Tag Archives: agents

If you build it, they will come…

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I started responding to Brian’s comment and it turned into a blog post…

[photopress:200px_Field_of_Dreams.jpg,full,alignright]I can tell from the enthusiasm I’m seeing around real estate circles and all the action I’m seeing in the beginning of this new year that this will be a breakout year on the blogging front. There are a bunch of different reasons, definitions and ways of viewing the overriding theme, but I’d characterize it by saying we’re definitely seeing a massive swing where agents are now using pull methods of marketing instead of push methods.

Many agents are creating their own blogs, refocusing their content based on lessons learned, focusing on improving the quality of their listings, or taking part in social networks… No longer are agents going to push their message at consumers when they don’t want it (like mass-mailers, supermarket ads, bus benches, etc.), but rather I can sense that more and more agents are looking for ways to reach potential clients when and where they WANT to be reached…

To steal a theme from a classic movie… If you build it (provide good, helpful, interesting real estate information), they will come!

How to Market Yourself on LinkedIn

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This is a follow up to my recent endevor to immerse myself in some of the more popular social networks on the web. Now that I think we’ve exhausted the MyBlogLog discussion, I thought I’d turn to LinkedIn and some of the ways that agents can use this platform to market themselves and potential earn new clients.

How LinkedIn works

LinkedIn is a relatively “closed” social network in that you don’t really get much power out of the system unless you are actively involved. While it is possible to see a someone’s online resumes without being logged in (here’s mine), the service only becomes really useful when you can see their connections and references.

How LinkedIn Really works
For LinkedIn purists, you need to only like to people you know and trust. That way, when other contacts are looking to use the services or hire someone from your contact list, they know they can have a higher level of trust in that person. This sounds good in theory, but LinkedIn doesn’t work that way anymore. Too many people have muddied the true “trust” waters, so the “rules” have changed.

For many people using LinkedIn today, the “game” is to link up with as many people as possible. For someone trying to reach an audience of potential people to hire and/or give them work (i.e. real estate agents, mortgage brokers, lawyers, etc.), you want as many connections as you can get because each connection gets you that much closer to someone who may be looking for your services in the future.

Why should you be on LinkedIn?

Here are four good reasons:

  • Real estate professionals are still pretty novel on the site, so there is plenty of room to stick out.
  • It is really easy to stand out… Simply upload your address book and ask previous clients for recommendations.
  • The site is primarily made up of well-to-do, tech savvy people. In my office at Move, I would estimate something like 75 to 80% of the people have an active LinkedIn profile, including almost our entire executive staff.
  • It meets the “what’s the worst that could happen test?“

Seven steps to make LinkedIn work for you
Step 1: Sign up for an account
Step 2: Fill in your profile
Step 3: Upload your address book and connect with everyone who is already a member of linked in (If I’m not in your address book, add my email: dustin@raincityguide.com).
note: They make it extremely easy to upload your online address book (like one through Gmail, Yahoo Mail, and/or Hotmail) by simply giving your username and password, although my advice is to always use extreme caution with giving up your password!
Step 4: Selectively invite people from your address book… My experience has been that unless I send a personal invitation to someone with a really good reason why they should join, I get a REALLY low response rate. Nonetheless, if you have some previous clients who are particularly tech-savvy (and would give you a good recommendation) then they would make a good invite candidate.
Step 5: Start recommending anyone and everyone you can. If you give a good enough review of someone, they are quite likely to return the favor! That’s a lot easier than begging for recommendations and definitely makes a good place to start
Step 6: Start begging for recommendations from all your previous clients who are on the network (and presumably have a good opinion of you!)
The cool part about these last couple of steps is that once you get even one recommendation, you’ll start showing up in their list of recommended service professionals.

Step 7: After a few weeks, I recommend returning to the site and re-uploading your address book. It’s easy and you might be surprised how many of your new contacts are already on the site!

Obviously, the more recommendations and the more connections the better.

To give you an idea of how this might work for you, my wife and I were recently interested in finding a financial adviser in our area. The first thing I did was clicked on the financial adviser link and then sorted by people who were only one degree of separation from me. One guy out of that list looked real promising and will probably get a call from us soon. Next, we went one more degree of separation and found a few more (some with a ton of recommendations). We’ll definitely give at least one or two of those people a call when were ready to start the process of actively finding a financial adviser. The parallels for reaching someone who is searching for a tech savvy real estate agent should be obvious!

