I owe diligence to my clients but should not have to pay twice for incomplete information.
We’re all entitled to make a living, including Loopnet / Costar. I wish them well. Every person I ever met with that organization was kind and helpful. However raising my rate from $320 to $2,150 a month (an increase of 571% that doesn’t even cover all of our listings) is leading me to other solutions.
In a weird way I am probably grateful. I now have the opportunity to learn all about SEO. I get to research all of the other listing platforms. And most of all I have the profound proudness that I was able to help such a worthy organization build such a profitable business based on my information.
I have been a premium member of Loopnet now since 2004. It’s absolutely offensive to me the way they have handled their pricing increases without adding any extra value. They wanted to charge me double for one listing because it happens to have two addresses. Unbelievable! I am moving all of our business to CREXI(and others out there), which offer a much better platform for marketing. As a matter of fact, I put the same property on CREX that Loopnet wanted to charge me double for and guess what…I received two leads from Loopnet and over 150 from CREXI. The CREXI leads have since turned into a successful sale of the property.
We need some company to compete with them!
Every commercial broker I know is frustrated with Loopnet/Costar. When loopnet was independent they provided an excellent service at a reasonable price. Since they merged, the prices have skyrocketed and the data is still not that accurate. I was adding a commercial listing a few months ago and after filling out the info (price was not yet disclosed-already had listings there) I had a price that was 3x what I was paying for a similar listing with the same exposure. So, I cancelled the process and literally had a call within 3 minutes from a sales rep and the matched the old price after I threatened to stop sharing data with them.
Loopnet had modern and great looking reports and you could easily generate a report to give to a client. Now we are forced to use a clunky Costar interface that was designed 20+ years ago and is not nearly as good. The least they could do is copy the loopnet reports and make them available. I suggested this to them. I also sent a scathing email to the president about removing the loopnet comps and property data and actually got a call back from someone in charge of my region.
Loopnet raised our annual subscription 250%, many had price increases much more severe. After reading through the Terms and Conditions, I found this gem, “For yearly subscriptions, Loopnet may increase subscription prices annually, on the anniversary of the subscription’s start date, by a percentage equal to the percentage increase in the Consumer Price Index”. To me this says very clearly that if you have an annual subscription then the most they can increase your price is We have an annual subscription and what they are doing violates their own Terms and Conditions.