BloodhoundBlog

There’s always something to howl about.

Author: Greg Swann (page 80 of 209)

Suburban Phoenix Real Estate Broker

February 9, 2009

How bad can the weather in Seattle suck? Come see the Bloodhounds this week and find out

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I have been in Seattle in the late Summer, an idyllic time of year when it barely rains twenty inches a day and when the Banana Slugs start to think about snuggling up with you for warmth. I have been on Mount Rainier on Labor Day — playing in the snow.

(People say “ray-near,” but it should be pronounced “rainy-er.” I live among a bunch of mountains, but not one of them suffers from excess precipitation like Mount Rainier.)

Brian Brady and I are in Seattle later this week. We’re flying up to do a BloodhoundBlog Unchained preview, then we’re hanging out through Friday for REBarCamp Seattle.

The weather in Phoenix actually sucks right now, but, by state law, I’m forbidden to disclose just how badly it sucks. But our sucky weather is utterly nothing compared to what I have to look forward to later this week in Seattle:

Water freezes at 32 degrees. That never happens where I live, in North Central Phoenix. It can happen once or twice a Winter out in the sticks, but in town ice is something we buy at the supermarket to make Irish Whiskey more refreshing.

My plan is to go totally gnome, comfortably numb, in-to-it like an Inuit. A vast and cumbersome leather overcoat, with a sweater, a scarf, maybe even a hat. To understand how big an exception this is for me, right now I’m wearing a tee-shirt and shorts, no shoes, no socks. And I’m sweating.

Totally gnome for my presentation, too. Everything we do at Unchained is going to be hands-on, learn-by-doing, but I can’t count on being able to do that in Seattle. Instead, as with The Way of the Farmer from last May’s BloodhoundBlog Unchained, I’m going to go through a lot of hard-headed, practical stuff that you can take home and deploy at once, if you like — if you take good notes.

It seems likely to me that I’ll be sneezing and sniffling, too. I moved to Arizona from North Andover, Massachusetts, which makes Seattle look like a tropical resort. For the life of me, I cannot remember how I used to survive Read more

February 9, 2009

Some ugly questions about that $15,000 home-buyers tax credit…

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Suburban Phoenix Real Estate Broker

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I let the hoopla over the $15,000 tax credit for home-buyers of all incomes slide last week. There’s way too much sick-making news coming out of Washington right now, and, somehow, Republicans dancing in triumph because they had managed to squeeze out a little theft for the rich — and for the NAR — was more than I wanted to try to digest.

Actually, my pet bette noir last week was the ridiculous idea of a compulsory 4% mortgage rate. What this economy really needs is a mandatory 720 FICO score!

Pinocchio — the NAR — is a vampire, a dead thing that feeds on the living, we all know that. But I was writing about that $15,000 gift from the taxpayers to the NAR this morning, and some ugly question came to me.

For one thing, this is a direct transfer of funds from the Federal budget to the housing industry. Normally I love the idea of starving the government, but the net effect of this tax credit is that we will artificially buttress home prices, delaying but not avoiding the ultimate price decline that we have to go through to achieve a true recovery.

Am I wrong? I read the tax credit as being a net reduction in taxes paid. If you owe $15,000 in taxes, but if you bought a primary residence, you pay no taxes.

I can’t see lenders resisting a bait like that. They will find a way to lend you the dough now, and you pay it off over the next 12 — or 24 or 36 or 360 — months. Your $15,000 can pay for up to 10% of the purchase price of the home, and your net tax liability will be reduced by $15,000 next April. If you have another $15,000 in cash — set aside for taxes, perhaps? — you’ve got an 80/20 loan on a $150,000 home with no PMI.

Let’s go once better: $15,000 down on an FHA loan gets you to a $428,571 purchase price — in excess of the jumbo limits in Phoenix. Have you been craving that $400K house up the block. It Read more

February 7, 2009

Thirty-three touches from the cloud: Seriously seeking CRM

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Suburban Phoenix Real Estate Broker

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We need a CRM solution, and it’s making me crazy that we don’t have one. We wrestled with REST for a couple of years, but we never got it cranking on all cylinders, and it lacks features I don’t want to live without. Chris Johnson raves about Heap, but I’m not sure it’s everything we need.

