There’s always something to howl about.

Category: Real Estate (page 112 of 266)

You probably won’t sell your home for an above-market price, but even if you do, the home still has to appraise for that price

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

 
You probably won’t sell your home for an above-market price, but even if you do, the home still has to appraise for that price

So your house is finally under contract. Congratulations. It took longer than you thought it would to sell, and you had to go through three price reductions before you got regular showings. But now you’re under contract and in escrow. You’ve made it through the inspections and you’ve taken care of all of the repairs. Nothing but smooth sailing from here, right?

Not quite.

Here comes some bad news you hadn’t anticipated: Your house didn’t appraise.

A lender will only lend on the appraised value or the purchase price — whichever is lower. If the appraisal comes in lower than the purchase price, something has to give.

If there’s an appraisal contingency in the contract — and there almost always is — the buyers can cancel the contract unilaterally.

More likely, they’re going to want you to lower your price instead.

If you don’t, you’re almost certainly killing that contract. The lender will not underwrite the loan, so the buyers will be forced to cancel using the financing contingency.

You could end up waiting quite a while longer for another buyer. And that buyer could offer you quite a bit less for your home. And even then, your house will still have to appraise for the purchase price. If home values continue to decline, you could live through this same nightmare a second time.

So does that mean you should cave on the appraisal no matter what? Not necessarily — depending on your objectives. If you need to move now, take your punishment and move on. But if you can afford to wait long enough for the market to recover, that might be the better option.

Appraisers and loan underwriters are skittish right now. Lenders are taking back homes and selling them for fifty cents on the dollar. Appraisers are being fastidious to make sure they are not overestimating values.

And all of this is just another reason to price your home to the market. You Read more

Farewell

Greg, I would have written an email but I wanted to publicly address all of Bloodhound and it’s followers. I appreciate the opportunity given to me to be a part of such a powerful and dynamic group, but I must move along and pay more attention to my work and my own blog. I haven’t got the stamina to keep up with the number of blogs I post on, so I don’t want to just hang on the side pictures and not contribute.

This has been a great experience and you have some great contributors coming on board. I thank you and will always be a loyal fan.

 

Sincerely,

 

Mike

 

The just-exactly-how-dumb-are-you Realtor-spam of the day: Inman’s non-ad ad might be extortion, but at least you’re invited to help them betray their own advertisers — for a fee, of course

This is what you will see if you click on a link to an Inman News article:

First: What ad? There isn’t any ad there, just a ransom note.

Who’s the hostage? That would be you. Inman is deliberately interposing itself between you and what you want, demanding payment to get out of your way. That much is extortion, and it’s extortion of the Chokepoint Charlie variety, since the chokepoint is entirely an artifice manufactured by Inman in order either to extort your funds or to punish you by delay for refusing to be extorted.

Nice behavior, huh?

There’s more. The non-ad ad actually attempts to insinuate that it is a matter of prestige to have been extorted in this fashion. “Club members,” the concierge in the pro shop will inform you, “have first claim on available tee times.” If you cough up the dough demanded by this chokepoint, you’re not a schmoo who got rolled in exchange for faster access to regurgitated press releases. To the contrary. You’re a member, one of the privileged elite. In essence, it’s like a line pass in Las Vegas: You’re not some ordinary sucker. No, sir! You’re a very special sucker!

We’re not done. Consider the advertisers, even though I can’t ever remember seeing an ad in this non-ad ad’s place. The “social contract” between Inman and the advertiser runs like this: “We know that our readers don’t want to be delayed. We know they just want access to whatever it is they clicked through to find. So, in exchange for your money, were going to frustrate and betray them — with your ad being the instrument of that betrayal.”

I cannot imagine an advertiser stupid enough to want to try to engage the people it just pissed off, but this is literally the expectation governing that particular advertising space.

But now we’re back to the non-ad ad. What does it really say? It says that Inman will take money from advertisers to frustrate and betray its own readers. Unless those readers are willing to pay the extortion money, in which case Inman will frustrate and betray its own advertisers, from Read more

Mortgage Market Week in Review – the Fed Translated….

