BloodhoundBlog

There’s always something to howl about.

Month: April 2007 (page 3 of 8)

April 23, 2007

Now My Space really IS MY SPACE

by

Mega-Producing Realtor

Author website

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.

__

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

April 23, 2007

The Zebra Gets It Done — One Down, Four To Go

by

Real Estate Investments Broker

Author website

Daniel Rothamel over at The Real Estate Zebra, just returned from his first CCIM course, CI 101. I note this because as I wrote recently in these pages, if you wish to truly advise investors, you should actually know something about after tax cash flow analysis, income taxes as they relate to investing, 1031 exchanges, and the like.

I poked some fun at him last week, when his blog went dark — as predicted.

It will be fun reading of Daniel’s experiences while attending his first ‘death on a cracker’ convention. 🙂

Read here about What I Learned In School…

He’s hinted at writing about some of his experiences during his week there.

If you’re not reading The Zebra regularly, you might try it. I never miss him.

April 23, 2007

Zillow.com dodges bullet in Arizona: Amendment would permit consumer-oriented automated valuation models to operate without regulatory oversight

by

Suburban Phoenix Real Estate Broker

Author website

From a press release from the office of Representative Michele Reagan:

Arizona homeowners can still access their “zestimates” with the preliminary approval Monday of a bill that bars the Arizona Board of Appraisal from torpedoing online businesses that provide property value estimates.

An amendment sponsored by Rep. Michele Reagan to SB1291 allows web sites to offer free opinions regarding the value of real estate if it is not an actual appraisal. The bill impacts most notably Zillow.com, which provides free estimates of a property’s value.

“Companies like Zillow.com provide an easy way to get an idea of the value of a home anywhere in the country,” said Reagan, R-Scottsdale. “Government should not put the kibosh on such an informative online tool.”

The Arizona Board of Appraisal sent two cease and desist letters ordering Zillow.com to stop offering its free service in the state. The board is also considering suing the Seattle-based company despite its wide popularity in Arizona and around the nation. In addition, the board asked the Arizona attorney general to prosecute Zillow.com for offering “zestimates.”

“Zillow.com provides a valuable resource for Arizonans and an unelected board’s desire to hamper consumers’ efforts to get as much information as possible makes no sense,” Reagan, chairwoman of the House Commerce Committee, said. “Instead of protecting Arizonans, the Board of Appraisal wants to stifle access to valuable market information.”

The bill received initial approval Monday and is expected to get a vote on the House floor this week. The bill then goes back to the Senate for final consideration.

This is not over yet, but it’s movement in the right direction. If I can lay hands on it, I’ll post the link to the revised bill and highlight the change.

Further notice: The amendments are here: one, two and three. In addition to allowing for consumer-oriented AVMs, Reagan seems to have restored the balance of civilian oversight of the Arizona Board of Appraisal. For comparison: The proposed legislation prior to these amendments.

There are two changes to the language that stand out:

Page 3, between lines 41 and 42, insert:

“9. AN INTERNET WEBSITE THAT GIVES A Read more

April 23, 2007

KTAR Radio on Arizona’s attempts to stifle Zillow.com

by

Suburban Phoenix Real Estate Broker

Author website

I was interviewed by KTAR Talk Radio in Phoenix today about the State of Arizona’s attempts to shut down Zillow.com. We end up with a 37 second story, which actually turns out to be a fairly decent distillation of the whole story.

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April 23, 2007

The Carnival of Real Estate . . .

by

Suburban Phoenix Real Estate Broker

Author website

…is up at Trulia Blog. Jay Thompson did well with Why Do So Many Agents Fear Zillow? We entered and lost with Zillow.com at the Dawn of the Age of Abundance: Working for free is not a crime, trying to forbid it is… That post scored well at the Carnival of the Capitalists.

The Carnival of Real Estate Investing is at EquityScout.com. Two BloodhoundBlog contributors were represented in the results: Brian Brady writing at Long Beach Real Estate with How To Get The Best Home Loan – Neatness Counts When You Want a Home Loan and Jeff Brown with Designations — Real Education — Marketing — Give Me A Break.

Plenty of great writing at all three carnivals. Give ’em a look.

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April 23, 2007

First Russell Shaw Sales Success Seminar: Podcast #1

by

Suburban Phoenix Real Estate Broker

Author website

Linked below is the first of five podcasts from the First Russell Shaw Sales Success Seminar. This event was held on March 13, 2007, and lasted for about four hours. That seminar, along with another held on April 17, 2007, are precursors to the forthcoming Russell Shaw Sales Success FAQ files. Russell will take questions from these podcasts, along with others you send to him by email, and answer them in a series of FAQ-like video and audio podcasts. His plan is to end up with a complete real estate sales training course in podcast form.

