Connect with us

Op/Ed

Focusing on listing data is looking into the wrong end of the telescope

The real estate press has been obsessed with listing data while ignoring the bigger picture – it’s a crafted narrative designed to chip away at your earnings.

Published

on

wrong end of telescope

For the last several years, there has been a narrative being told through real estate news outlets, with a primary focus being on real estate listing data, with headlines praising or chastising whichever of the big three (Zillow, Trulia, Realtor.com) is popular to love or hate that day, and it’s threatening agents’ ability to earn.

Why? First, let’s look at the current focus on Zillow, and then the truth about backroom deals that have nothing to do with listing data that you’re being distracted from so there is less of the pie left for you.

Enron was aggressive and innovative once

This year, Zillow has been the real estate search company darling in the headlines – their aggressive tactics have led to their being called innovative, and their flair is enjoyed by the real estate practitioner masses (never mind their anti-agent roots). Right now, they’ve pulled ahead of Move (Realtor.com) and Trulia, with their stocks performing 10 times better than the S&P 500 average for the week. They’ve poached talent and walked into private meetings with brokers and boards with exceeding levels of cockiness.

There was another company once upon a time that had brilliant minds filling the halls, accolades out the wazoo, and amazing profit margins, and the streets of Houston were abuzz with talent from the mega-company, Enron. But we know how that ended. I’m not saying Zillow is shady at all – the only parallel you must take away from this is that aggressive winners aren’t always destined to remain in the winner’s seat. If Move can get it together and reorganize and come out swinging, they could easily pull ahead, and if Trulia’s insistence on being the underdog pays off, they too could pull ahead.

Could Trulia be the long term winner?

Just today, The Motley Fool predicts Trulia is the best stock investment in the long run. “So far, Zillow has proven to be the superior investment; however, looking ahead, Trulia’s performance now means it presents the better value. Furthermore, at 9 times sales with 70% plus growth, Trulia trades at a level that is very attractive in the arena of momentum stocks.”

Further, they noted, “Move doesn’t have the same aggressive growth, nor is it a high-profile business, but double-digit growth and a profitable company for less than 2 times sales appears to be a fairly good value. Nonetheless, much of Move’s upside rests in the growth prospects of its rather small software segment. Due to this uncertainty, Trulia looks like he [sic] best investment, as it has proven quarter after quarter that its growth is sustainable and shows no signs of slowing.”

I’m not convinced at this moment that Trulia could be the long term winner, but it’s quite possible since they’re keeping their nose to the grind. I’m not sure the court of public opinion (real estate practitioners) will determine them as the winner, but again, these opinions change with the wind.

The truth that you’re missing out on

Focusing on listing data is like looking into the wrong end of the telescope. It’s a myopic view of the industry, and an intentional framing of a narrative designed to have boots on the ground focus on one moving cog in the machine while thousands of other pieces of the machine keep running. It’s a way to get clicks on a website, and it’s intellectually lazy – it’s like saying you think the government sucks, but can’t detail why, just that they suck.

There are backroom deals you don’t know about and you’ll never know about. Have you ever devoted endless time to a committee only to find out that a decision was made before you ever got involved, but the motions had to be gone through, or a last minute change in circumstances discarded the entire committee’s decision on a technicality?

Further, there are policies being considered and drafted and voted upon that you won’t hear about elsewhere, and there are so many bigger moving parts that impact your practice and ability to earn, that it is offensive how much attention is paid to this one moving part.

It’s all a distraction. Can you say wag the dog? Love or hate Z/T/R, it’s a ruse that is keyword packed and filled with buzzwords from organizations that take your money yet have a history of disrespecting the real estate practitioner, associations, and anyone that doesn’t have a widget to sell at their conferences or on their sidebars.

You’ve experienced this before

The truth is that you’ve probably experienced this type of ruse before and had a better understanding of it – have you lived in an area where faster internet speeds were coming? What happens as the better internet is on its way? Suddenly your once-fast internet is choking and slowing. Just as internet providers supposedly don’t do this, the Z/T camp is supposedly not doing this as they tighten the pipeline on your ability to earn.

You may not love them, but Move (Realtor.com) is a company that has a percentage interest in your earning power, through their operating agreement with the National Association of Realtors, so they can’t about face and serve another master when it benefits their bottom line – but others can, and one company has had an anti-agent rhetoric since day one. But today of course, they’re still in damage control mode to get you back on board to spend money – what happens when they have your money if they do beat out Realtor.com? Just like your internet, the pipeline is going to choke up and you’ll have to spend more/earn less.

Our commitment to the big picture

The narrative built around supporting the listing data companies looking to throttle your earning power is insulting. While we will continue to stay on top of the Z/T/R happenings, we are committed to treating it as only one piece of the puzzle, not as the entire puzzle, because we know how to look through the telescope – and what we see is both inspiring and terrifying.

