There’s always something to howl about.

Category: Zillow.com (page 3 of 13)

I don’t need to show you any stinking badges! I’m a Zillow All Star!

About a month ago, Zillow started showing the number of contributions you have made to their data base in your profile. Up at the top you see the total number of contributions, and down below you get a running total of recent contributions.

It was obvious where they were headed, a de facto ranking system based on user contributions. In the co-branding information released earlier this week, Zillow made mention of “badges,” and one of the pix they released showed a badge in the co-branding area.

But… I didn’t actually dare to think that I would qualify as a Zillow All Star…

There’s a point at which it’s kind of funny — does it come with a secret decoder ring? But even so, I don’t hate the idea. Active Rain built something that might someday be a business on a completely brain-dead points system. There is no way to make a brain-dead contribution to Zillow. Everything matters.

And thrusting everything associated with the sale of real estate to the side, I love the idea of Zillow becoming fully-populated with data. There may come a day when the Zillow data base is the de facto museum of residential real estate. Hundreds of biz school PhD theses could emerge from that vast store of information.

In the mean time, your Zillow All Star badge is another co-branding trinket you can put on your weblog.

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As good as a link: How would you like to “co-brand” with Zillow?

Do you want to see something huge in the guise of something that might seem quite small at first?

Click here.

This is new software from Zillow.com. It’s supposed to go live at 9 pm PST, but it’s already working for me.

What’s different?

Look up in the upper left hand corner.

C’est moi! A photo of Odysseus. A link to my Zillow profile. A link to my email. My phone number. And a link to our brokerage’s weblog.

Even cooler is that button in the upper right hand corner:

A quick-click button to take you back to BloodhoundRealty.com.

So what’s going on here?

As of tonight, Zillow.com is “co-branding” with anyone who links to it. “Co-branding” is the kind of wine-and-cheese-PR-event deal big companies make with other big companies, but Zillow is extending the idea down to the lowliest of grunts-in-the-trenches.

(We can take a moment to snicker behind our hands. Trulia.com is building its reputation on being niggardly and hostile toward ordinary working real estate agents, so what better way to throw the whole issue into the starkest possible contrast? I don’t think Zillow approaches things this way, but the irony can’t be lost on them.)

Why does this matter? Because it’s a very reasonable response to an objection. If someone says, “Providing or promoting content on Zillow.com improves their garden but not your own,” Zillow can offer up the perfect counter: If you shed attention to us, we will make you our partner for that entire visit, and we will entreat your guest to return to you with every page that person views.

This is brilliant every way you think about it, and, of the wannabe Web 2.0 players in the real estate industry, Zillow seems to me to be the only one who really gets the whole bundle of Web 2.0 concepts: You give to get, wealth is abundant, the expectation of good behavior yields good behavior, etc.

There’s more. Zillow.com is about to introduce a ton of new widgets and gadgets, each one of which will be co-branded to the end-user. You’ll be able to post real-time mortgage quotes, for instance, and anything built with the Zillow API will Read more

An introduction from the banking “Pup”

Hi,

First I want to thank all of you for making me feel so welcomed as one of the newest members of the Bloodhounds.   I’ve felt very welcomed and I appreciate that.   I’ve also learned a lot.

As Greg said when we kicked off Project Bloodhound, he’d let all of the pups take the opportunity to properly introduce themselves.  I’m going to attempt to do that.

First the basics: My name is Tom Vanderwell, I’ve been married to my high school sweetheart and best friend for 23 years (well it will be 23 years in 11 days).   We have 5 children.  The oldest (21) is living and working in Ohio as a call center rep.   My 18 year old will be attending Calvin College in the fall to pursue a nursing career.  She plans on going into third world nursing, specifically at this point in Haiti.  Our 16 year old will be a junior in high school.   Four years ago we adopted two more kids from Haiti (www.glahaiti.org).  They are currently 6 and 7 (the 7 year is the only boy besides for me in the whole family!)   Let’s just say life is never boring at our house!

