There’s always something to howl about.

Category: Supplanting the NAR (page 6 of 10)

Give me your money, Part I: Sell locally, market nationally and build a real estate brand that actually means something to consumers

I’ve been interested to watch Sean Purcell, Mike Farmer and Rob Hahn talk about alternative brokerage structures, but the only structure that actually matters to me is our own. It’s possible that BloodhoundRealty.com will grow bigger in due course — all but certain given the work we’re doing this year — but I am never, ever interested in growing so large that I cannot directly control the quality of experience we deliver to each of our clients.

Cathleen Collins and I both work constantly to come up with newer ways of doing our work better, more ways of knocking the socks completely off of our buyers and sellers. This is a process I want never to stop, much less see reversed by the three-headed monster that passes for “management” in most businesses: haphazard philosophy, hamhanded preparation and tightfisted execution.

That is to say, we are a brand, no matter how small we are. We approached our business that way from the very beginning, to have the iconic idea of a Bloodhound speak for us in every possible way. We have never pursued personal promotion, preferring instead to promote the idea of this brand — not just the images but the underlying ideas.

Our market penetration is very slight so far, as must be the case for a boot-strapped brokerage. But there is no one we have worked with, either our clients or their warm networks or neighbors, who does not remember us or the ideas we stand for. We don’t hit 1.000 — although we have not missed on a listing in 2008, knock wood — but we hit the ball so hard that everyone remembers us in the neighborhoods where work.

They remember not us as people, but the brand. One of my favorite clients came to us when, frustrated that his house wasn’t selling, he turned to his wife and said, “What we need is the Bloodhounds.” He didn’t remember us, he remembered our marketing efforts and our results. Iconic ideas Google well, so he found us in one quick search.

This is the kind of branding that I think can make all the Read more

The “MLS 5.0” Manifesto: Everyone working in hi-tech real estate must oppose this vicious plan with every fiber in your being

“Oh that the Roman people had but one neck, that I might cut it off at a blow!” –Caligula

Here is the naked essence of Saul Klein’s so-called “MLS 5.0” proposal:

The MLS of the future will bring a marketing service and benefit to the industry by being the single point of entry for listing data and then, based upon the election of the broker, distribute that information to web portals, newspapers, even radio and television, handheld devices and applications.

The emphasis was in the original, which is a nice illustration of how much Klein trusts you not to see what he’s up to.

What does that sentence actually say?

It says that Klein’s idealized “MLS of the Future” will be a national monopoly system controlled by real estate brokers and the NAR — to the immediate and permanent detriment of independent MLS systems and vendors, Web 2.0 listings aggregators and — most especially — individual real estate agents.

What Klein is proposing, ignoring the presumed benefits to accrue to his own ventures, is to give the real estate industry one chokepoint, one bottleneck, so that the NAR can put a choke-chain around it.

Who will control that “single point of entry for listing data”? The NAR.

Who will control who can and cannot have access to listing data? The NAR.

Who will have the entire real estate industry in a chokehold? The NAR.

This is so diabolical, it makes me wonder if the fix is already in — if this evil plan is going to be rammed down our collective throats in November in Orlando.

Let’s assume it is not. Klein’s proposal is an undiluted evil, and it is incumbent upon everyone working in hi-tech real estate to oppose this vicious plan with every fiber in your being.

To say more is to gild the lily. I think Klein’s actual objective is to pull off another Realtor.com heist, to get the NAR to sell him a national MLS monopoly. But the benefit to the NAR is obvious: With a national monopoly MLS system, brokers will once again have the power to bring their agents to heel. If you understand what it means Read more

There’s more to the mortgage relief bill than just mortgage relief

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

Notes for insiders: The legislative thumbprint of the National Association of Realtors is churn. The NAR is not necessarily for or against any legislation. Instead, their lobbyists will look for ways to introduce short-term incentives to churn real estate — artificial inducements to buy or sell real estate now rather than on the consumer’s own timetable. In this bill, getting rid of seller down-payment assistance, introducing the new-buyer tax-credit and revising the capital gains exclusion rules all promote short-term churn. What about the long-term? The NAR knows it will be able to lobby for new real estate-churning legislation next year — at every level of government. This is just another example of the fundamentally anti-consumer character of the NAR.

