There’s always something to howl about.

Month: July 2007 (page 3 of 7)

Muggles Would Die Without The WWW

World Wide Web Internet Crash Fatal ErrorBear with me as I add this up…

Internet meltdown at Fry’s
+ Dalton’s print media article
+ Greg’s article about books
+ An Onion video parody
= We muggles (in honor of midnight’s Harry Potter release) are overly dependent on the Internet!

So first, I must note that while at Fry’s Electronics yesterday, we waited in a line that dwarfed the lines on December 24th. The holdup? The Internet was down and they couldn’t process any payments. Seriously. Of course even checks have to be scanned and Lord knows no one in a tech store has cash! So, we waited for nearly 45 minutes.

While in line, we started talking to the guy behind us about what the hell we would do in our own lives if we didn’t have the Internet…

What if your PDA/Treo/iPhone/Blackberry wouldn’t turn on in the morning? Do you know anyone’s numbers? I don’t even know my mom’s number!!! Would you know what appointments you were supposed to make that day?

How would you use the MLS? How would you know inventory? How would you effectively get your news? There is no “real estate channel.” How would you suddenly market to an audience used to clicking on Google an average 127.2 times a day?

What happens if you don’t know the definition of a word? How could you possibly explain to your children that before dictionary.com they actually published a print format containing definitions and they’ll have to dust off the book printed by dinosaurs and quit asking me what “vociferous” means.

Would you be able to live without texting? I know my kids would scratch their eyes out if they didn’t have their cell phones, MySpace, Facebook or email. Would you be able to go without a blog? Who would know about your thoughts, beliefs, rants or LOL Cats?

What if The Internet crashed? Who would restore The Internet? Is there a Ctrl + Alt + Delete (or a paper clip to the reset button if you’re a MacHipster) for The Internet?

This was the conversation at Fry’s yesterday, then today we stumbled upon the Onion Video parody Read more

Prometheus unbound: Books are dead, but ideas are forevermore unchained from the tyranny and avarice of atoms

Seth Godin:

Five hundred year old technology (books) is just too slow for the Net. The act of printing, storing and shipping millions of books takes too long for a secret to ever be in a book again.

More.

Books are souvenirs. No one is going to read Potter online, even if it’s free. Holding and owning the book, remembering when and how you got it… that’s what you’re paying for. Books are great at holding memories. They’re lousy at keeping secrets.

Someone recommended a book to me yesterday, and it was fun for me to watch my own revulsion at the idea. I grew up in the thrall of books, literally a worshipper.

More interesting than Harry Potter is the phenomenon of The Cult of the Amateur, whereby Ludditism becomes a Shaker cult, doomed not by the book’s (and the movement’s) effete idiocy but by its inability to engender new acolytes. Even so, the book should prove especially popular on library shelves and remainder racks, where the most passionate book worshippers are to be found.

In the planning stages for Real Estate Weblogging 101, I made an effort to find ways of connecting electronic publishing to paper publishing. But then I had an epiphany: The work of the mind is documented on the nets. Publishers desperately cling to the idea of holding ideas for ransom by chaining them to atoms, but the Djinn is already out of the bottle — to call to mind another cult desperately clinging to the past. Prometheus has broken his chains — to recall our own future-loving creed — and the gift of mind surges forth in pandemic pandemonium.

On the nets, a new idea is published instantaneously across the globe. It is accessible to billions, if they seek it, at a negligible carrying cost. It can be linked to every discoverable supporting and countervailing resource and vetted by the intense scrutiny of thousands of hypercritical experts. Net-based “books” are revisable and extensible at will, with no delay and no lingering inventories of obsolete stock.

Shed a tear at graveside, if you will, but facts are facts: Books are a dead letter.

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In Defense of Buyers’ Agents

This came into the comments section of this post yesterday, from Joshua Ferris:

What type of services do you expect a buyer’s agent to offer in order to create a “real value”?

