There’s always something to howl about.

Category: Disintermediation (page 1 of 43)

Buyer Agency Project: Buyer agents offer no value today.

“I just showed three houses this week, out in L******, and all of them had 2% co-brokerage fees.  Learn to sell, listing agents”

I read this post (paraphrased), from a former car salesman with a Florida real estate license, in a Facebook group the other day.  The irony of it was too delicious to pass up so I responded with something like this:

“It is laughable to watch an agent, who can’t sell a buyer on the value of his services, complain about the fact that his compensation is set by another real estate agent.  Sell your value to your buyer, charge a fee for the services you will provide, disclose how that buyer brokerage fee will be paid, and negotiate a contract which pays you that fee in a manner which benefits your client”.

I may have taken a snarky swipe at the original poster but I don’t remember because he deleted the thread.  Good.  I am sure the guy was just airing his frustrations but that sort of weak sauce is the last thing I would want on the internet if I were him.

Let’s talk about the REALITY of real estate brokerage in 2021:

1- While price appreciation may have slowed, the real estate market still has a supply/demand imbalance.  This means that homeowners can negotiate lower commissions to sell their homes.
2- Listing agents, with the right property, have little to no need for buyer agents today.  If it is priced at fair market value, entered properly in the MLS, and aggregated across all of the realty bots, buyers will line up to tour the home.  Thus, paying a co-brokerage fee of more than $1 seems like a giant waste of money.
3- The US Department of Justice doesn’t like this at all and the National Association of Realtors has lost any power to perpetuate the existing compensation model.  Expect buyer brokerage compensation to change.

Every time this subject comes up, buyer agents wail and grind their teeth.  The most common comments I read are “It’s so hard to work with buyers nowadays, I DESERVE to get paid more; I practically work for minimum wage”.  Read more

Are big cities hostile to middle class values? Not to worry! Big Data will make it all worthwhile.

Imagine how cities will change after half their populations have fled.

Forbes today, and I shouldn’t pick on them. Some of their writers are interesting. Not here, though, I’m afraid.

Start wrong, stay wrong: What value has the big city provided, until now:

it has provided urban citizens with access to technology

In fact: Access to cheaper transportation of people, information and goods – most of which is now obviated by the internet – which would be the point demanding consideration.

But not here.

There are still many parts of the developed world where having a video call is difficult and starting an ecommerce business is impossible due to poor internet speeds.

And this has nothing to do with anyone reading Forbes. Got two bars on your phone? You’ve got what it takes to work from home.

Oh, but it’s not old-tech that matters. New-tech will require cities because… Why? The claims are all about economies of scale, but that’s pretty 19th-century thinking. In fact, new technology – like all innovation – goes where the money is. If the full-price early-adopters move to the exurbs, so will the people who hope to sell to them.

Am I wrong?

Take, for instance, self-driving vehicles. Autonomous vehicles require a massive infrastructure of live data feeds from cameras, GPRS, smart devices, infrared, Bluetooth and sensors in order to ensure that a car or drone can operate safely. These data feeds are not going to exist on country lanes and byways in rural areas.

Of course, all of that is daft. You can get four bars or better from any cell carrier, anywhere rich people go. Meanwhile, escaping the glaring, blaring distractions of urbanity is a key benefit of the exodus we are seeing.

What’s the downside to remaining in the big burgs?

Those who do live in cities will see a substantial degradation of their privacy rights as surveillance becomes a way of life.

I’m pretty sure getting mugged by gangs of Grasshoppers is going to turn out to be a bigger deal. Don’t worry, though. Virtual reality will give you something else to think about, as your wounds heal.

Why are people racing Read more

My 7 magic laws of done: How to finish the things you start – quickly, completely and with style.

Genius is fueled by midnight oil – by hours and hours of focused, solitary effort. 
 
Photo by: Raffaele Camardella

There is a book of mine that I am going to bug you to read – Nine empathies. Here’s something funny about that book:

I wrote it on a Saturday, six years ago today.