There are stories we are fleshing out that are so much bigger than who added a green button to a blue site – there are competitors to Z/T/R in the works that don’t even exist in alpha yet, there are lawsuits being filed that threaten how you operate, associations running around like chickens with their heads cut off to rally members to take action on even the simplest things that would keep their earning power in tact, broker models being conceived of that could actually rock the boat, executives taking cash to block innovation, patent lawsuits being filed that want to penalize you individually, and so forth. We’re thinking bigger and looking through the proper end of the telescope.

The commitment you must make

You have a responsibility to blow the whistle. If things are going on in your backyard that are being ignored by the real estate press because it doesn’t serve their narrative of the day, we want to tell that story, your story, so speak up, even if it’s anonymous (we fervently protect our sources). The only way to improve the industry and insure that practitioners can continue to earn an honest living is to be a part of that change. Right here.

Your ability to earn could be sharply impacted over the next few years as the market tightens, and you can’t let that happen as news is bought and shaped by those that believe your commission is too high. We can disagree all day long about who will win the Z/T/R battle, but where we all must agree is that it is only one tiny cog in a giant machine.

Lani is the Chief Operating Officer at The Real Daily and sister news outlet, The American Genius, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

Op/Ed

Your career depends on you, and the mentors you select

(EDITORIAL) Moving up in your career can be dependent on your drive to be better, but improving does depend on who you choose to teach you

Published

on

career mentor

Remember when you were younger and were encouraged to join extra-curricular activities because they would “look good to colleges”? What if the same were true for your career?

While applying to a university may be a thing of the past for you, there are still benefits to having extra-curricular activities that have to do with your career. Networking is a major piece of this, as is finding mentors who will help point you in the right direction.

These out-of-office organizations or clubs differ for every industry, so for the sake of this article, I will use one example that you can then interpret and tailor towards your own career.

The Past President of the national Federal Bar Association, Maria Z. Vathis, is someone who has taken the extra-curricular route throughout her entire career, and it has paid off immensely. Working as an attorney in Chicago, Vathis joined the FBA shortly after beginning her legal career and now is the Past President of the almost 100-year old organization.

She started working her way up the ladder of the Chicago Chapter of the association, and eventually became the president of that chapter. At the same time, she was also becoming involved in the Hellenic Bar Association, and would eventually become national president of that organization, as well.

“Through these organizations, I was fortunate to find mentors and lifelong friends. I was also lucky enough to mentor others and to have opportunities to give back to the community through various outreach projects,” said Vathis. “As a young attorney, it was priceless to gain exposure to successful attorneys and judges and to observe how they conducted themselves. Those judges and attorneys were my role models – whether they knew it or not. I learned how to be a professional and how to work with different personality types through my bar association work.”

Finding people in your industry – not just in your office – can be of great help as you go through the journey of your career. They can help you in the event of a job switch, help collaborate on volunteer-based projects, and help collaborate on career-advancing projects (like writing a book, for example).

And all strong networks often start with the help of a mentor – someone who has once been in your shows and can help you handle the ropes of your new career. Most importantly, they’re someone who you can seek advice from when you’re faced with someone challenging – either good or bad.

“I have been unbelievably fortunate with my mentors, and I cherish those relationships. They are good people, and they have changed my life in positive ways. I still draw on what they taught me to help make important decisions,” said Vathis. “My career success is due in large part to the fact that my mentors took an interest in my career, had faith in my abilities, and supported me while I held various positions in the organizations. Not only is it important to continue having mentors throughout your career, but it is important to recognize that mentors come in all shapes and sizes. You never know who you will learn something from, so it’s important to remain open. Also, after you become seasoned, it is important to give back by mentoring others.”

When asked why it’s important to be part of organizations outside of the office, Vathis explained, “To build a book of business, you need to be visible to others.” She also stresses the importance of putting yourself out there for new affiliations and challenges, because you never know where it may lead.

If you’re unsure of how to start this process, try asking co-workers and other people in your professional life if they have any advice or recommendations of organizations that can help advance your career. Another simple way is to Google “networking events in my area” and see what speaks to you. In addition, never be afraid to reach out to someone with a bit more experience for some advice. Take them out to coffee and pick their brain – you never know what you may learn.

Continue Reading

Op/Ed

Kakeibo: The Japanese art of spending wisely

(EDITORIAL) If regardless of how much money you make, it seems like you’re always short a buck, take a hard look at how you are spending. It could save you a lot.

Published

on

control your spending

Raise your hand if you have cash in your wallet.

What is a wallet you ask.

I jest. I know you know what a wallet is. (I hope.) But, sometimes I wonder if cash will go the way of the rotary phone. Seems most folks I know use debit cards, Venmo or their phones to pay for things nowadays.

Ever notice when you go to the store and have a debit or (worse) a credit card at your disposal, your plan to spend $20 ends up more like $50-$100. For example, anyone who shops at Target knows that when they ask you at the checkout, “Did you find everything you needed,” the answer is “ugh… Yes, and then some.”

Living in a plastic economy has made us less cognizant of how we spend money. But, leave it to the Japanese to have a system for putting the thought into buying. It’s called Kakeibo (pronounced kah-ke-boh) and it translates to “household finance ledger” and it’s something most Japanese folks learn to use from the time they are wee children.

