Complaint Review: HouseValues.com

i found this on stocklemon.

2. We Made a Mistake

In the initial comments, we suggested that with a 6% churn rate per month, the company was losing over 70% of its customers on an annual basis. We are wrong and we stand corrected.

We understated the problem !

A little arithmetic on SOLD's published customer count numbers yields an even grimmer picture of its true business. SOLD reports 15,934 core customers at the end of the September quarter. However, summing the gross number of customers added each quarter over the last year (q over q core customer difference, plus the number of customers churned off), you get 15,615 *** new customers added.
This indicates that essentially ALL SOLD's customers added are running through a revolving door in a timespan corresponding to the 1-year cancellation fee drop-off point.

Essentially there appears to be less than 2% of customers actually retained when the inducement of the cancellation fee ends.

[***] If this math is flawed, please send us a corrected calculation. Until then, we believe this to be correct.

Therefore their growth in revenues is being fueled not by an expanding subscription base of satisfied customers, but rather by pouring nearly 50% of the company's revenues into an aggressive ongoing direct marketing effort (by telephone boiler rooms). Marketing expense is showing no signs of efficiency of scale. Meanwhile revenues show no signs of reaping a recurring revenue windfall.
So instead of weighing the plethora of customer complaints on various sites on the internet against the glowing testimonials on Housevalues.com's website, just listen to the simple truth spoken loud and clear by the numbers. A 98% churn rate does not translate to happy customers.

While it is exciting to see ONE happy consumer of around 26 or so complaints, I have to say to his comments that some realtors are not too bright, that you yourself dont come across too bright... Rick in Concord explains in great detail how the leads are BOGUS... should we all wait for 6 months, 10 months, a YEAR to see that nothing will come of leads that have email addresses such as "BIGDICK4YOU" and phone numbers such as 999-999-9999 turn into viable prospects? I for one never had a legitimate lead with a valid email or phone number... and now I have a collection account and harrassing phone calls DAILY... I would never recommend this service to anyone... I am up for joining any class action suit.

I don't know what this Craig guy is thinking. He was only a subscriber for less than one month. At the rate he is going, i'm surprised he didn't file a report with the FBI. Some real estate agent's aren't too bright so I guess I understand.

Real estate agents are trained to want the sale right away. They fight to get the listing and most often they are conditioned to take the business that is right there and ignore business that is potentially 6 months off. They classify business that is 6-12 months off as a "bad lead" I think the operative word is "Greed". Any professional agent will attest that in order to run a successful business, you need to develop a strong pipeline.

Internet leads are different than conventional lead - and that is where HouseValues market nitch is. What Craig fails to mention is that HouseValues has won many awards, is rated on of the top 50 places to work in the Puget Sound area, rated one of the fastest growing technology companies in North America, and is a member (in good standing) with the BBB. You don't get that far by ripping people off. If you would have done as you were told to begin with, you could have been successful.

Don't bash a company because you couldn't hack it. Just because they offer you something you don't know how to use doesn't mean it's a bad idea. HouseValues has been around for over 7 years - don't think they would be around that long if they were ripping people off.

It is very hard to fight big money and they have lawyers and money to fight, we don't. I will join you in any class action lawsuit if you wish.

How did I get duped into signing a contract that guarantees only housevalues to take your money and keep it with no guarantee of any service? Extortion, false promises, failed product but, they have your money. They also try to get you to pay with other than a credit card and there is a reason for that too. By law you have a certain amount of time to cancel with full refund and a credit card payment can be stopped if services are not provided or satisfaction is not delivered. They are slick in getting around all of that. Any working email account is constituted a viable lead. Leads that by contract are NOT suppose to come until you complete the training AND setup. Hmmm. You must complete the setup online first before the training. This brings in a lead immediately to bind your contract-service provided-no money back. Consumer protection laws require a service to be rendered. Housevaluescontract says once a lead is sent you have been bound by the contract which electronically we signed. Gotta give them them credit for covering all bases quickly.

Fortunately I have it in writing on completion of required coaching/training from the salesperson that was very reluctant to give any info until I talked to him. Yes it would be in writing should he slip up, but I have it. Including the words prospect and exclusive lead Ok interpret prospect. I'm sure the lawyers would say anything is a prospect. I call prospect a verified lead.

But what will hurt them is public exposure. File complaints then take it to the media, NAR and your local board. Expose it at your office and agents you come in contact with. I will take this to our local station that has a consumer division that does expose these types of practices. That alone exposes a companies faults and alerts consumers to have a watchful eye.

As they are not licensed realtors I can slam them all I want without affecting my license. I have a right to voice an opinion and a duty to protect other agents from misleading and deceptive advertising. I have a right to defend and protect and that right was given to me in the form of the U.S. constitution. A contract I did not have to sign with housevalues. I accuse housevalues of deceptive practices. I am suspicious of in house generated leads.

If you are refused a contract in writing and you are refused a money back guarantee (required by law) then caveat emptor let the buyer beware.

I could have brought agents to them and glorified a system that worked and it could. But the system although it could be good is corrupted by greed and deception. Yes slavery is agreed. And slavery is needed to operate. So take away their slaves and you take away their business.

I offered to use the system once they put email verification systems in place (gee they have it when u sign up, but act like they never heard of itwell 1+1 =2 hence a lot less leads to sell means no big bucks) and rewrite the contract to provide a service in a guaranteed way. Can't guarantee a product that is for total gain to the company and fails the consumer. I see only a handful of agents that applaud this place. Many more are appalled by it. I even had an agent from the community board call me and tell me I'm screwed even though he uses it only because he is a top producer making a lot of money and can afford to play with advertising, but agrees new agents will get screwed and totally agreed that he suspects foul play at housvalues.

So file away and contact me. Housevalues knows this is here and can rebutt any statement made. Thieves only protect themselves. Contract should say screw you. I think it does we will immediately charge you 50% upon cancellation

Nicole,
I am a friend of an ex employee at HouseValues.com. This person quit after going through training because they were told to LIE and DO WHATEVER IT takes to get the sale. Basically they want you to sign a year contract. If you press they will do 6 months. The Sales person gets the first months payment as their commission. ALSO, in their contract in FINE PRINT AT THE BOTTOM, you will notice that it states in the event we do not meat the target amount of leads promised, it is UP TO OUR DISCRETION HOW MUCH WE REFUND IF ANYTHING.

How is that for a one sided contract. I actually spoke on the phone with one of their reps and asked about this. I said so how much will I get back. "OH DON'T WORRY ABOUT THAT, I CAN ASSURE YOU DIRTBAGS !!!