Thank you, Joshua, for the set up! Timing couldn’t be better; there seems to be a confluence of events. Redfin has apparently duped a new round of investors (“Honest! It’s the last time I’ll ever need funding!” is the fourth great lie); Redfin is capitalizing on what seems to be an emerging anti-realtor trend; and I had more conversations with local realtors yesterday who are getting “I’ll only deal with the listing agent!” sign calls.

I wondered if there was anything that was helping drive it, so I just Googled “How to buy a house” and found this site:

“Real Estate Agent” Is Just Another Name For “Salesperson”
Don’t ever lose sight of that fact. Their only mission is to sell, sell, sell to YOU. Don’t ever let on that you are in a desperate situation, or that you need to sell a house fast to pay for emergency bills, or that you are in a desperate crunch to buy this house now, because you are being transferred into town this week. It’s simply none of their business and as far as they are concerned, you are not in a rush to buy a house.

Excellent. What good could possibly come from telling your agent how quickly you need to buy or sell?

HouseBuyingTips.com Buyers Warning
One of the biggest mistakes many home buyers make is assuming that their “buyers agent” is working for them. They could not be more wrong. Also, never let a real estate agent choose your attorney. You must choose your own attorney, not one with a cushy relationship to the salesperson who is trying to sell you a home.

Punctuation is oversold, and non sequiturs simply don’t deserve that negative reputation…

If you are buying a house instead of selling a house, you really don’t need a real estate agent.

When the Carnival of Praetorian Cranks Posing as Something They’re Not is launched, this guy — Jeff Ostroff — will win every week. He’s apparently Read more

In Down Markets Realtors on Both Sides of the Transaction Need to Step Up for Their Clients

As the real estate market begins its tailspin, home buyers and sellers alike need to figure out how to play the real estate game. The time has passed for simply taking the lowest cost provider of real estate services. Realtors on both sides of the transaction must now prove their worth. In a down market, which many buyers and sellers now face, market knowledge and savvy negotiating skills champion the day.

The Sell Side

The most obvious need for good representation is on the sell side of real estate transactions. Realtors, who simply look at the MLS and price a home at the market average, will become serious liabilities to their clients. There is nothing worse for a seller than trailing a market decline.

When listing a home, there should not be a time where sellers are forced to reduce their price. This suggests either the seller had their sights set too high or that the real estate agent in charge of the listing was out of touch with the market. Regardless of the situation, every month a home stays on the market cost the seller pays holding costs. This could be additional mortgage payments, lower market demand, or simply the hassle of postponing moving plans.

Furthermore, in a declining market a faster sell means experiencing less of a price decline and a higher long run purchase price. When my wife and I wanted to exit our Detroit properties, we looked at the market and priced our house about 2.5% below the market average. This strategy was important because our house looked better than the market average. Initially, it looked like we could have gotten more, but it was clear that the market was declining fast. Even with our reduced price, our home languished on the market for almost two months. Luckily, we were able to get very close to our asking price when our first (and only) offer came in.

The flip side of that story is the numerous houses that stayed on the market for years! This is no exaggeration. There were houses that were still on the market a full two years Read more

Zillow.com’s wacky no-one-owns-a-wiki policy promotes no one’s name, brand or image — except its own

This is Drew Meyers from Zillow commenting on a post last week:

Please note the real estate guide (which is a wiki) is VERY different than a blog. Since wikis are collaborative, no one person “owns” any of the content.

That turns out to be not quite true.

Zillow Blog featured two of my wiki contributions yesterday. Both had been clobbered, if that’s the past tense of collaboration. No mention of me in the idyllic land of wiki, even though both ideas are very good — and no one at Zillow came up with them. Even so, guess who was promoted in the wacky world of no-one-owns-a-wiki.

Oh, yes, Zillow.com happily promotes itself on the sweat of my labor. What genius! Who ever thought of such things? That Zillow, boy howdy!, you gotta get up purty damn early…

Nice. They stand on the shoulders of giants. They just bury them in dirt so it looks like a hilltop. To top it all off, guess who’s going to profit from the inbound links?

