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Redfin Proves Me Right, Again… Redfinned

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Is Redfin.com a True Web2.o Experience?

018-04.jpgWell, I would surmise by my own appraisal of Redfin.com that you can easily do more than Redfin is doing, and probably are already. With the transparency debate exposed all over the blogosphere, I look at Redfin and wonder, where exactly is the transparency?  They’re counting on momentum from sensationalism, name recognition and a liberal cause to carry them forward, and any business head knows that will only go so far. What any 2.o service based industry must provide is information and Redfin offers none.  It does offer a 13 step pdf on the how they work and the basic steps to their process, but there’s no meat in it that would teach a buyer or seller, only information to pacify a consumer and a lot more of the “why we’re better” mixed in.

Look at their website https://www.redfin.com, on the main page you get the infamous map.  I personally think it is pretty neat- you can make an offer, you can save your searches, you can even talk to an agent- great! What is so new about that?  This functionality has been around for years.  There must be something more! Click on Buyers and what do you get? Tons of information on how to buy a home? NO! Click on Sellers and you get more of the same nothingjust more clean 2.o white space. It lacks the Why? What? When? How? All of that is missing on Redfin.com; why?  They’re not a teaching company, they’re a profit company just like any other major corporation. The only difference being that they aren’t profitable– not in the slightest. What would happen if they actually gave the consumers the transparency they preached?  Consumers would actually take the knowledge and cut Redfin.com out all together because Redfin offers the same Where? that most Realtors already offer freely.

As Web2.o sites go, Redfin.com falls flat and appears guilty of their own arguments against the status quo. The only information a consumer will get on Redfin.com is about Redfin- they just cannot stop their verbal diarrhea about themselves. Realtor Non-2.o sites in general offer more in their informational teases than you’ll get on Redfin.com.

Now, I do not like to point out a bunch of negatives and not offer any positives- Redfin.com is definitely web2.o looking, and feeling; you can search homes, they do a decent job of marketing homes in their local areas via their blog, but they always end up talking about their most favorite subject-themselves. But there’s just no heart or soul on the redfin.com site itself with the only exception being the picture of the random agent on each page. It is just another search site that actually charges thousands of dollars. You could do that on almost any Realtors site and never once talk to the agent, learn how to buy and even sell on some sites, and never spend a single penny. If you listen to those who proclaim Redfin as the end all be all, even they say they can write their own contracts- what does Redfin really do that is any different that has not already been done-to death? Not much.  Unfortunately, there’s nothing really 2.o about redfin.com under the surface- as it completely lacks in the social networking department. A blog, and the Sweet Digs idea are not really innovating the industry any further than it was. 

Now, if you really want to give consumers what Web2.o is really about- Realtors, if you really want to know what Web2.o really looks like- Realtors, if you really want a constructive model of how to orchestrate your own site- try this . I am by no means saying you should or should not finance Zillow by advertising with them, nor am I saying a Zestimate is good or bad. What I am saying is you can have a Web2.o looking and sounding site all day long, but if you’re missing the information and social networking element- you’re missing the point altogether. Zillow.com IS real estate 2.o- too bad they didn’t trademark it.

Web2.o nutshell:

  • Information & lots of it
  • Look & Feel (green is the new gray, lots of clean open white space)
  • Social Networking
  • Easily Relatable Professional Copy
  • Free (as in there’s no need to give up anything including your personal information)

Again, as a closing note, this is not about commissions or whether I like Redfin or not- honestly, I really don’t care. What I am looking for (as are all Realtors) is the way forward. Redfin.com isn’t it- but it is  a start.

New Business Approach? Or just another job?

work-hard.jpgThe hype turns out to be just another 9-5 grinder, and this is what you get:

Zip last month reported a $3.1 million net loss in the first quarter. Despite the loss, the company continues to expand brokerage operations into new markets and recruit more agents. Zip stock (Nasdaq: ZIPR) fell .05% in afterhours trading at $7.47 a share.

It just doesn’t work- even if you tightened the belt up over there, the employees are already fitting into the mold of the typical 9-5 daily grind. 

Honestly, Dave is right on! Zip is to Top heavy and to have ONE person with real estate sales experience in upper management is concerning. Although, this would explain the lack of consideration given to their agents.