It’s not very long, only about a 90-minute read, and I only wrote about two-thirds of the revised length of the book on that Saturday. But I wrote the whole book, start to finish, with subsequent revisions all being interstitial – additions between the lines. I wrote a book that I could have shipped on Saturday, and in fact I did ship it to Amazon’s servers on Monday, long before I was all-the-way happy with it. I shipped successive revisions twice a day after that, until I called Thursday morning’s version the golden master. Then I said, “Hey look. I’m done!” – but in my mind I had been done since the day I started.

What is it that I’m telling you?

I don’t work like you. Most of the people who read me are going to be Cs or Ss in the DISC system. I’m much too wordy for my fellow Ds – and I’m only wordy because I see words as a currency, rather than as a distraction. Even so, I would much rather write a book than read one. I tend to work more outrageously even than other Ds, but my style of working is completely alien to Cs.

I wrote in ten hours what a high-C would have agonized over for ten months – or ten years. Worse, I took off with almost no plan – twelve lines of notes – knowing that I was at least two full epiphanies short of a revelation. “Welcome to Seat-Of-Our-Pants Airlines. If we can’t get you there on time – you’ll never live to tell about it.”

To say the truth, my kind of productivity annoys high-Cs, because it shouldn’t be possible to do this much this well this quickly. They are equally alien to me, in that I can’t fathom Read more

Horror stories wanted: How has real estate’s Vendorslut Mafia preyed upon you?

“Results? Any day now, for sure. Meanwhile, this month’s payment is due.” Photo by Ian on Unsplash

I don’t pay for leads. Never have, never will. I pay referral fees to other agents from time to time, this as a matter of expected courtesy, but I don’t collect fees for referrals – not alone to escape the burden of policing them.

Not such big news, regardless: I don’t make a lot of money. We haven’t marketed for new business in ten years, and I make my meager living on repeats and referrals from my existing clients. I’ve never craved money – it shows, I swear – and I am not as much in love with collecting pelts as I once was. When BloodhoundBlog was young, I said we were a boutique brokerage. I am by now my sole licensee, and I think of myself as a lab-rat broker.

I am mainly interested in listing for sale as though I were practicing free-throws on the basketball court. My goal is to perfect my listing praxis and then to hew to it with perfect performance. My numbers bear me out – but I don’t spend much on advertising, either.

My curiosity runs the other way just now: How have you been hurt as an agent or lender by your engagements with the sleazy folks we have always referred to as The Vendorslut Mafia?

Are there no happy stories? Surely there are. Deeper pockets going in may see happier outcomes going forward. But when you’re tap-dancing with your kid’s orthodontist so you can fork over cash you don’t have for “leads” that won’t pan out…

Kinda sucks, don’t it…?

I would love to hear about your experience. Who you paid. How much you paid. How things paid off.

I’m not shaming salesmaniacs, and I know it’s easy to click “Submit” before you know what you’re submitting to. And you can tell yourself that 65% of something is better than 100% of nothing – with luck missing out on the news that you’re paying some gonoph for coming between you and your client – typically with your own listings. Read more

Why, for the first time in human history, can the Ants so easily escape the Grasshoppers? That’s easy: The Internet.

The metaphor is not mine. It’s Aesop’s. Uncle Willie borrowed it, just lately. Every true fable has a moral, and here’s the moral to Willie’s story:

“Grasshoppers need Ants, but Ants don’t need Grasshoppers.”

Willie was working from a premise elucidated in today’s New York Post, why taxpayer-hostile big cities will not recover from their recent tantrums:

Why can they go so easily? Because for the first time in history, Internet bandwidth allows all or nearly all white-collar ­employees to work remotely.

Being stuck in or near cities and all their discontents was a link in the golden handcuffs of having a boastworthy corporate job. Now that link is broken, replaced by a link to a Zoom meeting – and there may never again be any reason to fear getting lice in your hair or vomit on your shoes.

