Month: March 2008 (page 7 of 10)

March 12, 2008

Practical dual agency in real life: It is possible to have a fiduciary duty to your sellers — that you cannot get away from — that feels like a complete betrayal of your buyers. What then?

by Greg Swann

Suburban Phoenix Real Estate Broker

There is a debate on dual agency going on at VARbuzz. This is my contribution to the conversation.

I abhor dual agency — notoriously so. I make no distinction between one licensee or two in the same brokerage, and I am more than prepared to be suspicious if there is any relationship that might seem more important to the practitioners than the fiduciary relationship to the client.

Even so, Russell Shaw convinced me in person that there could be circumstances in which I might have to do a dual agency, like it or not.

What circumstances?

Like this: I’m at open house at my listing, some buyers come in, fall in love with the house and insist they have to put it under contract right away. I would prefer they got their own representation, but my fiduciary duty to my sellers is clear: I owe them the best possible chance at these buyers.

The question is, what duty do I owe to the buyers? The state and federal governments have so gummed up the process of transferring real property that ordinary people cannot competently represent themselves. Moreover, the due diligence process demands expert oversight and advice.

In short, if both parties are unwilling to countenance the idea of separate representation, I’m stuck. I cannot betray the seller’s interests, and I cannot in good conscience permit the buyers to betray their own interests. (And it is plausible to me that I have created an Implied Agency with the buyers in any case.)

This has nothing to do with compensation, and, if we ever have to do this, we will probably split the buyer’s agent’s commission three ways — a point each to the buyer and the seller, in consideration for suffering with limited representation, and a point to us for the extra work. But even that would be at Close of Escrow. My Buyer-Broker Agreement would specify that the buyers could obtain separate representation at any time, even down to the last minute, and I would joyfully pay the buyer’s agent’s commission.

But wait. There’s more. We had a multi-party debate about dual agency at BloodhoundBlog, and, while I would Read more

March 12, 2008

Appraisers – The Latest Target In The Circular Firing Squad

by Doug Quance

Associate Broker

The Blame Game – Go Find A Scapegoat And Pin The Tail On Their Donkey

Pundits pontificate about the reasons that the real estate market is in a shamble, and the latest target in their crosshairs is appraisers.

“Those crooked appraisers jacked up the values of the properties!” they scream.

Last night, Jonathan Miller, CEO of Miller Samuel Real Estate Appraisers and Consultants, was on the Glenn Beck show. Miller agreed that there are fundamental problems regarding how some banks award appraisals to appraisers… and that roughly 80% of appraisers are “in the tank” for the banks.

While I have the greatest respect for Mr. Miller, I don’t believe that the problem with appraisers is so wide-spread. Perhaps in Manhattan – where Mr. Miller specializes – but I don’t believe that 80% of the appraisers nationwide have been corrupted. I do, however, agree that the process could use reform.

Let’s look at the role of the appraiser. S/he is in the business of providing an opinion of value… not a guarantee of value. Their services are NOT required by real estate law – but rather as a requisite of most lenders. Their job is to safeguard the lender from fraud by assuring the lender that the collateral for the loan is sufficient.

In a rising market, an appraiser takes recent sales into consideration… but must also allow for a free market causing the values to rise. After all, what is a better indicator of market value than a willing, ready and able buyer who places an offer on the table? Is that not the true definition of market value?

I have seen many transactions that are questionable, but the vast majority of them have been well within the acceptable range of value, IMHO.

While there have been – and still are – instances of fraud involving appraisers, these instances have been the exception and not the rule… and certainly not the reason for an over-exuberant run-up in real estate prices.

In reality – there is no single factor that you can attribute to this mess.