One of the questions that I enjoy asking others in the real estate world is “How did you get into the real estate business?”   So here’s my story.  In 1988, I was running the showroom of a local furniture rental store (not a rent to own, but a temporary leasing store) and got let go because I refused to lie to the customers (go figure?).   One of my customers was a Realtor and she made a comment to me, “You should think about selling real estate.”   Well, after a couple of months looking for a job, I decided to pursue the idea.   I ended up selling real estate for 3 1/2 years.  I don’t know how many of you were around during the first Persian Gulf War, but I didn’t sell a house for 6 months during that.   Needless to say, it was time to look for something else.

In 1991, I made the switch to mortgage lending Read more

Redefining Mortgage Disclosure

Jeff Corbett announced that he launched Ratespeed this week:

What is it? An anonymous, automated, transparent, mortgage program and interest rate pricing pre-qualification Search Engine widget, thingy.


Why is this important? For the first time anyone can transparently access wholesale direct mortgage interest rates and program quotes without having to talk to a licensed mortgage professional first. Yep, this is important to a lot of people.

I”ve been thinking about how to improve a mortgage shopping experience for consumers and am enthralled with both Jeff’s offering and the Zillow Mortgage Marketplace. Both platforms are trying to better display information to consumers about loan terms. Zillow approaches it from a “live market” while Jeff Corbett focuses his efforts on yield spread premium.

I think the answer lies in a combination of a suggestion Todd Carpenter made, about eliminating all yield spread premium disclosure, and the Bank of America No Fee Plus Mortgage. I demonstrated how the No Fee Plus Mortgage was no real bargain today, after I visited my bank.

There is an answer. Isolate one variable; rate. Make loan originators guarantee all third-party fees, as well as their fees, when quoting mortgage terms. ABN-AMRO (now Citigroup) tried this some 3-4 years ago when they offered the “Guaranteed One Fee Mortgage“. When you do a side-by-side comparison with rates and loan programs matched up, you’ll get a true cost of credit if the originator is required to manage the closing costs and disclose them as one fee.

Banks or brokers will only disclose two things to the consumer: rate and one fee. It would be stupendously simple to understand.

Zillow Mortgage Must Verify Consumers To Become A Marketplace

Mike Mueller is leaving the Zillow Mortgage Marketplace. A poor consumer performance review drove him to do just that.

From the consumer review on Zillow Mortgage:

Rating: 1 / 5
Comment: I asked for conforming quote, got sent jumbo quote with huge fees. I even specifically noted the request in the ‘notes’ section due to the newly raised conforming loan limits. If a lender cannot start off paying attention to the customer’s needs there’s no reason to go further.
Reviewer: srg418

Is Mike a crybaby? Hardly. Mike Mueller’s one of the real pros out here and that’s what has me worried about Zillow’s mortgage offering. In their effort to be consumer-centric, they are forgetting that the the “truth” lies in a lender’s opinion of the borrower. If the truth (in this case) is the loan terms, then why are we letting consumers wreck lender’s reputations for delivering it?

Mike delivered the unpalatable news that the “new” jumbo conforming rates were different from the conforming rates. I did that about two months ago to a customer and was equally admonished for my “deceitful tricks”…until the customer started applying for loans. Fortunately, the customer was fair-minded enough to tell me that he funded his conforming-jumbo loan with another lender…at a higher rate than I quoted him. Nobody won- he paid more and I lost money because of his inability to deal with the reality of mortgage guidelines.

The problem lies with the one-way mirror used on Zillow Mortgage Marketplace. Like a perp in an interview room, mortgage professionals are criticized by consumers with predetermined bias. It is the bias of “needing to be correct” that stems from an inadequacy to deal with the truth. That sort of bias convicted Ruben Carter and I’m afraid that it hung Mike Mueller as well. Now, Mike won his case on appeal and fortunately it didn’t take 22 years for the truth to come out. From David G, in the comments thread:

I’ve deleted the review. Borrowers on Zillow can only rate lenders that they’ve worked with but I must Read more

What does Zillow.com understand that Trulia.com is missing? “Thou shalt not muzzle the ox that treadeth out the corn.”