Nice going, Grasshoppers. It will take decades and wrecking balls to come back from this…

RE.net 2.0

Here’s a preview of what I have in my mind :

1- Facebook ads (as an agent)
2- Value-added services for real estate agents (as a lender)
3- Non-distressed auctions for real estate brokerages (as a vendor)

I have posted a few things since the content slow down on Bloodhound Blog but a lot has happened since 2012-ish.  The market has recovered nicely and most of the contributors are probably too busy listing, showing or financing property to write.  Bloodhound Blog was on the cutting edge of the RE.net:  provocative, hard-hitting, curious, and innovative.

Let’s start howling again

Q: Your smartphone has just been stolen. What should happen next? A: Your phone should get the cops on the horn and lead them to the thief.

Here’s the truth of your life: Your so-called smartphone is pretty damned dumb. For one thing, it’s always interrupting your work with phone calls, wiping out whatever screen you happen to be working on. It does this because Steve Jobs, genius though he was, never quite wrapped his head around the idea of the cell-phone function as just another arrow in the quiver of your smartphone’s capabilities. What you actually want, when your phone rings while you are working at something else, is notice that you can drop everything to take the call — or not — without the phone making that decision for you.

I can do more: There is no reason for caller ID to be as stupid as it is. I want Heidi, of course, a full-blown database look-up when a new caller shows up on my phone. But lacking that, a truly smart smartphone would at least Google the number and display whatever information that search suggests about the caller.

But once we’ve gone that far, we get to an important question: Why is your smartphone shipping phone calls to you as phone calls? Data is data, and there is no longer any hardware or software reason to transmit phone calls by Ma Bell’s antiquated protocols. There may be cost or efficiency reasons, but it remains that a file-server-based “switchboard” could be a whole lot smarter than present-day cell-phone vendors seem to be. A lot of the Constance the Connector ideas would be best implemented on a truly smart phone system — one that pre-manages your calls before anything in your pocket sets off a racket.

But here is an entirely new way of thinking about smartphones, one that lets me solve a problem Jim Klein threw my way way back in the last century: Your phone can manage your online security better than any other means devised so far. With the right hardware and software, your phone, together with Sarah and Constance, can manage all of your financial transactions with perfect security and impenetrable encryption. Your phone can identify you — by way of your Constance profile — to Read more

Reasons to be cheerful: Defying the specter of ugly fates.

I’m kicking this back to the top from June, 2010. I had occasion to re-read my thoughts on sex earlier today, and then I went back and looked at this essay. I like it better today than I did last summer, and I hope you will, too. –GSS
 

Reasons to be cheerful, part zero: The ground we stand upon is firm and the lever of the human mind grows ever stronger.

I need to take this someplace else. I am madly off-topic here more often than not, this for the past couple of years. I think I may be in the third act of this spectacle of ideas I have made of my life, and I can’t even say, yet, if it’s a farce in three acts or a tragedy in five. I would prefer an epiphany, to say the truth, a symphony, a grand opera composed of nothing but the simplest and most obvious of abstractions, an idiot’s guide to what every last idiot among us has always known forever, has never once doubted, and has always, always betrayed — until now.

But that’s why I’m cheerful, I think, despite everything. There is still so much time left to us, amidst the crush of on-rushing events. I am thrice lucky, I know it: I can see and I can understand what I am seeing. I can think and I can transcribe my thoughts. And I live in a time when the thoughts of everyone in human history who ever thought productively are instantly available to each one of us — on demand, no charge, quantities unlimited, with every taste in depth and rigor satisfied and then some.

This is an amazing thing. It’s never happened before, and it remains to be seen how deeply humanity is willing to set its roots in the boundless praries of the mind. But the simple fact that this is possible — and that people all over the world are taking advantage of it — is a profoundly important reason to be cheerful, no matter what despair might be unearthed in the day’s events.

Clearly, Barrack Obama is incompetent. That’s Read more

Greco-Roman Rejection of Rotarian Socialism Is The Cure For What Ails the United States

Europe has tried all sorts of Statist approaches to the PIIGS problems.  Today, Europeans are considering “liberalization”:

As the European financial crisis moves into its next phase, there’s a new word to learn: “liberalization,” and it’s likely to be even more unpopular than “austerity.”

