There’s always something to howl about.

Month: March 2007 (page 5 of 9)

Days On Market? It is a stupid question and a stupid answer

The obsession to keep the Days On Market (DOM) “accurate” is just one example of a misevaluation of relative importances. Our local MLS, Arizona Regional Multiple Listing Service (ARMLS) fixed up the system so it would show the “true days on market”. If a property had been listed before then the Cumulative Days On Market would show up on a one-line printing of listings and on a full print-out. The agent days on market is also shown, but each and every listing shows the “cumulative” DOM and one can even do a search of the MLS based on the DOM. Any days on market with another company or another agents in the past 90 days shows up in the cumulative number (CDOM). This fabulous benefit to “tranparancy” is now common in many Realtor multiple listing systems around the country. There are articles in the press about how agents have “tricked” the buying public by canceling and listing the same house again, giving it a new MLS number – and thus resetting the DOM number to zero.

Setting aside that I am a listing agent and the fact that the seller ultimately pays the commission that the buyer agent collects (in Arizona, the listing agent pays it, with money he or she has collected from the seller) – why do I think CDOM is retarded?

First, I have never seen an MLS data base that shows all the price reductions and when they occurred. If the price reduction was substantial isn’t it really a “different listing”? Before you answer that it is the same house but at a lower price (which is true), isn’t it then a different listing? If an agent with no backbone takes a listing at 500k that should have been listed at 400k (quite common in our current market) how is it “fair” to penalize the seller for having his house on the market for 90 days at 500k? When I later take that same house and list it for 400k the first day I have it on the market the CDOM would show 91 days. It would look to Read more

Can yet another easy-blogging local-content solution beat community-building local real estate weblogs?

Jim Kimmons at RealEstateBusinessSuccess.com Blog has come up with yet another simple solution to the issue of using local real estate weblogging content as bait for leads. That makes four of these, by now, I think.

Okayfine. Jim may have the better mousetrap for two reasons: He’s linking directly to the blogging Realtor’s IDX search page. And he’s teaching his wanna-bloggers how to scour Google News for local content.

Do we want to declare static-content real estate websites dead? We just might. Do we want to declare real estate weblogs ascendant? If we do, can we take a moment to count how many Realtors we expect to be local-blogging (in some form) in any particular locale? How many spots are there on the first Google page again? Is it plausible that, a year from now, local-blogging Realtors will have traded static-content Google-obscurity for blogged (or pseudo-blogged) Google-obscurity? Have I made a mistake in my arithmetic?

I do not like the trolling-for-leads model of real estate weblogging. Local real estate weblogs that deliver real value are treasured resources. But the more people focus on SEO tricks or copywriting tricks or quid pro quo tricks, the more real estate weblogs start to look to me like just another form of advertising.

This is not the end of the world. It’s just the end of weblogging. It’s arguable to me that commercial weblogging, in se, is abhorrent. BloodhoundBlog doesn’t take advertising because I never want for anyone working here to feel that they might need to temper what they have to say for a pecuniary reason. I have no objection to real estate weblogging that is presented in such a way that readers ought to choose to become clients. But when roping up and tying down clients becomes the overarching objective, I don’t see the difference between that and an Adwords campaign.

At a certain level, it doesn’t even make sense to me. As with an Adwords campaign, the people attracted are a random mass, mostly buyers, often relos-without-relo-packages or people who are sublimely under-qualified financially. Certainly that’s what’s going to emerge from Jim’s new venture: It’s target assumption Read more

From Mortgage Company: [Personal Introduction], [Sell Stuff Here], [Warm Closing]

SPAM via emailSo, I get a lot of spam. Maybe you do, too. Usually, my filter stops them. Sometimes, it doesn’t.

Today, an email from “Mortgage Company” got through the gate. It doesn’t happen often and I nearly fell off my chair laughing when I saw the subject line:

“Hurry to lower your credit rate!”

Oooh! Who wouldn’t want that? I figured this would be the worst spam email ever so I opened it (blocking all images, of course).

Here it is. My comments are in boldface.

Dear Client!
(Hey, how did they know my name?)

Do you want to save? Do you not know how?
(Save what? Money? Water? Ferris?)

We will help you! Our company is inviting you to participate in limited time event!
(Limited time? I better act NOW!)

The lenders will lower the rate at your property credit!
(What’s a property credit?)

