There’s always something to howl about.

Author: Greg Swann (page 172 of 209)

Suburban Phoenix Real Estate Broker

Growth news: A big shoe drops in Goodyear . . .

Growth news abounds in today’s Arizona Republic. A new shopping center along the northern frontier of Phoenix. Accelerated improvements along the route of the SR-303 freeway in Surprise. And, in Goodyear, plans for a massive expansion of the city, along with a big told-ya-so for Greg.

The map at the right illustrates Goodyear’s plan. (If you click it it will open as a PDF.)

The yellow region is the current City of Goodyear.

The purple border is the Goodyear Planning Area — the regions Goodyear currently has plans to annex.

The region within the solid black border is the proposed planning area discussed in the newspaper article, 95 square miles of new Goodyear.

The region within the dashed black border is future expansion, the Goodyear of good years yet to come.

The red dashed line is a proposed route for the SR-303 freeway running south from the I-10 to the I-8. I have known for years that this would happen, but this is the first time this shoe has dropped in an official document.

You might look at that meandering freeway route and think, “Are they drunk? Did sage Euclid live and die in vain?” But remember that the purpose of that freeway is not to move traffic but to enrich the current and future owners of the land.

The ideal freeway route is through the Federally-owned desert preserve to the west. But the freeway isn’t being built to solve a traffic problem but to create one. No one lives there now. There is no need for a freeway. But all of that privately-owned land will become developable because of the proposed freeway route — and that is what the freeway is intended to do.

That’s as may be. It’s corrupt and demented, but it’s the way things are done here — and pretty much everywhere, in one sleazy way or another. What’s interesting to me is that the West Valley map I made last week is already dated. And: It would seem that the Phoenix real estate market is quite a bit healthier than some people are willing to allow

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A pre-Thanksgiving thought-feast: Blogtalk, techtalk, Zillowtalk — and the mysterious allure of ephemeral catastrophe . . .

Jeff Brown has come out from Behind the Curtain. His new weblog (blogrolled, of course) is BawldGuy Talking.

The Hamptons Real Estate Blog (blogrolled) has also moved to a new WordPress platform. One less Blogger weblog out there. The speed at which people can abandon software platforms should give every Google investor pause.

On that subject, The Phoenix Real Estate Guy has news about a new Point 2 Agent weblogging platform.

The Landlord Blog has started a Carnival of Real Estate Investing. I like the specialization. There are some very smart people in that corner of the RE.net.

Kevin Boer at Three Oceans Realty has maps! I am ambivalent about whether map searching actually does anything to sell houses, but it’s slicker than whale snot anyway. Kevin also has a real estate office in two boxes.

RSS Pieces has a great article on choosing the right domain name.

Rent or buy? Ask Todd Tarson at MOCO Real Estate News. I’m on the bubble on this question, and, not to bust any bubblehead bubbles, but I’m selling more houses than I expected to at this time of year.

Greg Tracy at BlueRoof.com Blog argues that Zillow is relevant, accuracy be damned. I agree from a different direction. Zillow is the elephant in the room right now. Its relevance is a given. As the BalwdGuy says, Zillow might be Pong, ultimately just a blip on technology’s radar. Okayfine. But: Pong was big news for its time.

Send a prayer out, if you can, for Jonathan Dalton’s father. Pneumonia, the worst of house guests — shows up unexpectedly and takes forever to clear out. Take good care of your own selves, too, as the weather cools. Pneumonia is what you get when you tell yourself you can ignore a chest cold.

Hey! Where is Kris Berg? I hope some San Diego newspaper is paying her big bucks for her sprightly sense of humor. If not that, I hope her absence is explained by a big stack of new contracts.

Finally, it might be nice if everyone would chip in to buy Keith at Housing Panic some lubricant. The poor sod has been Masturbating to Read more

Dual Agency Smack-Down: The RE.net smacks back . . .

Here are some weblogs addressing the Dual Agency Smack-Down from their own points of view:

Whenever we talk about Dual Agency, the most fascinating remarks to me come from Christine Forgione at NY Houses 4 Sale. Because they’re still working from sub-agency, we look like aliens to each other.

More from New York from Douglas Heddings at True Gotham.

Daniel Rothamel at The Real Estate Zebra explains the industry’s ambivalence about Dual Agency with a sports metaphor.