Leaders in Europe are promising to “liberalize” their economies in an effort to grow those economies, but they face an enormous wall of vested interests that don’t want anything to change.

Greg Swann talked about cutting regulations a year ago.  My comment:

There are close to 400 licensed occupations. Compile a list of half of them, introduce legislation that outlaws states (and Feds) to regulate any of these professions.  Repeat each quarter. Within a year, you’ll only have 25 regulated industries. Within two years, the unemployment rate will drop to 6%, and there will be some 2 million new businesses created

Ohmygosh, cut the licensing regulations?  Does that mean that someone, who hasn’t taken a 400-hour licensing course, will be charging money for weaving hair in their living room?  The horror.  How will the public ever be protected from bad hair-weavererers?  Reputation management is already happening in the free market.  Read Greg’s response:

Check. There’s more that can be done, much of it to the benefit of very small businesses. Consider this: When you’re trying to decide if you should take a chance on a restaurant, who do you trust more, a city inspector who may be on the take or nine fiercely independent Yelpers? The dollar cost of preventing injuries that almost never happen is half of our economy — which is nothing compared to the opportunity costs and interest value of those lost opportunities. We’ve got a dinghy loaded up with admirals and we can’t figure out why it’s slowly sinking.

Who then would stand in the way of  “liberalization”?  Let’s go back to the CNBC article:

Leaders in Europe are promising to “liberalize” their economies in an effort to grow those economies, but they face an enormous wall of vested interests that don’t want anything to change.

Take the case of Simon Galina, a 38-year-old taxi driver in Rome. His profession is one Read more

SplendorQuest: A real-estate professionals’ guide to anarchy in the USA

Kicking this back to the top. This is what independence means — independence from the tyrannical intrusions of government. You’ve been trained your whole life to recoil from ideas like this, but there has never been a better time than right now to ask yourself this question: How is the dispute resolution system you have in place now working out for you? — GSS

 
I thought about making a short movie addressing a host of common questions about the political philosophy we’ve been discussing, but I decided to undertake the task in text, instead. A video would be faster for me, but not so much for you. Plus, text is easy to search and easy to revisit, where video can be ungainly. So: FAQ-style:

What does this have to do with real estate?

Human liberty begins when you have a redoubt that is yours to defend from any would-be usurper. That’s real estate, and, as I write every year at Independence Day, the civilizations we associate with human freedom are those where ordinary people had the power to claim, own, use, enjoy, buy and sell the land. If you want for a real estate weblog to concern itself solely with surface-level bread-and-butter real estate news, you’ve come to the wrong place. If, on the other hand, you want to learn how better to defend your liberties, including your power to buy, sell and broker real estate, stay tuned. None of this is easy, but it is fundamental for understanding real estate as philosophy.

Isn’t anarchy a creed of chaos and violence?

1. No, that would be socialism in its collapsing phase.

2. No, that is what you have been told by people who want you to volunteer to be their slaves and toadies.

3. No. Anarchism as I define it is the politics of egoism, which itself is the ethics of self-adoration. People actively pursuing self-adoration will tend to avoid chaos and violence except when chaos and violence are the only means of avoiding even worse fates. When might this be the case? When socialism undergoes its collapsing phase, for example.

So what is anarchism “as you define it”?

What Read more

The unchained epiphany: Working in the Web 2.0 world is not mastery of technology but the celebration of your own independence

Kicking this back to the top from April 8, 2008. — GSS

 
In comments to Sean Purcell’s “NAR Challenge”, Scott Rogers wonders why the NAR could not teach hi-tech real estate as well as or better than BloodhoundBlog.

The short answer is that we’re not teaching hi-tech real estate, not even close, and what we are teaching is anathema to the NAR.