The lenders will fight for you and offer you all the beneficial variants!
(Oh, it’s like LendingTree — when lenders fight for me, I win. And, who wouldn’t want all of those “beneficial variants”?)

The lowest rates in America will be at your disposal!
(I just realized… these people are serious! Every sentence ends in an exclamation point!)

You need simply to fill in the 30 second Information form and our brokers will contact you immediately!
(All it takes it 30 seconds and beneficial variants can be mine? I am ALL over this! Exclamation point. )

http://companyname.com/
(The company name SOUNDS legit…)

With deepest respect,
Manager Joesph Campbell
(How nice. The manager offers his deepest respect. But he made a spelling error — his own name.)

Yeah, this was a bad one. And yet, all kidding aside, the spam email seems to follow a very predictable (and productive) pattern:

  1. Compelling subject line
  2. Personalized salutation
  3. Identify pain point
  4. Offer solution to pain point
  5. Create a sense of urgency
  6. List three benefits
  7. Call to action
  8. Formal closing

Unfortunately, the sender botched all eight steps and we can learn something from Mortgage Company.

It’s not following a formula that makes for good marketing — it’s writing compelling copy.

With deepest respect,
Blogger Dan Green

(Image Courtesy: Mark Drew)

Rain City Guide at the dawn of its third year: “Enjoy the journey because the destination is unknown!”

Dustin Luther on Rain City Guide’s second birthday:

The power of self-publishing (and the part that is easily overlooked) is that you do not have to create the news… You just have to report it (preferably in an interesting way!).

I see so many agents get stuck on their blogging because they are trying to say something novel, unique and/or brilliant with every post. Very few people are that talented and it is not a necessary skill to either selling real estate or successful blogging. As a publisher of content, it is much more important to add a little personal insight into the aggregated knowledge of others.

This is truly profound advice. As a reflection, this — this very post — is the archetype of a minimalist weblog post: Citation, quotation, commentary. Done.

So, what is the big picture? Enjoy the journey because the destination is unknown!

And here is my own extended commentary on that point.

I have thoughts on what might be the destination of real estate weblogging that I’ll get to in due course.
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The Carnival of Real Estate . . .

…is up at Mike’s Corner. Mike Price expresses this week’s winners in win-place-show format. Our own Brian Brady came in second, with BAD LOANS: Buried In The Back Of The BreadBox, his excellent explication of the practical, long-term consequences of the sub-prime lending implosion.

The Carnival of Real Estate Investing is at the new homes weblog. Brian took first prize there.

Why did I enter Brian’s post in both competitions? Because it’s that good. See so for yourself, then go take a look at all the other great posts…

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Jeff Turner bids farewell to BloodhoundBlog

Jeff Turner has decided to resign as a contributor to BloodhoundBlog. In mail to me, he said his departure is “a personal decision and tied to where and how my energy and focus need to be spent.” I probed a little and determined that the proximate cause is this weenie brouhaha. This is unfortunate, but I had foreseen that it might happen. There are no content restrictions on BloodhoundBlog contributors — nor any rules of any kind, which sometimes leaves people’s heads swimming — so I would prefer to see disagreements settled by reasoned discourse. But, at the same time, I recognize that my priorities are not the same as everyone else’s. In any case, Jeff takes his leave as a valued friend, promising to participate as he can in our discussions here. From what I have seen of him here and elsewhere, I think he has a beautiful spirit. I wish him every good thing life can bring him.

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Working For The High — The Priceless Euphoria Of A Client’s Success

Being a real estate investment broker has been rewarding. It has kept food on the table, shoes on the kids, paid for college, and allowed various totally unnecessary luxuries. But these days, though the tangible rewards are still pretty cool, I primarily work for those few times a year when the high is so euphoric all I can do is pace around and smile. The feeling gets extended when I’m home and able to regale Diane the Trophy Wife.

This past Friday afternoon I met two of my favorite long term clients, Cher and John to lay out an update of their Plan. They’d finished refinancing just over half of their crown jewel investment property (bunch of fourplexes) in another state. Where to put the newly found tax free gold?

And that’s when they told me their news. They told me like they were ordering more coffee. They had no idea they were about to supply the BawldGuy with a giant fix of his favorite drug.