The they always say a disgruntled employee cannot be trusted as they are now a former employee, but if you’ve ever been in the 9-5 world you know the truth is probably more or less in the middle.  The post I cited over at BHB was written in February and the comments are still humming along at 76 strong with a comment as recent as June 8 (it’s been an awesome read).  All of this proves the point that a salary or non-commissioned agent, no matter how exciting your planned approach to real estate is, will eventually lead to the same problems most large corporations have- keeping the employee happy and productive.  In the end, it turns out it is just another J-O-B.

When looking at Redfin and its approach, you see it is relatively new, they’re excited, and with an executive like Glenn at the helm, you know that enthusiasm will continue until the investors begin to lean on Glenn for more profitable results.  When the conversation changes from GO GET ‘EM TIGER to YOUR PRODUCTION SUCKS, you’ll see the revolution begin to unravel- make no mistake about it, the bottom line is profitability in any business approach. 

Now, I’ve said nothing that really hasn’t been argued all over the map, and to be honest, I really just wanted to set the stage for the conversation that really needs to happen- many Realtors want to know what do we need to do now, now that we see 2.o as a real opportunity.  I want to talk about solutions, I want to talk about how we work to turn the next corner, some say it’s commissions, I say it’s bigger than that.

Just Who Are You Working It For?

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One of RE’s Smartest Blogs

housechicblog.jpgI rarely toot anyone’s horn, but when I see something great it just must be said.  Based on my recent post Whats Dad Doing Here? I wanted to follow up with a real blog example that visibly documents what I am describing and I did not want to post it within the confines of my post because I felt that this would better feature it.

Many of you know her as The Housechickblog, House Chick, or just plain Kelley.  She’s in Arizona (no surprise) quietly taking real estate blogging by storm.  No, she isn’t ranting about all things National; shes smart, she’s focused in on her niche in some pretty creative ways- There is no way she’s an elephant in the social networking room.  In fact, she demonstrates the factors I describe that consumers will grow to love and respect.

Here are a few examples:

  1. She blogs locally on important and some not so important issues- it’s all about relating to the consumer in a sincere way.
  2. She describes who and what she is, stands for, and what she loves.
  3. She knows and identifies with her audience.
  4. and most importantly– She brings the consumers in by staging their private pages right there on her blog; giving her clients a reason to stay engaged in the conversation, even if they don’t chime in.  While they are there they can see what Kelley is up to- this is what interactive functionality is all about and it is so simple (no hammer required).

I invite you to wander over and view this post in particular as it is exactly the type of conversation that will most attract a consumer with this type of interest.  With HGTV and others so popular right now with DIY shows, Kelley taps right in- what a fantastic conversation starter. You’ve may have already read this post, but now you can see it in the context of where your blog can go if it hasn’t already…

If you want to talk about buying your first home, or your fourth or fifth home, give me a call.  I’ll be making some progress on finishing this bathroom remodel over the weekend, but I’m happy to stop and chat. Just let the phone ring a couple of times, it’s hard to hear through these stylish ear muffs.

 Humor, wit, makes fun of herself, great pictures to grab your attention, reasons to return, and best of all, she’s real… Perfect.

What’s Dad Doing Here? 2.oh no

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National MLS Survey … is the ball is in NAR’s court?

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I received the following Sunday night via email:

Should there be a National MLS?

This has been a hot topic in the real estate grapevine.  Is it a good idea?
Is one on the way? Will such a thing work?

If you have ever felt frustrated by the fees imposed by your local MLS and associations we ask that you please visit the following website.

www.site.com
Please take a few seconds to answer just 4 simple questions.  Things CAN change and this is the first step.

Thank you.

So I am asking, what do you think? 

Bribing Consumers As A Business Practice – NARS New Bill Is Nothing New.

cash-for-use-is-a-bribe-dis.jpgPaying consumers to use your service has always been a no no in the state of Texas.  Referral fees are limited, gifts are limited, but rebating has always been on the edge of both.  Personally for me, it angers me that I cannot pay more in referral fees, but it has always kept the playing field level here in Austin.  When I first began in the business, a local mega producer had local apartment communities on salary- the on-site was paid a monthly automatic fee for a guarantee that he would receive any and all referrals.  Now for a new guy, there was no way I could compete with that, it was unfair. 

 Paying consumers to use your service is no different as I see it, it is just a direct referral fee.  Most of the time, the builder, or a lender wants to know nothing about what you’re rebating, why? Because it creates a gray area in some cases, is additional contributions that some loans bar, and various other issues.