This podcast is available in audio and video format, with Russell covering the same material in each podcast.

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April 22, 2007

Ethical dilemma with the current market

by

Mortgage Banker

Author website

I like to think of myself as an ethical person. Then again, I am sure that most people feel that way about themselves too. We all are victims to the Lake Wobegon effect at some point in our lives. But in general I obey all laws, pay my taxes, am a good father and husband, run an honest business and try to make my customers happy. So I am faced with an interesting dilemma that the current market has brought upon me. I don’t think my dilemma is unique; in fact I bet it is so commonplace that it is on the desk of a large percentage of loan originators at mortgage institutions all across the country. It is an important issue to discuss, so important that I originally planned on penning this post for my blog, but figured the traffic and exposure of Bloodhound would be a better platform for debate and discussion.

Here is the dilemma. I was given a referral to a woman who I do not know personally. She lives in Florida, is a substitute teacher and lives in a condominium with a waterfront view. She has a good credit and a decent rate, interest only loan right now — it does have a prepayment penalty. She is also at 90% with her current loan to the value of the property. Unfortunately she has a bit of a cash crunch right now and would really like to lower her mortgage payments.

There is no way that using traditional mortgage products can drop her payment any further. First, I know interest only loans are not traditional. Second, before you talk to me about 40 and 50 year terms remember she’s already in an interest only loan — there won’t be much change, certainly not when you factor paying off a prepayment penalty in to the new loan. The only loan that would dramatically lower her payments is a payment option, negatively amortizing loan. If she made the minimum payment she would drastically lower her monthly cash outflow. I’ve explained to her the negative amortization part of the loan, faxed Read more

April 21, 2007

Arizona Republic: Realtors side with Zillow.com

by

Suburban Phoenix Real Estate Broker

Author website

The Phoenix RE.net is heard from in a big way in an article that will appear in Sunday’s Arizona Republic about the State of Arizona’s attempts to stifle Zillow.com. Writes reporter Peter Corbett:

A state agency’s efforts to stop Zillow.com from offering property-value estimates in Arizona are drawing criticism from some Realtors who think regulators are overstepping their authority.

The critics also are targeting an Arizona Board of Appraisal reform bill they fear will muzzle anyone from offering an opinion about property values unless he or she is a licensed appraiser, Realtor or attorney.

Phoenix real estate broker Greg Swann said that the legislation, Senate Bill 1291, is narrowly written to block Zillow from offering its estimates.

It also could affect other online services from offering property-value estimates using what are called automated valuation models, he said.

“This is legislation to stop progress,” said Swann, adding that state regulators are being Luddites in trying to halt the advance of Internet commerce.

The Arizona House is expected to consider the bill on Monday, said Deborah Pearson, director of Arizona Board of Appraisal.

The legislation is not aimed at Zillow but rather is intended to update statutes that have not changed since 1991, Pearson said.

Realtor Swann of www.BloodhoundRealty.com, said that the bill is so tightly written that two neighbors talking to each other about a neighbor’s property technically would be in violation of the law.

Pearson said exemptions in the law would permit neighbors to talk about property values.

It may be that she thinks this to be the case, but the language of the legislation is very precise:

“Appraisal” or “real estate appraisal” means any of the following: (A) The act or process of developing an opinion of value. (B) An opinion of value. (C) Pertaining to appraising and related functions such as appraisal practice or appraisal services.

This is very clear. Any opinion of value brought forth by anyone not explicitly exempted by the law would be a violation of that law. To capture Zillow.com and other Automated Valuation Models, they had to write the law so broadly that it effectively outlaws all “unofficial” opinions of value.

Corbett continues:

The controversy about appraisals erupted Read more

April 21, 2007

BloodhoundBlog round-up: Kenneling the last of the dogs, a new way to follow the trail and podcasting our way to fame and fortune

by

Suburban Phoenix Real Estate Broker

Author website

All the dogs are in the kennel at last. When I built BloodhoundBlog last Summer, I set it up as a subdirectory of BloodhoundRealty.com. Had I known where we were headed, I would have bought a separate domain for the weblog. And had I thought that far ahead, BloodhoundBlog would have been called something else.

Why? Because BloodhoundBlog.com was already owned by a software company in Texas. I discovered this when I finally thought to tie down the domains last Fall. I was able to buy BloodhoundBlog.net and BloodhoundBlog.org, but all I could do was back-order BloodhoundBlog.com.