No, ladies and gentlemen, the fault does not lie with the appraiser. In Read more

March 12, 2008

David Mamet: “Strand unacquainted bus travelers in the middle of the night, and what do you get? A lot of bad drama, and a shake-and-bake Mayflower Compact.”

by Greg Swann

Suburban Phoenix Real Estate Broker

We owe David Mamet for Glengarry Glen Ross (and, therefore for Glen and Gary and Glen and Ross NSFW!). This essay, extracted from The Village Voice (and tipped by The Conspiracy to Keep You Poor and Stupid), is a fine job of work. I knew Mamet was reading Thomas Sowell when he got to the tragic versus perfectionist world-view, which was further confirmed by the idea of lifelong class mobility, but, that aside, he manages to surprise throughout. This is off-topic, in a sense, but it is dead-centered on the topics we have been addressing lately, here and elsewhere. A thoughtful man thinks about his own thoughts. What could be more human than that?

I wrote a play about politics (November, Barrymore Theater, Broadway, some seats still available). And as part of the “writing process,” as I believe it’s called, I started thinking about politics. This comment is not actually as jejune as it might seem. Porgy and Bess is a buncha good songs but has nothing to do with race relations, which is the flag of convenience under which it sailed.

But my play, it turned out, was actually about politics, which is to say, about the polemic between persons of two opposing views. The argument in my play is between a president who is self-interested, corrupt, suborned, and realistic, and his leftish, lesbian, utopian-socialist speechwriter.

The play, while being a laugh a minute, is, when it’s at home, a disputation between reason and faith, or perhaps between the conservative (or tragic) view and the liberal (or perfectionist) view. The conservative president in the piece holds that people are each out to make a living, and the best way for government to facilitate that is to stay out of the way, as the inevitable abuses and failures of this system (free-market economics) are less than those of government intervention.

I took the liberal view for many decades, but I believe I have changed my mind.

As a child of the ’60s, I accepted as an article of faith that government is corrupt, that business is exploitative, and that people are generally good at heart.

These cherished Read more

March 12, 2008

Four photographs from a day spent looking at houses: Two of them are tragic — but the other two are infuriating

by Greg Swann

Suburban Phoenix Real Estate Broker

I’m working this weekend with an out-of-state investor. I don’t know that Phoenix has hit the bottom in what is the ninth quarter of declining home prices, but we’ve shed enough value that newer suburban tract homes can once again throw off positive cash flow as rental properties.

That’s the happy news. The sad news is that many of the houses that seem to be attractively priced to investors are in some stage of the foreclosure process, from negative equity to short sales to lender-owned properties.

If you do this job long enough, you see just about everything. If you’re good at drawing inferences from artifacts, you can figure out the story of the home life in just about any house — family structure, recent financial history, reason for moving — whether or not the survival machine that is a home is functioning properly.

But in a normal market, in a normal time, in a normal neighborhood, the tragic stories don’t come so thick and fast. Who hasn’t seen a skip? Who hasn’t seen an eviction? Who hasn’t seen the sad tell-tales of divorce? But it’s a rare thing to see these awful signs twelve or fifteen times in a single day.

Look at this:

I saw kids’ bikes left behind in several garages today. Not enough room on the pick-up truck, the truck packed to bursting with everything the family could carry. Children are so easy to hustle. I can hear the fake enthusiasm behind the lie: “We’ll get new bikes! Better bikes! You’ll see!”

That’s sad, but it was those ceiling valences that got me, those fabric clouds in a girl kid’s sky. That’s a mother-daughter thing — “What can we do to make this your room?” Not too much money to spend, but just the right touch, just the right expression of a budding young lady’s individuality. Abandoned in the rush to get gone. Will that little girl ever be able to look at a ceiling and not miss those fabric clouds?

I see this all the time, and I never get over it. That’s a man trying to kick down a door so he Read more

March 11, 2008

How do you get visitors to come to your home’s custom weblog? Shoe leather works well. Search engines? Not so much…

by Greg Swann

Suburban Phoenix Real Estate Broker

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

How do you get visitors to come to your home’s custom weblog? Shoe leather works well. Search engines? Not so much…

Okay, so you’ve built a custom weblog to help sell your home, and you’ve dressed it up with photos, a map, a floorplan — every bit of content you could think of. Now what?

Your home now has a twenty-four-hour salesperson on the internet. How do you go about getting potential buyers to visit your blog?

Perhaps surprisingly, the answer is not search engines. For one thing, your site is brand new. The search engines don’t even know it exists. Even if you manage to get indexed, you won’t have the kind of popularity to bring you to the top of search results for your keywords.