With the sub-prime fiasco that had the market in a virtual panic a few months ago, it only drives my point home.  If you want to do good by the consumer and be pro consumer, then roll back the final sales price for the buyer.  Allowing a buyer cash back rewards for using your service is financed, they’re paying X interest rate on the cash.  Why not do the right thing and create further equity for the consumer- thus, pro consumer.  And you level the playing field between all…

So, my suggestion- it should be rolled off of the sales price.  Then consumers can shop without being bribed into a lesser service.  Then it really is a consumer driven solution, levels the playing field, and forces all to compete on negotiated commissions. 

This is a quote from Buyside Realty’s website:

Although our customers like us a lot because WE PAY THEM to use our services…

That is just disgusting and just as bad as NAR passing laws barring rebates (NAR shouldn’t have to force you to be ethical).  NAR did not say you couldn’t discount your fees, they simply said you can’t bribe a buyer– it isn’t in a buyers interest to finance cash back. 

In my humble opinion the law absolutely levels the playing field for the discounters to compete fairly. 

Read the (slanted) breakdown of the bill here

(b)  A real estate licensee shall not give or pay cash rebates, cash gifts or cash prizes in conjunction with any real estate transaction. …. 

That one sentence is the bottom line, and I happen to agree with it.  Sorry folks.

Worth the read- NAR bringing more heat from the DOJ?

Obviously, someone dug business model up to bash him a little more-  J. Dalton on what NAR’s up to over in TN.  Love it or hate it, you should read and weigh in.

DOJ opposes a bill that would eliminate the rebate business model (sorry Realtor Genius, the term’s not dead yet – not until you suggest an alternative) from the real estate industry. To quote the Colonel, “You think so, Doctor?

Also worth reading is a great conversation with David G on Zillow and why we can or cannot be friends– you be the judge.

We’re Off for Memorial Day Weekend

memorial-day-realtorgeniusd.jpg

In order to give as much time to my family as possible over the Holiday, realtorgenius.com will be idle, but please feel free to comment! Don’t forget us next week!

By the way, there are candlelight vigils all over the Country this weekend. Check your local news for details.

Have a special weekend everyone and God Bless…

A funny story about two fantastic clients

home-coupleAbout a year ago, I sold a home to two of the most fantastic clients I think I’ve ever had. I love 99.9%, but these two were just fantastic. I’ll set the stage- two immigrants that have been in country for over 15 years, both have had the same jobs since they immigrated here and rented an apartment for just as long. I Met Yira (wife) at one of our apartment communities here about 5 years ago and she is one of those women who must begin every conversation with a hug and kiss to the cheek (with a quick squeeze of the cheeks). Making you feel welcome was her specialty.

We got into a conversation one day, about what I was up to, and I told her I was on my way to meet a client which reminded her I was an Agent. We spoke briefly about her wanting a house but she just wasn’t ready. I swear I gave her a card but maybe she lost it, because about a year later I got a call from a mutual friend telling me Yira was calling around all over the city trying to find me. I quickly called, wondering what was wrong; she said, “I was wondering, do you think my husband and I could really buy a home?” I asked her a few questions and realized it was going to take some work.

Meanwhile we found the home, and I don’t think it was really real to her until we sat on the floor leaning against our own walls in the family room looking around and dreaming- and boy were her dreams big. It was a brand new home and she just kept saying, I don’t know why I dream about having a home, I don’t think it will happen. You just do not say these kinds of things to me- tell me I can’t, and I will prove you wrong every time.

I personally went by the lender’s office during the process to help move things along, I helped resolve some last minute V.O.E.s and other things- within a few days we had final underwriter approval and we were moving to title. When I got the call, I drove over to Home Depot and bought Yira a brand new paint brush- grabbed a bow from Target and headed over to visit Yira. She was in the main office visiting with the managers of the apartment community. I snuck up behind her to surprise her with her brand new “congratulations” paint brush. Grown women breaking down in tears will always bring me to tears- every time. The office managers returned the favor with hugs and tears, it was a proud moment of moments in my life. This was Thursday- fast forward to Sunday afternoon. Here comes the funny part.

I am coming home from a family picnic and receive a call from Bob at the new home subdivision, he said, “Hey, you’re not going to believe this, but I was driving by your client’s house today and you won’t believe what happened!” He said, “They have installed drapes in every room of the house, added ceiling fans to the secondary rooms and planted shrubs!” He went on to say, “when I drove by, Danny was in the garage mixing paint to paint accent walls in the living room and hallway!” “WHAT!?” I shouted. I drove there to find everything exactly as Bob had described only to have Danny and Yira apologizing profusely. “We did not understand!”