There is lots more information about how to use LinkedIn all over the web, but I figured this primer was probably pretty good for the typical real estate agent… Nonetheless, if you want more, check out Guy Kawasaki’s 10 12 Ways to Use LinkedIn.

Interview with The Greg Swann and his Pack of Bloodhounds

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Last year around this time, I published a series of interviews with the real estate bloggers that most influenced me of which I was really proud because I learned a lot and it felt like it helped bring the real estate blogging community together in a new way… This year, I’d like to continue that tradition by publishing the same set of interview questions with a new set of influences. With that said…

Sit down, take a deep breath, and prepare for a wonderfully long and informative interview with the top-notch crew over at the Bloodhound Blog.

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Q: What inspired you to start blogging?

A:

  • Greg Swann: I’ve been writing all my life, but my goal in trying to start a workable real estate weblog was the same as other Realtors: I thought it would scare up business. We tried and failed with two other weblogs. We didn’t know what we were doing — in the sense of “linkation!” — but, by being overtly promotional in content, they were boring to me, anyway — contributing greatly to their failure. BloodhoundBlog works, at least for me, because it is fundamentally indifferent to the idea of milking the readership for leads. I’ve come to believe that a real estate weblog with a large, regular readership is a lousy way to generate leads, in any case, but I don’t care anyway. I want to write what I want to write, come what does.

    Rain City Guide has always been a guide for us, of course, but when I decided that we needed to become a group blog to get where we want to go, we pushed for coverage national in breadth. If our luck holds, we’re defining a new idea in real estate weblogging: Commentary by, for and about real estate professionals on a national level.

    I can’t speak for the other contributors, so, in bald-faced defiance of the form you have established for these interviews, I have invited them to speak for themselves. Five took up the challenge: Kris Berg, Brian Brady, Dan Green, Doug Quance and Russell Shaw. Many of them have their own weblogs, and the answers they might give you there could differ from their answers here. But I want to hear — and I thought your readers would be interested to hear — their thoughts on this real estate weblogging cabal we are building here.

  • Russell Shaw: I have been interested in blogging ever since I read the book, Blog, by Hugh Hewitt. It really got me to thinking about how mainstream media no longer controls what is “worthy” and what is not.

    What got me started was Greg was gracious enough to invite me.

  • Dan Green: I began blogging to educate my clients about home loans in a way that they’d never hear from major news outlets. Two years later, I remain true to my audience and I think about The Mortgage Reports like a TV channel. I joined BloodhoundBlog because it exposes my loyal readers to broader issues in real estate and financing as a whole that wouldn’t fit TMR’s “broadcast” menu. BloodhoundBlog is a different channel. My readers may not agree with everything that BloodhoundBlog’s bloggers write — I know I don’t! — but the site’s aim is to present a perspective that readers may not otherwise hear. In this way, BloodhoundBlog is very similar to The Mortgage Reports — the information is not meant to persuade for sales, it’s meant to educate for understanding. The affiliation was a no-brainer to me.
  • Doug Quance: I was getting ready to redo my website, and I felt that a blog format would allow me to get personal with my visitors. When Greg invited me to contribute to BloodhoundBlog, how could I refuse? That’s like the President asking you to serve your country — you can’t turn that down.
  • Kris Berg: My original motivation to begin blogging was slightly less than noble. It was my attempt to keep up with the Jones’. In my business, I have always tried to keep things fresh and innovative. In a business where competition is fierce, it is essential to constantly reevaluate and reinvent. I have seen too many agents with the potential for greatness deliver mediocre results because of their inability to distinguish themselves as leaders. When Greg tagged me from my own baby blog, I saw it as an opportunity to gain additional exposure and a wider audience.
  • Brian Brady: I wanted to write with the best of the best. I started reading Bloodhound about three months ago. I was impressed with the collaborative authorship. When I noticed that we wanted new authors, I decided to “test my mettle in Yankee Stadium.”

Q: Are there any special topics or issues that you enjoy covering?

A:

  • Russell Shaw: Yes. Making my fellow agents more successful. Helping them to navigate the real obstacles and also to recognize those that exist just because someone “created them.”
  • Brian Brady: My efforts are mostly aimed at Realtors about mortgage lending. I find that by educating them about how to do better business with lenders, I can make a contribution.

    I like to write about hard money loans because it is an under-served niche in my industry.