I need help, it’s true enough.

What I want:

  • Cloud-based. I don’t want any proprietary apps running on dedicated hardware. I want to be able to do my CRM business from any web-enabled computer and any iPhone anywhere.
  • iPhone empowered, therefore, of course. Needs to integrate with Contacts, iCal, etc., and it needs to sync periodically through the cloud.
  • Email-based data entry. Heap can do at least some of this. What I would like is to be able to have a form on a web page produce an email that is mailed to my CRM, with that email initiating a sequence of events: Create client record and initiate a particular set of sequences of follow-up contacts. These should be selectable by the email received: Investors should be subscribed to different campaigns from sellers or first-time home buyers.
  • Jott-able. Heap does some of this, also.
  • As tightly-integrated with Google Apps as possible. For example, I want the calendar to be the Google Apps calendar.
  • Action scripts or event scripts or whatever, as automated as possible, ideally already scripted with the text already written. By now we’re talking about the “33 touches” idea from The Millionaire Real Estate Agent, but I want as much of this as possible to happen automatically and hands-free. As above, there will be different “8×8” scripts for new clients, and possibly also different “33 touches” scripts, but, once these are assigned, I want for them to proceed “untouched by human hands.” Agent 360 seems to be well-equipped in this regard.
  • Action scripts that require real live human action should create to-do lists for the affected team members.
  • We own our own data. That means we have the ability to move our data off in a usable format whenever we want, and our data is never shared with anyone else.
  • Simple to use, with Read more
February 5, 2009

Ask the Bloodhounds: What do people want on a real estate web site?

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Suburban Phoenix Real Estate Broker

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Jim Flanagan of Flanagan Realty has a nice-looking Coldwell Banker site. But he sends along this question, which I’m passing on to the brilliant minds who read, write and comment here:

What does today’s real estate consumer want in (on) a real estate brokerage’s website? You may have answered this before but I have not been able to find the “list” on GOOGLE.

It’s an interesting question. Even if you have the secret sauce, how do you enhance that initial moment of engagement? Rephrased as a more metrical question, how do you cut the dreaded bounce rate?

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January 31, 2009

Ask the Bloodhounds: “What are your top recommendations for a Realtor just starting out in today’s market?”

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Suburban Phoenix Real Estate Broker

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An email from Nicole Ford, a newer agent working on the Gulf coast of Texas:

Hi Greg,
 
I’m a new agent (started in July) and have recently started reading the Bloodhound Blog. First, I want to say thank you for providing such an incredible resource. Second, I have a question that I’d like to ask of you and all of the other incredible writers (and readers) on your site: What are your top recommendations for a Realtor just starting out in today’s market? What are the most important things that I can be doing to guarantee my future success?
 
I realize that I have picked a very difficult time to start as a Realtor, but I’m convinced that once I weather this storm and become successful now, I can look forward to a great career in the future. I also believe that a positive outlook (even in the toughest times) can be a tremendous asset.
 
Thanks in advance for any thoughts and advice that you share. I look forward to reading (and contributing to!) your blog in the years to come.
 
All the best,
Nicole Ford
 
South Padre Island Realtor
NicoleFord.com

I’m interested in answers to this question from all perspectives. I get the impression that Nicole has things more together than most new agents, but some sincere advice for beginners will be welcomed, I’m sure, by the ninety-and-nine folks who didn’t have the guts Nicole exhibits by asking the question.

So what should a new agent do to keep body and soul together in this market?

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January 29, 2009

The rest of the real estate industry might be Pinocchio — false in every particular — but nothing prevents you from being genuine

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Suburban Phoenix Real Estate Broker

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Real estate is the most unbusinesslike business in the history of business.

I don’t want to defend that statement comprehensively, because it’s late and I’m tired, but I can offer some data points.