Here’s another thought: Wouldn’t it be great if, instead of regurgitating Zillow’s gee whiz press releases, the real estate reporters of the mainstream media actually reported on what is really going on in real estate?

 
There’s more to the mortgage relief bill than just mortgage relief

Having trouble making your mortgage payments? You might be able to make a change in your loan, thanks to the mortgage relief bill President Bush recently signed into law. Under the bill, you can convert your high-interest adjustable-rate loan to a lower-interest fixed-rate note if you meet what might, in a declining market, seem to be Catch-22-like guidelines: Your payment must be more than 31% of your income, and your new loan cannot exceed 90% of your home’s value. Help is available — provided you don’t need it.

Starting October 1st, seller-paid down-payment assistance grants will be outlawed for FHA loans. This is bad news for lower-priced neighborhoods in Metropolitan Phoenix, where as many as nine out of ten homes are being sold with down-payment assistance. Expect to see a flurry of this activity in the next two months.

But the left hand gives where the right hand takes away: Buyers who have not owned a home for three years can take a $7,500 “refundable” tax-credit if they buy between April 9, 2008 and July 1, 2009. The credit Read more

Friday Afternoon Fun: Can anyone tell me what the hell this bowl of tossed jargon-salad says — if anything?

This came in my spam this morning, and I gave it nine seconds of my full attention: Babbling jargon-filled nonsense, probably with a well-hidden chokepoint to spill coins into the author’s pockets.

That was my instant take, but the truth is I don’t actually know what it says. To the extent that I actually tried to read it, it was too painful for me to pursue.

It could be you have more patience than me. If so, you might take a stab at figuring out what it says. It doesn’t actually matter, since the meatballs atop this sticky bowl of word spaghetti are the same ones who brought us Realtor.com and all the other big-hit NAR disasters. If anyone actually believes these wheezing antiques can outrun the VC-funded Web 2.0 world, I have a few dollars I might be willing to wager. The NAR will solve every problem it confronts by force of arms, as always.

But: That doesn’t mean you can’t have some Friday Afternoon Fun trying to parse the mangled prose that makes up this proposal. Plus which, I’m inclined to be very generous if you should unearth the chokepoint.

Note that this deeply heartfelt manifesto appears on a page full of advertising. Classy… Inman “News” dipped its pen in this spittoon, of course, but that’s such an obvious outcome it’s not even worth making jokes about… Oh, fine. Here’s one, just because it’s Friday:

Q: What do you need to get fawning, uncritical attention for your press release from Inman News?

A: A press release.

Read carefully and I expect you will discover how the NAR hopes to rape agents and consumers over the next decade. But remember this as you read: Divorce the commissions and every bit of this nonsense goes away, as it should.

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What Has Your Local Association Done For/To You Lately?

Many of the Bloodhound writers and readers are rather disdainful of the entire Realtor® organization – all three levels (local, state and national). Greg Swann, in particular, has a penchant for wishing for the demise of the organization that keeps him on a leash. In fact, Greg, I’d suggest you stop reading this post now. Not because I will be defending the organization, but because you are already beyond any discussion of what a local association could/should be for members.

For those who are still reading, I will assume you have a least a passing interest in why you are a member of the Realtor® organization and some hope that it can serve you in some way. The fundamental question I’m exploring is the role of the local association in helping members to be successful. There are many different sizes and shapes of local associations out there, so I’m going to attempt to stay at the philosophical level. I will be using my local association, the Charlottesville Area Association of Realtors® (CAAR), as an example, so for clarity we have 1100 members in a small but sophisticated real estate market. That makes us a mid-sized local, but to be honest, we act like we are big.