Their property managers said that beginning in a month or two, their cash flow will be about $12-17K a month. I’m sure those are just numbers on a page for you, but not for them, and certainly not for me. You see, this property has been designated from the day it closed escrow, as their Golden Goose. I’d been saying since they exchanged into it that it would end up spinning off at least $120-144K in totally tax sheltered annual income. It’s been a bumpy road, as they’ve had to turn these units around. It’s very well located, but had poor management and much deferred maintenance when they closed in the spring of ’04.

Disneyland

The Plan called for this property to make their retirement dreams reality. Now reality is here. They’re both now retired, in their 50’s, and as excited as kids just minutes from entering Disneyland for the first time. Imagine their thoughts as they fell asleep Friday night. They have a secure, tax sheltered income in the range of $144-204K a year for as long as they like. And that’s not all they have to be happy Read more

24 Qualities That Geniuses Have in Common

I first saw this in 1980. It was first printed in The National Enquirer. Ron Hubbard asked for – and received – permission to reprint it and distribute it. It was always one of my favorite pieces. I found it via a Google search here. I’ve been thinking of posting it on BloodhoundBlog for the last few months and seeing Greg’s post below, now seemed like the perfect time. I hope you enjoy it as much as I have.

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The worlds greatest geniuses have all had 24 personality characteristics in common and you can develop the same traits yourself, says an expert.

“Most people have the mistaken idea that geniuses are born, not made”, declared clinical psychologist Dr. Alfred Barrious, founder and director of the Self-Programmed Control Center of Los Angeles and author of the book, Towards Greater Freedom and Happiness.

“But if you look at the lives of the worlds greatest geniuses like Edison, Socrates, DaVinci, Shakespeare, Einstein, you will discover they all had 24 personality characteristics in common.

“These are traits that anyone can develop. It makes no difference how old you are, how much education you have, or what you have accomplished to date. Adopting these personality characteristics enables you to operate on a genius level.”

Here are the Characteristics Dr. Barrios lists, which enable geniuses to come up with and develop new and fruitful ideas:

  1. DRIVE. Geniuses have a strong desire to work hard and long. They’re willing to give all they’ve got to a project. Develop your drive by focusing on your future success, and keep going.
  2. COURAGE. It takes courage to do things others consider impossible. Stop worrying about what people will think if you’re different.
  3. DEVOTION TO GOALS. Geniuses know what they want and go after it. Get control of your life and schedule. Have something specific to accomplish each day.
  4. KNOWLEDGE. Geniuses continually accumulate information. Never go to sleep at night without having learned at least one new thing each day. Read. And question people who know.
  5. HONESTY. Geniuses are frank, forthright and honest. Take the responsibility for thins that go wrong. Be willing to admit, ‘I goofed’ and learned from my mistakes.
  6. OPTIMISM. Read more

Perfectibility in weblogging: Revising yourself to genius

I replaced Teri Lussier’s photo this morning. I’m talking about the little thumbnail photos you see running down the sidebar. Guys are easy to crop, because our hair is short. But in my original crop of Teri’s photo, I left her too much hair — which left her with way too little face. No big deal. I went back into the original photo and made a tighter crop. Now her face is approximately the same size as the other contributors.

But that practical example comprises what may be the most important lesson of weblogging (or even of life): If something’s not right, fix it. This is an inherently revisable medium. Changes go down the memory hole, so there is always the peril that someone will change something in order to deceive or occlude. But we gain the corresponding power to chase a convergent series of minor corrections to something that just might blow a kiss at perfection. Most big things are accretions of little things, and, if the little things are right, the big things are that much easier to handle.

It might be Sunday, but I have a homework assignment — for Teri and anyone else who might want to play along. I’m doing a diagnostic interview with Teri to find out where she is on the weblogging ziggurat. Teri’s assignment is to write a BloodhoundBlog post defining what she sees as the challenges facing her as a new real estate weblogger, detailing her desired end goal from real estate weblogging and offering some ideas of how we might get from one to the other. This is really just a writing assignment, so no one should feel too constrained. If you’re playing along at home, you can post as a comment to this post or do something on Active Rain or on your own weblog.

Here’s a hint for Teri or anyone who wants a gold star on their essay: Revise yourself to within hailing distance of perfection. On the other hand, don’t kill yourself. Aim for the best work you can do in an hour. Why? If you’re spending hours trying to Read more

High School Musical – A (Blogging) Tragedy in Three Parts

This little diary entry of mine has been suspended in my draft folder for awhile. I think it may be time to pull it from the shelf and dust it off.