Hi all,

I want to thank Greg and Teri and Brian and….everyone for the honor of being invited to hang out with such an esteemed bunch.  I’m really excited about it and looking forward to working, talking and “raising the bar.”

I’ll do up a post next week telling a little more about “my story,” but for now I wanted to put up the post that I write every week for my blog.  I call it “Mortgage Market Week in Review” and it’s my overview of what’s been happening in the market and how it impacts the real estate world.  I hope you enjoy it.

For this week’s “Mortgage Market Week in Review,” I’m going to translate the Fed’s announcement that came out on Wednesday at 2:15 PM. It will, I believe, help give us a better view of what’s happening in the financial markets. The actual statement by the Fed will be in italics, my comments will be in bold.
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.

That, in and off itself, says that the Fed sees things as having changed since the last time they met. The last time they met, they felt that the economic weakness issue was more important than the risk of inflation. Now they are saying that it’s pretty much a tie as to which risk is bigger.

Recent information indicates that overall economic activity continues to expand, Remember, they are looking at the big picture and are looking at things nationally. partly reflecting some firming in household spending Household spending has firmed some, but a closer look at the charts (which I won’t bore you with here) shows that consumer spending is either 1) Spent on essentials like food and gas or 2) drifting slowly downward. So, I don’t see the household spending holding up, especially as people have to cut back in spending in other areas because of the cost of food and gas for their cars.

However, labor markets have softened further As the labor markets soften (a nice way for Read more

Project Bloodhound: How to make Google your weblog’s best friend

[This is one of the all-time most popular posts on BloodhoundBlog. I’m reprising it for Project Bloodhound, first because it’s a nice leveraged SEO solution, and second because it’s a painless introduction to customizing the PHP in WordPress. –GSS]

 
Who can probe all the mysteries of Google? Not me, and I don’t even do referrals on the subject. But I can give you a 93% solution to the problem, and you can worry about the other 7% when you’re not too busy handling incoming traffic.

What’s the secret? Like this: Relevance equals Title plus Headline plus Body Copy. If those three elements are in close correspondence, to Google the article is what it says it is. If that sounds like a Zestimate of a burned down house, it’s because it is. Software cannot evaluate objectively, it can only draw inferences from trusted indicators. If you leave a trail of indicators that Google associates with highly-relevant content, then it is highly-relevant content.

I’ve talked about writing headlines and body copy that are long-tail keyword rich. If you have a WordPress weblog, here’s a way to get your post’s title to correspond to its headline:

<title>
<?php wp_title(" "); ?>
<?php if(wp_title(" ", false)) { echo " | "; } ?>
YourBlogName | 
Your blog's tagline...
</title>

Here is what that code says:

If there is a headline, show it as the title of the page. On your main page, there is no title. On archive or category pages, the archive or the category will be the title.

If we did show a title, lay down a vertical bar as punctuation.

Then show the weblog’s name and tag line, separated by a vertical bar.

Altogether, the code means that when your post is shown as a standalone weblog entry, the title of that page will be the headline of the post. This is the way Google will see it for indexing purposes. And what that means is that Google will regard your post as being highly relevant.

You can snag a copy of the code you see above by clicking here. The file you need to edit is named “header.php”. You’ll find it in the folder for Read more

Project Bloodhound: How to write headlines for your real estate weblog posts that deliver the goods — and deliver Google results

A headline on a weblog post is a differentiator — this entry is different from all the others — but that’s not a very useful lens for understanding headlines. A serial number — A37592x — is a differentiator, too.

A headline can serve the same purpose as a headline in the newspaper, as a brief summary of the succeeding content — “Man kills wife, kids, self.”

That’s a useful function, but it’s not really doing the job we want a headline on a blog post to do.

Here’s a better way of understanding the communicative purpose of a weblog entry’s headline:

A headline is a testament from the writer to the reader than the content described in the headline is accurately reflected by that headline and that reading that content will repay the effort it entails.