  • Doug Quance: I enjoy myth-busting the best. Most of the public gets bamboozled by what goes on in the real estate business.
  • Dan Green: Many Americans don’t care about European politics or Chinese monetary policy because they don’t make a connection between international news and their personal life. By contrast, I am fascinated by it. Economics is truly a global game and any event — no matter how small — can have drastic consequences on the lives of everyone in America. My favorite topics to cover are those that show the connection and help people to understand how something buried on page 18 in the front section of a newspaper can cause their retirement portfolio to gain (or lose) tremendous amounts of value.
  • Greg Swann: I like technology and the comical kind of hypocrisy. Although I work in residential real estate, I have a deep interest in certain kinds of innovation in commercial real estate development, and I may devote more attention to this in the future.
  • Kris Berg: Ironically, unlike Greg, I never particularly enjoyed writing — until now. It took me several months to find my voice, which finally happened the day I stopped blogging for business and began blogging for kicks. Somehow, my role has evolved into that of the resident humor columnist, the Real Estate Mom if you will. The most successful agents have a hard time separating their work and their life, and this is where I find the lion’s share of my inspiration. I have the most fun relating those silly, everyday events in my personal life back to the business of real estate, because it is all about people.

Q: What have you done to personalize your blog?

A:

  • Greg Swann: There are two answers to that question. In terms of appearance, I took a theme designed by DL2Media and rewrote the Cascading Style Sheets to fit our look and feel. I can hold my own hand in PHP, so I was able to make the modifications I wanted without breaking anything. For example, our Frequent Contributors list runs out of a PHP program using the WordPress Users database. If I add a user, or change some detail, the change is reflected instantly on the web page.

    But taking the question the other way, when we added those Frequent Contributors, I went to some pains to remove my own (very) peculiar personality from the weblog. I built the weblog originally as a subdomain of BloodhoundRealty.com, and there’s nothing I can do about that, by now. We’re too well known, too well linked. But I’ve done what I could to avoid giving our own brokerage an unfair advantage on the weblog. Six of our ten contributors are Realtors, and, if there is any lead-prospecting benefit to real estate weblogging, I want for us all to share in it.

    I own BloodhoundBlog.net and BloodhoundBlog.org, but I didn’t have the wits to buy BloodhoundBlog.com when we started this weblog, last June. That domain is owned by a software company in Texas, and, had I known that at the time, I probably would have called the weblog something else. I may end up owning that domain in due course, and, if so, I will set it up to redirect to our current sub-domain. I’m already using BloodhoundBlog.net, redirected, for our nascent podcasting overtures.

    The point of all this is, we’re big and getting bigger. My goal is to promote the people who have joined us as much as I might promote myself.

Q: Do you have any favorite posts?

A:

  • Kris Berg: I am my own worst critic, and I am never totally pleased once I have hit the “publish” button. If I have to pick a favorite from my short time with the Bloodhound, it would be a post I did on Louis Vuitton and the French Revolution. The title words actually came out of my 14-year-old daughter’s mouth, and I was somehow about to relate it back to Zillow and real estate marketing. I absolutely love it when, as Jeff Brown once said, I can stick the landing.
  • Russell Shaw: The Millionaire Real Estate Agent.
  • Brian Brady: I like Greg’s Ramblin’ Gamblin’ Willie stories because Willie and I share some similarities in background (I think) and ideology.

    Any Russell Shaw post is bound to attract the whackos; I like reading their aimless rants.

  • Greg Swann: My all-time favorite is Apprehending Realtor 2.0: Seven essential skills of the 21st century real estate agent… I can take both sides of that argument, but the long-run trend is in the direction I take in that post: If you are not moving up the technology tree — and fast — you are moving out of the personal-services real estate brokerage business.

Q: What are some of your favorite blogs (real estate or otherwise)?

A:

  • Greg Swann: Totally unfair question: I have over 160 weblogs in my feed reader. From the RE.net, you can bet we like the weblog if we’ve recruited its author as a BloodhoundBlog contributor. There are people we can’t approach (such as RCG’s very talented talent pool), and some we love — such as vendors — who would compromise either us or their employers by working with us. By now, a significant part of my attention, in reading real estate weblogs, is devoted to recruitment.

    Away from the RE.net, I read a lot of weblogging blogs, marketing blogs, SEO blogs, Macintosh-fanatic blogs and techno-geek blogs in general. Lately, TechMeme gets a lot of my time, simply because it links to such interesting content.

