BloodhoundBlog

There’s always something to howl about.

Archives (page 174 of 372)

Aufedersein Lip Syncher!

… and now back to our regularly scheduled program – sorry for the technical difficulties!

True Confessions:

  • I am a reality TV junkie – American Idol, Big Brother, Top Chef, Flipping Out, Million Dollar Listing and of course Project Runway – glad I have DDR – there are others – but these I won’t miss – even for a showing request – kidding – of course.
  • I eat lunch at Costco – I sample the samples.  Don’t knock it – I have seen many of my astute colleagues binging off of the sample trays too, only I openly admit it – I have no shame.
  • I love country music.
  • Being an American Idol fan, I sing Daughtry and Carrie Underwood at the top of lungs in the car – sometimes – unknowingly – with the sunroof open – windows down – stopped at traffic lights – allegedly.

* cleansing breath*

That was so cathartic – and so much better than kneeling behind a curtain in a small, dark box filled with the distinct aroma of peppermint schnapps.

Yesterday, one of my esteemed colleagues made the mistake of confirming my delusional rock star status.  I have one of eleven listings in a high rise on the famed Lake Shore Drive – great unit, smartly updated I might add.  Glorious views and a terrific value – yet in a building that can be a challenge in which to sell.  Traffic up until now has been sporadic if non-existent.

Two weeks ago, in an attempt to generate buyer traffic, I decided to coordinate a joint building open house.  Not an uncommon marketing tactic – contact all of the other listing agents, get them all to agree to a time and a date – encourage everyone to market the open house independently and VOILA! Buyers!

I put together a joint marketing piece highlighting the fact that there would be nine units open, committed to an ad in The Tribune.  I’d do it for my client anyway, so why not for the other units?  Hopefully we can generate greater power in numbers.  Well – needless to say, buyers did come.  I had 20 visitors – Read more

OODA Redux: Marketing is What You Do, & Who You Are.

I talked about OODA for Real Estate before, mostly because it’s more clear to more people that there are no barriers to doing amazing (even splendid) things in or out of Real Estate.  Again, OODA is:  Observe, Orient, Decide Act (lather, rince repeat).   A better definition is here,   A still better definition is here.   But my current campaign work has me thinking more tactically in lieu of strategically. 

What I’m guessing is this:  Most Realtors (and chess players…and people….) would be far better served to study tactics than strategy.  Yes, yes, strategy matters—there are some preconditions that must be met before success in any venue is attainable.  A few would be: the ability to tell the truth, the ability to focus, the desire to help people, etc.  But, beyond the building blocks of a complete man, most people are addicted to strategy and planning.  Because making a plan is a blast.   And because you are getting a glimpse of the possible.   It’s the doing that’s a bitch.

Most people plan their work, and then plan their work, and then plan their work when they should be working.  Planning and thinking becomes procrastination, and then you may be great at Observing & Orienting but when it comes to deciding and acting…it’s easier to go to Reader to check in than it is to grind out a deal.  Easier to join the cadre of nincompoops on Twitter…and say ‘that sux,’ to one another.

Orly?   Easier for a day, that is…until you suddenly find someone calling about your car payment which is 16-days-past-due and you but you have only-$312 to last you until the 23rd where you SHOULD have a closing if the mortgage loan officer (or underwriter) gets off their ass, so why don’t you call the LO right now to get an “update?"  That kind of stress comes from overplanning and underworking. 

LO:  Hi, How’s it going.

Broke Realtor:  Well, You tell me.  (weighty silence)

Buh-leave me.   I know from brutal (and sadly, all too recent) past experience Read more

Mortgage Market Week in Review

Here we are on Friday again and it’s time to take another look at what’s going on in the mortgage markets. This week we’re going to talk about two economic reports and two big question marks.