When we sat down with Greg Tracy, I argued to him that licensing inhibits the kind of competition for reputation that we expect and depend upon when deciding which restaurant to go to, for instance, or which auto mechanic to use. Instead, in real estate, after 90 hours of nonsense classes, we say, “Here’s your license, kid. Get out there and wreck someone’s finances!”

I met with a new buyer client on Wednesday, and we had a wonderful time cataloging all the things Realtors and brokers would do if residential real estate were organized like any other sort of business.

What kinds of things?

If real estate were a real business, Realtors would market the damn product, instead of engaging in two or three acts of rain-dancing and then waiting — for months or even years — for the rain to come.

If real estate were a real business, Realtors and brokers wouldn’t be so transparently mercenary about using, abusing and burning through their clients. One of the huge benefits of real estate weblogging is that Realtors are openly discussing the tricks they deploy to strong-arm their “leads.” In no other business do vendors have such contempt for consumers.

(Incidentally, although I say this all the time, apparently no one believes me: Consumers read industry-focused weblogs. When you admit that you do certain things to “force people to call,” you’re not telling them anything they didn’t already know about the real estate business.)

If real estate were a real business, commissions would be divorced and incentives would be aligned to put the agent and the client on the same side in negotiations. The longer the real estate industry delays in reforming its practices, the greater the opening it offers to vendors offering a better or cheaper alternative to traditional real estate.

I love it when I really get to talk to my clients, because I conceal nothing from them. We do well by doing good: This is Read more

January 29, 2009

Kevin Warmath is grievously ill; his family could use your support

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Suburban Phoenix Real Estate Broker

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Mail from Ryan Ward in Atlanta:

Greg,
 
Not sure how well you know Kevin Warmath. He’s an agent in Alpharetta near me and he came to your Bloodhound event last fall. Two nights ago while with his family, he had a heart attack and was rushed to the hospital where they induced a coma. As of a couple of hours ago, they took him off of support. I’m not exactly sure about any details, but, it doesn’t seem positive at all. Kevin was one of your Black Peal Divers contest winners some time back. He will likely be leaving behind a wife and three young daughters. Not sure if it’s something you want to mention on your blog, but, you might, so I thought I’d let you know. Here’s all that I know:
 
CaringBridge
 
MaxSell.net
 
Ryan

As Ryan says, Kevin was one of our Black Pearl Divers last spring. At BloodhoundBlog Unchained in May, we watched him implementing many of the ideas we covered during the conference. Because of his good example, we knew we could expand to a much more hands-on format.

I can’t think of anything to say that’s not stupid and obvious, so I’m better off keeping my thoughts to myself. The first of Ryan’s link will give you a chance to leave a note for Kevin’s family.

 
Further notice: This was forwarded to me by Deryk Harper from Sydney Ray:

Dear Friends,

I have just received an update on Kevin and unfortunately it is not a good one. The doctors have done a cat scan and discovered that Kevin’s brain has swollen and that he is realistically no longer with us. According to the doctors he has no chance of survival at this point. They are going to keep him on a ventilator for 24 hours and take him off first thing in the morning. I am truly sorry to deliver this news via email, but I wanted you all to know.

I for one believe that while we may not always understand his ways our God is great and can move mountains even in the gravest of circumstances. I ask that today you pray for a Read more

January 27, 2009

Turning LiquidBlue into steady green: Is it possible to found a new real estate brokerage without going broke?

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Suburban Phoenix Real Estate Broker

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Cleveland real estate broker John Kalinowski and I have been batting around some ideas of his on how to structure his new brokerage to make it work well for everyone — clients, agents and ownership. Surely I’m not the best person to ask about this, since we are doing everything we can to avoid adding agents. So John decided to throw it out to the Bloodhounds — contributors, commenters and readers — to see if y’all can come up with better ideas.

Here’s John’s epistle to the dawgs:

Hi Greg!

I’m reaching out to you and the Bloodhound community for a little advice as I prepare to take the next step in the fascinating world of real estate brokerage. I left RE/MAX in early December to start Liquid Blue Realty with a secret weapon of sorts, a custom sign sign idea built around your original concept. So far the response has been beyond incredible. It takes a ton of work to create each sign, and they’re not cheap, but the attraction is unlike anything I’ve seen in our area.