And Ardell weighs in with two posts. I like to see her picking up Dustin’s link-a-bration slack…

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The Zillow.com shake-down: Deconstructing the NCRC complaint . . .

The NCRC complaint against Zillow.com was filed 26 days ago. Today we have the first detailing in the public prints of the bogus nature of the charges (subscription required):

Absent specific instances of harm, the complaint looks more like a scheme to grab some of Zillow’s publicity than a legitimate beef. The fact that the coalition didn’t contact the company about its concerns before it filed the complaint also looks suspiciously like grandstanding or a fishing expedition.

Worse yet, the Center for Responsible Appraisals and Valuations, an offshoot of the coalition, reportedly has hired a third party to offer an automated valuation model and site-visited appraisal services through one of the coalition’s own Web sites. That makes Zillow a competitor of the coalition.

The complaint also fails to explain why Zillow would be at fault if its inaccurate estimates were used to mislead low-income or minority buyers as the coalition contends. That’s important because it isn’t bad data, but rather, bad actors who should be held responsible for harm to the public. And thus it’s not Zillow, but rather, unethical realty and mortgage brokers who should be prosecuted when fraud or other crimes occur. And that’s true regardless of whether or not the victim happens to be of a low-income or minority group.

Moreover, where is the evidence that any other estimates of home values are more accurate than Zillow’s? After all, homes are sold every day for substantially more or less than the asking price due to multiple offers, price reductions and negotiation between buyers and sellers after homes are put on the market. Are sellers’ asking prices harmful to the public because they don’t necessarily present an accurate representation of a home’s value? Any estimate of value is by definition an opinion.

In the best of all possible worlds, inaccurate data wouldn’t exist or be tolerated. And yes, Zillow would be a better service if its estimates were more reliable. Yet, no one is obligated to use Zillow for any purpose whatsoever, and if the service offers little or no real benefit, so what? Until the coalition comes forward with specific instances of actual Read more

An ostensive explication of why the poet always gets the girl . . .

You come to me by twilight
In a gown of gauzy white
Your sacraments revealed concealed
High priestess of the night

You whisper vespers whisper prayers
Whisper vows of faith and fear
In still and silent grace you stand
As I in trembling awe draw near

I kneel in worship grasp your hand
Press it to my searing lips
Pray god to know the endless peace
Flowing from your fingertips

You come to me in night divine
Your glory lit by crowning gold
You consecrate by hungry glance
Devotion’s heat in evening’s cold

You come to me I kneel I stand
You lay me on the dewy ground
You guide my worship guide my hands
Lead my heart your heart to sound

You speak to me with loving grace
You catechize in passion’s glow
You reach you teach you seethe and burn
And I am blessed by truth to know

You come to me in gauzy gown
High priestess of the night
I lay in awe in faith in fear
Lifted to your heaven’s light

Dual Agency Smack-Down: A chicken in every pot and a sword for every Gordian Knot . . .

I solved this problem today. It wasn’t even that tough, once I started looking at it the right way.

As I pointed out earlier today, the issue is this language in the AAR Consent to Limited Dual Representation form:

neither Broker nor Broker’s Licensee(s) can represent the interests of one party to the exclusion or detriment of the other party [emphasis added]

What that language says, in my opinion, is that no Arizona brokerage that has undertaken Disclosed Dual Agency using that form has done so in a way that would withstand the questioning of a plaintiff’s attorney.

I believe it is impossible for any brokered real estate transaction to close according to the strict terms of that language. Instead, every Arizona brokerage that has undertaken Disclosed Dual Agency using that form has routinely, repeatedly and serially acted in ways detrimental to both buyers and sellers, each in their turn, throughout every one of those transactions.

This was not malicious. To the contrary. The Disclosed Dual Agent was acting in the best interests of each client, each in their turn, and each of those clients had an absolute veto power over everything that was done at each step of the process. The problem is simply that a brokered real estate transaction is too complicated to be effected without expert advice. In tendering that advice, in all good will, the Disclosed Dual Agent will have acted to the detriment of the other party every time he gave good, solid, useful advice to the party before him.

(I will concede for the benefit of quibblers that someone could try to deliver the type of completely prostrate, advice-free “service” required by that language, provided that the quibblers will concede that both buyer and seller fired their prostrate agent as soon as they apprehended the type of “service” they were to receive. In other words, the conduct required by the form is theoretically possible, but it has never, ever happened.)