But that’s still not enough. A headline on a weblog post, and on any persuasive copy, has to ensnare and entice the reader. The headline has to promise a substantive benefit that the reader will realize by pursuing the copy. Writing an effective headline is very much a Direct Marketing problem.

And we’re not done even yet. In addition to all the jobs it must undertake in the reader’s behalf, a well-written weblog headline should also engage horizontal search engines in meaningful ways.

So a properly-crafted weblog headline will:

  • Summarize the content in an interesting way
  • Promise the reader a practical benefit for reading that content
  • Search well on the most-significant keywords in that content

That’s a big load to carry, but a good headline can make a post, where a bad one can break it.

I don’t want to represent myself as a good example, because I will frequently opt for clever rather than good, but the headline of this post is a nice example of a good headline: It tells you what I’m going to talk about, it tells you how you will gain by reading this post, and it is strong on keywords that are likely to be searched by people who may have an interest in BloodhoundBlog’s ongoing content.

The latter point is important. It’s easy to score well on long-tail search terms, but Read more

Listing real estate the Bloodhound way: The marketing power of a custom yard sign is not the color, not the photography, not even that it is custom-made — it’s the text on the sign that stops traffic

We’ve been making custom yard signs for two years now, but that represents the third generation of our sign philosophy. The second generation featured a huge picture of Odysseus the TV Spokesmodel Bloodhound, and that was a real traffic stopper when it was new. The first generation sported a huge rendition of our corporate logo, which we moved, in smaller form, to the riser on top of the post for the second and third generation signs.

What BloodhoundRealty.com signs have always had in common, going back to 2003, is that paragraph of small text in the middle of the sign. With our custom signs, we can rhapsodize each house, but we knew from the very beginning that that paragraph of text would stop traffic, and that this would win attention for our homes that we could not achieve with an ordinary real estate sign.

We knew back then that we wanted custom signs, we just couldn’t do it then. (Richard Riccelli suggested that we mount a metal frame on our signs so that we could swap in other text.) We knew then, as we we know now, that good marketing sells houses — but that exceptional marketing would set us apart from the Realtors we compete against with our sellers and with their neighbors.

Here’s how to understand the Bloodhound marketing strategy: Everything we do goes into selling the house — into inducing the behaviors necessary for the home to be sold. And selling houses the way we do accomplishes the objective of selling everything we do to those homeowners who are paying attention. In that respect, all of our marketing is integrated — all one thing.

This is adapted from a comment I posted earlier today.

What matters most about custom yard signs is not the color, not the photography, not even that they are custom-made for the house. What makes them sell is that paragraph of text in the middle of the sign. As you could easily predict, there is a philosophy behind everything we do, including our custom signs:

Forever and always, Realtors have treated their yard signs like billboards. After all, the traffic Read more

Project Bloodhound: How to write a question post that gets answers

Our new contributors are true Bloodhounds, equal to all the others. We don’t have rules, we don’t play status games and we don’t want for anyone to feel less than perfectly welcome here.

But: We do recognize that the new Bloodhounds are going to have questions. We want for them to have questions, since their questions will kick off great discussions of how to manage the world of Social Media Marketing.

However: The question post can be the death of weblogging. You set something up and then you say, “Does that makes sense?” or “What say you?” or “Am I wrong?” Sounds harmless enough, but, for some reason, posts like that tend to die a commentless death. It’s plausible to me that you see them so often on weblogs where the host is desperate for comments that that trailing question comes to seem like desperation in the flesh — like a blind date who turns out to be a sweaty Trekkie with Asperger’s Syndrome.

Here’s a way to put together a question post that will spark a conversation rather than languish in perpetuity, unremarked on and unloved.

First, instead of ending with the question, start with it: Just exactly how do you establish a following on Twitter without looking like another pushy Realtor?

Second, take some responsibility for yourself: Here’s what I was thinking. I thought I might just go in and start talking about the things that fascinate me in the neighborhoods I work in.