Here are the unmolested — er, un-wiki-perfected — original articles, if that matters:

I think this is a good example of how Zillow’s hoped for social networking scheme is self-defeating. It’s understandable that they would want to keep their pseudo-encyclopedia free of spamvertising. This they could achieve simply by accepting or rejecting submissions. But my only incentive for coming up with and sharing good real estate ideas is to promote my own name, brand and image. Why would I do that if I know that my hard work is going to be expropriated?

This is just dumb on Zillow’s part. I’ll have a lot more ideas. But I won’t be sharing them with Zillow.com and it’s sticky-fingered wiki. I think Wikipedia is an amazing accomplishment, but I don’t care what Jimbo Wales thinks a wiki should be like over there. I don’t write for Read more

Have another cookie? Targeting content to two different kinds of first-time visitors to a WordPress.org weblog

Dustin had a post last night that made me rethink the ideas I posted the other day on using a cookie to modify a WordPress.org weblog’s default behavior for first-time visitors.

Clear as mud?

Starting with version 2.0, WordPress introduced the idea of an optional intro.php file that would be a sticky first post. In other words, the file, truly a pseudo-post, could be shown first to every reader who landed on the top-level page of the weblog. That way, you can do all your welcoming house-keeping with new users.

Too cool. What’s the problem? Most people showing up at your weblog are not new users, so you’re going to hammer that intro.php nail into their heads again and again.

And Dustin raised another problem: Many people arriving at your weblog for the first time will be coming in from search engines, from your RSS feed or from deep links on other sites. Those folks are never going to see intro.php, because they won’t enter the weblog from the top level.

The code I wrote the other day solved both of these problems, but with a one-size-fits-all solution. What if you want to issue a special introduction only to top-level first-time visitors? What if you want to address only those people coming in via deep links into your weblog? What if you want to say something different to each type of visitor?

I amended the code today to take account of these two different entry scenarios. Using this version you can have an intro.php file for people who enter your weblog for the first time through the front page. The cookie associated with that expires in 60 days, so that only people who have been away for a long while will see it more than once.

You can also have another file called singlePostIntro.php (or whatever) for people who come in via a hard click from a search engine, an RSS feed or another web site. That cookie lasts for two weeks. The point is to address infrequent visitors who come in via deep links differently, in the hopes of persuading them to become subscribers.

You can see this Read more

Make no mistake, without the thoughtful, dispassionate accuracy of professional journalists, the world itself would crumble

From VentureBeat:

For this, Redfin has been banned [false] from operating in Oregon [false], New Jersey [false] and now Tennessee [false]. Additionally, the site has been fined by the National Association of Realtors [false], which owns the Multiple Listing Service [false], a national database [false] of home listings.

That’s two sentences, seven errors of fact.

Redfin can operate all it wants in Oregon, New Jersey and Tennessee. Those states ban commission rebates, which is vicious and wrong, but that doesn’t forbid Redfin from working there. In general, you will not find Redfin in any market where homes are affordable, because its cost-structure can only work — if it can work at all — on high-priced homes.

The second sentence is so rife with errors, I’m not going to bother trying to fix it. If you want to know what really happened, it’s here: Defending Redfin: Sweet Digs weblog buried by inane MLS rules.

Nevertheless, I am so glad that there are fearless guardians of truth willing to take money for this level of ineptitude. It would be an awful curse if we had to depend for news on people who care about facts and are actually paying attention.

Jeesh!

So as not to be unrelentingly negative: Newspapers got some bad news this morning, but for-pay journalism is not dead. But if journalists hope to portray themselves as “trusted professionals,” they need to catch a clue. The audience in the aggregate may net out dumb enough to buy crap like this, but the audience in particular contains individuals who know a lot more than you do about whatever you happen to be writing about. In the past those people were silenced by circumstance. Now each one of them can stand at the narrow end of an international megaphone. Not coincidentally, the best of the for-pay journalists are becoming webloggers, like John Cook, who broke this story and who managed to get it right in the first place.

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Why stop now? Tell Redfin that there’s more where that came from.