The One Room Schoolhouse

(The year is 2006. As the curtain rises, a nation races to their keyboard to find the definition of “blog”. “Rain City Guide” is returned in the search results. The bell rings, and the students rush in to make new friends and receive the day’s lessons).

Call me naive, unassuming or even childlike in my perception of the world around me, but I have always held the belief that another person’s success does not diminish my own. Admittedly, maybe this is not a childlike belief at all, given that children (mine being no exception) tend to measure their worth through the eyes of their peers; acceptance of those they admire being their validation.

Almost a year ago now when I first began blogging, it felt like the one room school house. It was easy to make friends. We were small in number, the atmosphere was one of support, comradery and mutual respect. We were all there to learn and to share. Some of us were stronger in the “sciences” while others seemed to have better communicative skills, but we all came to class with the common goal of success.

When it was time for the school play, everyone got had a role. Not all of us could be the Lead, as some were more experienced or simply more talented, but we all got parts, and we packed the house. Life was so simple.

Mid-terms and the “New” Kid

(The schoolhouse has added a second classroom, as more students are now in attendance. As the house lights go up, the new kid is seen sitting in the cafeteria at a table by himself. He eyes the room in anticipation, hoping that someone will notice him and be his friend).

Arriving as the new kid well into the year can be at once frightening and exhilarating. There is a playground full of possibilities, and a little personality and tenacity are often all that are needed to Read more

Webloggers and the press, Part II: Oversight and S.W.A.G.

Last week, I wrote about my objections to webloggers being regarded as “the press”. My post was interesting, I hope, but the comments were fascinating (by which device I commend you thither).

But wait. There’s more. An important reason not to regard — or to affect to regard — webloggers as “the press,” is simply that the transparency of weblogging entails a vigilant oversight of “the press.” They don’t link. We do. There can be valid reasons for not linking — technologically impossible or ossification of writing habits. But again and again mainstream media figures are exposed as having taken tendentious positions, attempting to take advantage of the audience’s relative ignorance. James Taranto has made a career of exposing the self-destructive biases of The New York Times.

Occasionally, a deceptive weblogger will be exposed in the same way — but that’s the point. We live in a world where we expect every assertion of fact to be checked and challenged. For too long they (not all of them, but the worst of them), have lived in a world where they expected to be taken on faith — and where that faith was easily abused. They will be much improved, in time, by mastering our virtues. We have nothing to gain — and everything to lose — by enmiring our reputations in their vices.

And it is important to make the distinction between viewpoint and bias. A point of view is common — all but ubiquitous — among weblogs. We are not all about opinion, as is sometimes charged, but a weblogger’s opinions are never very far from his keyboard — nor should they be. By contrast, bias or tendency is an attempt to sway by underhanded means — by deliberately quoting out of context, for example, or deliberately ignoring a contrary point of view. Ideologues of all stripes shriek about bias in the mainstream media because the mainstream media loudly proclaims itself to be without tendency. It is very easy to discount for a point of view. It is virtually impossibly properly to weigh the influence of a hidden bias.

And still more: There can Read more

Splendor amidst the squalor: There is nothing good about self-destruction

I said: “The social agenda, it would seem, is to make the world safe for high-schoolish exclusion.”

And: “I don’t think there is anything good about indulging and encouraging the worst in people.”

And: “Here is the unstated moral principle undergirding ‘realweenie’: It is a moral good for like-minded people to get together to chortle about other people they don’t like.”

To this, Joseph Ferrara asks: “Where are the examples of chortling?”

The answer was posted last night at Sellsius, with Teresa Boardman as the first commenter:

By these means do Joseph and Teresa rebut me by proving me right in every particular.

I saw every bit of this coming from Pat Kitano’s original post. I wasn’t working them, playing them like chess pieces. But people are who they are, and they will act upon their base premises, no matter what.

Michael Thoman quite properly chides me for suggesting that I had entertained the idea that Teresa’s weblog might be a joke. I never thought that was the case. In a comment at Sellsius, John Lockwood wonders if I had thought the weblog was directed at me. In fact, I thought it was directed at sites that, like BloodhoundBlog, are addressed to the industry rather than to consumers. I have seen Teresa make what I thought were underhanded comments, here and here, among others places, putting me on notice that she likes cutting people down to size, as people say.

What should you do about people like that? Avoid them, of course. There is nothing of the good in the dismantlement of oneself or the attempted dismantlement of other people.