Third, give your readers the respect they deserve: I know there are a lot of people out there who have been successfully tweeting real estate for quite a while, so I was hoping someone could give me some direction.

Fourth, get right back to the questions: Am I all messed up in my thinking? Is there something I’m missing? Is there a better way of going at things?

Fifth, go one down, graciously: I know you guys know so much more about this than I do. Thanks for taking the time to hold my hand.

Like this:

Just exactly how do you establish a following on Twitter without looking like another pushy Realtor?

Here’s what I Read more

Project Bloodhound: And they called it puppy love

The Bloodhound Blog has puppies!

This is a frisky and fearless litter of pure-bred Bloodhounds, each with their own unique goals, skills, voice, and talents. They are being added to the contributor’s panel to blend their own howling to the symphony that makes Bloodhound the remarkable place it is. I prefer to let them tell you their own stories in their own words, but I’ll give you a little glimpse into the breadth and wisdom of this amazing group that we’ve assembled.

What I think you will find so intriguing about this group is that the focus of their blogs varies quite a bit. During Project Blogger, we were all real estate bloggers with a local focus. That is so-o-o 2007. This is 2008, and this is Project Bloodhound. This is a lender, and a true hyperlocal blog, and a green multi-user blog, and this a few city-wide real estate blogs of different price points and markets.

Project Blogger was mentors and newbies. Not Project Bloodhound. We have a true pup, just starting to cut her teeth in the Web 2.0 world; we have experienced bloggers who are hunting for a more engaging writing style; a long time blogger who is on the scent of the SEO secrets for dominating his market. There are a few pups who are gnawing on the dashboard of their WordPress platforms, and bloggers who are happily chewing Blogger and RSSpieces blogs, thank you very much.

Who are these pups?

Christine Beaur-Mortezaie: VoilaLongBeach

Brad Coy: SanFranciscoRealEstateServices

Michelle DeRepentingy: AllAboutAthensGA

Stephanie Edwards-Musa: TurningHoustonGreen

Hunter Jackson: ColumbiaSCRealEstateHomes

Tom Vanderwell: StraightTalkAboutMortgages

How is Project Bloodhound going to work? Briefly, the pups are going to post here, and we- we being anyone- are going to take those posts as a starting point and continue the conversation in comment threads, on our own blogs, and here on BHB posts. This is your opportunity to share your knowledge, but also your chance to ask your own questions and pick the brains of the best bloggers out there.

One short year later, it is a real joy to pay my own experience forward and I hope you will welcome this new litter of Bloodhounds with Read more

Estately.com in San Diego: Map-based search in a land without rain

Estately.com starts operations in San Diego today, the third city to be served by the Seattle-based map-based real estate search start-up. Considering that the company has so-far only raked in a modest six-figures in venture capital, this would seem to argue that Estately’s software scales easily. No news on finances, but, seriously, there must be some boot-strapping money to permit this rapid growth.

This is from an email from Estately.com co-founder and BloodhoundBlog contributor Galen Ward:

Estately.com is expanding into a new market. Beginning on Thursday, June 26th, over 19,000 San Diego homes and condos will be added to Estately.com’s 105,000+ properties for sale. Given the rapid changes in San Diego’s market, we are especially excited to give consumers the ability to track price changes on individual homes and across searches and areas.
Here are some example searches Estately makes into a snap:

  • Homes in La Jolla priced between $500,000 and $1,000,000 and sorted from cheapest to most expensive
  • Homes between $350,000 and $450,000 in Chula Vista
  • Homes including the words “motivated” (as in “motivated seller”) in the San Diego area

Additionally, we have revamped our “nearby information” information, plotted local schools and school scores, parks and transit stops on a map, and integrated it into the listing page.

I tried to run a search on “smug, slow-talking beachbums bragging about all the money they scam off of Arizona tourists with trained fish acts” — but that turns out to be everybody in San Diego.

Next stop: I’m betting on Oakland, but that’s only because I peeked. What’s not next: Phoenix — more’s the pity.

