Category: Realty Reality (page 9 of 16)

March 20, 2008

Real Estate is Entertainment – Are You Entertaining?

by Dave Phillips

CEO, PA Association of Realtors

Last week I heard my pal Walt Baczkowski, CEO of the Metropolitan Consolidated Association of REALTORS®, make the statement, “real estate has become entertainment.” The statement struck me like one of those V8 smacks to the head. The more I thought about it, the more the statement became true. Just look at the local TV cable listings and you’ll see shows like Flip That House, Home Makeover, Designed to Sell, House Hunters, etc. Real Estate is Cold; Real Estate TV Hot proclaimed RealityTVWorld.com recently.

In addition to reality TV, many shows like Two and a Half Men and Reba have supporting characters that are real estate agents. Unfortunately, these shows often portray agents is a rather unflattering manner.

In my little neck of the woods, real estate has been one of the top 10 news stories for the past 4 years (number 1 for a few years), and we have 2 or 3 media inquiries a week wanting an interview for this or that real estate issue.

So if you buy into the premise that real estate has become entertainment, I ask you “are you entertaining?” If you are a REALTOR®, you are likely charming and engaging (I think that is required by Article 18 in the Code of EthicsJ), but are your marketing efforts interesting, informing and/or humorous? Are you using YouTube for the goldmine it can be? Are you still doing the same ad layouts you used 5 years ago?

This post is not intended to give you the answers, but I hope it will help you understand the questions you need to ask. Below are links to some examples of entertaining REALTOR® marketing efforts. You probably do not want to copy these, but you should seek out your niche in this new paradigm. Consumers want something in return for paying attention to your marketing – what will you give them?

The Hot Tub REALTOR® – This YouTube marketing gets 5 stars for creativity, 2 stars for execution, but is probably not going to have too many copycats.

FSBO Site Video – this non-REALTOR® gets it.

REALTOR® Web Site – This is a local Charlottesville firm Read more

March 19, 2008

Rhymes With Ferry

by Russell Shaw

Mega-Producing Realtor

A couple of things. First, the largest real estate company in Arizona (based on number of agents) is now Homesmart. Homesmart was already pretty damn big but on Tuesday it was finalized – they bought Dan Schwartz Realty. Dan Schwartz Realty was, itself, was already one of the top 3 companies in the state for number of agents. So was Homesmart. It is my understanding that – at least for now – both companies will continue to operate with their current names.

A Little Bird Told Me

And now for the “big” news. I’ve just received a report that Mike Ferry’s coaching business is falling off. Big time. I have long considered him a predator, so I am happy to hear this. His company has had a pattern of high pressuring agents (who attend his free seminars) to sign up for coaching. Coaching is pretty much all he really sells – his events being a giant sales pitch for getting coached by his organization. For those who don’t follow the Mike Ferry coaching advice or who find it unworkable they are in for an additional shock, besides not having all that additional income they were sure to get. If they attempt to cancel their relationship they discover – as they have signed a contract – their account will be turned over to a collection agency.

It now happens that the state of California (EDD) recently ruled that all the coaches (I think he has averaged about 60 coaches at any given time since 1999) he has been paying as independent contractors are legally employees. Mike appealed and lost. Prediction: a big fine will soon be levied by California and I’m guessing the IRS will soon do the same. Also, from the very same little bird: a lawsuit from ex-coaches will soon be filed and made public to recover any money not recovered via the taxing agencies. My prediction: he will be out of money before any of them can collect anything.

Mike, once you see this you can have one of your attorneys send me a nice threatening letter. Here is my contact information.

March 19, 2008

Biz 2.0: Super Real Estate Companies

by Mike Farmer

Real Estate Broker

When I first started in real estate my goal was to own a big operation after getting my broker’s license. A quintuple bypass changed my plans and I now operate a boutique operation, small, profitable and simple. I spend my extra time doing things I enjoy like golfing, reading and writing.

But I haven’t stopped thinking about big. It’s my belief that most large RE companies don’t fully exploit the advantages of being big, with access to resources largely going to waste in offices run from defensive modes with key players protecting turf rather than striving for excellence and market domination. Internal competition has been a weakness of big RE companies, along with the lack of talented employees with broader skills than RE skills. There’s a time and place to compete and there’s a time and place to bring talented individuals together to co-operate.

All companies and all offices differ, but from what I’ve seen much is missing. Big doesn’t have to mean slow, stubborn and infected with in-fighting and politics. I admit, I have idealistic binges that sometimes border on drunkenly naive, but I also know what people working together can accomplish — I’ve witnessed it through personal involvement and I’ve read the stories of companies who’ve achieved excellence through new ways of thinking, co-operation and a dedication to talented people given free reign to think, act and innovate. I also have no knowledge of the sophistication involved with large franchises, but I know that even independent offices with 50 to 100 agents can develop 2.0 systems that drastically improve their ability to compete.

It starts at the top with leadership. I should say enlightened leadership. Fearless and open-minded leaders are rare; hell, most everything I’m about to describe is rare — that’s what makes it special, and that’s why great companies achieve the largest market share in their line of endeavor. Good leaders are an amalgam of psychologist, priest, coach, cheerleader, protaganist, antagonist (questioning his/her own leadership), hero(ine), visionary and sage. That’s asking a lot, but good leadership demands a lot. From Alexander the Great to JFK to Lee Ioccoca, the styles are different and the scope greater or less, but the key elements of Read more

March 16, 2008

Sunday Morning Tribute To Bloodhound

by Mike Farmer

Real Estate Broker

Bloodhound is an astounding blog. Now before I’m accused of buttering up to Greg, let me explain I’m not that type. What I find astounding about Bloodhound is the consistent quality of the work here. It’s amazing a real estate blog can generate such rich material for the imagination, and one reason I think it does is that it transcends, on many occasions, the limits of basic real estate information.