I think that there may have been a time, in the blue-sky days of gray-skyed Seattle, when people with two-digit badge numbers at Zillow.com actually thought they might be able to disintermediate Realtors — much as Expedia.com had disintermediated travel agents. No one at Zillow will admit to this, but I suspect that a notion like this could have been in the original design parameters for the hypothetical software they were brainstorming in those days.

If this is true, then, to their credit, they came to their senses. Presumably, they realized, first, that the National Association of Realtors is a ferocious criminal mob that will do anything to destroy perceived competition, and, second, that, as simple as it might seem from the outside, real estate representation is too complicated to be automated cost-effectively, at least for now. Instead, Zillow.com made a conscious and thorough-going decision to partner with real estate agents and lenders, offering them exposure on its platform in exchange for building out its content.

You could argue that Trulia.com made a similar resolution, but it seems more likely to me that the San Francisco start-up is simply aping Zillow’s partnership with individual practitioners without really understanding it.

From a distance, the differences in the partnering relationships of the two companies could not be more stark. At Trulia, the most important kind of partner is the one who can deliver the most listings. The hierarchy runs from brokerage chain to brokerage to broker to agent to seller.

Zillow’s hierarchy is the other way around: The most important source of information about a home is that home’s owner. Next comes the agent, followed by the broker, the brokerage and the brokerage chain.

In both cases, higher parties on the hierarchy have the power to override — and thus usurp — the contributions of lower parties. What this means in practice is that sellers and their listing agents are regarded as being the least authoritative sources of information at Trulia — and therefore the last in line to receive practical benefits from the leads that might be generated by the on-line reiteration of the agent’s listing of Read more

Profiling our Zillow.com profile: Using landing pages and photos to try to create a compelling long-copy ad for our brokerage

We talked quite a bit at Unchained about profiles on Social Media Marketing sites. Once you’ve made a commitment to a site, you’ll be adding a significant amount of content to that platform. When someone comes across something you’ve done, their natural impulse is to click through to your profile. If they do, what will they see?

Chances are, when you first signed up for that site, you blew right past the profile page, plugging in the minimum necessary information to get your registration done. You wanted to get to the content, after all, to find out if that site even met your needs. You discovered over time that it did, but you probably never thought to go back and complete your profile.

This is a mistake. Your profile is the space that web site provides for you to sell yourself. At a minimum, you can direct interested people back to your own weblog or web site. Some sites will provide multiple links. Some will let you flesh out a free-form “about me” section, so that you can say exactly what you want in your own words. Some will permit fairly elaborate HTML coding, with links back to specific landing pages on your web site: You can sell relocation to relos, rentals to investors, re-fi’s to the equity-enriched.

A couple of different times, I mentioned my Zillow.com profile. Zillow is pretty liberal in the kind of coding you can do — allowing links and photos in the “about me” section, for example.

Vance Shutes asked me to share my Zillow profile with him. I thought it might be better to take up the issue in the blog. I can talk about what I’m doing, you can talk about what you’re doing, and we all can learn better ways of building Social Media Marketing profiles.

So: Between the horizontal rules is the code we use on our Zillow.com profile, as well as on other sites:


Why do we deliver so much more value for our clients? For one thing, it’s a great strategy for marketing our real estate brokerage. But even before that, we love selling real estate, Read more

To Z or Not To Z?

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

REALTOR.com to Provide Upgrades for All

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.

Oh, Canada! Your Zestimates are baking: Zillow.ca is in the oven

So: My belief would be that, regardless of Trulia.com’s nofollow policy on the listings it solicits from Realtors, brokers and brokerage chains, if you’re building things right at home, you should be able to beat any out-of-town infiltrators on your own listings.