In her own comment to Barry Cunningham’s post on the typewriter being state-of-the-art NAR technology, Newport Beach Realtor Stacey Harmon offers this serendipitous explication:

WOW. This video really highlights for me the opportunity that exists for Realtors who really embrace not only technology, but Web 2.0. What I see in this video is the application of technology to improve the “traditional” way of selling real estate. I think there is a whole emerging group of Realtors out there who are looking to utilize technology (in particular Web 2.0 technologies) to TRANSFORM how real estate is sold. I agree with Dave that this video speaks to 75% of Realtors – I work in one of the most lucrative markets in the US (Newport Beach, CA) and I’d say that this video accurately represents how most Realtors (that do any business in my market) view and utilize technology. I see this as a huge opportunity for anyone who is savvy enough to have even found this blog. Thanks for a very interesting post!

That’s an epiphany in text form. I don’t know Stacey, and I don’t want to characterize her thoughts, but that kind of epiphany is what BloodhoundBlog is all about.

We don’t teach technology, even though we talk about it all the time.

We don’t teach marketing, new-wave or old-school, even though marketing is constant obsession around here.

We don’t teach Web 2.0, even though many of the brightest lights in the wired world of real estate write, read and reflect here.

What we teach is independence, the recognition that you alone are the source and the sink, the alpha and the omega of your knowledge, of your business and of your success or failure.

I am a rude, crude and vulgar man, so it falls to me to Read more

If There Really Were A Real Estate Agents’ Union…

…this is how business might be done:

You (a willing home seller) would look for a real estate agent and discover that the government mandates that you hire, its delegated agent, to market and negotiate on your behalf.  That chosen agent will be the only one who can deal with potential buyers and will select which offer you should consider, among the many offers available.  The agent presents the offer, to which you suggest a counter-offer or refusal.

In this hypothetical example, the agent tells you that you don’t have the option to counter and reminds you that you have a binding contract with her as an exclusive agent; she says “Take the ‘reasonable’ offer or suffer the consequences”.  Obviously, you don’t think that’s fair and want to test the free market.  You might consider another real estate agent because you don’t think she’s negotiating on your behalf.

Rather than allow you to pursue your own course of action, the real estate agent accuses you of “agent busting”.  She sets up a picket line, in front of your home, with big signs proclaiming you to be “evil” or responsible for “unfair tactics”, or “greedy”.  She turns away all potential buyers of the home by calling them “scabs” and proclaiming that a reasonable enough offer was on the table and you were just an evil, greedy agent buster.

She might convince the power company to sever your electricity, phone and internet.  She might try to prevent the grocery store, pizza delivery guy, landscapers, and pool maintenance guy from servicing you, per your standing contract with them.  Finally, she might try to restrict your income by hampering your ability to work .

You’re a tough cookie, though.  It’s your home.  You bought it, improved it, kept it clean, and want the best price a willing buyer might pay you. You hold out, regardless of the wacky protesters, bused in from out-of-town, screaming at you, your children, your neighbors, and anyone who might dare speak with Read more

How does the National Association of Realtors love me? They sent me an evaluation so I could count the ways.

I appeared by videoconference at the National Association of Realtors Association Executives convention in March. At the time, I made note of my remarks in a comment to Teri Lussier’s first post on the NAR’s latest anti-consumer money-grab:

I spoke by videoconference to the NAR Association Executives conclave on Monday. I held nothing back, patiently explaining to them that legislation is crime — using force to induce an outcome that would not have occurred without the imposition of force.

I explained that a legislature can do nothing in a free market except harm, and that the American economy is by now essentially a vast mutual-vampirism cult: Each one of is sucking the lifeblood out of his neighbor’s neck, and each one of us is being sucked dry by his next neighbor. Taking a death-grip on the obvious, I patiently explained that this cannot but result in pandemic disaster.

Instead, I said, if the National Association of Realtors were to come to be as zealous about private property rights as the National Rifle Association is about firearms ownership rights, I would be proud to call myself a member.

As you might expect, the reaction was subdued.

Bob Bemis, CEO of ARMLS, intimated to me that there is video of the presentation somewhere, but I have not seen this. But yesterday there came by snail-mail a three-page evaluation of the event.

I think it would be fair to say that I made an impression. I knew going in that I would be telling them exactly what they did not want to hear, so I have to commend the people who made comments for their forbearance of my effrontery.