If you haven’t guessed, we were not scheduled to close for another week! They’re probably right, I did explain not to do anything in the house until closing, but when I told her she was final approved, she took it to mean it was all done! Judging by the amount of work they had done, they had been at it for at least two days. I mean, the house was now move-in ready. I made a call to the regional with Horton and smoothed everything over- no harm, no foul as they put it. Still, it was a pretty funny moment in my moment of moments…

I did get permission to tell their story only to be asked, “what’s a blog?”

A Business Predicated On A Lie Will Crumble When Exposed…

wolf-in-tech-clothing.jpgImagine… I developed a concept, got a few coders together and soon a new software is born. From Beta, I take the product around the country to VCs showing off the new software, but explain to the VCs that they aren’t investing in the software, it’s more of an idea- software as the bait. We use the software as bait to potential real estate consumers, offer a guide online that agents can add to and develop for us, and make friends with Realtors all across the country by offering very inexpensive advertising. We let the Realtors, agents and hell, we’ll even let the customers build the software’s database for us by adding their home or listing for free!

It’s pure Genius. Why? Because Mr. VC, once the software’s back.end is complete or close enough, we now have built the country’s first all inclusive national listing service. We’ll make BILLIONS! We’ll even advertise our software’s statistics as fact so that we could possibly control the perception of markets! It really is UBERGENIUS! Except for one tiny flaw– When and if that ever happened, the entire real estate world would rise up against me. They would cry foul and dismiss any credibility my company had. The country as a whole would never trust a single thing I said, and you, Mr. VC could lose millions- but… I still think you should invest in me because we’ll simply change the name, the branding and, bam!- we now have the largest private consumer driven listing service… add in the option to buy and sell homes online without an agent and those pesky Realtors will never know what hit’em. Imagine…

Old hack don’t make it unimaginable:

Sellsius said…

Is the result that Zillow is moving toward a National MLS? – With owners cajoled into entering the listing data and doing the work for zillow? Brilliant plan?

Real Estate 2.x said…

Considering their are 6.5B people on earth… every man woman and child on earth must visit Zillow 2.0 times EACH per year in order for Zillow to generate the profits, via an advertising model, that will create the profits to support the market value that will pay back the investors.

My take… Advertising is not really their model.

An online client built by a tech, and developed by agents and consumers… Seems harmless, right?

***Thanks David (w/Zillow) for Engaging the conversation…

Rich Barton CEO of Zillow Risks Certain Criticism- does it anyway…

zillowcom-on-realtorgeniuscom.jpgOne thing is absolutely certain- I can truly respect anyone the stands behind their product, knowing the world might criticize the outcome. Rich Barton, CEO of Zillow.com risked it all by placing his own home on Zillow with a Zestimate that even he didn’t fully agree with. Facing certain criticism, the Z.E.O. did it anyway. As a Tech Celeb, he could have hidden behind privacy or any number of excuses, but he chose to stand behind his product. Whatever one wants to say about Zestimates, you certainly have to respect him. Cheers to you, it says a lot about your personal character… The home is now pending.

Read the full article by Rich Barton:

“I’m sure thousands of you have been following the saga of my attempts to sell my house in Seattle (OK, maybe not thousands, but it certainly feels that way). Even the Wall Street Journalgot involved in ribbing me, highlighting the fact that even the CEO of Zillow can’t seem to price and sell his own house with an article recently entitled, “The Boss’s Product Test.”

The phrase “business model” died today of an apparent overdose

In an apparent suicide, Business Model took his own life today. Tragically, BM was survived by no one.

Unnamed sources cite recent surge in abuse of BM on online blogs, press, and print media. “I just can’t take it anymore!,” authorities quoted from his goodbye letter.

RealtorGenius.com waves goodbye to the blogosphere’s most beloved phrase; you will be missed…

THE NEW POLITICS OF REAL ESTATE

oppressedrg.jpgOver the past seven years, we’ve watched our nation become polarized on many political levels. Liberal or Conservative, we are a nation divided, and it appears that some in Real Estate have taken a strategy directly from the political playbook of a particular party.