CAAR is currently debating this issue of the association’s role. At each Board of Directors meeting we start off with what we call a “Strategic Discussion” that involves an issue that is important, but not urgent (Covey’s Quadrant 2). Next week the Strategic Discussion on the agenda is as follows:

Strategic Discussion

What is CAAR’s Role on the Internet? When do we compete with members and when do we provide a common service that is in the best interest of most of our members? If we provide valuable public information, do we compete with members who could be providing that same information? Was the NGIC website a valuable service to members and the community, or an interference with our member’s business?

The NGIC website mentioned in this agenda item is a special site we created to help with a major relocation of much of the military intelligence personnel to our Read more

The Epic Battle Ensues: Realtor vs. Realtwhore

Not sure if you’ve visited TruliaVoices lately – there is an active thread currently running, at last count, 1,599 responses. I believe that is the longest running thread in Trulia’s fledgling history. The poster has since updated the question with more information qualifying the question due to the overwhelming number of responses, however, the basic question is, “Why should someone buy in this market?”

When initially posted, the question was a legitimate query into an expert’s view as to why someone in the poster’s circumstances should buy in Chicago. Personally, I had a problem with the question – should the response be a multiple choice response?

a. buy low, sell high
b. interest rates are at historically low levels
c. Jill is half as tall as Bill and 3/4 tall as Sally
d. Vicodine
e. There is insufficent data to answer to this question

I like “e” – and for the first time in almost 30 years, I can now fully appreciate the significance of that answer on the SATs. For those of you who found Vicodine to be the logical choice, may I suggest an intervention?

Ok – so I’ve been following the thread from time to time, watching it morph from being a useful discussion to – lately – a discussion regarding the existence of nuclear weapons in Israel. Almost like a game of telephone gone bad. More disturbing to me however is how the question has evolved into a rhetorical question “WHY THE HELL would someone buy in this market? What are you, an idiot?”

If you’re familiar with the TruliaVoices rating scheme, you understand that comments are rated by either a thumbs up or thumbs down. Honestly, I think there’s a conspiracy brewing. As you read the responses of the many realtors who answered the question, “There is no better time to buy!”, many of those responses were met with a burrage of thrumbs down. You can almost hear the resounding “BOO!”, “LOSER!” – you know, while you’re at, why don’t you just poke me and call me fat.

On the Read more

Bearing the sacred mantle of insolence in the Parliament of Whores: Win one of two free sets of BloodhoundBlog Unchained DVDs in “The just-exactly-how-dumb-are-you Realtor-scam of the week” contest!

Q: What’s the difference between cows and Realtors?

A: When they get the urge to be milked, cows don’t fly to trade shows at their own expense, wandering from booth to booth with their udders out.

Well. I certainly feel vindicated. The RSSPieces clusterfrolic is further proof of the advice I gave about dealing with vendors a year ago:

1. Avoid hosted software systems
2. Avoid proprietary technology
3. Pursue commodity solutions — and prices

BloodhoundBlog has been vindicated much more than I expected this year. On issue after issue, we’re the only national real estate voice to be heard on the topic:

In March, I noted that much of the RE.net had gotten in bed with Brad Inman. Minions of the NAR — I called them the “nice niche” and Teri Lussier is turning it into a meme — have made their incursions as well. The result is that, at the national level, we are the only consistent voice left for consumers and for the grunts on the ground, the people who actually do real estate — rather than strive to find new ways of milking Realtors and lenders of their income.

We are what we are, and I wouldn’t be anywhere else. I just didn’t expect to have the entire battlefield abandoned to us. Obviously we can more than bear the load. I worried for a while about Vlad’s Legal Defense fund, but we’ve more than covered what we’ve needed so far. For a time I was mildly dismayed that too much of the wired world of real estate seems, per Emerson, “to wear one cut of face and figure, and acquire by degrees the gentlest asinine expression” — but that certainly doesn’t describe anything that happens here.

Real estate is a vendorslut industry, Read more

Project Bloodhound: Marketing into open hostility, blank indifference or firmly-entrenched error: How do you get people who already don’t intend to listen to you to listen anyway?

