BloodhoundBlog

There’s always something to howl about.

Archives (page 206 of 372)

April 6, 2008

Isn’t This All Getting More Than A Bit Tiresome?

by

Real Estate Broadcaster and Investor

Author website

I mean blog wars, talk about disintermediation, transparency..blah..blah..blah…!

I am new to blogging, having only launched Real Estate Radio USA on January 2, 2008. Yet, in this brief period of time I can CLEARLY see the fruits of my labor, the rewards derived from the efforts of my team, the tremendous spike in daily traffic, and last but not least, the building of valuable strategic business relationships. In addition, many personal relationships have blossomed as well.

But all of this going back and forth with real estate agents who are resisting change and ignoring the writing on the wall just seems so boring. Do I really care any longer about trying to share what I have learned and to assist those in business who can not or will not seize the myriad of opportunities that abound in a Web 2.0 world? I used to. I was full of fire and energy to help a lot of Realtors see the Promised Land but now that spirit, in just 3 months, is waning.

I can only imagine how people like Mary McKnight, Greg Swann, Pat Kitano and Stefan Swanepoel must feel. These people have been going at it for much longer than I have. I salute each of these pioneers and others like them and wonder where they find the patience to persevere with such a seemingly obvious lost cause.

In order for myself to continue in such an arduous endeavor, I have to measure my efforts against the potential ROI. Wasting time with obtuse Realtors has become the bane of my existence and it seems useless to continue to engage. It’s like being on the Titanic and arguing with Thomas Andrews that the ship was unsinkable.

Real estate blogging has jumped the proverbial shark and it’s a waste of time to think things can be changed. I read a post or two this weekend on Active Rain, you know, that social network that shows 70,000+ members yet only the same 100-200 or so people ever comment? You know, that social network made up of dinosaurs and has-beens that spend more time saying what doesn’t work to even try to Read more

April 6, 2008

What Do I Do Now?

by

Mega-Producing Realtor

Author website

Below are two emails I’ve received in the past week. One is from a successful veteran agent in Texas and the other is from a young man from Canada in the business just over a year. Their stories are a bit different but my response is going to be the same to both.

__

From the veteran agent:

I just wanted to say Hi and wondered how things are going in your market?

Our market has seemed to turn into a foreclosure market and a significant chunk has come from that direction! 90% of listings are over-priced…but one story homes and REALLY nice homes are selling.

Interest rates are causing the market to fluctuate…and the stock market seems to be doing the same thing.

At best my business is breaking even after paying me and my wife’s salary of $200k a year….which I guess is good. If things continue then my profitability will have dropped over 50% this year. We generally NET $420,000 -$470,000 per year on sales of 1 Million.

__

Much longer when from the new agent:

Hi Russell,

Thank you for returning my call and giving me the correct email address. I have a lot on my mind with this career called real estate and I need a real person who understands the psychology of the business and who can point me in the right direction. With your proven track record I know I can use what you have already applied and take it to the next level, because the company I work and the broker’s are not seeing the big picture that I am seeing and it is a little frustrating. There are great trainers say that “if you want something go out and find people that is doing what you want to be doing, and start to do what they do on a regular basis”.

Just to give you a little bit about me and to get you up to speed on where I am at in my career, and what I am looking to accomplish. I have been in Real estate for a little over a year and my first year Gross sales were $75,000. My Read more

April 5, 2008

Please Show Me How You Disintermediate Results and Superior Expertise

by

Real Estate Investments Broker

Author website

Before beginning in earnest, let me take a shot of addressing what surely will be the first comments made concerning disintermediation. Have there been instances of this happening in other industries? Sure — the ‘go to’ is almost always travel agents. I maintain the average person still uses travel agents when arranging anything more involved than visiting Grandma or a business trip. How many of us will arrange a two week tour of Europe on our own? Not me. You?

The point remains — any industry requiring real expertise and which must produce results of real value to their customers/clients, will not — cannot — be replaced by the mere act of clicking. The concept is absurd on its face.

Of course, the jury is out on whether or not I’m in the minority or majority. Opinions are just that. Certainly my opinion isn’t taken from Divine Inspiration. Empirical evidence drives me to my conclusions here. The marketplace has decided, at least so far, the experienced agent producing consistently excellent results by way of superior expertise is the dominate choice of buyers and sellers of real estate.

Click that.