Our market is in a state of transition, just like everywhere else, with agents concerned about whether or not their brokers will survive, and struggling with monthly desk fees and transaction charges. Right now I have one other truly excellent agent working with me, along with two part-time admin assistants who have the ability to work full time. I’m ready to start talking to other agents, and I plan on being very selective in who I choose to join our company. Our approach to listing homes is an important part of our business, and providing a reliable, repeatable listing experience to the public is one of my main goals.  No matter who a seller works with at our company, I want to make sure they receive the same attention to listing detail and transaction management as I bring to my clients.

Where I’m stuck is how to best create a compensation plan that makes sense, particularly with all the extra services we intend to provide to our agents.  We will partner with them on their listings, taking Read more

January 21, 2009

Selling real estate the engenu way: Because I can make content-rich web sites so easily, I can make my points more convincingly

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Suburban Phoenix Real Estate Broker

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Can premium rental homes in suburban Phoenix throw off positive cash-flow at 75% of market rents?

An investor asked me that question the other day. It’s an academic problem, really, a matter of costing out typical homes to see how they perform under that scenario.

I can do that much standing on my head, but answering a question like that with a spreadsheet is not terribly satisfying. We live in a data-rich world, and I wanted for my investor to understand exactly what we were talking about. So not just the spreadsheet, but also MLS listings of typical homes. And not just the listings, but also detailed photos of those homes, with descriptions of what might be wrong with each one.

In fact, I could have answered the question any way I wanted, from tap-dancing on the telephone to an attempt to set a showing appointment. But I know from experience that the more questions I can answer in a completely credible fashion, the greater my chances of forging a long-term client relationship.

And that’s a big “Duh!” — isn’t it? How would I want to be treated if I were thinking of dropping some substantial fraction of a million dollars on investment real estate?

And this is where engenu comes in. I can shoot the spreadsheet across immediately, as an appetizer. But I’m not selling spreadsheets, I’m selling houses, so I put together a list of houses that I thought might be financially impressive. I toured each one, taking photos of everything, then came home and built an engenu web site from my findings.

I’ve been talking about engenu for nearly a year, but I’m not sure I’ve ever gotten the point all the way across. We use engenu to build our single-property web sites and to provide supporting documentation when we blog about homes for sale. We use it as a way of previewing homes for out-of-town buyers and investors, and as a way of communicating staging advice to our sellers. The language of real estate is photography, and engenu enables us to build (and rebuild) large, photo-rich web sites with minimal effort.

So: I came Read more

January 20, 2009

Reading the signs and portents of Obama’s America

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Suburban Phoenix Real Estate Broker

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We call it inauguration after the Romans, of course. Beginning at midnight on January 1st of each new year, the priests would take the augurs — the signs and portents — for the two new consuls, the duoviri who would govern the Republic for the next year. The ceremony would end with a long, slow march to the top of the Capitoline hill at dawn, at the end of which the senior consul for that year would sacrifice a bull. Only then would the new consuls and the senators convene in the Curia to take up the Republic’s business for the year.

And Janus, for whom January is named, is the god of doorways, presiding not just over beginnings but also endings. Today marks not just the beginning of Obama’s presidency, but also the end of the Bush era in Washington.

Both Bushes, pere and fils, seemed to me to be fundamentally decent people, quite unlike the man who served between them. But Bush the younger, by being so roundly reviled as president, has nowhere to go but up from here. Someday Americans will have the fortitude to thank this man for calling Islamofascism by its true name: Evil. In the mean time, the bull is no longer his to slay.

I’m less afraid of Obama than I was on election day, but still I fear for capitalism and for individualism. The good news, always, is that socialism cannot work. The bad news, always, is that millions perish in the process of discovering that socialism cannot work. Janus may well be opening the door to a renewed appreciation for classical liberal virtues, but it seems likely that the glorious light we associate with ages of reason may be found at the end of a long, dark hallway.