First the economic reports from the week:
1. The Index of Leading Economic Indicators came out and it was down quite substantially. What is that index about? Basically it’s the conference board’s way of looking at what they think the economy is going to look like going forward. That’s why it’s called “Leading” rather than most reports that are essentially reporting what happened. This looks at what they think is going to happen based on trends and such. The fact that it’s way down doesn’t bode well for an economic recovery any time soon. It doesn’t specifically mean that we’ll have (or are in) a recession, but it does mean that things aren’t pretty.
2. The National Association of Home Builders reported that builder confidence came in for August at a record low. Gee, for any of you who read this who are a builder, know a builder, or work with one, it’s probably no surprise at all. We’re going through a fundamental shift in the building capacity that is needed in this country and the weeding out that is going to (and is) happening is not a fun thing by any means. Whether is was building, lending, or real estate sales, the bubble allowed way more people to get into the businesses than what the overall health and growth levels could handle. That’s an ongoing readjustment that needs to continue before we can hit bottom and go up from there.

Now for the two question marks. Actually, it’s one question about two companies. What’s the real story behind Fannie Mae and Freddie Mac? I’ll make a couple of points to tell you what my take on them is:
1. As “quasi governmental” institutions, Fannie and Freddie have been able to borrow money at rates that are better than what other companies can borrow money at. That’s because of the implicit backing of the Read more

Rhapsodizing the iPhone: A full day of my chaotic life, hours of phone time, a trip to Pleasantville — and I could not love it more

I’m totally loving my iPhone, so far. Wine Dog is right about power. I think I want two, one each for in- and out-bound calls. But it’s so far beyond any other phone I’ve ever had, I would never even think of stepping back to yesterday’s phone.

I have a piece of software called HandBrake for the Macintosh. It will convert DVDs to other file formats. It’s how I made this clip of Pleasantville last Summer. In early July, I ripped a full copy of Pleasantville in the iPhone’s ideal video format. I just watched it now. Excellent video, and theater-quality sound through the headphones. I’m ready to convert a DVD a night, while I sleep, and park them on a big hard disk for easy syncing.

I had calls drop today when I was in the mountains — nothing new for Phoenicians. Otherwise, the iPhone was fault free, and it works beautifully with the Jawbone headset. I do see power as being an issue, but it was with the Treo 650, too. I often drive for part of the day with my phone plugged into the cigarette lighter (what’s that?). With a hands-free headset, it doesn’t matter. Give me a strong voice dialer, and it will matter even less.

The Jawbone is so much better in sound quality that I’m thinking of pushing a lot more work toward Jott or other transcription software. Cathy is playing with OmniFocus, an iPhone-optimized GTD app. The iPhone is a software universe, rather than simply a set of tools like an ordinary smartphone, so there are almost unlimited horizons for us to discover.

My biggest challenge, I think, is to get Cameron interested in the iPhone SDK. Brian already has a project, and we can come up with dozens more. It’s not that this is the ultimate computing solution — far from it. But in many ways it is the optimax solution, the tool that offers the most, the most-flexible and the most-available computing power relative to its portability and form factor.

An example: I was talking to a reporter today from a business magazine about the availability of Read more

iPhone euphony: When you hear the beep, hang tough

Seventeen months after Steve Jobs’ original announcement, Cathy and I finally got iPhones last night. Our Treo 650s were just about beaten to death, so the moment was right. We had known from the first that we were going to wait for 3G and extensibility. The immediate sell-out of the original inventory of 3G iPhones was like a sign from the gods. We are rarely early-adopters, preferring to let other people find the bugs in dot.oh.dot.oh releases. With luck, this week’s release of iPhone OS 2.0.2, which we installed last night, will be golden.

In the Googlefied world, everything is easy. The AT&T geeks knew nothing about how to convert from Palm Desktop the iPhone, but Apple has a fairly simple procedure. I got all my contacts and my calendar events going back to 2001 just like that. AT&T and Sprint are still squabbling over who gets to service my phone number — I can literally call myself, iPhone to Treo, on my own number. But, so far, everything has been easy and nothing has hurt.

Well, one thing is going to hurt. I’m losing the ability to record phone calls. Many of the podcasts you hear here were recorded directly on my Treo, and I will often use CallRec to “take notes” with clients or real estate news sources. That feature is unavailable, at least for now, on the iPhone. We’re gaining a lot, including a whole lot more power in the cloud, but I’ll miss being able to record calls.