Russ Shaw and I must be the last remains of the species long thought to be extinct — Trirealasaurus Rex. Apparently we just don’t get it, and are on our way out. Everyone’s eatin’ our lunch, or soon will be. Techno-Geeks who could study what Russell does for a year and still not know what he’s forgotten, insist their way, (whatever the hell that is — they argue among themselves) will eliminate him just like the meteor crashing into earth wiped out dinosaurs.

Last time I checked, he’s not feeling very threatened.

Every time I read something telling me how I’m on the verge of extinction, I consciously avoid going into Dad’s default mode, which was to extend his favorite finger in the direction of the offender. 🙂 I’d rather learn what the smartest guys in the room have to teach. They’ve taught me how to apply their Geekinology to my Old School ways. I’ve been walking that talk now for quite awhile, coming up on Read more

April 5, 2008

Ask the Broker: What relationships must be disclosed in a real estate transaction, and what are the consequences if they aren’t?

by

Suburban Phoenix Real Estate Broker

Author website

We haven’t done one of these in a while. We get a lot of really good questions, but, for most of them, the answer is the same: “You need to talk to a really good real estate attorney in your jurisdiction.”

This one is different, with a couple of interesting problems:

I signed a contract on a home in Virginia. We just found out 3 weeks later after the home inspection the sellers agent is the brother in law to the seller. He never told us. My agent took a cut in his commission to make the sale go though and he was not told. Can this break a contract?

These are the two issues I’m seeing — your mileage may vary:

  • “the sellers agent is the brother in law to the seller” — and this was not disclosed
  • “Can this break a contract?”

There may be a specific answer to the first issue in Virginia statute law. In Arizona, my advice to agents would be to disclose only first degree relationships — blood, adoptive or legal: Mother, father, brother, sister, spouse, son or daughter.

Arguably, an agent could disclose any prior knowledge of the principal, guarding that person’s confidentiality, but I don’t see failing to disclose a brother-in-law as being a grievous injury. Am I wrong?

I’m thinking maybe the second issue — “Can this break a contract?” — is the real objection.

My answer: Almost certainly not. I can’t say for sure without reading the contract language, but I would be amazed if it included a contingency for undisclosed second-degree relationships.

In other words, if the failure to disclose the brother-in-law really is an actionable issue in Virginia, the action would be taken against the agent at the state licensing authority or the local board of Realtors.

Unless the agent is a party to the purchase contract, I can’t see how any misfeasance on his part could be considered a breach of that contract — which governs the performance of only the principal parties.

Others reading here may differ, which disagreement is invited.

And if you want to explore your full recourse under the law: “You need to talk to a really Read more

April 5, 2008

Zillow Mortgage Bourse: How To Acquire Long-Term Clients

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

I might have been hasty in my original assessment of the Zillow Mortgage Bourse. I sometimes suffer from TB; true believer disease. I’m one of the few guys in the mortgage business that actually wants to see the cost of loan acquisition, for the consumer, dramatically reduced. I have never seen my role as a middle-man. I see myself as part financial adviser and part trader.

Permit me a digression:

I have always considered yield spread premium to be the borrower’s money. I have aggressively used it in serial no-cost refinances, throughout the late 90’s and early part of this decade. Critics, don’t bring up the issue of churning. I assure you that every transaction I funded has a tangible net benefit to the borrower.

When a borrower gets “into my web”, by closing a loan transaction, I conduct periodic mortgage reviews. Jillayne Schlicke once commented that the periodic review is just an excuse to “sell a refinance”. My response is a bawld one: “Well, Duh!“. We should ALWAYS be looking for an excuse to refinance the borrower’s loan…IF…there is a tangible net benefit to the borrower AND I get paid. Call that the way of the trader. Traders look for opportunities to profit off market fluctuations.

I digressed but I wanted to give you some background. My initial concerns about The Zillow Mortgage Bourse were two-fold:

1- Customers don’t know what they don’t know. I pontificated that the customers would be EXTREMELY difficult, focusing on price rather than suitability. I found the data byte, on the loan request form that distinguishes the client’s intent. This is the real Web 2.0 offering of the Zillow Mortgage Bourse.

