NeighborCity
| Company type | Private |
|---|---|
| Industry | Real estate information services |
| Founded | 2007 |
| Founder | Jonathan Cardella |
| Fate | Discontinued operations; assets transferred to Consumer Advocates in American Real Estate (CAARE) |
| Headquarters | San Francisco , United States |
Key people | Jonathan Cardella (CEO), Ali Vahabzadeh (President and COO) |
| Products | Residential real estate information and agent evaluation services |
NeighborCity was a U.S.-based enterprise specializing in residential real estate information and services, particularly focused on evaluating real estate agents. Established in 2007 by entrepreneur Jonathan Cardella, who also held the position of CEO, the company aimed to equip buyers and sellers with objective, data-driven assessments of agents to guide their choices. Among its senior leadership was Ali Vahabzadeh, who served as President and COO.
Headquartered in San Francisco and operating within the real estate information services sector, NeighborCity conducted analyses on nearly all members of the National Association of Realtors. Its operational framework utilized transaction records and listing histories to measure agent performance through various indicators, including closing rates, total number of transactions closed, active listings, geographic areas of expertise, average days a property remained on the market, frequency of dual agency involvement, sales price per square foot, and efficiency in price negotiations. This analytical methodology provided a competitive edge by offering transparent performance metrics alongside comprehensive professional profiles for agents.
In addition, NeighborCity maintained a nationwide real estate listing database that incorporated independent recommendations from buyer-side agents for each property. This integration enhanced consumer choice and influenced market dynamics. The company’s strategic vision centered on merging extensive data analytics with customer-focused services to expand its presence within the real estate information industry.
Ultimately, NeighborCity discontinued its operations and transferred its assets to Consumer Advocates in American Real Estate (CAARE), marking a transformation in its corporate structure and business development path.
History
NeighborCity was founded in 2007 by Jonathan Cardella, who acted as the chief executive officer, with Ali Vahabzadeh fulfilling the roles of president and chief operating officer. The business functioned under American Home Realty Network, Inc. (AHRN), a licensed real estate brokerage based in California.
By 2018, NeighborCity’s assets were contributed to the nonprofit organization Consumer Advocates in American Real Estate (CAARE). As of 2021, visitors to the NeighborCity website are redirected to CAARE’s site.
Business model
The company relied on national databases containing real estate transactions and listings to create rankings that evaluated realtor performance. Revenue was generated through commission shares received from brokers on closed deals that originated from referrals provided by NeighborCity.
NAR and MLS suits
In 2012, following NeighborCity’s publication of performance rankings for members of the National Association of Realtors, Metropolitan Regional Information Systems (MRIS) initiated a civil lawsuit against AHRN/NeighborCity alleging copyright infringement concerning MLS listing data. Subsequently, Northstar MLS filed comparable legal actions.
NeighborCity argued that these lawsuits were intended to limit access to reliable broker performance information and asserted that the claims were unfounded due to plaintiffs’ failure to satisfy Copyright Act registration prerequisites. The company maintained that factual data from MLS listings did not qualify for copyright protection.
Judicial rulings determined that factual property details contained within MLS listing data are not subject to copyright, whereas photographs and descriptive narratives likely are protected. In November 2013, a federal district court in Maryland concluded that NeighborCity had presented sufficient allegations of an antitrust conspiracy involving multiple MLS organizations and the National Association of Realtors.
Berkshire Hathaway litigation
In May 2013, HomeServices of America, a subsidiary of Berkshire Hathaway, initiated legal action against NeighborCity.com, accusing the company of using listing photographs without authorization. NeighborCity responded by filing a countersuit, claiming that HomeServices engaged in anti-competitive behavior. This legal matter was addressed in federal courts located in Minnesota and North Carolina. Both parties reached a settlement agreement in September 2014.
AgentMatch controversy
In November 2013, NeighborCity issued a cease-and-desist notice to realtor.com, managed by Move, Inc., asserting that Move's AgentMatch feature violated NeighborCity's trademark "Agent Match" and infringed upon a patent application filed in 2010.