So I looked up “718 West Moreland Street”, which isn’t even my listing, but which I wrote about in my own Trulia post a couple of weeks ago. My links are coming in in positions 1, 2, 3 and 4 and Trulia is at number 6. Your mileage may vary.

Next up, “12214 West Madison Street”, which we listed 13 days ago. The home’s single-property web site comes in first and second. Trulia isn’t there at all yet, but guess who comes in third? Yes, its underdog victorious Zillow.com. I tweaked David Gibbons a couple of days ago about his uncharacteristic silence, but I knew this meant that Zillow had to be working on SEO. With Zillow, you can learn a lot from the questions they won’t answer.

Here’s a third one: “1322 East Vermont Avenue”, which we’ve had listed for about a month. We definitely believe in networked cross-linking on our own sites, so as I look at my results for that search today (all of which might change at any instant), we’re coming in first, second, third, fifth and sixth out of seven hits on google, with the single-property web site again in the dominant position. Trulia.com is in fourth place, behind a weblog post I wrote about the Vermont house on DistinctivePhoenix.com — a PR4 weblog.

Can I call this established? If you’re building your own web sites properly, Trulia.com should not be able to beat you. Any disputes, disclaimers or caveats?

But here’s what’s really interesting: Position number seven is occupied by Zillow.ca. I don’t know how many houses there are in Canada, but it looks like they’re about to get Zestimated.

If a sphinx-like creature, his gaze blank and pitiless as the sun, should like to offer up some details, I’m all ears.

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Update On New Data Standards for Listing Displays

On April 12th, I posted some “news” from NAR regarding the unanimous approval by RESO (Real Estate Standards Organization) of the draft data standards for listing display.

On Friday, April 11th, NAR announced that the Real Estate Standards Organization (RESO) had unanimously approved a “draft standardized data format for distributing real estate listing information.”  

A few of you wanted more information, so I contacted NAR’s Technology Center and got the full scoop.

First, the draft is NOT available on-line, at least in a format that non-techies can read.  Here is a link to some really technical stuff for those of you who know what an “enum” is all about (I do not have a clue).

Second, I found out that these standards are a subset of the RETS data.  The RETS Syndication Standards (the official name) includes less than 2 dozen fields (I’ve heard 14) from RETS.  That sounds like a lot of field at first, but once you count up the obvious ones (e.g., agent name, contact, beds, baths, etc.) that is not very many.  Not that I’m second guessing the wizards who came up with this stuff.

Finally, the near riff I reported in the original post was reasonably accurate.  The big aggregators were tired of the slowness and bureaucracy of the process, but after they threatened to create their own standards, the process moved very quickly.  Essentially, they are beta testing now and will make the final decision in August.

So, what does this mean to REALTORS®?  Here’s what Chris McKeever from NAR said in an e-mail:

With the RESO and NAR backing of this Syndication Specification, this could very easily be adopted into MLS systems to allow them to be the clearinghouse for data transfer between all points.  In other words, your single point of listing data entry into the MLS could then also dynamically be sent to every site that you choose, very similiar to how REALTOR.com is fed now.  This, coupled with the growing number of consumer facing MLS search portals(link) could throw a complete paradigm shift into how listings are marketed on the web.

A Bourse is a Bourse and Zillow Mortgage is a Marketplace and Never the Twain Shall Meet

Bourse is a funny word isn’t it?  What exactly does it mean and why do people keep referring to the Zillow Mortgage Marketplace as a Bourse?

Bourse: \ˈburs\ Function: noun
Etymology: Middle French, literally, purse, from Medieval Latin bursa — more at purse
Date: 1597
1: exchange 5a; specifically : a European stock exchange
2: a sale of numismatic or philatelic items on tables (as at a convention)

Wikipedia equates a bourse more generally to a stock exchange.  This seems to be the connotation meant when Zillow Mortgage Marketplace is referred to as a Bourse: an open marketplace where pricing is transparent.

