Author: Dave Phillips (page 1 of 2)

CEO, PA Association of Realtors

October 14, 2009

Some Updates from the Marble Tower

by Dave Phillips

CEO, PA Association of Realtors

Here are a few pieces of kibble from NAR that I thought the Pound might want to chew on…

Pent-up Demand Seen in Purchase-Ready Renters

There are more than 16 million renter households in the U.S. with enough income to buy a home at the national median price, far more than in 2000, before the housing boom, says NAR Chief Economist Lawrence Yun. This large number of renters with the financial wherewithal to buy is one indication of the pent-up demand in the housing market that can be tapped if Congress extends the home buyer tax credit. It’s also an indication that the tax credit won’t just be attracting households that would buy anyway. Hear Yun’s remarks on market conditions and the tax credit in an audio podcast.

New FHA Condo Process Could Face More Delay
HUD is looking at delays to its new FHA condo approval process. Changes outlined in Mortgagee Letter 2009-19 slated to take effect for case numbers assigned on or after Oct. 1 have been delayed to apply to case numbers assigned on or after Nov. 2, and that start date could be pushed back as well. Other condo rules, including permission for lenders to offer spot loans, remain in effect. NAR continues to press for changes to federal policy to make FHA financing more viable for condos. Among other things, NAR wants a reduction in the owner-occupancy requirement and an increase in or outright elimination of the concentration limit.

2008 HMDA Data: FHA Credit Quality Remains High
FHA’s market share of home loan originations expanded to 30 percent while the credit quality of its loans improved, latest federal mortgage data gathered under the Home Mortgage Disclosure Act (HMDA) finds. In 2008, FHA’s FICO scores increased significantly while loan-to-value (LTV) ratios decreased. More than 60 percent of FHA’s increased purchase volume was to borrowers with prime quality FICO scores (above 660), while FHA insured mortgages with LTVs above 95 percent fell from 72 percent to 67 percent.

July 1, 2009

NAR Responds To Cap and Trade Concerns

by Dave Phillips

CEO, PA Association of Realtors

Since Greg’s post last week stirred up some good discussion of what NAR should be doing about the crazy energy bill, I thought I’d pass along the official word from NAR. Personally, I think the Senate is going to kill or “fix” the bill – after all, they will actually have time to read it, discuss it, and have dialog with the public BEFORE they vote on it.

From NAR

What Does the House-Passed Climate Bill Do?
The American Clean Energy and Security Act, which passed the House recently, takes a multi-pronged approach to improving energy efficiency and NAR weighed in primarily to ensure existing homes and buildings are made exempt from the bill’s energy labeling program. That effort was successful. The bill limits the energy labeling provisions to new construction. The legislation addresses NAR concerns in other ways: 1) prohibits EPA from regulating carbon emissions from residential and commercial buildings under the Clean Air Act, 2) eliminates a proposal to bolster a private right of action (making it easier for citizens to sue over minor climate risks), and 3) provides property owners with financial incentives to make energy efficiency and other property improvements. The Senate must pass its version, but timing is uncertain. A summary of issues is available online.

Should NAR be more aggressive in fighting this legislation? Maybe, but maybe they are better off watering down the important uber-crazy items like mandatory energy ratings. Also, NAR likely feels they have a better chance of success with the Senate. Just read former Senate Majority Leaders Trent Lott’s book Herding Cats to see how hard this will be to get through the Senate. Even with a Democratic Majority of 60 it will be very hard to get this passed. The fight is just starting and I applaud Greg for his justifiable outrage.

January 18, 2009

From Blogs to Klogs: How Blogging Will Become Useful

by Dave Phillips

CEO, PA Association of Realtors

Blogging is a fad and by definition, it will eventually run its course and fade away to a small niche. Blogs will be the bell-bottom pants of Web 2.0. The technology of Blogging will not go away, but the style of what we now do on Blogs will change significantly and will be renamed “Klogs” (more on that later).