Here’s the cute part, though: The actual problem is the form itself.

The statute law of Disclosed Dual Agency (A.R.S. ? 32-2153(A)(2) (“Acted for more than one party in a transaction without the Read more

Dual Agency Smack-Down: Interlineal chatter . . .

This is from the AAR Consent to Limited Dual Representation form:

The Broker now represents both Buyer and Seller and both parties understand that neither Broker nor Broker’s Licensee(s) can represent the interests of one party to the exclusion or detriment of the other party.

The important word is “detriment”. I think the argument I posted yesterday eats that language entirely. The implication is that any dual agency that makes it before a judge will lose. There is absolutely no way to comply with that language. The only method even conceivable is to leave both parties flailing stupidly like FSBOs and BUBBAs.

But: We do end up with an excellent argument against FSBOs and BUBBAs: There is absolutely no way non-professionals can achieve professional-quality results in a real estate negotiation. They simply don’t know what to do, and they don’t even know that they don’t know it.

I’ll summarize later, but I think my own position is quite a bit stronger than it was on Friday. I do have ideas for alternatives, and I’ll go through those as well.

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Dual Agency Smack-Down: If being a big brokerage is an inherent agency violation, it’s not the client’s fault . . .

Please. Recognize that everything I say or write is true and do not argue with me. Thanks!

Hi! Welcome to BloodhoundBlog. My name is Greg Swann. I question everything. πŸ˜‰

From my point of view, we’re still not getting any traction.

But single agency is not a viable business model.  Period.  A viable business model is one that would allow for unfettered growth (as long as it was filling a need to the consumer) and single agency is not possible if a company grows.

Without intending to quibble, agency is not about the vendor, his business model or its potential for growth. Agency is about the interests of the client, which are paramount to all others. If a particular business model violates agency, then, as Russell argues very cogently with respect to Redfin.com, it is criminal in se in states where agency is a fiduciary obligation.

There are about 925 agents with John Hall & Associates.  It would be quite stupid to preclude them from showing a listing so the seller (and buyer) gets the “benefit” of single agency.

This is not an argument against dual agency. It is an argument for getting rid of the broker/salesperson licensing laws. If we did that, then every listing agent would be alike unto a self-employed broker now. Dual Agency would still be possible, but it would be much easier to manage, since it could only occur when the agent represented buyers to his own listings. Major brokerages like John Hall could easily transition to affiliations or companies, instead — same cost structure, but no liability. We would still have to police for other forms of collusion or shady dealing, but Dual Agency would be all but eliminated.

In any case, arguing that refraining from Dual Agency would be impractical is not a persuasively-valid reason to uphold or reject it. As before: Sub-Agency was much more practical than Buyer Brokerage, but we got rid of it anyway.

The idea that the agent somehow controls what a buyer will pay and what a seller will accept only indicates a disconnect from reality.

I think this is a very weak argument. I want to deal Read more

Reagor-mortis? On-the-spot real estate news coverage only a few weeks late . . .

October 26th: NCRC files specious complaint against Zillow.com.

November 19th: Crack Arizona Republic real estate reporter Catherine Reagor yawns, burps, goes back to sleep:

The popular Web site zillow.com gets a lot of hits as people frequently check the values of their homes and their neighbors’ in the fast-changing housing market.

But not everyone agrees with Zillow’s figures. I have received several calls and e-mails from people questioning its data. The National Community Reinvestment Coalition agrees. The Washington, D.C.-based non-profit has filed a complaint with the Federal Trade Commission saying Zillow’s home-valuation tool is inaccurate.

Further deponent sayeth not.

Reagor was in love with Zillow when it was brand new, but this was because she hadn’t bothered to test it. The idea of reporters actually checking things seems to have died with Hildy Johnson…

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Dual Agency Smack-Down: Dueling angels are not persuasive . . .

I’m not really a Jesuit, I just play one in the blogsward. My mother had had enough of the Church before she went to high school, and, in consequence, I was sent to public schools. Those were actually quite a bit better then than they are now, but, even so, I bear my ignorance as a curse. I am too much aware that I am too much unaware, and every effort I make to correct this deficit serves only to deepen it. This is why I spend so much of my time crouched by Brother Quintilian, learning evermore to learn, to make up for my failure to have learned in the first place.