This changed for me when I saw that weblog. I could stand up for what I know is right, knowing, in large measure, what to expect in consequence. Or I could take a chance a bunch of innocent people would get themselves cut down to size.

All week we have heard the expostulation, “But it was just a joke!” This is untrue. In the first place, “Can’t you take a joke!?,” is the ready-to-hand resort to plausible-deniability deployed by people who habitually make personal attacks disguised as jokes. This is why Read more

Health, wealth, population, the internet — and more wealth: These folks are going to need a place to live . . .

During the boom, I wondered if the results we were seeing might have been fed by a reinterpretation of tax laws — deductibility of leveraged interest, the owner-occupant capital gains exclusion, the IRS Section 1031 tax-deferred exchange, accelerated depreciation of real estate related chattel assets, etc. In other words, were people stupidly reacting to a tulip frenzy, or were they wisely adopting different investment strategies based on changing circumstances — in this case, the spread of information about the tax advantages of owning real estate?

At the same time, no one in real estate in Phoenix takes their eyes off the demand curve, the incredible annual growth in jobs and population in the Valley of the Sun. I’m a real estate bubble skeptic as a default state. I doubted the bubble talk through three years of huge growth, and now through 15 months of a slow loss in values. I freely concede that I might be wrong, but, as always, I think there are very good reasons to bank on the Phoenix residential real estate market.

Whether or not I’m right about Phoenix, the world at large seems to be in for a long-term real estate boom. Here is a fascinating film that I found at Cafe Hayek. And here is much more from the gapminder.org folks.

The software itself is jaw-droppingly cool, but what the subject matter portends for every aspect of human life on earth — including real estate — is beyond enormous.

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Barry Ritholtz’s Rules for Real Estate Agents, or Don’t Be Surprised If You’ve Never Heard of Barry Ritholtz

The Big Picture LogoI was reading Barry Ritholtz’s The Big Picture earlier today.

The Big Picture is an economics-based blog that is every bit as cynical about financial markets as the the writers at BHB are fanatical about real estate markets.

Both blogs have cult-like followings.

Barry recently “moved-up” and used his blog to share his experience selling and buying. Summarized, here are Barry Ritholtz’s Rules for Real Estate Agents (and smart move to not call them REALTORS?):

  1. Don’t try to sell me something I don’t want
  2. Answer my questions with the truth and in full, even if it will cost you the sale
  3. When showing a home, don’t point out the things I can see for myself. Point out the things I may miss.
  4. I told you what I can afford. Respect that.
  5. Ask questions that matter such as “What are you looking for in terms of architectural style?” or “How close would you like to be to the water?”
  6. Be a conduit to good negotiations, not an obstacle
  7. Sometimes, you just need to know when to stop talking

Good stuff, for as Greg properly called me out in public, I am selling my home right now and can understand Barry’s thought process.

But, the reason why this post stood out to me was something buried in the comments from Pat Kitano. Real estate bloggers and even casual readers know that Pat is the brains behind the Transparent Real Estate Blog.

Pat wrote:

Spot-on… what I find unusual about your purely real estate article is the lack of participation by real estate bloggers in commenting. I author a real estate blog and I don’t recognize any names of my colleagues. It’s evidence of blogging’s reader segregation.

I have been an avid reader of Barry’s blog since 2004 and The Big Picture was part of my inspiration to start blogging (along with Alex Stenback and Dustin Luther). Barry and I used to correspond now-and-again until he went Big Time.

But, as Pat points out, Barry’s world of economics and our world of RE blogs are so far separated that when an insightful real estate industry post shows up on the largest economics blog in the country, none of us don’t Read more

Another voracious splog

The site realne.ws is stealing content wholesale from these RE.net weblogs:

  • BloodhoundBlog
  • Real Estate Webmaster World
  • Housing doom
  • Sellsius
  • Inman News
  • Behind The Walls
  • Future of Real Estate Marketing
  • Finding Senior Housing
  • Rental survival Guide
  • Rain City Guide
  • Curbed San Francisco
  • First Time Home Buyers
  • Zillow
  • Center For REALTOR Technology Blog
  • Trulia
  • The Move Blog
  • The Real Estate Guide
  • Living with Roomates

I’ve complained to Google, but that can be like pushing a rope. I’m not able to unearth any contact information on the owners of the site.

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