  • Brian Brady: Active Rain Real Estate Network. I’ve developed online friendships and a reader following there. I love Freakonomics Blog because of the off-beat hypotheses they formulate to otherwise explained problems.
  • Doug Quance: BloodhoundBlog, of course… and I have many others, but I wouldn’t want to offend those who, because of brevity, wouldn’t make the list.
  • Dan Green: My non-real estate blog list includes a strange mix of PopSugar, Olson’s Observations, Sabernomics, and Copyblogger.
  • Kris Berg: At the risk of sounding gratuitous, Rain City Guide was the first blog I encountered that really made sense to me. Since then, I have discovered many, many others that seem to strike the same, often elusive balance of having local and national appeal, of being instructional and entertaining, and of speaking to industry professionals and consumers. My first stops each morning include Sellsius, The Real Estate Tomato, 360 Digest, 3 Oceans, Bawldguy Talking, The Phoenix Real Estate Guy, Real Central VA, RealEstateUndressed, Blue Roof, and (of course) The San Diego Home Blog, to name but a few. My feed reader includes about forty blogs at the moment, which is far fewer than for a lot of bloggers I know of, but barely manageable for me. I have been slumming over the holidays and currently have 433 feeds to catch up on.

Q: What tools/websites do you find most helpful in putting together your blog?

A:

  • Brian Brady: Reading other blog stories inspires some of my topics. Articles in “Broker” or “Mortgage Originator” magazines help to a lesser extent. Real life issues that face me everyday are fun to write about.
  • Kris Berg: I subscribe to Inman News, which I find essential. And, of course, a good feed reader is a must.
  • Russell Shaw: Google. 🙂
  • Doug Quance: Google… but I could always use more tools…
  • Greg Swann: I think like a programmer. I write in TextWrangler, the free version of BBEdit, a Mac-based programmer’s editor. I’ve been writing in versions of BBEdit since the betas of version 1.0, coming on twenty years. Tremendous search power, including GREP, so I can reformat just about anything in scratch time. This group interview is being put together from multiple email files. The end-product will be assembled, a file at a time, in TextWrangler.

    As a front-end to WordPress, I use Ecto, which allows for multiple accounts on multiple weblogs, with categories and Technorati tags implemented. A number of the BloodhoundBlog webloggers use Ecto.

Q: How does blogging fit into the overall marketing of your business?

A:

  • Doug Quance: It hasn’t, yet… but I believe that the blog will be the preferred way that the public will determine how compatible a particular Realtor may be for them by reading their posts. You can learn a lot about someone by reading what they write.
  • Dan Green: BloodhoundBlog has a different audience from The Mortgage Reports so it has a different place in my broader marketing plan. BloodhoundBlog helps me gain “name recognition” in the real estate space. BloodhoundBlog fills a unique role in that even folks who disagree (or even dislike) the writers still come to visit just to leave comments. There is no other real estate blog that makes as big a footprint at this point in time.
  • Kris Berg: I have never seen blogging as a lead generator in the strictest sense. Any good marketing plan includes a wide variety of activities. In my case, it is unusual when a new client can tell me precisely where they got my name; it is the marketing effort in its entirety that was responsible. Blogging is but one component. What I have found to be most valuable personally is the knowledge I gain from being in touch with issues on a broader, national level and through exposure to varying perspectives among agents on these issues. Of course, improved search engine rankings don’t hurt.
  • Russell Shaw: I don’t believe that blogging has much of anything to do with me “getting business.” I don’t think the general public is reading BloodhoundBlog every day. Other agents and people in the industry are “the public” I write to and for.

    BloodhoundBlog has a much larger audience than I would ever have on my own. All of the technical aspects are handled by an expert, and, if I don’t post for three or four days, people coming to the site still always have something interesting to read.

  • Brian Brady: Blogging has become the “X” factor in my marketing plan. What started as a hobby has become the leading contributor to our loan production, either from direct response to a post or an indirect referral from the real estate blogging community at large. I commit no money but do commit 2-3 hours a day. I’m still figuring how to fit it into my 2007 marketing plan.
  • Greg Swann: Practically speaking, it doesn’t, but I don’t think that way. What we’re really up to is an idea I call The Third Career. Most of us came to real estate from something else, and, as we are wise, we know this is not our last stop in the world of work. My immediate goal for BloodhoundBlog is to make it the best-read, most-rewarding real estate weblog in the RE.net. Further out, I want for our contributors to be so well known that they can pursue other opportunities: Public speaking, freelance writing, books, seminars, television shows, etc. I don’t know that we will attain this, necessarily, but the goal itself is definitely attainable: Witness Glenn Reynolds, the Instapundit.

Q: What plans do you have to improve your blog over this next year?