It’s a problem I’ve been nursing on and off ever since. But as of today, BloodhoundBlog.com is finally ours. Like the two other domains, it is redirecting to the subdirectory I set up in the first place. A small enough thing, I suppose, but most big things are made up of little things.

And here’s another little thing: As of this week, it’s possible to subscribe to BloodhoundBlog by email. It’s not something I’m apt to think of. RSS is too easy, too fast, too wonderful. But if people don’t have access to feed readers, or if they don’t want to use them, they can get email updates when new posts hit the weblog. As it happens, Seth Godin added email subscription the same day we did. Great minds think alike? Can’t be. Great minds Think Different.

But here’s a big thing: Starting Monday, we’ll be rolling out audio and video podcasts from the Russell Shaw Sales Success Seminars. I have five audio and two video podcasts set up for this week, and we’ll do another five of each next week. This is all about building a curriculum for a real estate sales training course in podcast form, so, if you have questions for Russell, don’t be shy.

Linked below is a short video segment of me extolling the benefits of real estate weblogging with the help of Jay Thompson and Tony Marriott.

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April 21, 2007

When Banks Are Permitted to Compete…The Consumer Might Just Win

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

In Southern California, many loan originators are licensed by the Department of Real Estate. Such licensing is unique to California. California was one of the first states to require licensing of loan originators and chose to require that they have a real estate salesperson’s license.

Some bright Realtors realized that they could earn an income from both functions: real estate brokerage and loan origination. In fact, business models were built that center on that unique ability. Utopia Mortgage and Real Estate offers an 80% commission split to agents for such dual agents. It’s not a bad deal for an agent. Represent 3-4 buyers a year, secure them financing, add 4-5 more refinances in the year and you’re a six figure agent!

The problem in the past was that HUD explicitly forbids real estate licensees to engage in loan origination if the lender/broker offers FHA loans. That hasn’t been an issue in California for 5-6 years.

Tracy Nicole posted an excellent article in the Members’ Only section of Active Rain entitled: Jack of All Trades, Master of None. Fact or Fiction? You need to be a registered member at Active Rain to see this article and comments. Get a free membership by clicking this link. The premise is that she opts for the dual function because it (a) gives her control of the transaction over the “so called professional” loan originators (b) it allows her to “drastically cut the mortgage fees” for her customers 90% of the time (paraphrased quote)

I asked the question “Why Can’t Banks Engage in Real Estate Brokerage ?” in a like members-only post at Active Rain. My rationale is that if the consumer benefits, as was presented by the commenters, than it is just too substantial to pass up. True, federal banks are exempt from state licensing laws and that’s unfair. However, pretend that we could force them to license in each state
Will the merging of real estate and mortgage functions benefit the consumer? Can the big banks be more efficient at Read more

April 20, 2007

What’s the hottest game in Vegas? Strip Monopoly!

by

Suburban Phoenix Real Estate Broker

Author website

Oh, keep your shirt on… Strip Monopoly refers to that famed Parker Brothers board game (now owned by the soulless Hasbro, alas) as played with the real-life real estate on Las Vegas Boulevard — a/k/a “The Strip.”

Earlier this week, Kirk Kerkorian’s MGM Mirage acquired 33.4 acres of Strip-front real estate surrounding the company’s Circus-Circus property. This brings the Circus-Circus site, already 68-acres huge, to over 100 acres of land fronting on one of the priciest streets in the history of pricey streets.

MGM Mirage is already building the $7 billion Project City Center on and around the old Boardwalk property — apposite appellation strictly coincidental. The company plans a similar city-within-a-giant-casino development on the Circus-Circus site.

Vegas Today and Tomorrow has a nice Monopoly map to show you who is winning the game. Here’s a way of thinking of things: The green spots on the board are split between Wynn Las Vegas and The Venetian. Harrah’s owns the orange and the yellow properties. The railroads and utilities are divided among Boyd Gaming, Station Casinos and various minor players. Everything else belongs to MGM Mirage.

Harrah’s is technically the largest gaming company on earth, but MGM Mirage owns more undeveloped Strip-fronting real estate than Harrah’s owns in developed land on the Strip. All three of the companies that merged to form MGM Mirage — MGM Grand, Mirage Resorts and Mandalay Resort Group — have been persistently greedy in acquiring land on Las Vegas Boulevard over the years.

Circus-Circus was built by the man who may have understood Las Vegas best, Jay Sarno. He also built Caesar’s Palace, thereby inventing the idea of the themed casino-resort-hotel. Caesar’s, of course, has become almost a city unto itself, and it was the success of the Forum Shops that led other Strip casino operators to explore the convergence of gaming and shopping. MGM Mirage pledges to refurbish Circus-Circus as part of its development of the newly-assembled 100 acre parcel, so both of Sarno’s creations will live on in the city he influenced so decisively.