2- I felt that consumers could game the system, waste originators’ time, and damage our reputations if they didn’t get exactly what they wanted when they wanted it. I also thought they would “steal” the advice we offer, and engage in a perpetual RFP process until they found the lowest price. That happened often in securities brokerage Read more

April 5, 2008

Looking for a bargain in Phoenix real estate? Add some elbow grease to your money and go for a bank-owned home

by

Suburban Phoenix Real Estate Broker

Author website

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

 
Looking for a bargain in Phoenix real estate? Add some elbow grease to your money and go for a bank-owned home

Last week we talked about how home sellers can command a premium price in the current Phoenix real estate market, even if they are competing with nearby foreclosure properties, by putting the home into turn-key condition.

So what’s the counter-strategy? If you’re a buyer looking for the best possible price, what should you do?

Go for the bank-owned homes, of course. Trying to buy a short sale can be heart-rending. The price listed in the MLS will be meaningless. The lender will decide what price to allow. Still worse, lenders drag their feet on short sales. If they have any hope of keeping the loan alive, they won’t let the house go. Meanwhile, your own interest rate could be spiking, rendering you unqualified for the deal if and when it finally comes through.

By contrast, bank-owned homes (you might hear them called REOs, for “real estate owned”) can race through the escrow process. Once a bank has foreclosed on a home, all it wants is to get it off its books and recover whatever cash it can, as quickly as it can. In consequence, your offer might be approved in just a couple of days, with the bank rushing the closing date any way it can.

Because of that, your loan qualification matters a lot. If you look shaky to the bank, it might pick a lower offer from a stronger borrower just to be assured of getting whatever money it can out of the deal.

And then there is the condition of the home. People  losing their homes sometimes let the daily maintenance slide. Expect to see filthy carpets, scuffed-up paint, damaged doors. The air conditioner might have been removed and sold, or the water heater — or even the kitchen sink.

In most cases, the bargain price you get for the home is going to be offset somewhat by the money you will have to put into it. But if you are handy Read more

April 4, 2008

Countrywide Loss Mitigation–A Lesson In Ineptitude.

by

Realtor, Audio Engineer

Author website

I have written in the past about the hassles and pitfalls of dealing with lenders for possible short sale workouts. While I must admit that the whole process, regardless of the lender, can be “painful,” Countrywide is the epitome of ineptitude. I am here today to inform you, and warn you, my fellow agents, that if you are involved in the process of a short sale, and Countrywide is involved, please, PLEASE, run in the other direction. Let them have the property back through foreclosure. They’ll loose LOTS of money this way, and in my professional, experienced, and reasonable opinion, they deserve it.

I could vent my spleen for the next several paragraphs concerning the bumbling incompetence of this institution, and really just scratch the surface.

However, I do actually have some good news for those of you who happen to be in the unfortunate position of having to deal with Countrywide. I believe I have found the chink in their collective armour. Stick with me for a moment, as I recount the typical timeline for loss mitigation with Countrywide.

1. Get authorized to speak with them concerning your client’s situation. (48 hrs for acknowledgement).

2. Fax in a short sale package (72 hrs for acknowledgement).

3. A loss mitigator will be assigned to the case (within 7-10 days)

4. A loss mitigator is assigned ( and will review your case for 30-45 days)

Now, unless my math is wrong, this is A VERY LONG TIME!

SO, I have a few tips and tricks that will help those of you in this very difficult position to possibly expedite the process.

1.) Use a very thorough short sale package. Many agents simply send in a contract, (and a net sheet it they feel like it).  Later on, when the lender finds out they don’t have everything needed to complete the package, the inexperienced agent will then scramble to find the requested documents and forward them a little at a time. My short sale package is just over 100 pages long, and includes everthing the negotiator could possibly need, and a few things they don’t need, but creates the burning desire to get Read more

April 4, 2008

Can you top this? From listed to closed in 184 hours

by

Suburban Phoenix Real Estate Broker

Author website

Cathy’s $60,000 brother-in-law listing has closed in scratch time. All cash, opened escrow Monday morning, recorded this afternoon.

In theory, you can transfer title on a house in Arizona same day, but I’ll bet it’s been a few decades since anyone got the job done that fast.

How about you? What’s the fastest you’ve ever closed on an MLS-listed home?