How can I make such a claim in the face of overwhelming statistics documenting the growth and popularity of Blogs? That’s an easy question. My answer: because this is a Blog post and I can spew whatever opinion I wish and the only thing you can do is try to out-spew me with your own opinion. But spewing opinions is not what is going to undo Blogging – lack of civility will keep Blogs out of the mainstream. Simply put, corporate leaders have not embraced the Blogosphere because many Blogs often spiral down into a pit of venom and character assassination while hiding behind a cloak of anonymity. Many Blogs revel in being snarky because it gets them quick exposure and generates lots of readers and comments. It is all in good fun until someone gets their eye poked out.

Corporate leaders are fearful of Blogs because these freeform formats of fun are too risky for the image of the Company. Sure, many corporations have started a Blog, but most are tame, humorless, boring sites used for product promotion and press releases. The NAR Blog is a good example of that. These are not real Blogs because the writers are not free to say what they think; rather, they must say what the company wants to say/hear.

Because there is not widespread adoption of Blogging on the corporate level – and VERY few individuals are making money off their Blogs – I can only draw the conclusion that Blogging will fade away to the fashion status of bell-bottoms, or at least not reach a significant level in business communications. Without adoption by the business community, Blogging will not have sustainable cache’ and, I believe, has almost peaked in popularity.

Currently there are about 4 Blog readers Read more

December 4, 2008

Latest Findings From the Buyer, Seller Profile

by Dave Phillips

CEO, PA Association of Realtors

Good stuff from Greg’s Rotary Club…

Who are today’s buyers? Sixty-one percent are married couples, 20 percent are single women, 10 percent are single men, and 7 percent are unmarried couples. Learn more about who’s buying homes today and what they’re looking for in a sales professional in an NAR Research analysis based on the latest NAR Profile of Home Buyers and Sellers.

November 23, 2008

If You Are Going Through Hell…

by Dave Phillips

CEO, PA Association of Realtors

I’m lucky… very lucky. I live in a great place that is insulated from the harshest realities that face many communities out there. I get a paycheck and not a commission and I’m 20 years from caring about the stability of my 401k.

I feel for those that are not as lucky and suggest that you follow the advice in this song by country star Rodney Atkins. I have seen many of our local Realtors immobilized – most have never seen a down market and no one has seen the historic crap we seem to step in every other day.

You’d be a fool to take any real estate advice from me, but you’d also be a fool to think that there is nothing you can do to make your situation better. Like the song says, “keep on going.” Do something – read this blog, attend a course, try a new marketing trick, or find a song that motivates you.

Video of Rodney Atkins – If You Are Going Through Hell

Well you know those times
When you feel like there’s a sign there on your back
Says I don’t mind if ya kick me
Seems like everybody has
Things go from bad to worse
You’d think they can’t get worse than that
And then they do
You step off the straight and narrow
And you don’t know where you are
Use the needle of your compass
To sew up your broken heart
Ask directions from a genie
In a bottle of Jim Beam
And she lies to you
That’s when you learn the truth
If you’re going through hell
Keep on going, don’t slow down
If you’re scared, don’t show it
You might get out
Before the devil even knows you’re there
Well I been deep down in that darkness
I been down to my last match
Felt a hundred different demons
Breathing fire down my back
And I knew that if I stumbled
I’d fall right into the trap that they were laying, yeah
But the good news
Is there’s angels everywhere out on the street
Holding out a hand to pull you back up on your feet
The one’s that you’ve been dragging for so long
You’re on your knees
You might as well be praying
Guess what I’m Read more

November 14, 2008

NAR Responds to FSBOGate

by Dave Phillips

CEO, PA Association of Realtors

With a friend/partner you trust, but verify. Since Realtor.com is not seen around here as a friend, many of you adopted a new slogan: Don’t trust and don’t verify. I make it a rule to never believe anything that doesn’t seem to make sense.

