Nextdoor Offers Sponsored Real Estate Section
August 8, 2017
The new section is being launched first in 10 markets: Atlanta; Austin, Texas; Dallas/Fort Worth; Houston; Los Angeles; Phoenix; Portland; Sacramento, Calif.; San Diego, and San Francisco. Nextdoor plans to expand to other markets based on demand.
Nextdoor differs from other social networking systems because it provides neighborhood-specific sites that are available only to people who live in the community a particular site serves. Nextdoor cofounder and CEO Nirav Tolia says Nextdoor’s hyperlocal design makes the service particularly useful for real estate marketing.
“Nextdoor is the only [online] place where real estate agents can actually engage with real neighbors,” he says. “It’s similar to sending out postcards, but it’s a lot cheaper.”
Tolia says the real estate section will permit Nextdoor users to discuss homes for sales in their neighborhood, property values, and other real estate–related topics. The section will also connect users with real estate professionals recommended by others who use the site as well as with the sponsor, who does not need to live in the same neighborhood.
Sponsoring a real estate section on Nextdoor will cost between $100 and $1,000 per month, depending on the neighborhood, Tolia says. Initially, only one sponsorship slot will be available per neighborhood, but the company is considering offering multiple slots and using an auction system to determine who will be able to buy them.
Nextdoor currently permits real estate professionals to create a page for their business and use the site in the neighborhood where they live at no cost. For a fee, an agent can associate their listings, open houses, and information about recent sales with their own website and with recommendations from Nextdoor users. Such branded pages cost anywhere from $50 to $100 per month, depending on the number of properties, according to Tolia. More than 22,000 real estate professionals have created pages on Nextdoor since the site introduced the ability to build a business page a year ago, according to Tolia.
Nextdoor, which is privately held, doesn’t disclose its number of members, but Tolia says that more than 150,000 neighborhoods across the United States have established private online communities on the platform, with real estate consistently ranking as one of the most popular topics of discussion. About 30 percent of Nextdoor users log in to the service daily, with 20 percent of members using the service at least 20 days per month. In San Francisco (where Nextdoor is based) and in Austin, the company projects that about 50 percent of households will be using the service by the end of this year. Other areas where Nextdoor has been especially successful at signing up users include Dallas, Seattle, and Houston.
Nextdoor’s announcement comes at the same time as reports that Facebook and Instagram will provide real estate brokerages with the ability to promote listings to social media users who have previously searched for properties on the brokerage’s website. These so-called dynamic ads are similar to ads from companies such as Amazon that promote products similar to items a person has bought or considered buying in the past.
—Sam Silverstein, REALTOR® Magazine
Updated: July 19, 2018