Technorati Tags: ,

April 4, 2008

Zillow Mortgage: I’m Still Looking for the Yellow Brick Road

by

Real Estate Renaissance Man

Author website

There sure have been a lot of posts recently regarding Zillow Mortgage Marketplace.  Greg Swann gave us a pre-opening preview here, the advertising aspect here, and the capitalist and cookie aspects here and here.  Brian Brady takes a “the last shall be first” attitude here and presents Zillow Mortgage as online dating here (this is the Great and Powerful Oz so, trust me, he ties it together).  I have been following this closely and am, in fact, one of the “approved” lenders on Zillow (I still pay many of the bills originating).  But, in my search for the Emerald City of Transparency, I am still looking for the yellow brick road.

Before commenting on transparency and the great Zillow experiment, let’s quickly dispense with the true purpose of Zillow Mortgage; it was made clear two days ago by Greg Swann when he wrote:

What this means is that Zillow will be able to deliver highly-targeted advertising to its users, zeroing in on products and services that would be most appealing to that user’s sex, age, income and other demographic characteristics. This by itself will make Zillow extremely profitable to advertisers, who seek assurance that their promotional efforts are aimed at the right prospects.

Despite the conclusion one reaches when we “follow the money”, there is still an important tool being implemented here and I hoped it would be a step down the yellow brick road, but it is instead only a blueprint.   I am talking about the consumer’s ability to rank the originator.  The most common comparison made is to Ebay, but here is the problem with that comparison.  Ebay works because both parties have a horse in the race.  They are both interested in performing some transaction and can be judged for their behavior.  Not so with Zillow Mortgage.  The originator has an interest, she, in fact, has a couple of interests: creating business, protecting reputation, creating a raving fan for future referrals and even, possibly, the noble interest of helping others.  How much of that can be said for the potential borrower?  If these leads are anything like the standard internet lead, you are Read more

April 4, 2008

All In a Day’s Work for Real Estate Agents: Humorous & Heartwarming Stories

by

Mega-Producing Realtor

Author website

Seeing this post on agentgenius made me realize that I had neglected to post this email I received a few weeks ago. If you do pop over to check it out be sure and read the comments, as well.

__

From: Work Like A Dog Books [mailto:editor@worklikeadogbooks.com] Penquin

Sent: Monday, March 17, 2008 3:09 PM
To: russell@nohasslelisting.com
Subject: Realtor Michael Maher suggested I contact you about a project

Russell,

I recently got in touch with Michael Maher about a book project I’m working on and he thought you would be an excellent person to contact as well for use as a possible source in the book. When he told me you used to be a stand up comedian, I couldn’t have agreed more!

Your assistant suggested I e-mail you with all the information about this funny real estate book project, so here goes!

I’m contacting agents around the country to include their stories in a humorous book I’m writing. It’s called All In a Day’s Work for Real Estate Agents: Humorous & Heartwarming Stories. Think Chicken Soup meets Murphy’s Law. I’ve spent nearly 15 years working with real estate professionals in marketing and public relations and firmly believe EVERY agent has at least one wild story. The book celebrates the real estate profession.

Would you or anyone in your company have a funny, outrageous or touching story to share from your careers? Simply e-mail a reply, letting me know the best phone number/times to contact you. I’ll then call you for the details. The whole process shouldn’t take more than 15 minutes.

Womandriver

Realtors with stories included will receive two free copies of the book and local publicity about being included in the book (once book is published). There is absolutely no cost to you.

For complete info., visit www.WorkLikeaDogBooks.com. Also at the site, you can click the link on the left (ARealtor Submission Updates@) to see which states I have Realtor stories for as well as which companies are currently represented. My goal is to have agents from all 50 states, Canada and beyond in the book. With your help, that can happen. As of today, I have stories from agents in Read more

April 4, 2008

Zillow Mortgage Marketplace: One Way Transparency Like A Bad Online Dating Site

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Zillow Mortgage MarketPlace rang the opening bell and loan requests came flying in the door. I was pleasantly flabbergasted! It’s no secret that I’m a Zillow-phile; I believe they are leading the way to transparent loan and real estate transactions.

I’m tenuous, however, about spending too much time there. My comments at BusinessWeek:

Brian Brady, managing director at San Diego’s World Wide Credit, a national lender and broker, said he signed up for the Zillow mortgage marketplace a few weeks ago and has mixed feelings about it.

Advice Needed?

He said it has the potential to be a great tool for both consumers and lenders. But he’s concerned that borrowers will be seeking quotes without first getting advice from mortgage professionals about the loan that best fits their needs.