The NAR/R.com response…

NAR, REALTOR.com Set Record Straight on Erroneous FSBO Claims

A press release issued on Wed., Nov. 12, by ForSaleByOwner.com contained inaccuracies and misleading statements about its ability to place unlisted for-sale-by-owner information on REALTOR.com, the official Web site of the National Association of REALTORS® operated by Move Inc. NAR and REALTOR.com are setting the record straight with the following clarifications:

1) The settlement agreement between NAR and the U.S. Department of Justice made no provision to allow unlisted properties, such as “for-sale-by-owner,” to be posted on REALTOR.com.

2) ForSaleByOwner.com does not in any way enable home sellers to advertise their home on REALTOR.com without broker representation; every property on REALTOR.com must be listed by a licensed real estate broker.

3) REALTOR.com has not authorized ForSaleByOwner.com to resell REALTOR.com’s Showcase Listings Enhancement package.

4) There is no relationship between ForSaleByOwner.com and REALTOR.com.

5) There are no unrepresented homes on REALTOR.com. Every property on REALTOR.com must be listed by a licensed real estate broker, and unrepresented properties would not qualify to be submitted to a REALTOR®-owned and operated MLS.

REALTOR.com® has asked ForSaleByOwner.com to issue a retraction. ForSaleByOwner.com did not discuss in advance the statements in its press release with REALTOR.com® nor did it request or receive permission to use the REALTOR.com® name in its press release. For more information contact Lucien Salvant 202/383-1176.

November 12, 2008

NAR Promotes Housing Stimulus Plan

by Dave Phillips

CEO, PA Association of Realtors

Here is a fresh bone for Bloodhounds to chew on. This 4-point stimulus plan was approved by the NAR Board of Directors this past Monday and is being pushed heavily in Washington DC.

The National Association of Realtors^® will offer a four-point legislative plan to reinvigorate the housing market, calling on Congress to act during a lame-duck session. NAR believes the plan will give a boost to the economy and help to calm jittery potential homebuyers.

The plan features such consumer-driven provisions as eliminating the repayment of the first-time homebuyer tax credit and expanding it to all homebuyers, making higher mortgage loan limits permanent, pushing banks to extend credit to Main Street, and prohibiting banks from entering into real estate.

“Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord. “It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans. We are asking Congress to act right away.”

Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said NAR, as the leading advocate for homeownership and private property rights, believes it is important for Congress to address the concerns and fears of America’s families, much in the way it has addressed Wall Street turbulence. “Housing is and has always been a good, long-term investment and a family’s primary step towards accumulating wealth,” Gaylord said.

NAR recommends Congress pass new housing stimulus legislation that includes the following priorities:

1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence.

2. Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and Read more

October 31, 2008

I’m Voting for Senator O’Cain

by Dave Phillips

CEO, PA Association of Realtors

Greetings from the battleground state of Virginia. I was 4 years old the last time Virginia was up for grabs. Back then you could only vote once and you had to use your real name. My how things have changed.

I have lived in Virginia my whole life and grew up in a very conservative/Republican area that considered Ronald Reagan a liberal. For the past 10 years I have lived in the very liberal/Democratic town of Charlottesville. I guess you could say I’ve seen both sides of aisle. Amazingly, neither of these distorted perspectives (or perhaps both) have rubbed off on me.

I’ve always said that no matter what, 30% of the people will vote Republican, 30% will vote Democratic, and the reaming 40% will generally vote for the lesser of the two evils. I generally agree with Sean’s recent post about voters often voting against a candidate or a party, but I see something different in this election. Perhaps it is just the battleground state status that has brought energy to the local campaigns, but I sense something else – a genuine excitement about the candidates.

Locally, all the excitement has been about Senator Obama, but that is to be expected. Around the state, according to my family and friends, there is just as much excitement for Senator McCain and especially Governor Palin. Sorry, Joe the Politician, but no one seems to care much about Senator Biden.

Until this year, I’ve always fallen into the 40% that votes for the lessor of evils. This year, I have things I like about both candidates that outweigh the things I dislike about both candidates. In fact, if I had a magic wand that could combine the two, I’d have my guy. He’d be an articulate speaker, a war hero, and have a long history of bucking both his party and Washington politics. He’d be the guy with great international experience and fresh ideas that gives this nation hope once again. He’d be capable of rallying the youth of America and of leading our troops to victory.