The one hope I hold today is to be found in the photo at the top of this post: I hope that today is the beginning of a post-racial America. Everything we’ve done about race so far, for four hundred years, has been pretty stupid. I hope it turns out that electing a black president was the first Read more

January 14, 2009

Shawna Ebersole’s iShopGreenwood.com is very rich in content — but it may be just a little bit too rich in color

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Suburban Phoenix Real Estate Broker

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My apologies for my recent absence. I came down with a cold — a warning from god about going to Seattle in the Winter — then got bit in the ass by a long-standing Real Life Dilemma. I missed all of the vendorslut “news,” so I don’t even know how deeply inspired were the attendees by being yelled at by Gary Vaynerchuk. (“C’mon! People! It’s not customer service unless you emote from the throat!”)

Am I being hypercritical? I don’t think so. We’re all of us victims of bullshit now and then. The trick is to scrape it off your shoes before you track it all over everything.

Meanwhile, Brian Brady shot this to me by email:

Shawna Ebersole asked us to critique iShopGreenwood.com and give her some ideas for promoting her weblog.

Well. At the risk of seeming hypercritical, I will say that the site seems to me — a male specimen — to be girly and cluttered. The overarching them is High Concept — which means you have to figure it out. No, that’s not a collection of girly-colored boxes, it’s a mall, a big-city indoor shopping mall.

Even so, I don’t care. I don’t care for the colors and I didn’t like having to figure out what was going on, but I don’t think that hurts anything. I also don’t think it helps anything. There are a zillion much-less-clever real estate weblogs, and they probably do just about as well as this one.

But here’s something I really, really liked: The site is very rich in content. My take is that Shawna Ebersole predates real estate weblogging by quite a while, and she seems to have retained every bit of the content she had developed before she took the plunge with a blogsite from Jim Cronin’s RealEstateTomato.com.

Isn’t that a bad thing? I don’t think so. I’ve written before — and should write more extensively — about the idea of satisfaction — feeling full. When people are sampling any of your marketing, they need to be able to consume enough to “feel full.” No one acts before they’re ready to, and you have to hang Read more

January 11, 2009

Doing the right kinds of repairs and remodeling to your home is the key to maintaining its resale value

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This is my column for this week from the Arizona Republic (permanent link).

 
Doing the right kinds of repairs and remodeling to your home is the key to maintaining its resale value

Cleaning, painting and doing small repairs around the house are just about unlimited virtues for homeowners.

They’re a matter of necessity for people who hope to sell their homes. Only the best-prepared homes are selling at premium prices right now, with the rest going at or near the lender-owned price.

But even if you’re not selling, staying on top of the little things promotes your enjoyment of the home, and it helps to sustain its resale value. At a minimum, regular maintenance will help you catch small problems before the become big, expensive problems.

But if doing little jobs matters a lot, what about doing big jobs? Should you redo the kitchen and bathrooms while the market is low? Should you convert the carport into a garage and the patio into a family room? Should you add on a brand new master suite?

The definitive answer to all these questions is: Maybe.

Remember that the Phoenix real estate market may be down for years to come. It’s possible you won’t see a return on your investment for quite a while.

On the other hand, if you know you’re going to be in the home for the next five years, and if a new kitchen will substantially improve your enjoyment of the home, it might be worth doing.

Labor can be very cheap right now, and money is easy to obtain if you have equity in your home. But you have to resist the urge to over-improve for your neighborhood. Brazilian Blue Marble is gorgeous, but it probably won’t be worth more than Corian or Formica countertops on resale.

Serious additions are a bigger question. If you know you’re going to be in the home for five years, you’re probably okay. If the addition makes sense — if you live in a neighborhood of two bedroom homes, adding a master suite makes great sense — then go ahead.

Build with permits and follow the building codes, though. The worst thing you Read more

January 9, 2009

Zillow’s Zindex of historic Bedrock shows significant gains

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Suburban Phoenix Real Estate Broker

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Rubbles up, Flintstones down. Is Fred facing foreclosure?