POLITICAL STRATEGY:

  • Create a monster (the President)
  • Find polarizing issue (beat the President over the head with it, repeatedly, true or not)
  • Attack the monster with a revolution (attack everything the monster says or does, loudly)
  • Create a perception of oppression (confuse the voter)
  • Raise money (use every financial means necessary to multiply your message)
  • Spin the media (a sympathetic media breeds sympathetic votes)

POLITICAL REAL ESTATE STRATEGY:

  • Create a monster (the N.A.R.)
  • Find polarizing issue (beat the NAR over the head with it, repeatedly, true or not)
  • Attack the monster with a revolution (attack everything past or present, loudly)
  • Create a perception of oppression (confuse the consumer)
  • Raise money (use every financial means necessary to multiply your message)
  • Spin the media (a sympathetic media breeds sympathetic consumers)

The idea is simple.  You want to create one solid structure to attack, one that is tangible that will represent the larger group.  Whether it is the Republican Party or The National Real Estate Industry, you must be able to lob verbal bricks at it to attract the attention of the five second sound bite.  President Bush (agree with him or not) and The NAR are the ideal targets. 

Warp the public trust of the monster by any means necessary by making sure as many voices are speaking so-called truth to power at one time.  This will polarize some and galvanize others.  In the case of the Real Estate Industry (the establishment), we’re talking about many who pay even less attention to RE than to politics, so it takes very little to plant the seed when an entity is attacking everything it does and stands for.

Whether you’re part of either political party matters not.  The point is, the strategy is obvious and it works.  The problem for those in Real Estate that choose to practice this stratagem is that they run the risk of alienating their own base over time.  It is not a matter of if; it is more of a matter of when- if there is no simple logical answer to who is right and on what issue, then the argument is too broad and too vague. The audience tunes out and turns off, but the message is deep into the bloodstream.

When you attack an entire industry with doublespeak and double standards on every level at one time, you confuse consumers to the point that they will indeed take more time to sort it all out.  Real Estate is a lot more complicated than the political Top 10 kitchen table issues- foolishly attacking anything and everything leaves no white or black area; you’re left with all gray, inevitably affecting the consumer confidence in every market.  Markets that had no problem could suddenly perceive there is one. 

My prediction if this strategy continues in its current clumsy state: the polarization of consumers could have devastating consequences for real estate markets and our overall economy.  chess11.jpg

The main difference between marketing a new (or recycled) product or idea and politicizing it are very different.   Marketing is very focused as a rule, it has a particular audience; politicizing is very broad, and uses a tone of “by any means necessary” with the voice of the oppressed (Not oppressed? Tell them they are until they believe it). Recent examples in the national media only spotlight what has been happening in smaller, more controlled markets for many months.

It is too soon to see the real effects of this style of Politicizing Real Estate, or if those who are guilty of said tactics will continue such a broad, dull, unfocused challenge of the Real Estate Industry.  Even they must realize oversimplifying the nuances of real estate can and will have a negative economic impact on the larger segment of the market, including their own- and I do not mean in lower commissions.  

It takes time for such a strategy to work or be measured; but the slow drumbeat of repetition will eventually win out.  One must wonder whose drumbeat will be the loudest as the so-called revolution marches on… who will the consumer trust when the dust settles? Look no further than the public confidence of either political party on Capitol Hill for your answer. 

….BR 

Kris Berg Argues Pros & Cons of Dual Agency- We all love a good debate…

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Greg Swann Really Tells it Like it is… Dual Agency Smack Down

houseGreg Swann at Blood Hound Blog breaks down dual agency- Every Realtor should read this…

Here’s an excerpt: 
I really don’t like Dual Agency. I think that’s pretty well established. Even so, Russell Shaw convinced me — in person, not on BloodhoundBlog — that BloodhoundRealty.com would have to offer Dual Agency if it is to list effectively in the historic districts of Downtown Phoenix.”

The Real Estate Genius Is Born

GeniusAre you a Real Estate Genius? We would all like to think we are. Many in the industry have mastered their field, many would like to reinvent them.

The Real Estate Genius is for all who live and breathe Real Estate. For many, it is a way of life.

You’re invited to submit your articles based on one philosophy- add to the Real Estate conversation.

Residential, Luxury, Discount, Investment, Software Development, Marketing, Politics, Public Relations, Commercial Development are only a few of the topics and Geniuses we hope to have contributing here, local or national.

So go ahead, put your Genius to word and submit it.