If he existed, I’d Read more

July 28, 2008

What Has Your Local Association Done For/To You Lately?

by Dave Phillips

CEO, PA Association of Realtors

Many of the Bloodhound writers and readers are rather disdainful of the entire Realtor® organization – all three levels (local, state and national). Greg Swann, in particular, has a penchant for wishing for the demise of the organization that keeps him on a leash. In fact, Greg, I’d suggest you stop reading this post now. Not because I will be defending the organization, but because you are already beyond any discussion of what a local association could/should be for members.

For those who are still reading, I will assume you have a least a passing interest in why you are a member of the Realtor® organization and some hope that it can serve you in some way. The fundamental question I’m exploring is the role of the local association in helping members to be successful. There are many different sizes and shapes of local associations out there, so I’m going to attempt to stay at the philosophical level. I will be using my local association, the Charlottesville Area Association of Realtors® (CAAR), as an example, so for clarity we have 1100 members in a small but sophisticated real estate market. That makes us a mid-sized local, but to be honest, we act like we are big.

CAAR is currently debating this issue of the association’s role. At each Board of Directors meeting we start off with what we call a “Strategic Discussion” that involves an issue that is important, but not urgent (Covey’s Quadrant 2). Next week the Strategic Discussion on the agenda is as follows:

Strategic Discussion

What is CAAR’s Role on the Internet? When do we compete with members and when do we provide a common service that is in the best interest of most of our members? If we provide valuable public information, do we compete with members who could be providing that same information? Was the NGIC website a valuable service to members and the community, or an interference with our member’s business?

The NGIC website mentioned in this agenda item is a special site we created to help with a major relocation of much of the military intelligence personnel to our Read more

July 18, 2008

Will NAR’s Latest 3-Letter Word Be Another Failure?

by Dave Phillips

CEO, PA Association of Realtors

NAR has just been set up for failure. I hope I’m wrong, but history is on failures side. As I reported in the past, NAR is developing a database of every possible piece of information on every property in the United State. Jim Duncan, who served on the task force that came up with the idea, first reported on this in December 07. This project has gone through several names. It started as the Gateway, then changed to the Real Estate Channel, then to the Library/Archive and now to the final and official name, the Realtor Property Resource (RPR).

I’m only half kidding about this – you get to decide which half – but I gave my input along the way as to what name we should use. I said call it whatever you want, but make sure it does not end up with a 3-letter acronym. You see NAR has a remarkable failure rate with things that have a 3-letter acronym. For instance, oldies like PRC and RIN and more recently IDX and VOW. Now, my definition of failure is debatable, but basically anything that involved a major lawsuit or loss of significant money, I consider a failure.

There have been no NAR initiatives with 3-letter acronyms that have succeeded since MLS and even that has faced many lawsuits. I still consider MLS a success because it is the number 1 member service NAR has ever come up with. Essentially, MLS was a killer application that brought order to the marketplace. Like it or not, MLS has been a success. I do not know the date MLS was coined, but it was a long time ago in relative terms to this post.

So, now the latest challenger to the 3-letter theory jinx is RPR. This concept is so BIG in concept that it may be a killer app in its own right. Time will tell, but I am optimistic that it can become a major resource for members.

June 9, 2008

Are You Driving in the Left Lane, but Only Going the Speed Limit (or less)?

by Dave Phillips

CEO, PA Association of Realtors

I travel Interstate 64 between Charlottesville and Richmond at least once a month. It is a fairly lightly traveled highway (compared to 95 and 81), so it is justifiably only two lanes wide in either direction. It is also a fairly boring drive because the scenery (which is nice) does not change for 50 miles. The road is straight, flat, and requires a stop at Starbucks before you brave the monotony.