A:

  • Greg Swann: We’ll be adding both audio and video podcasting, and we’ll be doing a lot more original reporting. We’ll add new writers as we find them or they find us. BloodhoundBlog has 334 Technorati links right now, which is nothing to sneeze at, but one of the things I want to do in the coming year is to swim our way upstream, to become the authoritative real estate resource for technology, political and general interest weblogs. Like RCG, we’re a given in blogrolls for new real estate weblogs. I want for us to be routinely blogrolled higher up the Technorati food chain.

Q: What is the one tool or feature that you wish your site had?

A:

  • Brian Brady: I don’t know… a live chat button? I think a live chat button would help a reader ask a question to an author. I think some readers are hesitant to post comments or questions because of the “Jim Rome” type environment that exists. That said, the “Jim Rome” environment is effective, though, and shouldn’t be replaced.

    The “sanctity of the confessional” sometimes inspires honesty.

  • Doug Quance: A killer mash-up page.
  • Russell Shaw: A list of killer post ideas. 🙂
  • Dan Green: Actually, I am happy that BloodhoundBlog has only a few features. There is a fine line between useful add-ons and gimmicks and I am happy that Greg Swann lives by one of the basic rules of technology: Just because you can do it doesn’t mean you should. Junked-up Web sites remind me a lot of the Flashing Text Syndrome on Web sites circa 1997.
  • Greg Swann: I’d love to know how many RSS subscribers we have. Our on-site traffic is very impressive, but I’d like to know how many people are seeing us through their feed readers.
  • Kris Berg: Spell-checking — and a laugh track!

Q: What do you think real estate blogging will look like 3 years from now?

A:

  • Dan Green: There will be distinct dichotomy in the blogging world and it won’t be limited to real estate blogging. One group will be defined by community-based blogging, complete with deep and engaging conversations about anything and everything; the other will be defined by presence and access to good information for readers. Both groups will feature high quality writing and that will benefit readers immensely. It’s the latter group, though, that is the most intriguing to me.

    Blog-For-You services such as Bring the Blog are removing the roadblocks to blogging and allowing non-technical (and time-crunched) salespeople to include blogging in their marketing plans. Even though their blogs are updated for them daily, these salespeople are adding to their blogs when they have something important to say — this may be once a day, once a week, or once a month. These blogging entries would otherwise have remained hidden from the world if not for Bring the Blog.

  • Russell Shaw: More and more real estate blogs will exist. There will still only be a select few that are actually being read by a wide audience. As more and more companies that sell blogs to agents come into existence more agents will “blog.” Most of the blogs available are not interesting to anybody, including the people who post on them. The exceptions are those writers who have something worthwhile to say and those who post relevant information (that others want).
  • Kris Berg: I said it a year ago, and I say it today. Blogging for the real estate agent will become as necessary as a website and, as in the case of agent websites, there will be some terrific, unique blogs with great appeal to the consumer and there will be many more canned, static blogs with little value. Blogging takes an extraordinary amount of time, energy, creativity and thought. The agents that choose the easy route, that hire others to do their writing and simply throw their checkbook at a template blogging platform with no customization, will find the exercise as effective in generating business and credibility as door-dropping notepads. I believe that those who make the effort, however, will find that they are more knowledgeable, better respected and more effective as agents. And they might just have a little fun along the way.
  • Doug Quance: It will be far more prevalent… perhaps 10-15% of the mainstream agents will have a blog — though far fewer will take the time to keep it current. Even then, so many agents write such boring drivel… and others use each post as if it were an advertisement.
  • Brian Brady: I think blogging will follow the MySpace popularity curve. That is, a HUGE increase in 12-18 months (as in exponentially increased readership to the 15th or 20th power) followed by a tapering off. I think we’ll have 10 times as many eyeballs on BloodhoundBlog in 3 year as we do now. That number should be consistent for years to come.
  • Greg Swann: It looks to me like there is going to be a strong trend toward local content this year, and, obviously, we intend to buck that trend entirely. Day-by-day, month-by-month, we’ll push more in the direction of an on-line magazine — original content presented in arresting prose. In three years, there may be zero, one or two real estate weblogs like BloodhoundBlog. The rest will be something different, I hesitate to guess what.

    I do think the webloggers’ ideal of transparency is at huge risk in the RE.net, not alone because too many of the people who will come on the scene in coming years will want to avoid the time commitment that good weblogging requires. To the extent that the RE.net gets flooded with for-pay or overly-promotional content, it will tend to self-destruct. Consumers may not always be able to tell a hawk from a handsaw — or a Bloodhound from a Bichon Frise — but they will never fail to spot — and switch away from — yet another commercial.