That’s not to say that all types of RE blogs don’t have their place among the RE blogosphere and much valuable information is transmitted all over. Bloodhound itself transmits valuable nuts and bolts information. Along with other sites, Bloodhound transmits good technology tips and is in the loop of the latest news going on in the industry. I think, though, what raises it above other efforts is the transcending part.

I like the fast, informative style some sites have, with a few pithy words, neat pictures and links to good information, but they lack the substance that I think makes a place like Bloodhound stand out. That’s what I’m getting at – rich content, substance, mind food, sparks to fire the imagination. We often praise the informative aspect of Bloodhound, but seldom do I see the content given appropriate praise.

In order to stand out among a field of writers, substantive content is critical in my estimation. Allan Bloom, the great literature critic, feels that being “strange” is what sets great writers apart and makes them immortal. By “strange” he meant that writers like Kafka, Shakespeare, Pynchon and Cervante are different, on the edge, that their content fires the imagination. Not that I’m comparing Bloodhound to canonical writers, but relatively speaking, the concept is the same – in the arena of RE blogs, Bloodhound has the “strange” factor which sets it apart, makes it noticeable, whether you agree with Greg and the contributors and like them or not.

This powerful form of branding is what all businesses, and other efforts to be seen and heard, search for, yet few fully succeed in finding. I think it entails taking a risk, having the courage to express Read more

March 15, 2008

Paradigm Shift? Not Quite Yet

by Jeff Brown

Real Estate Investments Broker

In just the past couple weeks alone I’ve read over a dozen blog posts declaring a paradigm shift in real estate — specifically in what it takes to succeed as an agent. Before I continue, it’s not my intention to offend anyone in any way whatsoever. Seems about 2-3 times a year I manage to step in it big time, causing some sorta perfect $#%storm of wounded egos and/or encroached empires of ideology. This should be filed under, ‘Hey, I’m just sayin” and leave it at that.

Look at the history of the car, beginning at the turn of the 20th century. Going out on a limb, I’d say far less than 1% of the population had seen one, much less owned one. Now look at today’s car. A paradigm shift? Not in my thinking. They still require gas, a driver, a drive train, and brakes. A 1908 Ford got you from point A to point B faster and more comfortably than a horse — and so does the 2008 model. Yet many would say due to the myriad improvements over the last 100 years there’s been some sort of paradigm shift from 1908 to now.

Show me. Where is it? Does the ’08 version fly? Does it drive itself? Does it make its own fuel? No, it gets us from A to B faster and more comfortably than a horse. A paradigm shift was when the car replaced the horse.

Segue to real estate brokerage.

It was Saturday in the middle of a cloudy October in 1969 when I first stepped into a real estate office as a licensed agent. Not much has changed in the ‘paradigm shift’ kinda way.

Before you start your enraged fingers racing over your keyboard, read on.

Sure, there were no computers, no internet, no 2.0, not even 1.0 — hell we were barely 0.0 back then. Still, we did then what we do today. We seek opportunities to get in front of qualified prospects in order to make our living. We took listings, represented buyers, used the MLS, had to deal with contracts, dealt with lenders, Read more

March 14, 2008

Arrogance vs Confidence

by Mike Farmer

Real Estate Broker

The company or individual that doesn’t understand competition and the power of imagination is already slipping into obscurity. Power in a competitive world is double-edged, one edge used by those on the throne, the other edge being sharpened by an idea that time adores. Who is so ignorant as to proclaim the end rests in this position? Every Google came from nowhere, or so it seems. Competition comes from the blind side, the side of arrogance.

Confidence is another story and no man or woman should see the need for constant bowing before power, nor do any in power need to cower in gratitude to avoid the unseemly posture of confidence. If one is good, then confidence is a natural reaction and state of mind, but….

But, realization of what supports power is critical to sustaining power — once a person or company thinks powers derives from an intrinsic source that transcends all other sources and is not granted by those who can take it away, it’s over. But if the realization that power exists only through the satisfaction of those who bestow power, then a person or company can ride success for a long, profitable journey.

In the service industry, power derives from consumers finding greater value in your service than in your competitors – the danger is once you rise to a successful position the temptation is to think it’s a permanent state, and then you are vulnerable to the corruption of power. Confidence tells a wise man or woman that whatever it takes, I’ve got it, but to keep it I must diligently satisfy the consumers’ ever-changing needs; Arrogance tells a foolish man or woman that they created power out of nothing and consumers are under their control.

Every day a small competitor is thinking of new ways to deliver something unique – if you aren’t thinking right along with them, and if you think you have it locked because the gods of commerce have smiled and favored you, then you might as well buckle up for a bumpy downhill ride. Confidence is a gift we give ourselves for staying in touch, honoring the achievement of excellence; arrogance is spitting Read more

March 12, 2008

Appraisers – The Latest Target In The Circular Firing Squad

by Doug Quance

Associate Broker

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

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

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

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

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

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

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

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

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

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

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

March 10, 2008