Hogwash… or more accurately: Pork Bellies.

I was an options trader on the floor of the Chicago Board Options Exchange.  That means I stood in a pit with other traders and made the market for various options on various stocks.  (I reiterate this to make clear my bona fides).  When a broker (representing “the public”) came into the pit and yelled out an option strike, my job was to have the best bid/ask and be FIRST.  If I accomplished both goals, I got to do the trade.  If someone else was tighter or faster… he/she got to do the trade.  This is the most transparent, open market type of bourse that exists.  How does Zillow Mortgage Marketplace compare to this?  Not even close.

There are more than a few discrepancies, but let me cut to the chase: In a transparent exchange, whether it be a pure “open market”, “open out-cry” system like in Chicago or the “license to steal” that goes on at the New York Stock Exchange, one thing remains true: the underlying commodity is fungible.  One share of IBM stock is interchangeable with another share of IBM stock.  One call option is interchangeable with its mirror strike and expiration date call option for the same underlying equity.  Its nature does not change based on who buys them or who sells them.  This is a bourse.

MORTGAGE IS MORE FUNGUS THAN FUNGIBLE
Now you might say that all 30 year fixed rate loans are fungible, but they are not.  A lot more information must be presented before claiming two such loans interchangeable.  Read more

Zillow.com’s Mortgage Marketplace brings anonymous apples-to-apples mortgage rate quotes to consumers, free consumer leads to lenders

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

 
Zillow.com’s Mortgage Marketplace brings anonymous apples-to-apples mortgage rate quotes to consumers, free consumer leads to lenders

Wouldn’t it be great if you could get a broad array of mortgage quotes without having to make dozens of phone calls? And what if you could make a true apples-to-apples comparison among quotes? Better still, what if you could remain anonymous, making yourself known to the lender only when you are ready to do business?

Seattle-based real estate start-up Zillow.com last week released its long-anticipated mortgage lending product, called the Mortgage Marketplace, and it offers all those features and more.

Unlike Zillow’s “Zestimates,” the loan quotes are generated by real people, working lenders. Zillow will basically be acting as a hands-off intermediary between borrowers and loan originators.

Consumers using Zillow’s new Mortgage Marketplace will be able to anonymously solicit bids for loans from participating lenders. The consumer will fill out a detailed form disclosing all pertinent financial details.

The form will be submitted anonymously to participating lenders, who will, in their turn, produce estimated loan quotes, submitting them, through Zillow, to the consumer. The consumer will then have the choice to make direct contact with particular lenders to decide whom to do business with.

To a very large degree, the information asymmetry between lender and borrower will be done away with, since the loan quote will detail every fee associated with the loan. Moreover, Zillow will be implementing a reputation-management system whereby borrowers will be able to rate lenders on their performance.

In return, the lenders will receive Zillow’s mortgage leads at no cost.

What’s in it for Zillow.com? When you fill out a form requesting a loan quote, Zillow will be writing “cookies” to your local browser. They won’t be storing your financial details on their own servers, but they will be able to access those cookies in the future to target specific ads at you according to your demographic characteristics. Zillow will also be selling access to these cookies to other ad-supported sites.

So, just as with free-TV, in exchange for looking at advertising, you will get free anonymous Read more

Big News on Data Standards

Creative Commons License photo credit: wfyurasko


I’m guessing that the main purpose of BHB is not to spread the news – especially NAR news.  Being the resident NAR insider on BHB, I promise I will not use this site to spread NAR propaganda…er…news.  But this quiet piece of information is actually VERY big and I doubt it will get much attention outside the hallowed halls (or ivory towers, if you prefer) of the REALTOR® organization.  

On Friday, April 11th, NAR announced that the Real Estate Standards Organization (RESO) had unanimously approved a “draft standardized data format for distributing real estate listing information.”  Okay, I expect that most of you NAR skeptics are not particularly impressed by that bit of news, but let me try to explain why I think this is important.