Of course Greg scooped me. If you believe his 11:53 PM time stamp, he was analyzing and typing away while I was dreaming up another real estate vignette. At least now I know to check the blog first. Bloodhound has all but replaced my feed reader.

In any event, a routine 6:00 am review of my email box found the news from Redfin’s Cynthia Pang that they are the proud parents of a $12 million bundle of VC joy. This, they say, should do it. Said CEO Glenn Kelman:

We expect this to be our last round of venture financing, so we looked for a guide on the long journey ahead who could help us generate profits and lead our market.

One obvious reaction might be, “Who possessing a pulse would sink $12 million dollars into what to date has been a completely failed business venture?” One obvious answer would be – people with money and brains in inverse proportion.

This came to me a few days ago from “IDRIS”:

I am writing you this letter because I believe that you are capable of helping me. I am looking for a reputable business partner to invest a huge sum of money in lucrative businesses in your country.

A huge sum? Say, $12 million? A coincidence? I think not.

So, I say to Glenn, don’t stop now! I am here to tell you that there is plenty more where that came from, and I now realize that the $12 million dollars you secured was all but mine had I just read my emails closely and not been so distracted actually representing buyers and sellers in successful transactions.

Of course, I didn’t listen. Frederick Mugabe from Zimbabwe recently offered me $450,000 to help him handle the placement of $14,982,000 into a “profitable business investment”. And, just yesterday, I learned from bank officials in Amsterdam that my email address was attached to the “winning ticket”, entitling me to 2 million euros. On second thought, forget that one. The exchange rate isn’t favorable.

On the other hand, last week a nice God-fearing lady in Darfur who recently lost her husband and is now Read more

Redfin cops another $12 million, raising investors’ stake in the discount realty.bot to $40,000 per closed transaction

The indefatigable John Cook:

Redfin has raised an additional $12 million in venture funding, money that the Seattle discount real estate broker will use to enhance its Web site and expand into new markets.

First up for Redfin are the Washington D.C and Baltimore areas, which are being unveiled today. Next on the agenda are Sacramento and Chicago, which the company hopes to open later this year. Redfin, which refunds two thirds of its commission to home buyers and offers a flat listing fee of $3,000 to sellers, already operates in Seattle, San Francisco, Boston, San Diego, Orange County and Los Angeles. Since its launch 17 months ago, more than 500 homes — valued at more than $350 million — have been bought and sold through Redfin.

To put things into perspective, Russell Shaw’s team of around ten people sold approximately 600 houses in the same span of time. With a head-count of 75 people — so far — and a capital investment of $40,000 cash-American per closed transaction, Redfin.com is somewhat less efficient.

But: Pay no attention to the man behind the curtain! Redfin will be profitable any day now. Scout’s honor!

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Project Blogger: An objective post-mortem analysis — I hope

Project Blogger is over — I think. Truly the fun never starts, but the drama never stops. I mostly ignored everything except the work Teri Lussier and I did here, at TheBrickRanch.com and at RealEstateWeblogging101.com. The contest pretty much ignored me, too, an unexpected delight.

We didn’t win — as nearly as I can tell. We developed a full-blown viral marketing strategy for locally-focused real estate weblogs, then codified the frolicking thing in a blogbook — itself something new under the sun. Teri understood what we were aiming for, but she understood it in her bones before we got down to business. To my knowledge, none of the other contestants paid the slightest bit of attention to what we were doing, even though we did it all in public.

All that’s as may be. I personally have been less than enthralled by the writing on the contestants’ blogs, but I confess to not having much tolerance for local blogs. To write about things of small importance, you really have to be able to write. I picked Teri to suffer through this with me because she writes so engagingly.

Pat Kitano was the judge for the last week of the competition, and he got to bathe in all that Project Blogger drama. One of the things he did that I thought was very smart was running Technorati rankings on each of the contestant’s weblogs.

This just by itself elicited complaints, which I thought were kind of funny. We said for months that the important thing is viral networking, with SEO factors taking a back seat. So the folks who listened not a word when we were demonstrating how to make a family of your farm were quick to pump their fists and shout, “Linking doesn’t matter.”