The lack of interesting scenery or road challenges allows my mind to wander and think up Blog posts like this one. On a recent trek back from Richmond, I experienced a common source of frustration – a legitimate pet peeve of mine – when I found myself going 5 miles UNDER the speed limit while driving in the “fast lane.” As you can guess, there was an otherwise “normal” person merrily cruising down the left lane and ignoring the signs that say “Slower Traffic Keep Right.” Cars had stacked up behind this slowpoke as they attempted to negotiate passing the vehicle on the right.

fast lane There was a law on the books in Virginia that made it illegal to pass on the right, but that was removed several years ago because more than one member of the General Assembly shares my pet peeve. I would have preferred that we stiffen the penalty for driving slow in the left lane (perhaps jail time) instead of justifying cars weaving through traffic, but then again, how much sympathy can you have for drivers like me who believe a State Trooper’s mantra is “eight you’re great, nine you’re mine?”

For many agents, the same frustration occurs in the real estate business. I often hear complaints about less “professional” agents slowing up a transaction. In essence, the complaint is that one agent involved in the transaction is hurting the efficiency of information flow needed to get the deal done, much like a slow driver in the left lane hurts the efficiency of traffic flow. This analogy, however, breaks down when you compare the root cause of the problem. The driver in the left lane is simply rude or inconsiderate Read more

May 13, 2008

To Z or Not To Z?

by Dave Phillips

CEO, PA Association of Realtors

That is the question.

Whether ‘tis noble in the mind to suffer

The slings and arrows of outrageous fortune,

Or take arms against a sea of troubles,

And by not opposing them? To die:to sleep;

No more; and by a sleep to say we end.

I started this post with what I thought was a cute title, but then I looked at the actual Shakespeare soliloquy and saw that it was quite appropriate to this post. The “Z” in the title is for Zillow – the latest in a long list of challengers to Realtor.com for supremacy in Internet traffic for real estate eyeballs. There are other relatively new sites – Trulia, etc. – but Zillow seems to have captured the imagination of both the public and REALTORS®. Maybe it’s the cute name or the even cuter play on words with “Zestimates,” but the one site everyone seems to remember is Zillow. It has almost become a cliché term for Internet listing aggregators. Not bad for a site that has only been around for a year and a half.

But this post is not about Zillow; rather I wanted to explore the question of whether it make sense for local MLS systems to send their listing data to Zillow (or any other aggregator). A recent New York Times article provides a good framework of the discussion, but leaves out most of the “slings and arrows” that need to be considered before we willy nilly send MLS data to any site that wants it. Before you draw any conclusions as to my opinion on sending listing data to Zillow, let me say I could argue either “To Z, or Not To Z.” This post will focus a bit more on the slings and arrows, but Times article does a good job of making the other side of the argument. Frankly, I am undecided on this question and I encourage you to approach this discussion with an open mind.

We recently had this discussion in the Technology Group of the Charlottesville Area Association of REALTORS® (CAAR). There were strong opinions stated on both sides of the debate. Advocates Read more

May 11, 2008

Updates From the Ivory Tower

by Dave Phillips

CEO, PA Association of Realtors

This week all the elected and paid leaders of the REALTOR® organization will be headed to Washington DC for organizational meetings and visits with Congress. For all of you NAR malcontents, this would be a perfect time to carry out the hostile take-over of your local and state association of REALTORS®.

White House

The agenda for the NAR Mid-Year Meeting features two items that I have written about in the past – the announced Upgrade to REALTOR.com’s standard services and the project formerly known as “the gateway.” Here are a couple of quick updates:

Last week, REALTOR.com released a beta site (http://beta.realtor.com) and the following statement:

The new “Beta” REALTOR.com^®website will continue to be enhanced over the next several months. Early this summer, the new site will replace the current site and will include many new free benefits for your members. One important FREE benefit on the new REALTOR.com^®site is the ability to display up to 4 photos on all basic listings. Since we already receive multiple photos in the data that you currently provide to REALTOR.com^®, there is no action required on your part to provide this new and exciting benefit for your members. Property photos will continue to be updated as long as the listing remains on the market and is on REALTOR.com^®.