Thank you to all the Bloodhounds for this wonderfully informative interview! Once again, Greg, you’ve outdone yourself! Thanks again!

And if you can’t wait until tomorrow to read another interview, check out these posts from last year:

The Value of High Quality Photos for Real Estate Listings

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In previous writings for Rain City Guide on the subject of real estate photography, I’ve emphasized more of a ‘how to’ or ‘how to improve’ approach for Realtor’s who photograph their own listings. I want to shift my emphasis toward raising awareness regarding the value of high quality photography for listings and actually learning to recognize the difference between a bad photographic presentation of a listing and a really good one. Or to put it another way, acknowledging a poor photo presentation when it is and hopefully doing something about it. As a photographer who works almost exclusively with Realtors, I am continuously mystified by the disregard by so many Realtors locally and nationwide who seem to be clueless regarding the photos used to market their listing. To simply purchase a ‘point and shoot’ digital camera and walk around your seller’s home snapping away and expecting a satisfactory result is simply not going to cut it. In most cases there is more to it than that and unless you consider photography a hobby and worth time invested in the necessary skill development, you might be much better off hiring a professional photographer to shoot your listing. Many of the best Realtors do use professional photographers and they’re not fools.

This is a comment from my previous article by a St. Louis Realtor that deserves a more prominent view.

First time poster here: Glad to see some recognition of this problem! The most important thing an agent can do for their sellers today is to get lots of superior images up on the web. Here in St. Louis I am continually astounded at the plethora of dark, awful images, and “what were they thinking” photos of toilets, ceiling fans, etc, or NO PHOTOS at all! How do these [realtors] even get listings?

For most of my listings, I take a lot of my own photos, as I have a background in photography and image correction, so I have hi-res images for color flyers, but I ALSO have a great local photographer who comes in and shoots a batch of wonderful web-ready wideangle shots and virtual tours…

It’s worth the investment (typical agent–“you mean you actually PAY someone to shoot your listings? That costs MONEY!”) My business would be a lot less successful without quality photos.

And this is taken from a follow up email from Shannon. “It would help the profession if we all did better than this, although I’m happy many of my local competitors are still so bad at it! ”

This is really a great article by Norm Fisher, a Saskatoon realtor, with a virtual tour of some of the photos that were taken from the Saskatoon mls. “The Unbelievably Bad Real Estate Photography Hall of Fame”. Click on the links in the article to be taken to the virtual tour page. Norm’s humorous audio narration of the tour are really worth a visit.

A typical comment from a friend who have done an internet search for a home makes comments like, “I sure see a lot of dark, out of focus, awful photos’. Are they hiding something they don’t want me to see?”

I am getting calls from Realtors with listings from low end houses and small condos to spacious multi-million dollar homes. One might think that even a very basic home that is in decent condition deserves to be marketed well. If I’m the seller of a modest home, the sale of my home and the potential price is certainly important to me. I’d like to know that my Realtor is doing a professional job of marketing my home and taking care of the details. Lousy shots do not inspire confidence in the agent and the points a Realtor might earn by producing a good photographic presentation, or in many cases, simply hiring a professional photographer, are going to make it more likely that I’m going to be a happy customer. Happy customers equal referrals. And where are Realtors without referrals?

I’d like to conclude with one of my favorite photos of 2006, taken from a listing near Greenlake. This is one of the most ‘kid friendly, family friendly’ homes I’ve ever seen and it was a delight to see and photograph this whimsical, artsy abode. Doesn’t everyone wish they had swing and a chalkboard wall in their living room when they were kids?

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Mark is Radically Re-thinking “Lead Management

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Mark Lesswing just published an interesting article on thinking through how to treat online customers. Here’s a highlight:

In person-to-person interactions, negative intentions are easy detect. People leave long lines at the bank in disgust and dislike “pushy” sales clerks. The challenge of detecting gestures on the web lies in the anonymity of the medium. We fall into the bombardment mentality because we are trying to identify the consumer.

For those interested in the direction of online marketing, the whole thing is definitely worth a read…

The "BIGGER" news on Zillow.com

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[photopress:boycott.gif,thumb,alignright]I was intrigued by Kevin Boer’s comment on Galen’s post predicting that the Major Brokerage Houses would be jumping in en masse and posting their listings on Zillow.com. Kevin predicts that it will be “the little guy” who will hold out. I predict it will actually be the other way around, with the bigger players finding an excuse NOT to post their listings on Zillow.com. Time will tell.

In my link post to all of the blog articles on Zillow’s overnight make-over, I found this obscure post which says what others are not saying:

“RED ALERT” Zillow Wants Our Listings. Before anyone posts their listings on Zillow-let’s get a consensus. I don’t want to aid these people at all, and by posting your listings, you are doing the legwork for them and I think it is a comakazie move. Before agents gang bang the free listing, maybe we can vote on this as a whole. What do you think? They’re not Realtor’s, so this is not an anti-trust violation, is it?”

Joanne Brown of Keller Williams, who wrote this blog article, tread on the thin ice others knew not to step on. But that’s the beauty of blogs. Every once in a while, someone just “let’s it all hang out” there in the blogosphere.

Zillow's new way to spite your neighbor

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Mix Zillow’s amazing capacity to quietly market itself and its new feature (list your home on Zillow, FSBO or FSBAgent) and you have a great new service for driving traffic… to your annoying neighbor’s house. List their house at 25% below Zillow’s estimated value and invite people to come by to see the place anytime after 8 on weekdays. You could alternately ‘claim’ their house and hold it until they decide to sell, at which point you get to choose the price, at least on Zillow. To be fair, listing someone’s house has always been possible on Craigslist, but you never had to send in proof of ownership to be able to reclaim your house from them.

More seriously, I’ve been expecting Zillow to launch a service like this for quite a while, but frankly I thought it would take them a little bit longer to get their act together and figure out exactly how it would work.

A few thoughts:

1. Zilllow is making it a pain to bulk upload listings, which gives FSBOs exactly the same capacity to list as the biggest companies. They’re doing this for two reasons: Individuals are more likely to list (and look at ads and puruse the site) if their agent doesn’t say “we automatically list so you don’t have to worry” AND because it makes it harder for competitors to get the same information. If they allowed bulk submit, third party websites would do most of the work posting listings to all the free listings sites on the web. (So Greg, I disagree with you here) Expect an API for listing if people aren’t listing in high numbers (see number 3).

2. Many consumers already believed that Zillow had houses for sale, so this revelation won’t surprise the real estate-casual public.

3. Zillow has the best shot at getting the chicken or the egg (you need one to get the other). Most non-MLS sites (Trulia, Propsmart, ForSaleByOwner, etc.) have had the nasty problem of beginning with no listings and no searchers (no chickens or eggs). Each has tried a novel and somewhat successful way of getting searchers or listings – crawling sites for listings, offering free listings, pay-per click ads to lure searchers, etc. None of them seem to have hit the point of no return: the point at which searchers start using the site exclusively, causing any remaining listers to clamor for inclusion. Based on the marketing buzz alone, Zillow may be the first to hit this point. Once (if?) they hit some critical number (70%? 80%? 90% of listings?), the tide will turn and nearly all holdouts will list themselves. They can always include an API to increase inclusion, but I think they’d rather have agents and consumers list manually and add more information to their Zillow listings.

4. Zillow almost has enough buzz to get the holy grail of online real estate listings – actual people listing their own homes en masse and actual searchers using a non-MLS based site. Uninformed home buyers will probably use it to search for homes until they realize that, at least in the short run, Zillow doesn’t have a bunch of the houses that are for sale.

5. Many local MLS systems will probably fall by the wayside as the primary places that agents and consumers go to search for houses. This is because most of them have too many rules and regulations for using their data, which binds the hands of innovators.

6. Is ‘Make Me Move’ basically a slow motion auction with no end date? You state a “buy it now” price and wait for bidders to inch up to that price? It seems like a surefire way to see get a bunch of homes, but you never know if you’ll find that gem in the rough. It certainly won’t work for commodity-like homes in suburban developments or condos unless the “buy it now” price is really close to the market price.

7. Agents, you’re kidding yourself if you believe that Zillow isn’t going to make your life harder. When anyone can list their home on the web without paying $500 to some brokerage, it’s time to offer real services or get out of the game. Also, if people know someone who has successfully done a FSBO, it’ll seem a lot easier for them to do the same.

Agents and brokers of the future, you’re also kidding yourself if you believe that Zillow is responsible for shrinking commissions (they’re coming) and a changing industry because it’s not: Zillow is just the product of the web’s relentless market and information opening power. We are leaving the time of the agent-leads-consumer model in the real estate industry and we are entering the time of the agent-coaches-consumer model. More on how I hope to participate in this change in the coming weeks and months.

Update: I suspect Zillow will allow for bulk uploads in the future no matter what, but it makes sense to take things like this slowly. They will need to be especially vigilant to keep out listing spammers who could use an API to upload dozens of false homes.