I mentioned the Saturday Afternoon Marketing Circle yesterday. Richard Riccelli, Jeff Brown, Teri Lussier and I have been talking about an ugly marketing problem and how to get around it. I left off last night with this:

You can’t market into indifference or into firmly-established error. You can only persuade people who are listening to you.

I could go further than that to say that people only change their behavior in significant ways when the pain of their errors exceeds their inertia in emending them. In that respect, this real estate market is a good friend to Realtors like us, who intend to do a whole lot more to earn the business. In a normal market, no one is listening. Right now, a lot of people are tuned into the idea of better and worse results.

That notwithstanding, Teri offers up this observation to the idea that “you can’t market into indifference or into firmly-established error”:

Why not? I’m not being a snot, I really don’t understand why you’d say this. Can’t great (legendary) marketing overcome a wide variety of objections?

We want to teach salesmanship at Unchained in Orlando, and this question illustrates why we want to cover this stuff. To wit:

An objection is a buying sign.

If someone raises an objection to something you’ve said, they’re not only already listening to you, they’re listening hard. If you can pull out every objection and address them satisfactorily, you’ll make a sale. In many ways objections are better than placid acceptance, since the placidity may be masking unstated objections.

But that’s not what Teri and I are talking about. The issue is this: How do you get the attention of people who are already consciously or subconsciously convinced that they don’t want to hear what you have to say?

Teri put it this way in our discussion:

So your weakness is not marketing listed homes, but marketing to convince the seller to do things your way from the beginning.

But exactly. Our efforts are remarkable. Our results, even in this market, have been very strong compared to the agents we compete against. But as I discussed with Jeff the other day, Read more

My Mind Share Mis-management Manifesto

Eric Bramlett and I have been playing with Google’s upgraded adwords tool quite a bit lately. Not surprisingly here’s one of the first things that crossed my mind…

And while the numbers would indicate that Trulia CLEARLY has not created much in the way of brand awareness in the consumer ranks (think about it 60,500 searches in June and how many of those were REALTORS?). And while I could make SEVERAL valid points to their VC’s about how that is not a great reason to throw another $15MM log on the fire, that is not the subject of my manifesto. This is:

NAR: WAKE THE HECK UP!

You currently have the REALTOR brand. It is strong. You can see that people are clearly searching for REALTORS. (See MLS to see how you mangled the last one) You are mismanaging the online use of that REALTOR brand in a MAJOR way. Homestore is squandering the brand by using the quality of the online presence to extort money from the REALTORS themselves.

Look at the figures that Bramlett posted. Read them Lawrence. (please) What do they say? IMO they say that people are looking for REALTORS. They say that if we FIRED Homestore and made the national listing site a NON PROFIT center for NAR, we could do better. Much better. Yes that would mean some staff cutbacks in the bureaucracy. High time that happened anyway.

The main reason that we have REALTORS giving listings to third party sites with so little consumer mind share as Trulia is because REALTOR has mangled them and is holding the REALTOR hostage. I cannot blame Trulia for trying to move into a space where Homestore has abdicated it’s position…a monopoly position granted by a fiat of well intentioned (but IMO highly misguided) leaders at NAR.

Our listings were not yours to sell IMO. And if somehow we granted you that right, unless you dump Homestore or get them to start taking our online presence seriously, you have proven IMHO beyond all doubt that we the REALTORS should now take that right back from you. You have mismanaged it.

What do I Read more

Attention Realtor association wannabe geeks: All monopolies suck by definition, so you must open up our forms to multiple vendors

I wrote a couple of times yesterday about using the iPhone as the laptop killer for real estate transactions. If my guesses about cloud computing play out, the iPhone and subsequent hand-held computers have the potential to replace our desktop machines as well — or at least give us every bit of the power we expect from a desktop machine no matter where we happen to be. This is all for real, a brand new world unfolding before our eyes.