But there is an even more compelling reason why search engines won’t be much help to you: Visitors brought in by search engines are very loosely motivated. Many will have been looking for something else entirely, so they will bounce right back off your site in seconds flat.

Your objective in promoting your weblog is to target people who are motivated to buy your home — or who know someone who is motivated to buy your home. Your job is not to broadcast your appeal to everyone but to narrowcast to just those people who can do you the most good.

You’ll put notices about your weblog anywhere online that you can — Zillow.com, Trulia.com, CraigsList.com, local weblogs supporting nearby schools, little league teams, etc. But your primary promotional strategy is going to be offline — person to person.

We print business card-sized promotional pieces to advertise our open houses. These are distributed to every house in the neighborhood, since the neighbors may know someone who wants to live nearby.

During the school day, there will be more than 100 cars in the school parking lot, most of them driven there from out of the neighborhood. Some of those folks are sick of commuting.

Most local retailers will have some kind of bulletin board. Your cards belong there.

Your buyers probably won’t Read more

March 11, 2008

Amazon Recommmends wants to know: Why can’t we get a bead on you?

by Greg Swann

Suburban Phoenix Real Estate Broker

FWIW, the only thing I might actually buy from that list is That ’70s Show.

Technorati Tags: disintermediation, technology

March 11, 2008

When the little things matter most

by James Hsu

Realtor, Real Estate Investor

One of the things I want to see in this industry is the bar raised. I hope what Zillow is doing now with the lending industry will carry over into the agent’s world. I understand mistakes can happen and do happen, but the ability to minimize the number of mistakes made or how fast you can fix them is paramount in any industry or facet of life…especially ours when we have someone else’s money/house on the line.

I was putting a pricing/marketing report for a client today and I come across a listing that’s only been on the market for 3 days and it already had a price drop. Naturally I was curious to see why the sudden price drop. I find this in the listing history:

idiots

Okay, …again …mistakes happen. But this mistake is almost unforgiveable. First, in our MLS system there are two text boxes for you to fill the price in separated by a comma. If the intended price was $599,000, I could fathom someone not noticing the second text box right after the comma (which is pre-populated with 000) …and enter the entire list price in the first box …but that would have resulted in a $599,000,000 list price. No…the only way to get the original list price was to enter the price wrong $59900 , 000. This person obviously needs to go through the MLS training class again.

BUT…that wasn’t the worst offense. As a seller, I could probably forgive my agent for an entry error. Don’t see how it could have happened, but fine…it happened. What is really unforgivable is that it took this agent practically 48 HOURS to correct their mistake. For the first 48 hrs of this listing’s life, it was probably THE most expensive house in our MLS. Do you not look at your own listing after you’ve posted it..even as a cursory check to make sure it actually posted?!

Not to mention this $600K house still has…62 hours later ….zero pictures posted for it.

Good times.

March 10, 2008

NAR and the Use of MLS in a URL

by Russell Shaw

Mega-Producing Realtor

I’ve written about this before. This is an issue that just isn’t going to go away. Like most oppressive rules and laws this bad rule (at least as it is currently interpreted and practiced) was a sincere attempt to solve a problem. Unfortunately, the current rule creates a whole new type of problem. The solution is the new problem.

Should any misleading or deceitful statement statement be permitted on a website? No and the NAR Code of Ethics already covered that. But this issue – at least as it now stands – is a good example of “an innocent dolphin caught in a tuna net”. The very idea that an NAR committee came up with a restriction for Realtors that our competitors – who are trying to put us out of business – don’t have to follow is just absurd.

NAR will have no ability whatsoever to stop, inhibit, or prevent anyone BUT Realtors from using the term “MLS” in their URL. So why would it be alright to inhibit a Realtor while other companies are using the term and will continue to use the term (both as a meta tag and as part of the URL)?

Here is another letter Steve Westmark passed along to me.