Say what?

In short: I am unswayed.

I have not heard what I consider to be a persuasively-valid argument in support of Dual Agency. Counting Our Lady Ardell in a comment, we have three testaments to personal integrity, and these I do not dispute.

But: So what?

The question is not: Can very trustworthy people effect Dual Agency in a way that occasions no overt objections from their clients? Surely this is possible.

The question is, rather: What policy should obtain in the absence of a presumptive angelitude?

The question is: Taking account that a certain percentage of licensees will be stupid, untrained, avaricious, uninformed or openly larcenous, what policy best protects the interests of the consumer — the alleged justification for our licenses?

Russell Shaw raises a lot of side issues that really don’t have anything to do with the debate. He gets quite a few of these sideways, in my opinion, but we can save those debates for other days. The meat of his argument is here:

My seller WANTS ME TO SELL THEIR HOME TO A BUYER I ALREADY HAVE – this is THE very thing they are hiring us to do.

That is: Dual Agency is valid because sellers want it. We turn to Quintilian, who advises us that, by this reasoning, Sub-Agency is also valid. Sellers want it, and many of them don’t truly understand that they no longer have it in Arizona.

Why don’t they have it? Because as much as sellers might Read more

Saturday morning links . . .

Todd Tarson goes flat fee for buyers. I’ll be interested to hear how this flies in the high desert. Inlookers, Mohave County, where Todd works, is boom country. The new bridge over the Colorado is expected to turn the SR-93 corridor from Kingman to the river into bedroom communities for Las Vegas — which is running out of land. You might consider giving Todd one day of your Vegas vacation to take a closer look.

Greg Tracy at BlueRoof.com asks: What if Zillow Got Serious? Indeed. This is what makes Fidelity’s half-baked AVM interesting, actually. They already have the title farm, and they already have the Realtor relationships. This could be fun…

Jay Reifert, a true buyers-only agent in Madison, Wisconsin, sent me a link to a form buyers can use to cling to their unrepresented status. Jay has a lot more at his real estate reform web site.

RSS Pieces advises us that it is a myth that stand-alone web sites for listings drive traffic. This is probably true in the large. It is certainly false from an incremental and long-term perspective. But the real point is: So what? The purpose of a discrete web site for a home is not to drive traffic but to sell that house. Do they work? Oh, good lord, yes! Lately, I’ve read a number of tone-deaf observations on this subject, and I don’t know if the writers just don’t get it or if they’re playing dumb to rationalize playing it cheap. Here’s how you do this: You have a summary listing on your main web site, just like everyone else, except that the summary links to the stand-alone site for that particular listing. Now you have searchability at your main site and a link back from the satellite site, marginally improving your Page rank. More importantly, you have knocked the socks off your seller, your prospective buyers and the entire neighborhood. We sell to people, not Google. Don’t forget.

The Phoenix Real Estate Guy has a new “Ask the Lenders” feature, which I think is a rockin’ idea.

And: Jim Cronin at The Real Estate Tomato asks: “Who Read more

The headline buried in the “news”: Real estate agents are as safe as houses!

It’s Saturday, and you know what that means. If the Arizona Republic doesn’t piss all over the real estate business, someone might accidentally go out and buy a house.

Here’s the scoop:

Complaints against real estate agents are on the rise, with consumers accusing them of everything from selling property without a license to cutting corners to make a sale.

As of June, the number of complaints opened with the Arizona Department of Real Estate had jumped 53 percent since 2003, the year before the housing boom took the Valley by storm. Complaints forwarded for discipline increased 150 percent in that same time.

If those numbers sound nebulous to you, you’re reading too carefully. Stop that!

Part of the spike in complaints reflects the rush of new agents who flooded the market to take advantage of the housing boom of 2004 and 2005.

Does it? Is there a correspondence of complaints to new licensees? If there is, it’s not demonstrated in this story.

The number of new brokers and agents rose 38 percent in the past three years, well behind the pace of complaints.

New brokers aren’t new licensees, so the correlation is even smaller than intimated.

Here’s a real number, though:

Most of the complaints come from consumers. Others come from agents complaining about other agents or governmental jurisdictions reporting what they believe are illegal subdivisions. In all, 1,620 new complaints had been opened with the real estate department through the fiscal year in June.