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Custom Signs and Brake Lights

Recently experimented with one of the countless ideas that pour out of BHB like water from a hydrant.  Created a single site blog page and a custom sign for a listing.  The idea, of course, is stolen from Greg Swann and some of the other brilliant minds that visit here.  The purpose is this: be so much better as an agent (which is to say: so much better at marketing), others will have to increase their value proposition markedly… or get out of the game.  Here are a couple pictures of the sign:

The first one is an overview and the second one is a close-up.  I think they turned out nice and I was VERY happy with the process.

But that is not why I am posting.

Here’s the really interesting part.  After hanging the sign I started to pull away and had to stop and get my camera out again.  Three cars in a row stopped to look at the sign and one actually sent their child out to get the flyer.

 

So… within minutes of hanging the sign I had eyeballs from three cars and conversion on one; you have got to love that kind of impact!  BTW, the first thing my clients said was they loved the sign.  I remarked how standard signs only tell people a house is for sale while marketing for the brokerage.  One of the ideas behind a custom sign is to encourage people to stop the car and get out to read the sign (thus increasing the possibility of interest).  They replied: “This should do it.  You know… every agent in the area is going to stop and read it!”  Just love that.

Listing real estate the Bloodhound way: Apprehending all of the marketing objectives of single-property web sites

Trace Richardson wrote just lately on the technology of building single-property web sites, and, while he got almost everything wrong, from my point of view, I’m willing to cut him some slack. First, he’s a very thoroughgoing weblogger, and that buys a lot of credit in my bank. And second, he went after the topic as a technology problem, rather than as a marketing problem.

That’s a mistake, but hardly an uncommon one. It’s natural for us, when we think about doing something, to think about the doing, rather than about what it is we hope at the end of the process to have done. Build a web site? That’s easy: Step 1. Step 2. Step 3. Build a web site that sells a house? That’s a harder job. Build a web site that thrills the sellers, slays the neighbors, sells the house and promotes you as a Realtor forever? That’s a Bloodhound job.

Here’s the thing: A single-property web site is not just another bullet point in your listing presentation. If it is, you might as well just buy yourself a Showing Beacon and be done with it. If you’re just shining your sellers on, just promising them yet another gimmick to get the listing, you might as well pick an easier gimmick.

There’s more: There is no way a third-party vendor is going to produce a single-property web site that will achieve what I consider to be the essential marketing objectives of the endeavor — not, at least, at a price you can afford to pay. You have to learn to do this in house, either yourself or with staffers you control directly.

And still more: Of all of the marketing objectives we can attain with a single-property web site, SEO is pretty low on the list. Even so, there are long-term SEO benefits to be reaped from doing a single-property web site properly.

This is our way of thinking about this issue. Your mileage may vary, and I entreat you to remember that a single-property web site is just one piece of an overall strategy that we use to market a listing.

Start here: Read more

As a personal favor…

When I was putting together TEAM ERIC for the Greatest Real Estate Agent in the World Contest, I was pretty specific in how I built the team. There was a reason that Greg Swann was on the team. There was a reason for EACH member. Many of the team members did not talk to each other much in the emails that went flying everywhere, but individually they all talked with me. Everyone who was on that team was VITAL to its success. One of the things that united our whole team was that they are all “givers” and “doers”. There were (and are) no “show dogs”. The team was comprised of dogs who know how to hunt or pull a sled.

One of the members of our team is Charles Richey and his wife Jacqui. Charles does the webmastering and marketing support while his wife does the selling in Las Vegas. Charles is a giving, caring soul who is now faced with battling Guillaume Barre Disease and has been in the ICU for the past few days. The good news is that the outlook is positive. Many make a full recovery (after an extended stay in the hospital and physical therapy). This will be a long battle. One that ANY of us here could find ourselves in. But, like many REALTORS, Charles and Jacqui are battling without health insurance.

I am capitalist through and through, but that comes also with the fact that I am a loyal friend to a teammate and believe in helping fellow travelers and paying it forward. One does not truly work without the other. And as REALTORS we are all teammates to a large extent.