The Gateway…Real Estate Channel…or Library/Archive

The project that is so big and far reaching that NAR is having trouble finding a name to fit will be a major topic of discussion in DC. For those who have not heard of this, the project originally used the working title “Gateway” and was basically a mash-up all property data in the country. Then, just a little over a month ago, the name was changed to the “Real Estate Channel” and now it is being referred to as a library or archive of data. More importantly, NAR has issued a white paper on the..ah…whatchamacallit program that clearly outlines the intent. A few key points for those who do not wish to click thru to read the white paper: 1) it is NOT an MLS and there will be no offer of compensation or Read more

May 5, 2008

How Do You Spell MLS?

by Dave Phillips

CEO, PA Association of Realtors

Once, many years ago, I spelled CRB wrong and offended a bunch of brokers who held that designation. I spelled it “CRS.” Easy mistake for someone new to the REALTOR® business. Heck, I hardly knew the difference between an agent and a broker back then, so how was I to understand what a big deal it was to confuse a couple of designations? Of course, back then there were only a handful of designations – presently we have around 70 designations that are recognized in the industry. It must be really tough for a newbie to understand all the alphabet soup today.

It is probably also tough for a newbie to understand what MLS means. Sure, the easy answer is Multiple Listing Service, but what is the purpose of the MLS? I think many REALTORS®, and surely most of the general public, believe that the primary purpose of MLS is for collecting property data so it can be efficiently searched/distributed. Even Wikipedia agrees with this common description of MLS. Over the years, I have often been asked by sellers why they cannot enter their own listing in the MLS so it can be distributed like other listings. This post details what I try to explain to these sellers.

Data distribution is certainly an important side function of MLS, but I argue that it is NOT the most important function. If it were, then we should open up MLS to anyone who wants to enter a listing. After all, if we had more data (including FSBOs, bank properties and government seizures) it would make data distribution even better.

mls To understand what MLS’s primary function is, you need to go back to the beginning. The first MLS predates the founding of NAR by more than 20 years. It goes all the way back to 1887 in San Diego. Needless to say, that original system was not computer based. The first computerized MLS came about in 1975. The public display of listings did not occur until the Internet explosion in the early 1990’s, and REALTOR.com was founded in 1997.

Okay, that’s more background than you probably wanted, Read more

May 2, 2008

REALTOR.com to Provide Upgrades for All

by Dave Phillips

CEO, PA Association of Realtors

Later this month, REALTOR.com will be announcing that many of the Premium Services for agents (services that Premium Subscribers pay for) will soon be available to all REALTORS®. Services like multiple pictures, for instance, will be available on all listings. This will provide sellers with better exposure of their property.

This change is actually a major philosophical shift for the largest, most popular real estate site on the web. Essentially, they will be turning premium services into the new standard services and then developing new premium services. If successful, the pace of innovation at REALTOR.com should pick up and the site may be morphed from a member nuisance, to a member service. It is too soon to tell if this change will help REALTOR.com keep up with newer sites like Zillow and Trulia, but this is a positive start to a much needed change.

Author: Dave Phillips (page 1 of 2)

Some Updates from the Marble Tower

by Dave Phillips

NAR Responds To Cap and Trade Concerns

by Dave Phillips

From Blogs to Klogs: How Blogging Will Become Useful

by Dave Phillips

Latest Findings From the Buyer, Seller Profile

by Dave Phillips

If You Are Going Through Hell…

by Dave Phillips

NAR Responds to FSBOGate

by Dave Phillips

NAR Promotes Housing Stimulus Plan

by Dave Phillips

I’m Voting for Senator O’Cain

by Dave Phillips

What Has Your Local Association Done For/To You Lately?

by Dave Phillips

Will NAR’s Latest 3-Letter Word Be Another Failure?

by Dave Phillips

Are You Driving in the Left Lane, but Only Going the Speed Limit (or less)?

by Dave Phillips

To Z or Not To Z?

by Dave Phillips

Updates From the Ivory Tower

by Dave Phillips

How Do You Spell MLS?

by Dave Phillips

REALTOR.com to Provide Upgrades for All

by Dave Phillips

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