From: Jim Lee

To: gary@garyashton.com ; steve@stevewestmark.com

Sent: Friday, February 15, 2008 10:35 AM

Subject: Fwd: Letter to NAR VP Cliff Niersbach

Gentlemen, Another Realtor friend of mine, Bill Holt who is in the Outer Banks area of North Carolina, has a URL with those troublesome magic letters “MLS” (www.obxMLS.com) and is having the same issues we are.Fortunately Bill has a member of his board who is on the NAR Professional Standards subcommittee, Policy and Interpretation, or some such name. He has talked with her and another long time member of that subcommittee named Ted Kelly. They both seem to feel that to be in violation of the new COE’s Article 12 that a member’s intent would be very important, i.e. are you trying to pass yourself off as ‘THE’ MLS. Mr. Kelly gave Bill Cliff Niersbach’s name who is some sort of NAR VP to talk with. Bill is sending him Read more

March 10, 2008

Save $100 If You Are Going To Starpower This Year

by Russell Shaw

Mega-Producing Realtor

This year it is July 23 – 26, in Orlando. Here is the email I received from Howard. I think you know I want to be a hero.

Greetings to our Stars!

It’s hard to believe that we’re only about four months away from this year’s STAR POWER Annual Conference! Obviously, in today’s market, your fellow REALTORS^® need the ideas, insights, and inspiration from top producers like you now more than ever! That is why attached you will find a very special Star Referral Credit that we encourage you to share with as many real estate professionals as possible. It will save them $100 off their Annual Conference registration and make you a hero in their eyes! You
certainly are a hero to us!

Thanks for helping to make the 2008 STAR POWER Annual Conference the most important event in the lives and careers of so many of your peers! Together, we’ll thrive in these changing times!

Have a positively productive day!

Your partner in success,

Howard Brinton

March 10, 2008

The Odysseus Medal: A breathtaking Daisy in the deserts of the mind

by Greg Swann

Suburban Phoenix Real Estate Broker

I was talking to Teri Lussier in email last week about Desert Daisies, an annual wildflower you find in the Sonoran Desert. People harvest the seeds and bring them home, and the flowers will eventually take over the whole yard — for the few weeks they’re around.

Beautiful little clarions of Spring, announcing in advance the blossoming of the citrus trees — when Phoenix is at its ultimate perfect best and god himself is green with envy.

When I picked Teri to be my partner in last Spring’s ProjectBlogger competition, I chose better than I knew. I admired her spark, her spunkiness — what the Irish might call the soul of a poet. But I could not have foreseen her depths — although I have been more than delighted to discover them over the last year. I hope BloodhoundBlog has been good for her. I know she has been very good for BloodhoundBlog. Working here and at TheBrickRanch.com, she has blossomed into a powerhouse weblogger.

So it’s a delight for me to announce that Teri Lussier is the first person to win The Odysseus Medal, The Black Pearl Award and The People’s Choice Award all in the same week.

The winning entry? Zillow creates the end of the world as we know it, and I feel fine, of course.

I know some poor benighted soul will have to go digging for evidence of corruption, so I will tell you now that the fact that Teri and I happen to be on the same side of the issue of real estate licensing had nothing to do with my choice. She hit not just a home run but a grand slam with her essay, and the position she took says nothing at all about the quality of her work — except insofar as writing the heartfelt truth puts the writer at one with the gods.

I normally quote from winning entries, but, in this case, I want you to go and read Teri’s whole post. Print it out and tape it to your monitor. Inscribe it into your mind as a particularly worthy example of the truth Read more

March 10, 2008

Hyper-Local Blogs — Mr. Purcell? You’re Officially Outed

by Jeff Brown

Real Estate Investments Broker

Last Friday an agent and fellow blogger wrote a post about hyper-local blogs. Spencer Barron decided the subject needed a Devil’s Advocate. His post was a fair one. I commented then called Spencer. His most salient comment was this — “I’m still looking in vain for the agent out their dominating with a hyper-local blog.” (paraphrased wildly) There are already those out there who claim to have one, and are do well with it, very well. I disagree however with their assertion the blog their maintaining is a bona fide hyper-local. I’m a purist on this subject, and not only drink the Kool-Aide but mix it. 🙂

Last October I wrote a piece on hyper-local blogs. I essentially claimed outside of owning a printing press with the original plate for $100 bills, that was one of the best ways to earn money as a real estate agent. I haven’t changed my mind. In fact, Brian Brady introduced me to another local San Diego real estate guy — Sean Purcell. Turns out Sean’s office is just down the street from my satellite office. (I allow them to bill themselves as Starbucks, but they know the real scoop.) 🙂

So we’ve met a few times now. Sean is technologically ahead of anywhere I ever hope to be. I like him, among other reasons ‘cuz he agrees with my thinking on hyper-local blogs.