That’s not quite true. I wrote this in email to Teri tonight:

Technorati Authority is not vital to your purposes, since the users you want will find you by other means — local blogrolls, comments you make on local blogs, face-to-face contact, your local advertising, etc. But significant linkage from other websites will help your Google PageRank, which will help potential clients Read more

How not to divorce the real estate commissions: L.A. buyer figures out who pays the commissions but seems not to grasp the nature of the listing agreement

Via Freakonomics, the L.A. Land weblog at the Los Angeles Times has a shaggy-dog story about a buyer who came up with a brand new way to shoot herself in the foot: Pay all the commissions herself, regardless of the terms of the listing agreement and the HUD-1 procedures currently in place:

I thought it would be Super Smart to restructure the traditional home purchase offer. Traditionally, when you buy a house you just give the purchase money to the seller and the seller pays the 5% commission out of that. But when you think about it, you are agreeing to pay 5% more for the house, and that translates to a bigger down payment, a bigger mortgage and bigger property taxes every year. So I figured it would be brilliant to subtract the 5% off the purchase price and pay the agents’ commissions separately myself. Seems like no big deal, right? Wrong.

She actually worked it out to honest math, which is more than lenders and title companies can do. But of course the sellers couldn’t go along with this, even if they had wanted to, without being released from the listing agreement.

Per the purchase contract, the buyer would pay 5% of the full purchase price outside of escrow (a RESPA violation?), and the seller would pay an additional 5% at the closing table, per the terms of the listing contract. The agents might well have hated this idea — it is stoopid, after all — but not for financial reasons. Double-dips all around! Who could object?

Even so, just because the buyer made a thoughtless mistake — no doubt against the better advice of her agent — this doesn’t mean she’s wrong. Except in a short sale, the buyer pays for everything that gets paid for at the closing table. It would be a boon to consumers to make our processes reflect this fact.

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For pure home search, Terabitz puts all the cards on the table and all the icons on the map

When first I read about Terabitz this morning, I was prepared to make fun of it. It looks and “plays” like an on-line video game. Instead of a simple check-box-based user-interface on top of a map, you drag out icons for the types of searches you want to run, then build a mashed-up map like the one shown above from the results. My guess is that the intent is artificially to limit the number of things you search for at one time, but the overall effect is at least as fun as an on-line video game.

From VentureBeat:

Terabitz is launching a comprehensive site for home buyers wanting to organizing and map information about their prospective homes.

Think of it as a cross between a personal homepage (like iGoogle or Netvibes, for example) and a real estate information site (like Trulia or Zillow).

You can drag and drop housing information from menu bars into a central dashboard with a set of data displays. With one click, you can map this data using the site’s Google Maps mashup.

Besides for-sale listings, there’s information like average local mortgage rates, average rental fees and other real estate information.

You can also find out all sorts of good things about a place that are harder to quantify, like nearby restaurants, libraries, schools, coffee shops. Even the FBI’s crime — and specifically sex offender — database gets included.

This non real estate data is what sets Terabitz, of Palo Alto, Calif. apart from sites like Zillow and Trulia, which also offer home profile pages that are limited mainly to real estate data.

You can customize your own page of data widgets about your prospective home. You can also make an image of your data collection and share it with other users or email to friends.

More from John Cook’s Venture Blog:

Yet another startup company is entering the online real estate category. Palo Alto, Calif.-based Terabitz — backed with $10 million in funding from Tudor Capital and originally conceived by 17-year-old Kamran Munshi — is attempting to create a site that will help home buyers or apartment hunters manage the process from beginning to end. Its Read more

The 800 pound gorilla in the corner – the meltdown of the Wall Street mortgage market

As we go about our daily lives in the mortgage and real estate world; dutifully performing our job functions and taking the high road of customer enlightenment via blogs such as Bloodhound; we are faced with a very large gorilla looming in the corner of our workplace. That gorilla is the amazing meltdown of the Wall Street mortgage market and its subsequent impact on the future of housing. If you’ve been following the financial news lately you’ve noticed that the indexes that track the collateralized debt obligations (CDOs) – Wall Street’s favorite securitization method for subprime and other mortgage debt – have taken a severe beating.