I have a few iPhone plans for BloodhoundBlog, but they’ve been waiting for me to have a phone to test on. For now, if you want a BloodhoundBlog button on your iPhone home page, snag one. (Hit the plus sign at the bottom of your screen and follow the prompts.) Within the next couple of days, I’ll be adding an iPhone-only theme to make the blog easier to read on a small screen. But even now you’ll have one-click access to BHB — and Odysseus at his most glamorous on your home page.

Technorati Tags: ,

Splendor versus squalor: The part you throw away

[I wrote this in March of 2007. I’m revisiting it now because it fits so well with the essay I wrote last night about honesty. At just about the same time I wrote this post, I penned an essay about an idea I call The Implied Accusation — the elephant in the room. I lucked upon a sweet cover of the Tom Waits tune quoted below, so I’m adding that as well. –GSS]

 
I believe in integrity, but I believe in a very Latinly kind of integrity. It’s normal for me to translate words in and out of Latin, to write and think in those words in the way that they are composed from their Latin atoms. So when I think of the word “integrity,” what I think of is “all one thing.”

And I try to live that way, too, with my whole life, as best I can manage it, being the expression of one idea: Splendor.

I’ll give you a definition, which I will immediately qualify:

Splendor is the interior experience of being so enthralled by the act of creating the values that contribute to and ultimately comprise your idealized perfect self that, while you are experiencing it, you are your idealized perfect self.

What’s the qualification? Splendor is not words, and it is not merely thoughts or deeds. Splendor is the tone and the timbre, the warp and the weft of a life spent pursuing it. Words, deeds, thoughts, actions, hopes, dreams, plans, memories, work, leisure, solitude and companionship — everything you do in the pursuit of positive values and nothing that you do in quests for disvalues.

This is such a simple idea, and I love it better than anything. It is everything I want to be when I am being the best person I can be, and it is everything I want for everyone I see. It’s one of the reasons I love being a Realtor, because this job, at its best, is all about Splendor, helping people get the most and the best that life can offer.

I don’t talk to my clients directly about this, but they get the idea. We Read more

“Shoot the elephant in the room before he breaks all the furniture?” Yes, because even if we don’t always do well by doing good, we must always do the right thing — even when no one else is watching.

I had a house close yesterday, and there was a little incident as I was trading keys with the buyers that I found instructive.

Back story: These folks came to me through my Arizona Republic column. That column produces almost no business for us, and I don’t milk it for business. But the clients it brings out are invariably very interesting, and they often bring with them multiple transactions. This particular family will do two listings and one purchase, and it was the purchase that closed yesterday.

They had started out thinking in terms of $800,000 homes in very tony desert locations. There are health issues, so I suggested that a smaller home closer to town might work better. We ended up buying a very nice home that comped for $425,000.

They were willing to risk losing the home in order to make sure they weren’t overpaying, so we offered $335,000 — $90,000 under two recent comp sales. We got that price, and the seller didn’t flinch at our repair requests. A fun, painless transaction, my kind of deal.

But wait. Didn’t I betray my sacred duty to milk the consumer for every last penny? I talked myself out of a commission on $800,000, then talked myself down again to a commission on $335,000. I don’t even think that way. I got a smokin’ deal for my buyers, and we all had fun every step of the way.

Because we’re doing multiple sides, we gave them a break on all three commissions. They didn’t ask, we just did it. Commission is always the elephant in the room, so, no matter what we plan to do, we always raise the issue first.

Why? Because doing the right thing is always the right thing to do, no matter what.

But also: Because affecting to ignore the elephant in the room only serves to make you look oily, evasive and corrupt — and the other party can use your presumptive corruption as leverage against you.

I believe that we do well by doing good — that consistent virtue reaps commensurate rewards in the long run. But even if we don’t, doing the Read more

HomeGain Releases AgentView, a RE 2.0 Rifle. Will it Fire True Or Shoot Blanks?