But what’s next for Strip Monopoly?

Other than Caesar’s Palace and The Paris, most of the Harrah’s Strip-front Read more

April 20, 2007

Zillow.com notes: Fear and Ludditism, advertising, a better farming strategy and more

by

Suburban Phoenix Real Estate Broker

Author website

Zillow notes: Jay Thompson, The Phoenix Real Estate Guy asks “Why do so many agents fear Zillow?” He makes the same point in a BusinessWeek article on the Seattle-based Realty.bot.

Brian Brady, America’s Most Opinionated Mortgage Broker and a BloodhoundBlog contributor, covers some of the same ground: “Is your Realtor threatened?”

Both gentlemen are objecting to what we might characterize as the opportunistic bandwagoneering going on with respect to the Arizona Board of Appraisal’s attempts to outlaw consumer-oriented Automated Valuation Models. I can’t speak for them, but for me this is a matter of vitally-important principles, liberty the first among them.

I may write more about this over the weekend, because the issues involved are vast and very interesting — at least to me. Earlier this week, in email, I wrote, “When the sabot is a Ferragamo, Ned Ludd has a whole new style.” I have no doubt that this regulatory and legislative initiative is Ludditism in a Brooks Brothers suit. It’s bad enough that Zillow is afflicted, but I expect this is but the first salvo in a long war.

Witness: This came in as a comment last night, but I wanted to highlight it:

MLSPIN of Massachusetts just sent out this notice:

“RULES AND REGULATIONS REMINDERS:

I. Recently, the On-Line Valuation site, Zillow announced a new function being made available to advertise listings for sale on that site, whether or not you are the listing broker/agent. The MLS Rules and Regulations, STRICTLY PROHIBIT the advertising of another broker’s listings without their prior WRITTEN consent. The REALTOR&174; Code of Ethics, Standard of Practice 12-4 also prohibits the advertising of a listing without proper authority. Better safe than sorry; do not advertise another office’s listing anywhere without prior written approval.”

“Better safe than sorry” is an interesting choice of words.

Even more interesting is the fact that MLSPIN is arguing that MLS members have fewer rights to act than ordinary people. As things stand now, any non-MLS member can advertise another party’s home for sale, but, of course, no one does. Why? Advertising costs money. But anyone except MLSPIN members can announce that another party’s home is for sale Read more

April 19, 2007

Protecting whom? There are no complaining parties in Arizona’s quest to outlaw free consumer-oriented home evaluations

by

Suburban Phoenix Real Estate Broker

Author website

I hear a lot of rumors, as you might guess. They’re usually way less than half the truth, but they can be useful for shaking the real truth loose, so they’re not entirely a bad thing. In any case, I’ve been hearing ugly rumors about Zillow.com in Arizona. Zillow Public Relations Specialist Amanda Hoffman has been working night and day to help me pin them down.

Like this:

  • Q: Is Zillow being sued by Arizona homeowners who regret having used Zestimates as opinions of value? Anywhere else?
    A: “Nope. Not true.”
  • Q: Are there any extant complaints about Zillow before the Arizona Board of Appraisal? In other words, have any real persons claiming standing as victims come forward?
    A: “Not that we know of.”
  • Q: Do you have any comment about Arizona Senate Bill 1291? Has Zillow had any involvement with the debates on this legislation so far?
    A: “We recently learned about the Arizona bill and we’re looking into what it may mean for Zillow users. We believe it’s important for home buyers and sellers to have easy access to real estate data and home valuation tools.”

I’m reading that last response to suggest that they might only have heard about the bill today.

The first two responses are significant because they argue that there are no self-identified injured parties appealing for relief from Zillow.com in Arizona. I don’t think offering an unwelcome opinion of value can be conceived of as a tort, but no one is complaining of an injury in the first place.

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April 19, 2007

Seth Godin’s promotional tour for The Dip to include Phoenix

by

Suburban Phoenix Real Estate Broker

Author website

Seth Godin definitely is coming to Phoenix. I had email about it yesterday:

Thanks for signing the pledge and telling your friends. Seth Godin saw how quickly this grew and called me to confirm he’s coming to Phoenix.

[….]

More details to come in the next few days regarding the date, time and location.

If you haven’t already done so, go sign the pledge so that you will get all the where and when details as they become available.

Your commitment: $50 a head. Your benefit: Hearing Seth Godin speak plus five copies of his new book, The Dip.

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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