The reasons are many and the events of the recent weeks impact everyone tied to the mortgage industry and economy at large. Some of the major recent events that have changed the rules of the game we are playing:

  • Wall Street rating agencies like Moody’s, Standard & Poors and Fitch have changed the way subprime debt is valued; essentially emasculating large portfolios of CDOs made up of subprime mortgages
  • The complete under-performance of these CDOs as mortgage delinquencies continue to rise resulting in a liquidity and credit crunch at the investor securitization and investment bank levels
  • The elimination of mortgage programs as securities become illiquid and unsellable to Wall Street
  • The escalation of foreclosure properties and borrowers attempting short sales that are degrading mortgage pools even further

Let’s take a look at today’s events just as an example. Option One announced that they are no longer offering the 2-year fixed adjustable rate mortgage. Commonly referred to as a 2/28 mortgage this product was wildly popular during the recent credit boom. It offers a low “teaser” rate for the first two years before adjusting to a much higher “fully-indexed” payment. These loans, issued in trillions of dollars during 2000-2006 are resetting in record numbers to ever-higher interest rates. Many point to the 2/28 reset as one of the primary causes of mortgage default, foreclosure and – ultimately for Wall Street – poor security performance.

Why did Option One eliminate the 2/28? Simple. Profitability. Read more

The divorced real estate commission file: An organic compendium of arguments, pro and con, on divorcing commissions

I had the idea of building this last night, cataloging the BloodhoundBlog posts on the subject. Lani had a better idea, so I appropriated it. Attached below is a fairly comprehensive list of posts, both for and against, on the idea of divorced commissions.

I think this is the most important idea we’ve addressed, here and on the RE.net at large, so I wanted to build something that could grow with the debate.

Grow how? Two ways.

First, you can add your own or other people’s posts or articles to the catalog by filling out the form at this link. I want for this to be as comprehensive as possible, so do please let me know what I’ve missed.

Second, you can append this list to any future (or past) posts on the subject by using this PHP code:

<?PHP
include ("https://www.bloodhoundrealty.com/BloodhoundBlog/DCFile.php");
?>

In WordPress, you’ll need to use the runPHP plug-in.

How does it work? Watch and see:

< ?PHP include ("https://www.bloodhoundrealty.com/BloodhoundBlog/DCFile.php"); ?>

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What would Seth Godin do? Probably not one-size-fits-all . . .

(I’m waiting for a phone call, which is how Realtors address that awful burden of time that befalls them between birth and death.)

Joel Burslem mentioned the What Would Seth Godin Do plug-in today, and Jim Duncan has also written about it recently.

I like the idea, I just don’t like the execution. Too much one-size-fits-all for my tastes, where CSS and a WordPress theme can make everything unique and perfect.

I have code that will make the “intro.php” behavior introduced in WordPress 2.0 cookie-dependent. In other words, if the cookie is not set, visitors will see intro.php (or any other “sticky” pseudo-post you prepare under any arbitrary filename). If it is, they won’t.

I have it set with the cookie expiring in 60 days, so if someone has been away for a while, I can remind him of what’s what. People who forbid cookies will get the introductory post every time, but this is the default behavior for intro.php anyway. And if I change the name of the stored variable, I can cause everyone to see my presumably-substantially-revised introduction the next time they visit the site.

(There is a lot more you could do with something like this: Show it the first three visits, for example, or show a special message to very-frequent visitors.)

I don’t use this in BloodhoundBlog, although I could easily enough; it doesn’t require WP 2+. It’s really nothing but bread and butter PHP, as is WordPress itself.

If you want the code, it’s yours, but you have to hold your own hand. You don’t need to know PHP, but you do need to know how to edit and FTP your WordPress theme files. Email me if you want the files.

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