I don’t hide my admiration for Louis Cammarosano.  We “met” first on Active Rain, last winter.  Louis noticed a comment I made about how third-party lead generation companies weren’t inherently evil and invited me to be the inaugural “expert blogger” on the HomeGain Blog.  I thought Louis would transform Home Gain from a Web 1.0 leads aggregator to a Web 2.0 platform, with a suite of online marketing tools for agents.

Louis hasn’t disappointed me.

HomeGain releases it’s “Agent View” service tomorrow morning.  From the press release:

AgentView connects HomeGain visitors with its real estate agent members by showcasing useful real estate content alongside prominently featured local real estate professionals. Visitors can view agent listings, agent profiles, agent blogs and local information. Visitors can also get an instant home valuation estimate from HomeGain’s home valuation tool or use Home Sale Maximizer™ to determine which home improvements will best help increase the resale value of their homes.

In short, Home Gain is allowing its agents to add featured listings to their “blog homes” and providing useful valuation tools for the consumer…that keep the consumer on the agent’s page.  What’s this mean to you, the agent who may be on the far right-hand side of the learning curve?  Probably nothing…for now.

What is DOES mean is that HomeGain is unleashing a RE 2.0 platform to its customers. As some 5000 customers connect with consumers , from the powerful HomeGain site, their listings, blog posts, and profiles will get some legs in the SERPs for their particular keyword search terms.  We’ve seen Trulia, Zillow, et al dominate the SERPs and challenge the individual practitioner’s RE2.0 efforts.  Now, the 800 lb gorilla could be an army of HomeGainers throwing content off of a Google PageRank 7 site.

At $40-$50/month, the tool is affordable enough for the novice to “get engaged” in the interactive web evolution.  Why would anyone pay for a blog when WordPress or ActiveRain gives it away for free?  Results.  HomeGain is, in my opinion, a traffic wholesaler.  Through SEO, SEM, and affiliate marketing they drive a heckuva lot of TARGETED traffic to its site.  The Read more

Pricing Analysis is Greek to Me

I think most of us can agree that real estate agent, as a profession, lacks “street cred”.  The reputation for our industry is not high and I say this despite the reputable people I meet here and elsewhere.  Two ways to effect a change in that perception are: raise the bar of competition and adopt a better model.  Sometimes we can do both.

In a recent post called It Takes More than Comps to Beat the Competition, I introduced a pricing model based on how assets are valued in the securities industry.  As a former stock broker and options trader, I can tell you that the methods employed in the real estate world for valuing assets and advising clients are rudimentary.  A more thorough understanding of what a property is worth and a framework for better understanding what that knowledge suggests would not only help us to do our job better, but it would separate those that use the tools from those that do not.  Adopting a better model de facto raises the bar of competition.

A Quick Primer
From a securities standpoint, price is rarely the sole motivation behind a buy or sell.  We are usually trading volatility or time or both.  An asset’s value then, is affected by these two items.  This is evident in real estate too.  Good agents take these factors into account when they do comps, but we are generally lacking the common language and function for applying them.  By adopting a better model, we gain these tools.

Volatility
Let’s use options as an example: an options contract is valued in relation to the underlying stock.  This valuation is called its delta.  On a scale of 1-100, a delta of 100 means the options contract might as well be stock.  It is traded, hedged and valued as if it were the underlying stock.  A delta of 20, on the other hand, means the options contract is very unlikely to approach the value of its underlying stock.  It has only a 20 percent chance of holding value.  I would therefore trade, hedge and value it quite differently.  Now a delta Read more

Content development in the new model (aka: Jessica is Right)

This started as a comment on Jessica’s earlier post about content. Welcome aboard, Jessica, and thanks for the grist.

Jessica points out that the average agent is no better than the average owner at generating content. I disagree with that a little: FSBO listings with owner-generated content are often better than agent-generated content (which isn’t saying much).

Owners just know more about their property and its surroundings, have more at stake, and have just one listing to worry about. Not to mention that, if they are even going the Web-based FSBO route, they know their way around a computer and the Web and are more likely to be an educated professional in their own right. All they really need to do is develop the content they know they would like to see themselves.

eCommerce professionals know that content sells. Period. Just compare the quality and depth of content Amazon has around a $10 copy of Home Buying for Dummies to the average listing for a $500k ranch on Realtor.com. The only thing I’ve seen that plays in that ballpark are Greg’s single property Web sites.

The current model (agent responsible for everything, gets paid nothing unless they sell), has Zero capacity for generating consistent, quality content that consumers are accustomed to when they buy anything else on line, and that violates the most basic principle of merchandising: Use the consumer’s learned behaviors to encourage them to do what you want them to do (like contact you).

So how do you change that when the entrenched interests have a dis-incentive to do the right thing? To wit:

  • Agents don’t want to dip into their split to pay professionals.
  • Brokers take advantage of the indie contractor tax loophole to make sure they don’t have to pay agents in the first place, and even the very best admins (the people who really keep the wheels on in every RE office I’ve visited) make, what? $30/hr.? That is not a mindset that is conducive to paying specialists.
  • The NAR and the MLSs have a stake in keeping the agent population over-stuffed with dues-paying half-wits.
  • The franchises consider consumers secondary customers: Their majority of their Read more

Bloodhounds Don’t Belong In Politics: But I’m here anyway..

Still needed is regulation of yield-spread premiums — cash rebates paid to third-party brokers as a kind of reward for funneling unsuspecting consumers into higher-rate loans

-Rich Cordray, Ohio Candidate For Attorney General, Demonstrating for the record his utter lack of understanding of how real estate financing works.

That is in my inbox.  Enough to make any broker mad.  And, while I’ve responded to the industry requisite “spam your congressman,” and occasional political action calls, I have never been as ready to fight as after I was reading that.  Cordray enjoys a congenial reputation, but I can’t stand willful ignorance. 

Rich Cordray is the anointed Democrat who is in line to succeed disgraced (also Democratic) Ohio Attorney General Marc Dann (the link is precious).  There is a Republican running, but he’s even referred to himself as the sacrificial lamb of the Republican party. 

This email was sent from my friend Jeremiah.  One of his small “l” libertarian buddies, Robert Owens got drafted by the Ohio Liberty Movement. Would I pitch in to stop the madness?  Would I give my time energy and effort to a longshot race?   Hell yes. 

I’ve regarded politics as an onastically futile pursuit, someone must do something.  And I’ve got the time, the interest, and hopefully, the acumen.  I’m responsible for creating a social media and blogging plan to raise enough money to compete.  We want our electorate to be especially cognizant of the anti business positions of our candidates.   Oh, and the candidate?  His biggest issues are following the constitution, and having transparency in government. 

So, I’ve got a few weeks (80 days, which is 11.4 weeks) to come up with a plan to get enough money to be viable, to get the funds to keep our professional campaign staff in the hunt, and to fight, fight, and fight some more.  Can I successfully apply the lessons I’ve learned over the last 9 months to this fight?   All eyes are on me as I’m the one Read more

Just because a Realtor® can do something, does it mean that they should?

OK, boys and girls it’s Pop Quiz time!

Quick, without beautifying your answer, be honest and name one of the normal pickup lines a Realtor® would tell a FSBO in order to get their business?  This one comes to mind:

“If you let a professional sell your home, you will walk away with more money.”

IF, that’s the case (third class condition, maybe it is and maybe it isn’t depending on the agent, property and market) then why are Realtors® so darn stubborn about following their own advice?

Is it that we have to do everything ourselves? That we can do it better? Faster? Cheaper? What drives this mentality? Since when did passing a multiple-choice examination on specific real estate matters make us omniscient about all things under the sun having to do with marketing and selling homes? I’m not being overly critical. I’m just asking. I believe it’s a very fair and valid question.

For Example:

Photography: Sure, I own a digital camera and have taken hundreds of pictures of my family. That doesn’t even begin to qualify me as a professional photographer. I’ve read a few things about lighting and the rule of thirds, but I’m still not an expert. I’m experienced enough to be dangerous. And that might not be a good thing for my client. You know what they say, “A picture is worth a thousand words.” Well, I’m being paid thousands of dollars to make the photos speak to buyers. Maybe an expert could help more accurately express what needs to be said through them? Just a thought…

Video: Yes, I own a flip camera and Jason has a $5,000.00 Sony pro-consumer video camera that he loves to play around with. He has filmed videos of the kids opening birthday presents, Brutus jumping into the pool, and many other wonderful and exciting things (don’t even go there). But Peter Jackson making Lord of the Rings, he is not! We’ve always hired a professional for any project that wasn’t just for our enjoyment. A video of your client’s home Read more

I Can’t Swim

I can’t swim; not a lick, stroke or otherwise. I got pulled out of the deep end for the first time when I was 4 years old and then again when I was 14. Both times I saw my quick, up-to-that-point-in-time life, unfold before me as I flailed wildly for help, until finally sinking below surface and fading off into the ether…. Both times I awoke choking up chlorine with a male lifeguard’s mouth on my mouth trying to breath life back into my waterlogged lungs. Both times I was left with the taste of stale cigarettes. I didn’t turn out gay but I did become a smoker soon after the second incident; luck of the draw, I suppose.

I was clocked in the 100 Yard (not meters) Dash under 10 seconds in the same, much younger life, but I never gave anyone reason to save me from myself in that particular venue. I was, unfortunately, forced to run the last leg of a Mile Relay once in high school and hit the asphalt pavement, face first, on the third turn. I had to be escorted off the track and into the infield by the cheerleaders, one of whom I did bum a smoke from, so I suppose the theme continued on in its own way.

I’ve never put on a gymnast’s uniform (okay…maybe once after a heavy night of tequila shooters in Tijuana, circa 1984) so there’s nothing really exciting to report on that Olympic front, either. I don’t do horseback riding, play basketball worth a damn, or participate in soccer, softball, or syncronized anything; men, womens or Soviet Block cross-gender. I don’t do long distance unless it’s covered in my AT&T plan.

I did ride my bicycle 23 miles yesterday morning—but it took me almost 4 hours, well off any competitive pace, so it’s probably not even worth mentioning here. Oh, and I did get into a boxing match of sorts one night with someone who may very well have been a ladies weightlifter from Azerbarijan but that ended in a ‘no decision’ from what I’ve been told. As I vaguely recall, Read more

It Takes More Than Comps to Beat the Competition

As real estate agents we are always looking for ways to help our clients make sound decisions.  If we find a way of doing so that also differentiates us from the market – all the better.  In the next two posts I am going to share a new way to value property that not only gives clients a vastly superior ability to make home-buying decisions, but should decrease defaults and foreclosures substantially too.  Do you think that will make me a better agent?  More valuable?  Here’s one more way to differentiate yourself in the marketplace of real estate agents.  (Warning: this post and the next involves some arcane securities concepts and new ideas that will require even more of your time and effort.  If this does not interest you, stop reading now.  Pick up a newspaper.  Enjoy the classifieds.  Maybe polish up the old resume…)

CMAs
In a recent article by Greg Swann discussing the woes of the real estate market, he mentioned homes selling for less than they would cost to build.  He referred to homes priced “below their fundamental value.”  Over the past six months or so I have been discussing with Brian Brady different ways to value a property.  Having both come out of the securities field (I was once a securities broker and “enjoyed” some pretty exciting… read: stressful… years as an options trader on the exchange floor), the discussion revolved around how property would be valued if it were a security investment.  First, Comparative Market Analysis or CMAs would be used only as a qualifier or a secondary validation.  They are circularly self-serving and relationally compromised.  Instead of “comps”, let’s wow our clients, protect them and increase our value as agents at the same time.

A New Way to Value
Remember I warned you that this would involve extra work.  That is because there should be four values to any property and they should all be calculated before we advise our clients.  Here are the four values in ascending order:

  1. BREAK-UP VALUE – this is the value of the land itself along with any profits Read more