Here’s my take: What they don’t want to hear is precisely what they need most to hear. It’s not reflected in the evaluation, but a very important idea I took up with them is this one:

What happens if someone comes along and resolves to do real estate brokerage for free?

I’ve pointed out many times that Zillow’s “make me move” feature is brokerage: The introduction of buyer to seller. This is not affected by the real estate regulation machine since the act of Read more

What does it mean that the NAR won’t defend itself from the charge that it was the sine qua non cause of the Great Recession?

I threw down the gauntletand not for the first time:

It was the NAR that lobbied for each law and rule change that resulted in the housing boom, the sub-prime lending catastrophe, the wanton bundling of fraudulent loans, the on-going subsidization of the secondary mortgage market, etc.

The villain behind all the villains in the collapse of the American economy is the National Association of Realtors.

We know they’re spying on us. And we know their PR pimp demonstrated that he got bilked when he paid for his law degree, so poorly does he argue.

So: Why doesn’t the brave National Association of Realtors — the largest, richest, most-powerful Rotarian Socialist corporate-welfare-tit-sucking political pressure group in the land — why won’t it stand up on its hind legs and defend itself?

For a first reason: Because it can’t. Better than any of us, the grand poohbah blood-sucking vampires of the NAR know beyond all room for doubt that it was their legislative initiatives that were the seeds, stems, stalks, branches, trees and forests that caused the housing boom, the housing bust and the Great Recession.

And for a second reason: Because they are actively plotting to do still more, still worse damage to the American economy. They will not stop sucking until they have sucked the body politic dry.

How do we know all of this true? Cum taces, clamas. When you say nothing, you shout.

They don’t defend themselves because they can’t. They know they are criminals. They pray, every sleepless night, that you do not know it.

In fact, the silence of your putative “leaders” does not prove me right. That would require an argument — an argument only I am happy to make. But the fact that the National Association of Realtors does not challenge my arguments is potent evidence that they themselves believe I am correct.

Are you waiting for the NAR to argue that someone else is responsible for the Great Recession — for the ruin of your own finances and for the devastation to be delivered to your children and grandchildren?

Don’t hold your breath. They know they’re at fault. And so do you.

What’s the best thing the National Association of Realtors can do for the American economy? It could drop dead — but it won’t — so here’s how you can kill it, instead.

Hey there, toothy-grinned, glad-handing Realtor: How’s the world treating you?

Business is not so good? Your house is worth less than half of what you paid for it? Your kid has three degrees but can’t get a job?

Are you looking for someone to blame for your troubles?

Guess what? There really is a mastermind of evil in the American economy. A vast parasite, a vampire king, with an insatiable appetite to devour everything that used to be known as “the American way of life.”

Are you being preyed upon by banksters? By Wall Street tycoons? By Chris Dodd and Barney Franks?

Those are the folks we like to blame, when we seek explanations for the Great Recession.

But who is really at fault for your miseries?

The sine qua non cause of this disaster — of the national economic malaise and of your own personal financial situation — is… wait for it…

The National Association of Realtors.

It’s the NAR that obstructs consumers’ access to market alternatives to old-fashioned real estate brokerage.

It’s the NAR that insists on subsidizing homeownership at the expense of other, more-productive uses of capital.

It’s the NAR that manipulates the tax laws to induce thoughtless consumers to overpay for homes they never would have — and never should have — bought in the first place.

It’s the NAR that makes war on the rights of Americans to use and enjoy their real property as they choose.

It was the NAR that lobbied for each law and rule change that resulted in the housing boom, the sub-prime lending catastrophe, the wanton bundling of fraudulent loans, the on-going subsidization of the secondary mortgage market, etc.

The villain behind all the villains in the collapse of the American economy is the National Association of Realtors.

The NAR’s legislative initiatives are uniformly criminal in their objectives. The purpose of all economic legislation is to induce by force an outcome that would not occur in the absence of that force. This is crime, no different from a mugging.

As the author of every state’s real estate licensing laws, the NAR mugs consumers by preventing them from doing business with whom they choose — on the terms Read more