First, you should understand this was not a group of NAR leaders in a back room filled with cigar smoke that agreed to this draft.  Yes, NAR helped organize this group, but check out this list of organizations/companies that UNANIMOUSLY agreed to a set standard:

The standard was drafted and unanimously approved by a RESO working group composed of NAR’s Center for REALTOR® Technology and many of the real estate industry’s leading publishers and consumers of real estate listing data. They include MLS Assistant, MLS Listings Inc., MLSPIN, New Jersey MLS, TREND MLS, Move Inc. (operator of Realtor.com®), Bridge Interactive, Bainbridge, Cevado Technologies, CLRsearch, eNeighborhoods, eShowings, FBS Data Systems, Google, Homescape, Marketlinx, Oodle, Point2, PropBot, Prudential Preferred CRE, RealEstate.com, Realtracs, ThreeWide, Trulia, Vast, Yahoo! and Zillow.

Now approving a “draft” means there is likely more work to do, but this is an important first step in making listing data seamless on the Internet and between MLS systems.  What’s the next step?  According to the news release:

The draft standard will be implemented immediately by several of the partner organizations. Following their feedback, a final draft will be presented and voted on during a meeting of the partners in August.

This agreement has far-reaching and mind-boggling implications for listing data on the Internet, but there is more to the story.  This whole process was in danger of imploding recently Read more

The Odysseus Medal competition — Voting for the People’s Choice Award is open

We have 14 entries on the short list this week, out of a long long list of 96 posts. I’ve already decided on the winner of the Odysseus Medal, so I’m not linking that way. This week’s Short List is all Zillow Mortgage Marketplace posts, all of them written by lenders. If you’re not interested, you’re just not interested, but I can’t imagine how you wouldn’t be.

Four of the Short List contestants wrote two posts each, so I’m going to count a vote for either as a vot for that person. If one of them wins, I’ll split the People’s Choice Award between both posts.

Vote for the People’s Choice Award here. You can use the voting interface to see each nominated post, so comparison is easy.

Ahem: Please don’t spam all your friends to come and vote for you. First, what we’re interested in is what is popular among people who would have been voting anyway. And second, I’ll eliminate you for cheating. Don’t say you weren’t warned.

Voting runs through to 12 Noon MST Monday. I’ll announce the winners of this week’s awards soon thereafter.

Here is this week’s short-list of Odysseus Medal nominees:

< ?PHP $AltEntries = array ( "Brian Brady -- Zillow Mortgage Bourse Zillow Mortgage Bourse: How To Acquire Long-Term Clients”,
“Brian Brady — Zillow Mortgage Marketplace
Zillow Mortgage Marketplace: One Way Transparency Like A Bad Online Dating Site“,
“Dan Melson — Zillow\’s New Mortgage Quote Forum Zillow’s New Mortgage Quote Forum“,
“Gina Gardner — Zillow Mortgage Reflects National Trends Dog Eat Dog: Zillow Mortgage Reflects National Trends in Selling“,
“Jeff Corbett — Zillows Mortgage Community Zillows Mortgage Community. The Consumer is Ready, But is The Mortgage Professional?“,
“Jeff Corbett — Zillows Mortgage Community, On The Cusp Zillows Mortgage Community, On The Cusp of an Anonymous Transparent Credit and Personal Information eXchange Between Mortgage Professionals and Consumer, to Create a Highly Trusted Mortgage Transaction Community“,
“Morgan Brown — Zillow Mortgage Launches Zillow Mortgage Launches – How do you rate?“,
“Rhonda Porter — Zillow Launches On-Line Mortgage Quotes Zillow Launches On-Line Mortgage Rate Quotes“,
“Rhonda Porter — Zillows On Line Mortgage Leads Zillow’s On Line Mortgage Leads: Is It For You?“,
“Todd Carpenter — I have a war to fight I don’t have Read more