While at lunch I told him I thought the first agent who set up 4-5 hyper-local blogs in La Mesa, a San Diego suburb, would print money. After some back and forth he totally agreed.

Fast forward to the other day. We’d met for coffee and were revisiting our above mentioned conversation. And that’s when he did it. He said he was gonna launch the La Mesa blogs himself. He said it while looking me right in the eyes. He never even blinked.

After that we went back and forth about how to cordon off the different neighborhoods based upon our local knowledge of the city. It’s not a large city — its population is about 50,000. The blogs won’t cover every single Read more

March 10, 2008

Two words: Sprint iPhone

by Greg Swann

Suburban Phoenix Real Estate Broker

Read it and weep: “Sprint Nextel Corp. is upgrading one of its cell phone models so that it can connect to a faster data network, doubling its download speeds and boosting upload speeds by about eight times.”

Technorati Tags: real estate, real estate marketing, technology

March 9, 2008

Predictably Irrational: The Hidden Forces That Shape Our Decisions

by Richard Riccelli

Marketing Provocateur

Book Recommendation

He had me at “The Economist.”

He being Dan Ariely, author of the new book Predictably Irrational: The Hidden Forces That Shape Our Decisions. It’s about the buying and marketing choices we make and why we make them. And why the seemingly rational path to a purchase is often the road less traveled.

Chapter one opens with an example drawn directly from the subscription promotions of my sometimes client The Economist. Which is why you’ll also find this article posted here.

Mr. Ariely’s second example involves real estate. Showing why most buyers choose the more expensive, and yet demonstrably less valuable property among the three houses he presents.

As a “behavioral economist,” Mr. Ariely organizes the book using the scientific method. In successive chapters he postulates a theory. Devises a controlled experiment. Tests his hypotheses. And reports the results … which are fascinating as well as illuminating. (Conduct a few tests on yourself: The door game. Easy-hard game. The circle illusion. Table illusion. Jastrow illusion. Stroop illusion. Line illusion. Checker board illusion. And Koffka illusion.

Predictably Irrational reveals that many best practices in marketing may, in fact, be predicated on myths. And it gives the lie to some long-held, fiercely-defended beliefs about customer behavior. But its greatest contribution is helping you achieve what I think is most missing in sales—whether real estate or subscriptions: The ability of sellers to think like buyers in accurate and advantageous ways.

These “hidden forces” will help you understand the true meaning of free. The concept of price anchors. The power of social motivation. If you’re in real estate, I think you’ll find it easy to take what you learn and apply it to the pricing of properties, the showing of homes, the marketing of listings. If you’re selling magazines, it may cause you to re-frame your offers, re-cast your benefits, and re-position your brand.

Now fair warning: Mr. Arieley has a grander vision than I. So he doesn’t draw the same conclusions from his data as I do. As a result, he tends to airily end chapters with sweeping pronunciations on the implications of his Read more

March 9, 2008

When Times Are Hard – Nothing Beats A Free Peep Show

by Doug Quance

Associate Broker

Right Now – More Than Ever – You Need To Make Every Dollar Count

One of the services that agents should provide to their clients is photography. Some perform this service, themselves; others hire professional photographers; while most perform this service, themselves – but should hire professionals, instead.

I enjoy photography, and joined a photography group last year here in Atlanta. They use Flickr as a means to communicate the groups conversations and show off their member’s works. Flickr (now owned by Yahoo!) is a huge group of photo enthusiasts where you can find pretty much any kind of like-minded photographers and their works imaginable.