SEATTLE, Jan. 9 /PRNewswire/ -- It's a proud day in Bedrock as the new Zillow Zindex reveals that home prices in that historic city are up 2.5% for the fourth quarter of 2008. Bucking the trend for many American communities, Bedrock seems to be benefitting from a mid-century-modern nostalgia. "Face it," says Sam Slagheap, Grand Poobah of the Bedrock Loyal Order of Water Buffaloes, "it's the architecture."

Bedrock notables Fred Flintstone and Barney Rubble both saw gains in the Zestimates for their homes, with Rubble seeing the bigger increase -- 2.8%. The Flintstone home grew in value by a more modest 2.3%.

Even so, there are whispers in Bedrock that the Flintstones could be facing foreclosure. Due to a labor dispute with Mr. Slate, Fred Flintstone has not worked in months. And county records indicate that the family may have encumbered the home for more than its present value.

"That's a condition we at Zillow call 'underwater,'" said Dr. Stan Humphries, Zillow's vice president of data and analytics. "We like to use that term because it gets better headlines than 'upside-down.'"

The Zillow Zindex of Bedrock is one of many recent press sensations concocted by Zillow.com, the Seattle-based real estate start-up funded by advertising but powered by sensational, albeit utterly mindless gossip.

Other recent revelations from the Zillow press release team:

* The White House, which is not and has never been listed for sale, could be worth as much as $308,058,237.19 if it were. And as huge as that imaginary number might be, and as carefully-extracted as it must have been from a Zillow statistician's rectum, nevertheless that number would have been even $23 million higher a year ago. And while reporters might be wondering how far 308 million dollar bills would stretch, if you placed them end-to-end, Zillow's crack team of mathematicians-on-crack have taken on an even more impressive challenge: How much would the White House be worth on Jupiter?

* Ever wonder which celebrity Americans might want to live next door to, if there were no such thing as physics, economics and burly security details? Zillow didn't just Read more

January 5, 2009

Free “gifts” for real estate webloggers: “The need to deny influence is damaging to the soul”

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Suburban Phoenix Real Estate Broker

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On Vendorslut Eve, here are a couple of quick notes on free “gifts” and their intended influence:

Richard Riccelli points out this New York Times article:

Starting Jan. 1, the pharmaceutical industry has agreed to a voluntary moratorium on the kind of branded goodies — Viagra pens, Zoloft soap dispensers, Lipitor mugs — that were meant to foster good will and, some would say, encourage doctors to prescribe more of the drugs.

No longer will Merck furnish doctors with purplish adhesive bandages advertising Gardasil, a vaccine against the human papillomavirus. Banished, too, are black T-shirts from Allergan adorned with rhinestones that spell out B-O-T-O-X. So are pens advertising the Sepracor sleep drug Lunesta, in whose barrel floats the brand’s mascot, a somnolent moth.

Some skeptics deride the voluntary ban as a superficial measure that does nothing to curb the far larger amounts drug companies spend each year on various other efforts to influence physicians. But proponents welcome it as a step toward ending the barrage of drug brands and logos that surround, and may subliminally influence, doctors and patients.

It’s not just a matter of subliminal influence. When every pen and pad you use comes from a vendor, the vendors are underwriting your office supplies budget. The “in-kind” gift translates directly to an “in-cash” benefit.

Here’s a very complete disclosure on this issue of “gifts” and affiliate marketing from the Mortgage Sales Blog:

While most of the information provided on this mortgage blog does not include product pitches or personal agendas, some of the authors may generate income by selling services to loan officers or real estate agents.

Personally approved mortgage vendors participate on this blog as a way to expand their online reach, develop relationships with our readers, and prove that their products are worth taking a look at.

In the instance where it is not obvious, I will make every attempt to be fully transparent with our readers about any affiliate agreements where the Mortgage Sales Blog receives financial compensation by promoting a product or service on this blog.

As of Jan 4th, 2009, the Mortgage Sales Blog (Mark Madsen) has not promoted any product or service where an Read more

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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