The system began in 1904 and was “invented” by a woman name Hana Motoko (also known as Japan’s first female journalist), according to an article on MSNBC. The system is a no-frills way of approaching finances, whether personal or business.

Now, some folks are great at keeping a budget and knowing where the money is going. My mom, for example was the best bookkeeper. Unfortunately, her skills with money didn’t pass down to me. So, I actually purchased a Kakeibo book to try and get my finances in better shape.

You don’t need some special book (save your money), though you can find lots of resources online, including these downloadable forms, but in actuality all you need is a notebook (preferably one to take with you) and a pen. No Technology Required.

If you have been spending money and not knowing where it is going, then it’s going to take some work to change your habits around money.

In her article on MSNBC, Sarah Harvey says what makes Kakeibo different than using an Excel spreadsheet or budget software is the act of physically writing purchases down – it becomes a meditative way of processing spending habits. “Our spending habits are deeply cemented into our daily routine, and the act of spending also includes an emotional aspect that is difficult to detach from,” Harvey says.

As a business owner or entrepreneur, it is also easy to get sucked into believing you have to have new technology, systems and bells and whistles that maybe you don’t need – just yet. Spending goals for a business, just like a personal budget, are important if you plan to stay on track and not lose sight of where your money is going. Lord knows the money flies out the door when starting any new project.

Based on the Kakeibo system, there are some key questions to ask before buying anything that is nonessential (whether for your home or business):

• Can I live without this item?
• Can I afford it? (Based on my finances)
• Will I actually use it?
• Do I have space for it?
• How did I find the item in the first place? (Did I see it in an IG feed? Did I come across it after wandering into a store, am I bored?)
• What is my emotional state today? (Calm? Stressed? Celebratory? Feeling bad about myself?)
• How do I feel about buying it? (Happy? Excited? Indifferent? And how long will this feeling last?)

For Harvey, who learned about Kakeibo while living in Japan, using the system forced her to think more about why she was making purchases. And, she says it doesn’t mean you should cut out the joy of buying, just possibly making better choices when needing retail therapy on a crappy day. She found the small changes she was making were having a positive impact on her savings.

How to be more mindful when spending:

• See something you like, wait 24 hours before buying. Still need it?
• Don’t be a sucker for sales.
• Check your bank balance often. Can you afford what you’re buying?
• Use cash. It’s a different feeling having that money in your hand and letting it go.
• Put reminders in your wallet. What are your goals? Big trip. Then, do you really need new headphones, a bigger TV, a new iPhone, etc.
• Pay attention to what causes you to spend. Are you ordering every monthly service because of some Instagram influencer or, because of some marketing you get online. Change your habits, change your life.

Using the Kakeibo system of a notepad and pen or a Kakeibo book for the process can help you identify goals you have for the week, month and year and allow you to stay on track. Remember, cash is still king.

Continue Reading

Op/Ed

5 Things your home office may not need

(EDITORIAL) Since many of us are working entirely from home now, we are probably getting annoyed at a messy desk, let’s take a crack at minimalism!

Published

on

desk minimalism

COVID-19 is changing our behaviors. As more people stay home, they’re seeing (and having to deal with) the clutter in their home. Many people are turning to minimalism to reduce clutter and find more joy. There are many ways to define minimalism. Some people define it as the number of items you own. Others think of it as only owning items that you actually need.

I prefer to think of minimalism as intentionality of possessions. I have a couple of dishes that are not practical, nor do I use them very often. But they belonged to my grandma, and out of sentimentality, I keep them. Most minimalists probably wouldn’t.

They say a messy desk is a sign of creativity. Unfortunately, that same messy desk limits productivity. Harvard Business Review reports that cluttered spaces have negative effects on us. Keep your messy desk, but get rid of the clutter. Take a minimalistic approach to your home office. Here are five things to clean up:

  1. Old technology – When was the last time you printed something for work? Most of us don’t print much anymore. Get rid of the old printers, computer parts, and other pieces of hardware that are collecting dust.
  2. Papers and documents – Go digital, or just save the documents that absolutely matter. Of course, this may vary by industry, but take a hard look at the paper you’ve saved over the past month or so. Then ask yourself whether you will really ever look at it again.
  3. Filing cabinets – If you’re not saving paper, you don’t need filing cabinets.
  4. Trade magazines and journals – Go digital, and keep your magazines on your Kindle, or pass down the print versions to colleagues who may be interested.
  5. Anything unrelated to work – Ok, save the picture of your family and coffee mug, but clean off your desk of things that aren’t required for work. It’s easy for home and work to get mixed up when you’re working and living in one place. Keep it separate for your own peace of mind and better workflow. If space is tight and you’re sharing a dining room table with work, get a laundry basket or box. At the start of the workday, remove home items and put them in the box. Transfer work items to another box at the end of the day. It might seem like a little more work, but it will give you some boundaries.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox