There’s always something to howl about.

Author: Russell Shaw (page 6 of 10)

Mega-Producing Realtor

Glenn Kelman at Inman – He Hits a Home Run

I don’t know what in the hell is going on now. I just watched the video of Glenn Kelman speaking at the Inman Event and found myself liking Glenn Kelman. I know, I just wrote that. He was funny, remarkably candid and made a lot of good points. Have I changed any views I have regarding Redfin? No, and I really doubt that every time Greg Swann writes about him it is “good for business”, as he claimed. But setting aside any thoughts I have about the Redfin business model, I doubt I will ever view Glenn, the person, the same way again. In the past, I have tended to demonize him when talking about him or what he has done – and I really don’t like ad hominem attacks.

I wrote in the headline that he hit a home run. It wasn’t out of the park (I got that line from Jeff Brown) but still, a home run. As I have been so willing to say what I didn’t like, I thought it only fair to also say what I did.

Thank You Governor Napolitano – Sam Wercinski Is the Best Commisioner Ever!

Sam Wercinski is the Commissioner of the Arizona Department of Real Estate. He was appointed by Governor Janet Napolitano to this post in January. I first started hearing good things about Sam by early February. Based on what I had heard I was already predisposed to liking him before I even met him. I had never liked the commissioner who immediately preceded him, as she was the worst kind of petty bureaucrat and mostly disrespectful of all Realtors. To be candid, Sam wouldn’t have needed to do much to beat her in the likability department.

Commish_Photo_SmallI had posted this on BloodHoundBlog a few months ago, telling about an event June 21st, where he would speak and later there would be a top producer panel. There was a buffet lunch and just as I was finishing my sandwich Sam and his entourage arrived. Every single person who worked for him was “there”; which is to say they were, each one, intelligent, articulate and – more importantly, in my opinion – was a genuinely nice person. But when I met him what I witnessed was a truly likable, charismatic and energetic leader. In just a few short months he has dramatically changed the very nature of the department. He has reached out and gotten help and input (real help along with real input) from the Realtor community. The ADRE now has their emphasis on regulating only those licensees that actually need “regulating”. No matter what group of Realtors I am talking to, whenever the subject of the department or the commissioner comes up and I say how impressed I am, the response is typically a knowing nod, “yes, I saw that in him too”.

I have been meaning to post a “Thank You” to Sam ever since I met him at St. Barnabas in June. Instead HE SENT ME A THANK YOU! Correct. A government official meets me and then takes the time to handwrite a note telling me what a pleasure it was to meet me. Too good to be true? I speculated right after meeting him that he plans on doing the most Read more

Top Buyer Agents Unite To Put Themselves Out of Business – Russell Shaw Tries to Save Them

The missing word in the title above is, “completely”. Top Buyer Agents Unite to Put Themselves Completely Out of Business. Also, based on my schedule boardwalk-coastal-wetland_AJM5A2and the (so far, at least) almost total unwillingness of Top Buyer Agents to even listen to this vital message, there may not be much reason to keep saying it. These Top Buyer Agents don’t seem to understand that they are not like most buyer agents. They are quite different. These Top Buyer Agents take their duties to their clients so seriously that they actually DO put the client’s interests above their own. Every time, in every way. These Top Buyer Agents have figured out that the current system of the listing agent paying them, with the seller’s money (of all possible pay plans in the universe) isn’t the most optimum pay plan possible.

But it IS a pay plan. You do get paid. Your buyers do get real representation.

In many well written, thoughtful and sincere posts here on BloodhoundBlog there has been a strong case made for divorcing the buyer agent commissions completely from the seller and the listing agent. Most of the points made are valid. There has been even more to think about in the back and forth in the comments section of those posts. Some very bright people saying some very bright things.

I won’t try to appeal to your self interests here, but to your interest in caring for your future clients. The current “system” offers you the best opportunity you will ever have to help the most people with your counsel. Should the commissions become “divorced” (and yes, this could happen due to some decision in a federal court room or even the Supreme Court) you will be out of business. O – U – T, out. The perfect transaction (each side having splendid and fabulous representation) will occur so rarely that anyone who worked on bringing it about will have lots of time to reflect on how great it could have been. The funny part is that you already know what will bring about your demise. It has been commented on Read more

Greg Swann Joins Redfin – Kelman Rejoicing!

Greg Swann has joined Glen Kelman in the way they both think and talk about the amount of commission, the splits and how it can be divided and allocated.

There isn’t some “set commission amount” for groups and companies to “divide for the public”. This kind of thinking is one of the primary flaws with the Redfin business model. For example, we charge our sellers less commission if we handle the buyer side and are not paying an outside agent. Almost all listing agreements are signed by sellers who are agreeing to pay the listing agent. To suggest that the purchase price the buyer pays for the house has “the buyer really paying it” would
also be saying that the buyer has a right to tell the seller how they should spend any and all of the money they receive from the sale of the house. Why stop with the sales commission?

The idea and concept of the buyer pays the commission is absurd. It is flawed logic. What if some seller (or buyer?) came into my office and started ordering my staff around, explaining that “they paid them”? I pay my staff with MY money. I may have received that money from a commission paid to me by my seller but it is then MINE. The home seller is in the same position. It is their money that they have agreed to pay to an agent. Under the present system, the buyer has
made no such agreement.

I’ve commented elsewhere on why divorcing the commissions will never happen anyway – but just didn’t want to let this particular bit of poop sit. Damn, I haven’t posted anything in a while and right now have a plane to catch. This got me out of hibernation, so thank you! LOL.

Jeff, I will mentor you for the same fee I charge everyone else. The amount most buyer agents currently charge buyers. This is the same price I always charge. My goal all along has been to make charging Read more

Another Happy Customer For Robson?

I happened to stumble into finding out about the website, robsonunfair.com by receiving an email. The people who put up the site are more than a little unhappy with their attempts to resolve their grievances with their homebuilder. The link from their site I found most interesting was this one. I had no idea that information was even available. It lists the total number of complaints (1998-2001) for all of the big to small homebuilders and the number of complaints they get – and then shows how many complaints compared to how many houses they build. Del Webb/Coventry, for example got only one complaint filed for every 189 houses they build. If I am understanding this correctly, Jackson Properties had a remarkable ratio of one complaint filed for every sixteen homes they built.

I am always amazed when a large (seemingly reputable) company allows their reputation to become tarnished like this. It is doubtful it is possible to build a lot Kathy_Robsonof houses and never have a problem. And there are some people you can’t make happy – no matter what you do.

Many years ago there was a car dealer in Phoenix (the dealership name still exists) named Lou Grubb. About 15 years ago Mr. Grubb retired and sold the dealership. A few years after he sold it, I read in the paper (bottom of the front page) about a woman who bought a used car at the dealership and when she took it somewhere for service about 5 months after she bought it the mechanic informed her that the odometer had been rolled back and that her car did not have the mileage she thought it did – but an extra 30,000 miles or so. She takes the car back to the dealership wanting a refund. The idiots who then ran the place explain to her they can not give her her money back – she has been driving the car for those five months. Further, they had purchased the car from a wholesaler and she can rest assured that it wasn’t them who tampered with the odometer. They offer her Read more

Separating the Buyer Agent Commission From the Listing Commission is a REALLY stupid idea

This is a continuation of Jeff Kempe’s thoughtful post below. At first, I was going to reply to his post via a comment. But as I thought about it I realized there was way more I wanted to say.

First things first: Welcome Jeff, Lani & Morgan! I’m delighted to have you here.

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It is common for a person to have a completely false idea of why something is good or bad and for them to still be correct that it is good or bad. This can come about when the person looks to see why something is the way it is and not knowing the correct answer (real reason why) they then make up or invent an answer. This new datum is then used to explain away some situation or circumstance they observe. This is so common that you can see examples of it in almost every profession, industry and government. Failure to correctly observe the real “right why” is THE WHY for every failure any individual, organization or government ever had. A real WHY opens the door to handling.

Man too often finds that his “solutions” become his new problems. Most of the difficulties one faces on a regular basis (problems) are, in fact, themselves solutions to earlier problems.

I do not intend to be disrespectful here towards your friend and mentor, Jeff – but several of the things he has informed you about are completely incorrect. The thinkingcapidea that a Realtor not sharing a commission was passed into law in state after state after state, across the country, to “protect Realtors” or to somehow impede discounters is just flat wrong. I can’t say that any of those laws were the best possible solutions but they had nothing to do with “protecting Realtors”. In every state where a real estate license is required to legally earn and collect a commission (all 50 in the United States, last time I checked) there is some sort of rule or regulation that states commissions can not be paid to an unlicensed individual. In most every state there is a special exception to this rule for lawyers Read more

I Still Want to Know Who Pays You, Bruce

I received the following via email and also as a comment to a post on BloodhoundBlog. It is from Bruce Hahn. Bruce claims to represent 75,000,000 people – and I think that at least 74,999,000 of those people have never even heard of him. He and his wife (along with some other unnamed person) are the American Homeowners Grassroots Alliance.

Bruce HahnBruce has a background as a lobbyist and has written several books. These days he seems to spend most of his time letting various government divisions (with loads of emphasis on the federal government) know “what is good for consumers”. He has a big heart, he just wants to help. He is quite secretive on who pays him. But he has come right out and said it is NOT Bank of America – so my guess on that is obviously wrong. I really don’t expect him to be forthcoming now – whoever does pay him doesn’t want anyone to know who they are.

Here are some links I found telling you more about this endlessly polite and highly articulate and prolific man who seems to have dedicated his life to making sure consumers aren’t taken advantage of by Realtors (or anyone else).

http://www.inmanwiki.com/Real-Estate/Bruce_Hahn

http://waysandmeans.house.gov/hearings.asp?formmode=view&id=4047

http://www.theamericanconsumer.org/Bruce.htm

http://realtytimes.com/rtapages/20070221_grassroots.htm

http://justice.gov/atr/public/workshops/rewcom/212268.htm

http://realtytimes.com/rtapages/20041001_agencyerosion.htm

http://www.washingtontechnology.com/print/12_21/13695-1.html

http://www.usdoj.gov/atr/public/workshops/rewcom/212268a.htm

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Russell

Thanks for the link to our website!

If you would have read some of our recent congressional testimony on subprime lending (which is on our web site and is very critical of the banking sector), you would understand why we are not getting any funding from Bank of America or other banks. And if you had gone back in our history to see some of our past Congressional testimony against the banking sector for its legislative efforts to hamstring Freddie and Fannie, you would have no doubts at all. We are opposed to “Rotarian Socialism”, as Gregg Swann so aptly described it in his outstanding February 13 Bloodhound post. In it he wisely noted that NAR’s “on-going legislative campaign against banks competing for real estate transactions is just more of the same: “Protecting” mediocrities from fair competition.” Our aforementioned testimony opposing banking practices in the mortgage lending sector simply reflects our opposition to Read more

Heads Up All NASCAR Fans

An email I received today:

NOHASSLE uploadno hassle listing was not my experience. Your representative sent to install my sign refused to put the sign where the realtor and I agreed to. He was too busy talking on the phone to listen to
me. And when I asked for the 5th time to move the sign the crack head acted like he was going to attack me with a 5′ foot steel pike. I promptly told your sign installer to get the sign and his self off my property. Regardless of weather he was a contractor or not he is your representative. I expect anyone involved in the listing of my home to be drug free, not tweaking on speed and making threatening gesture. AND I QUESTION THE PROFESSIONALISM OF YOUR COMPANY even considering sending this company
back to install my signage. The experience was more than a hassle. It was a nightmare. I have wasted valuable time and effort dealing with Russell Shaw to list my home. Also the lack of
response to correct the matter was simply unacceptable.
I will be filing complaint’s with board of realtors, State of Arizona , better business bureau, and all of the local TV investigative reporters.
I also plan to use my 24′ enclosed racecar hauler and racecar to advertise to the valley my experience with no hassle listing. Look for me at the fall nascar event…

A questionable practice?

Christopher R. Dunn writes:

A questionable practice?It would appear that numerious RE firms here in the Bay are making it real_estate_book_sma practice to List, market with open houses, advertise properties at a below market number with no intentions of selling at that number.The listing broker will take offers and hold them until a later date, usually two weeks or so to generate “competitive” offers.

Are Real Estate Firms practicing this in other areas?

To my knowledge, not in our area. If it is as you describe it, I don’t see it as “questionable” but intentionally deceitful. It is in direct violation of the Realtor Code of Ethics (download a copy of the code here) Article 1 (treat all parties fairly), Article 2 (avoid exaggeration, misrepresentation, or concealment of pertinent facts) and Article 12 (shall be careful at all times to present a true picture in their advertising and representations to the public). It would also likely be actionable by the California Attorney General’s office, as well.

If some Realtors are doing this sort of thing I believe it should be stamped out and stamped out hard.

Odds & Ends

In no particular order:

Who has the most irritating driving habits, men or women? I don’t think this question has an answer but found the comments section funny.

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The other Russell Shaw. Actually, there are several. This one I’ve been in touch with several times over the past few years, as people sometimes send him an Family Marketemail in an attempt to reach me. Russell always forwards them to me. He is (in addition to being a very nice and very bright
guy) a VERY prolific blogger. And until now he had not been blogging about real estate. He is now. As much as I might like to take credit for some of the insightful things he writes, I don’t want to risk getting caught – so I wanted to point out that I am not “that Russell Shaw”. In the past it was Russell the blogger and Russell the Realtor. The line became blurred once I joined BloodhoundBlog and now the distinction of “the one who blogs about real estate” just went away too.

He damn sure better not move from Portland to Phoenix and go into the residential real estate sales business – because then we are going to have trouble. πŸ™‚

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Years ago I read a book (now out of print) called the Robert Half Way To Get Hired in Today’s Job Market. Robert Half had and has one of the largest employment agencies in the world. As I’ve always considered the process of me “getting a listing” me applying for a job – I got a lot out of it. About two years ago I happened to run across this website and was very impressed. His name is Nick Corcodilos. He has a free weekly email newsletter where he responds to letters from people looking for jobs. Lots of smart employers and business people read it regularly. There isn’t something I can use in every issue but there is often enough to make it worth my time.

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I received the following email from Kerry J. Grinkmeyer:

—– Original Message —–

From: Kerry J. Grinkmeyer

To: Number1Expert@nohasslelisting.com

Sent: Wednesday, April 25, 2007 2:47 PM
Subject: Your Recognition Plaque

Russell Shaw

Congratulations on Read more

I’ll bring you a big basket of cash if you’ll let me sell your house for free

Chris writes:

I’m looking to get into real estate after i graduate in a couple of weeks but i have a couple of questions that i’m looking to get answered, appreciate your help.

If all real estate brokers in an area generally charge the same fee for selling a house, how do real estate agents compete with one another if they cannot vary their fees? Also is the real estate profession overcrowded in your judgment?

Yes, the industry is horribly overcrowded, there are way too many agents chasing too few deals for all of the agents to make a decent living. This has been a true statement for at least the past four decades. 13 out of 14 agents fail and leave the business within two years. bugAll real estate brokers do not charge the same fee. Some brokers charge 6 – 7% to list and sell a house and others charge half that amount, some companies charging a flat fee of $300 – $500 to list a house. There is now a company affiliated with Buy Side Realty who will list the house at ZERO. Correct. A FREE MLS listing. And when you buy a house through Buy Side, they will give you back 75% of the commission. These companies are already “national” unlike the endlessly commented upon Redfin, who only has offices in a few cities.

A company was started some years back called HomeGain that was initially based on the premise of agents blindly (they wouldn’t know who the seller was – but the seller would know who they were) offering to list a home for less. The agent who offered the lowest commission won the prize of getting to list that home. This company was started by Bradley Inman and he sold HomeGain for enough money (tens and tens of millions of dollars) so he can now devote as much of his life as he wants to working on getting agent’s commissions down.

Then, how DO agents compete with one another? If you are in the business and working on getting business, you somehow contact someone and let them know you are Read more

Now My Space really IS MY SPACE

Am I popular with young people? Hell, I’ve got my own page(s) on My Space. I just found out about these pages today – Greg sent me the links via email. Here is a link to the first page Greg sent me. After I wrote him back insisting I have NO idea who posted the page, he sent me this link. Have your speakers on the get the full experience. Of course I am flattered that someone cares enough to do something like this – even using one of my favorite quotes from L. Ron Hubbard. “Art is a word which summarizes the quality of communication.” But to prove they didn’t really know anything meaningful about me, the person who posted as me on My Space (attributing it to me) said, “I’m Russell Shaw and I’m not a fan of popular music, or any music for that matter. When you’re in the business of selling homes, you don’t have time for other things.” Actually, I obsessively find and listen to new music, as I’ve been doing this most of my life. They also shaved four years off my age and got my “sign” wrong, as well. But you have to give them (deranged) credit for trying. Hopefully, by the time anyone reading this blog a few days from now sees this the pages for me on My Space will be gone. But in the meantime I’m quite confident my message of how to take more listings and supercharge your business will no doubt be quite a hit with hundreds of thousands of preteens.

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I have lots of other friends too. For example, just today, my big fan, Jef Rice wrote to me (here is Jef’s email, in case you would like to write him for me jef@gumiyo.com). Here is the entire text of the email Jef sent me:

Hi Russell,

I really enjoyed reading articles on your real estate blog. You have a good point of view. I would love to hear your opinion on our new service – www.gumiyo.com. Let me give you the quick rundown. We are the latest and greatest Mobile-focused Read more