He’s also concerned about the kinds of leads the site might generate.

“Zillow is going in the right direction, in that the consumer gets to rate us as [loan] originators,” Brady said. “I certainly wish it were a mutual rating system because customers need to be rated, too.”

Take a second look at my final comment. Consumers should be rated, too. The challenge for quality originators, today, is time. With so many loan applications that are unable to be funded, we have to be judicious about where we spend our time. My concern is that I’m shooting craps with loaded dice when I engage in anonymous quoting; I have little upside. If I deliver a great quote, I am rewarded with an opportunity to “sell” a new customer. If the customer is disingenuous about her information, I am accused of delivering a “phony quote” and am rated poorly, within the community.

Wade Young expands upon my concern on Lenderama:

When I pull the actual credit, I’m not going to be able to make good on what the Zillow consumer will most definitely consider to be a “promise” made by me via my rate quote. The lady gives me one star (undeservedly, of course), and I move on to other things.

Wade is more concerned about the Read more

April 4, 2008

Because of who I am, because I will not keep my mouth shut, I might understand better than most of us what it means to be an American

by

Suburban Phoenix Real Estate Broker

Author website

Witness:

“Hu spread malicious rumors and committed libel in an attempt to subvert the state’s political power and socialist system,” the court verdict stated[.]

Every time you take notice that there is no gun barrel pressed to the base of your skull, you might say a prayer for the soul of George Mason.

Technorati Tags: , ,

April 3, 2008

Black Pearl Marketing Minute: Want to learn how Zillow.com bakes a sweeter, tastier browser cookie? Scratch the FUD from your recipe

by

Suburban Phoenix Real Estate Broker

Author website

I wanted to expand on my post from last night on Zillow.com’s use of web browser cookies with its new Mortgage Marketplace free loan quotes software.

So you know going in, I have a huge contempt for people who try to sow FUD — fear, uncertainty and doubt — about new technology. In the podcast linked below, I’ll give you the grand tour of the browser cookie bakery:

  • What cookies really are
  • Their implications for privacy and secrecy
  • How Zillow is implementing browser cookies
  • And, most importantly, how you can deploy browser cookies in your own marketing

If you insist upon living in a demon-haunted world, you’re probably not going to get much out of this. But if you understand that, as a side-effect, Zillow is teaching you a great deal about hi-tech marketing, then put on your thinking cap and think.

Technorati Tags: , , , , ,

April 3, 2008

NAR News From the Legal Front

by

CEO, PA Association of Realtors

Author website

Over the years, NAR has had its fair share of legal battles.  Currently, there are a few big and interesting cases involving NAR that could have dramatic impact on the real estate industry.  Here’s an update on three cases that are in the works. 

US vs NAR

This is the famous case brought by the Department of Justice (DOJ) against NAR’s Virtual Office Website (VOW) and Internet Data eXchange (IDX) policies.  (Note: NAR has changed the name VOW/IDX to Internet Listing Display or ILD.)  There are two main issues at the core of this suit which is likely to go to trial this summer.

  1. The IDX opt-out policy is what started the case.  The policy allows brokers a blanket opt-out option to keep their listings from being displayed any competitor’s web site.  NAR policy also allows brokers a surgical opt-out option where a broker can opt-out of a particular competitors IDX feed (e.g., I will not allow my listings to appear on Swann Realty’s site).  The DOJ thinks there should be no opt-out option and that ALL listings should be available for ALL brokers to display. 
  2. NAR policy, as proposed, only allows ILD privileges to brokers actively engaged in real estate sales and leasing.  In other words, anyone who simply gets the ILD data for the sole purpose of generating leads and is not otherwise involved in real estate would be banned from ILD.  The DOJ wants listing data to be like the water that flows from your tap – available to all.

(My prediction: split decision.  NAR wins on #1 and loses on #2)

David Berry vs the Entire REALTOR® Organization

I am NOT talking about Dave Berry the fabulous writer for the Miami Herald.  This is David Berry the lawyer who has made a career of suing NAR.  He has tried to have the term REALTOR® declared generic, attacked MLS membership rules, and numerous other wacky lawsuits.  Recently he tried to get a ballot initiative in Maine to legally require all listed properties for sale to be placed in his Open MLS system.  NAR and several state associations have fought many legal battles against Read more

« Older posts Newer posts »

Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

Media Contacts