What is not new, alas, are the monopolies of morons imposed upon us by the National Association of Realtors and all of its many tentacular sub-cartels. Where everything in business is about to change radically — in response to the iPhone, to Web 3.0, to the unforeseeable efficiencies of the cloud — everything in our business will change at its usual glacial pace — driven not by the pursuit of profit, not by the thrill of innovation, not by the ever-more-vast oceans of information available to us — driven only by the need of the NAR and its cabal of sleazy vendors to hold Realtors hostage.

In late May I bitched about the vast hordes of bugs that infest Zipforms, but I knew going in that this was a Sysiphean effort. The people who impose these awful products on us are not the ones stuck using them. It wouldn’t surprise me at all if there are off-budget contributions — subsidies for Realtor association parties, for example — written into the contracts, which simply introduces bribery into what is already a capricious decision-making process. Caprice, it is worthwhile to stress, is the opposite of reason.

Tom Farley, the new CEO of the Arizona Association of Realtors actually called me in response to that post, but I could not manage to convey to him the importance of multiple, competing vendors to a free — or even quasi-free — market. What he told me is that, instead of Zipforms, in the future we will be inflicted with a different hopelessly buggy Windows-only piece of crap software. I know the man was in deep earnest, and I know Read more

BloodhoundBlog at two: The scene of the real estate scenius

BloodhoundBlog came into this world two years ago today. I had tried twice before to craft a workable real estate weblog. The second attempt donated its 60-odd posts to BloodhoundBlog on the way in. But BloodhoundBlog was different from our prior attempts right from the start. We were focused on the national real estate industry from the beginning, mixing good writing, deep philosophy and radical new ideas into what has seemed to be a consistently heady brew.

In our first two years, we’ve served over 1.4 million pages to over 750,000 unique souls. We’ve written more than 2,800 posts and hosted more than 25,000 comments. As I write this, we have 600 Technorati links and 67,000 Yahoo backlinks. Those are interesting numbers, but these are more interesting to me: In the past two years (less than that, really, since we didn’t start tracking for about two months), 37,347 people have visited here here 200 or more times. Just short of 151,000 people have visited us nine or more times. And keep in mind that we live by RSS and email subscription. The flip side of this is that just short of half-a-million souls have come to the site only once, which I think is a nice illustration of the relative value of search-engine borne as against more-organic sources of traffic.

And, in reality, none of that matters. BloodhoundBlog is influential because it is very loud voice in the RE.net, but BloodhoundBlog is influential because it is very serious about big ideas. From the earliest days of the blog, we staked out a ground — the philosophy by which the most serious, most dedicated real estate professionals would thrive in the Web 2.0 world — and defended it with the ferocity of real Bloodhounds. We are always about the grunts on the ground, never about the bosses and vendors who seek to bilk them of their hard-fought earnings. We’ve built an audience not by dumb SEO stunts, not by kissing up to the NAR or the Inmanosphere, not by fawning or flattery or appeals to pity, but simply by delivering the goods day after Read more

Contra Cammarosano: “You will know when BloodhoundBlog has attained its goals when there is no more carney-barker jive to be found anywhere in real estate.”

This is a response to a comment that grew up to be a post:

Louis Cammarosano: “[I]f it wasn’t for “Vendor” Zillow, Unchained Phoenix would have shown a loss.”

No, we would have done the show in a different facility, without food. Zillow.com paid for our guests to have a much better experience than they would have had otherwise. I’m very grateful for this, but it had nothing to do with what were doing. If we can, I want to pay for Orlando entirely from receipts, so that we will have heard the last of these specious charges.

Louis Cammarosano: “The anti vendor rhetoric falls flat when your conference was sponsored by one and you have become one yourself.”

Falls flat for whom? Is there anyone reading this who thinks that we are casting about for a way to make milch cows out of Realtors and lenders, in the way that virtually everyone associated with the Inman.com/Realtor.com/Move.com world seeks to milk Realtors and lenders? I’m completely serious. If you really think that, let me know, because I will want to dial up the anti-vendor/anti-broker/anti-NAR rhetoric quite a bit. I am sick to death of putatively self-employed business people being swindled by one huckster after another, and I am doing everything I can think of to put a stop to it. If I haven’t made that abundantly clear by now, the fault is mine, and I will mend my ways with renewed vigor.