There are 90,000 real estate licensees in Arizona. About 90% of ADRE complaints are dismissed without action. With the right microscope, this “news” is a conflagration.

The top three complaints: License violations, convictions or failing to disclose a conviction, and advertising violations. Real estate advertisements must list the name of the broker that the salesperson works for, according to the department.

And these would all be complaints brought by the ADRE or other agents, not by consumers.

Elaine Richardson, the state’s real estate commissioner, said she was alarmed by the trend of new complaints exceeding the number of new brokers and agents.

“If we don’t get a handle on it, that brings us back to people getting bilked out of Read more

Dual Agency Smack-Down: A category 11 hurricane of arguments against Disclosed Dual Agency . . .

I’m going to stir up a category 11 hurricane by basing my initial entry in the Dual Agency Smack-Down on our past posts on the subject. Cathleen and I have dealt with this topic at great length in the past, so it seems reasonable to reinforce our arguments by revisiting them.

For the benefit of readers who may not be real estate professionals, I’ll start with our Dual Agency policy page, which defines and frames the issue:

Dual Agency is the process by which one real estate broker represents both the seller and the buyer in a transaction. It is legal in Arizona, provided it is fully disclosed and consented to by all parties.

Clear as mud?

Here’s what you’re apt to think of, when you think of Dual Agency: An agent lists a home for sale, you see it at an open house and sign a contract on the spot. The agent represents the seller. Does he also represent you? If he does, his role is reduced to that of a transaction facilitator. He carries messages back and forth between you and the seller, but he is forbidden by the Dual Agency to advocate for either of you. He may be completely scrupulous in his performance, but the chances are excellent that either you or the seller — or both of you! — are going to feel cheated at the end of the process. If “your” agent isn’t working in your interest, he must be betraying it instead. This may not be the truth of the matter, but it’s a suspicion that leaps readily to mind.

But here’s how Dual Agency usually works out. Your agent from Behemoth Realty takes you to a number of homes, including some that are themselves listed by Behemoth. You select one of these. Your agent is not the listing agent of the home you picked. It’s listed with a different Behemoth agent. So there’s no problem, right? Wrong. Your Buyer Broker Agreement is with the broker of Behemoth Realty, not with “your” agent. The Listing Contract is with the broker of Behemoth Realty, not with the seller’s agent. Both Read more

Untying the Loop 202 knot: If only they let me draw the freeway maps . . .

Our friends in the Gila River Indian Community have elected to negotiate on the location of the Loop 202 Freeway:

In a surprise about-face, the Gila River Indian Community will talk to state and federal officials about the prospect of building the South Mountain Freeway on reservation land, possibly sparing hundreds of homes in Ahwatukee Foothills.

If this is a surprise to you, you don’t understand the economics of casinos. The tribe built one of its three casinos on the route of the planned freeway, and they won’t reap the anticipated windfall if the freeway is not built.

The Loop 202 was originally planned to run on Pecos Road, at the Southern edge of the Ahwatukee Foothills neighborhood. Bonehead developers built very expensive homes very near the freeway’s right of way, and owners of very expensive homes are the very nimblest of NIMBYists. You can hardly blame highway planners for casting an envious eye into the mostly-empty Gila River Reservation.

From west of Phoenix to east and south of Phoenix, from the I-10 to the I-10, the Loop 202 is intended to serve as a reliever freeway, skirting traffic around Central Phoenix. If we view the road strictly as a local route for Ahwatukee Foothills, then Pecos Road in its current configuration is more than adequate. In other words, the reliever function can easily be split from the local traffic problem in Ahwatukee Foothills.

That being so, I like this route better:

The green line is the currently-planned route for the Loop-202 south from the I-10 west of Phoenix. Everyone on this route wants this freeway, the sooner the better.

The red line is the currently-planned route for the Loop-202 continuing east to the I-10 south of Phoenix. Virtually everyone on this route doesn’t want the freeway to be built.

The bright red dots are the locations of the three Gila River Indian Casinos, vast magnetic cash cows.

The blue line is my suggestion for an alternate route for the Loop 202. It wouldn’t connect with the SR-202 on the east side of the I-10, but it would be a whale of a traffic reliever. In the long run, the Read more