A fund has been set up here. If you can spare some, it is greatly needed and would be appreciated big time. Many REALTORS and more than a couple of vendors have offered support. I will chronicle their efforts down the road a bit.

Thanks a bunch for whatever you can do. I know times are tough right now and purse strings are tight. Even a small donation from a large number of folks would Read more

Housing Rescue Plan Passes Senate Smell Test

Ever see what you thought was a pragmatic idea bastardized?  I’m no politician but I love throwing mock legislation up to the Bloodhound Congress.  If you’ve ever watched C-SPAN, The Bloodhound Congress resembles The British Parliament much more than our domestic legislative body.  Boos, hisses, and cheers abound in the rough and tumble world we live in.

I wouldn’t have it any other way. Madames Porter and Schlicke and Messrs. Kerr, Purcell, Ashby, and Johnson keep me honest and get the old grey matter working.  As Bloodhound Blog approaches its second birthday, I salute the folks who really make it such a special place for me; The Bloodhound Congress.

Y’all remember this plea to Senator Dodd to leave well enough alone?

I oppose individual originator licensing in its proposed form. It doesn’t demonstrate true expertise and might induce a false sense of security to the consumer. This very act may very well damage the consumer by perpetuating the adolescent approach to financial planning the average American exhibits. It transfers the responsibility of prudent money management from the consumer to the license issuing body; sadly, those bodies are not up to the task.

I made the mistake of giving The Distinguished Chairman an inch:

I am recommending a NASD-type licensing model, with comprehensive education and testing standards. Originators should have education in financial planning, loan programs, and consumer suitability- that license will look a lot like a Series 7, General Securities Representative. Loan Processors should be proficient in loan programs and suitability, like the Series 6 license for mutual funds and variable annuities. Finally, managers and underwriters should have supervisory jurisdiction like the Series 24, General Securities Principal license. These licenses should be required for any and all participants, regardless of their employing company, and include federally-chartered banks. The effect will be higher costs to the consumer but expertise has its price.

Be careful what you ask; you might get exactly what you want.  Good Grief!  I didn’t really MEAN it!

This one riled everyone up. I reversed course and recommended yet another bailout.  I actually thought this was a pretty cool idea, exposing the Social Security system as Read more

Listing real estate the Bloodhound way: A marketing quiz to shed light on the full value of the Coffee Table Books we make for our listings

I’ve written about the Coffee Table Books we make for some of our listings, and I talked about them briefly at BloodhoundBlog Unchained. I wanted to go into the idea in greater detail, because I think this is a case where, if you don’t understand all of our thinking, you could easily miss the big picture by focusing on the pixels.

Cathleen Collins invented the idea of doing Coffee Table Books for listings. She knew what we wanted, and then she searched the internet to find a way to do it. (We use Apple’s iPhoto, but you get get similar products from Shutterfly. H/T Cheryl Johnson.) We’re not always this lucky. We knew what we wanted in custom yard signs years before we were able to find a vendor who could do it.

To understand our marketing objectives, we need to start at the top. A Coffee Table Book is an objet d’art. It is only secondarily a book. It is primarily a statement about the subject of that book. By its nature, a Coffee Table Book says, “This is important. This is no mere casual, ordinary thing. This is an object or event that deserves to be heralded, celebrated, honored.” That’s why these books can only work for certain homes, and, why, incidentally, I think it’s a mistake to violate the format. If you turn your Coffee Table Book into a hard-cover version of the kind of comb-bound listing books produced by title companies, you cheapen your impact — possibly to the point of anti-marketing — and frustrate your objectives.

So the sine qua non of a BloodhoundRealty.com Coffee Table Book is an exceptional home. The book says, “This home is extraordinary,” so the home has to be extraordinary enough to justify the existence of the book.

And this comes back to the knock-their-socks-off idea of marketing a listing. The Coffee Table Book expresses your total commitment to your sellers, and it makes the same kind of impression on potential buyers. A Coffee Table Book will not paper over the defects in an ugly, dirty, decrepit home, but it will make your listing stand Read more