I actually agree with the point you don’t quite make: Zillow.com — and possibly some other vendors fully within the Web 2.0 world — don’t deserve to be lumped together with the other companies making up the milking-machinery branch of the Inmanosphere. What can one say about this grievous injustice? How about: Dang.

BloodhoundBlog is a very costly endeavor. Our bandwidth needs are huge, so our hosting fees are fairly high. BloodhoundRealty.com absorbs all of that, along with any other costs associated with running this site. But those numbers pale when compared with the labor value — and the market value — of the content accumulated here — provided by me and by three dozen Read more

BloodhoundBlog evangelism: How, by working together, we are going to reinvent real estate representation, convert the best real estate professionals to the wired life and put the bums out of the business

First, this is important: The easiest way to get someone to BloodhoundBlog is to type “BloodhoundBlog” into any web browser. The “.com” will be assumed by default, and BloodhoundBlog.com redirects to the full address of the weblog. If there is someone you work with whom you would like to see get involved in our world, all that person has to remember is that one word: BloodhoundBlog.

Why is that important? Because you are the most important factor in BloodhoundBlog’s growth. We don’t even have Google working for us right now, but it doesn’t matter. We have always grown on the strength of the content and on the strength of very bright people like you reading, commenting on, subscribing to, linking to and recommending that content.

Last night I looked in on Cheryl Johnson talking about the coffee-table books we build for high-end listings. One of the comments was an eye-opener for me:

Thanks for the BLOODHOUND link, I had not run across them yet and man what a good read, blew my 30 min quick.

Of the weblogs written by actual working real estate professionals — Realtors, lenders, investors, technologists, vendors — BloodhoundBlog has the deepest penetration: Most pages, most Technorati links, etc. It’s easy for me to forget that new people are coming on line every day — and that they have no automatic way of knowing about BloodhoundBlog.

So far, we have depended on viral effects to be found by those folks. But I want for people like Cheryl’s commenter to find us. You want it, too: It’s the people who care about doing their very best who will matter most to the world of real estate, going forward. We are each of us here for our own reasons, but, at the same time, we are all of us here out of a shared commitment to excellence. When you run across someone like the person who posted that comment, you need to send him or her here like a BloodhoundBlog evangelist. Not for our sakes, but for your own.

There’s more. After weeks of phone tag, it seems all but certain that we will not Read more

Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt

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

 
Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt

The big news in real estate is the market, of course. My view is that the American economy is much stronger and more resilient than you might guess from day-to-day reports.

But the other big story in real estate is the idea of “disintermediation” — replacing Realtors with some combination of do-it-yourself effort and hi-tech tools. The stock retort to this notion — and I have made it myself — is that people will never buy homes like they buy books on Amazon.

Perhaps so. But I lived through the desktop revolution in printing, so I have a different take about the dreaded word disintermediation.

If the triumphant yelp is that some travel agents and some stockbrokers still have jobs, I will point out that some blacksmiths still have jobs, too. Horses still need shoes. That much is beside the point.

Here’s my take on the matter: Don’t think in terms of disintermediation. Use the word “supplantation” instead. In industry after industry, old techniques are being supplanted by new ideas. More importantly, the old technicians are being supplanted by new ones.

This is not a necessary consequence, but it often works out that the “old hands” don’t want to make the change to the new ways of doing business. Even if they do, the “first-mover advantage” can be too great to overcome.

The same goes for everything — most especially real estate. Realtors who are not all the way onboard with the way business will be done in the future will be left behind at the station.

A real estate transaction is so complex that most people will continue to want professional advice — even as they handle many of the simpler functions Realtors might have done in the past. The work we do will be superficially similar to the work others have done in the past — but those others won’t be doing it any longer.

Will they have been disintermediated? Not if you insist that they haven’t. Read more