One of the groups on Flickr is the Photography For Real Estate group of which I am a member. The group focuses on the challenges of real estate photography. Although most of the members are photographers who contract their services to agents – many are agents, themselves, learning to improve their skills.

You can set up an account on Flickr for free, which will allow you to upload and share photos with the world. That’s free – as in no cost. Nada. The big goose egg. There are some limitations to a free account, such as only being able to create three groups of photos… but a pro membership is just $30/year, should you desire.

As many of you are progressing into setting up your own blogs, you might be looking at different ways to insert images into a blog post. While Flickr does have the capability to compose code that you can use to insert images into your blog, a Swedish company called Admarket created an application called FlickrSLiDR, which takes a group of your Flickr photos and creates a slideshow for your blog.

It is easy to use… and the application delivers the goods. The viewer can mouse around to set the speed of the slideshow, pause it, or go to a particular image.

To help demonstrate this cool application, I have solicited the talents of famed photographer Scott Hargis, who is based in the Oakland California area. Scott is the most admired photographer in the Flickr Photography For Real Read more

March 9, 2008

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

by Greg Swann

Suburban Phoenix Real Estate Broker

My take is that the most important news this week was Zillow.com’s announcement that it will be doing background checks on the loan originators it will be referring to consumers as a part of its forthcoming mortgage product. In consequence, this week’s short list is all about Zillow’s announcement and its implications.

So: We have just eight entries on the short list this week, out of a long long list of 115 posts. You can 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 -- Mortgage Complaint? Mortgage Complaint? Welcome to The World Of Consumer-Policing at Zillow Mortgage”,
“Brian Brady — Zoriginators Delight Zillow Mortgage: Zoriginators’ Delight or Bane?“,
“Michael Wurzer — Who Holds The Bigger Gun, NAR or Zillow? Who Holds The Bigger Gun, NAR or Zillow? How About Tomorrow?“,
“Mike Farmer — Zillow Nation? Zillow Nation?“,
“Morgan Brown — Zillow Launches Mortgage Lender Sign Ups Zillow Launches Mortgage Lender Sign Ups – Points to a New Way of Consumer Control of Mortgage Process“,
“Teri Lussier — Zillow creates the end of the world Zillow creates the end of the world as we know it, and I feel fine“,
“Todd Carpenter — Zillow Mortgages Zillow Mortgages to give loan originators \”absolutely free and unlimited access to consumers looking for a mortgage\”“,
“Sean Purcell — Success in Disbrokeration? How Do You Find Real Estate Success in Disbrokeration?“,
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Deadline for next week’s competition is Sunday at 12 Noon MST. You can nominate your own weblog entry or any post you admire here.

Technorati Tags: blogging, real estate, real estate marketing, Zillow.com

Month: March 2008 (page 7 of 10)

Practical dual agency in real life: It is possible to have a fiduciary duty to your sellers — that you cannot get away from — that feels like a complete betrayal of your buyers. What then?

by Greg Swann

Appraisers – The Latest Target In The Circular Firing Squad

by Doug Quance

David Mamet: “Strand unacquainted bus travelers in the middle of the night, and what do you get? A lot of bad drama, and a shake-and-bake Mayflower Compact.”

by Greg Swann

Four photographs from a day spent looking at houses: Two of them are tragic — but the other two are infuriating

by Greg Swann

How do you get visitors to come to your home’s custom weblog? Shoe leather works well. Search engines? Not so much…

by Greg Swann

Amazon Recommmends wants to know: Why can’t we get a bead on you?

by Greg Swann

When the little things matter most

by James Hsu

NAR and the Use of MLS in a URL

by Russell Shaw

Save $100 If You Are Going To Starpower This Year

by Russell Shaw

The Odysseus Medal: A breathtaking Daisy in the deserts of the mind

by Greg Swann

Hyper-Local Blogs — Mr. Purcell? You’re Officially Outed

by Jeff Brown

Two words: Sprint iPhone

by Greg Swann

Predictably Irrational: The Hidden Forces That Shape Our Decisions

by Richard Riccelli

When Times Are Hard – Nothing Beats A Free Peep Show

by Doug Quance

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

by Greg Swann

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