Get Creative

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[photopress:ebay_1_2.jpg,full,alignleft]

We lost IT. We use to have IT and now we lost IT and now you can get it on ebay! This IT is that huge chunk of our commission that used to come from being the gatekeeper to the multiple. At a listing presentation our competition was only another agent that charged the same fee (there were a few reduced fee offices but it wasn’t a trend).

But they don’t need us anymore for that. They can get it on ebay. And they can get listed for under $400! Of course, taking and uploading the listing in the multiple is just the beginning, but if we’re going to separate out tasks like the actual listing going into the multiple, why not separate out all the tasks and see what they’re really worth. I agree that uploading the listing is a pretty simple task and a lot of agents just fax it in so it probably is only worth $400 (you have to be registered with the mls for this, plus it involves contracts and accuracy of the listing information)….. if that’s all the service a seller wants.

So, last summer I decided to address all of the things that agents do by breaking up the tasks and establishing a monetary value to each. It’s the ala carte menu of listing services and I googled and googled but couldn’t find anyone with anything complete enough online. I even took the coursework to get licensed as a consutant from the National Association of Real Estate Consultants (NAREC) so I could see if someone had already done all that work.

I separated out the tasks ranging from $20/hr for real estate data input, filling flyer boxes, dropping off keys, etc. (a high school kid couldn’t do all of this) to $300/hr for negotiation and problem solving. Wow, I was surprised at how often I worked for $20/hr. I tried to figure out what I’d be charged by different people doing different levels of work and then added a profit margin.

The $300 work i assumed would be done by the senior agent taking the listing and running the team but personally doing tasks that take a lot of experience and skill like price opinions, market timing, the totally important negotiations with both buyers and the buyer’s agents and solving all those problems (I had a list of 88 things that can go wrong with a transaction). Personally, this is where I’d prefer to spend my time.

The results are on the LTDre.com website if you want to see how it works. My slick computer tech even built it to automatically compute based on different packages and house price.

What got me thinking about this was today’s Inman article on bloated commissions and how much I agree with it. The article suggests, “consumers would benefit most from fee-for-service real estate companies that base compensation on flat fees, hourly fees and other specific payments for services rather than relying on a commission rate that is based on a percentage of the sale price of a home.

Blogging at Ed.Con 2006

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Yesterday, Russ Cofano and I gave another blogging seminar, this time in Seattle as part of Ed.con 2006 put on by the Washington Realtor Association.

[photopress:elvis_and_liberace.jpg,full,alignright]I thought the day went over really well and considering it was the first seminar we’d given to the “home town

EAL vs. ESL

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[photopress:it.jpg,thumb,alignright] This comes under the category of “You learn something new every day.” Over the years I have found that I generally have a much higher percentage of clients who moved here from other countries, or whose parents moved here from other countries, than some of my peers. I was at a client’s house over the weekend (helping to strip wallpaper, which I am very good at doing) and everyone at the house was speaking both English and Romanian, except me of course 🙂

One of the guests taught me a new term, that was more politically correct, and I was at once converted! I asked if ESL, English Second Language, was an appropriate term or offensive in any way. My sister had taught me ESL, since she has a fairly high percentage of students that are ESL the same as I have a fairly high percentage in my field. Prior to that I was using “The English is not my first language crowd”, so ESL was definitely an upgrade.

A lovely young lady advised that her husband preferred EAL, and that it was more politically correct. Of course! How American of me to suggest that English was someone’s SECOND language, when in fact, it could be their FIFTH language. My friends from Bulgaria speak at least six languages. So EAL, English ADDITIONAL Language, is clearly more appropriate for most people from other countries.

I am a 2nd generation American, which may be the reason why I have a high percentage of clients that are Indian, Filipino, Romanian, Italian, Korean, Chinese, and others over the years. Not because I speak their language, which I do not, but because I understand that different cultures have different ideas with regard to home ownership.

I remember back to 1990, my very first year in the business. I had a client who was a young man from Russia. It was apparent to me, though he did not come right out and say it, that he didn’t have an accurate perception of what was included in the sale, and what was not included. Now many of my clients have some questions in that regard, but for this client the entire idea of owning a property was somewhat “foreign” to him.

I literally walked around and touched practically every item. He was in fact quite pleased to learn that the kitchen cabinets would be staying as well as the stove. He was a little confused about why the wall to wall carpeting was going to stay, but the area rug would not be there after the owner moved out. And when it came down to the mirror in the living room leaving because it was hanging like a picture, but the “mirror” in the bathroom WAS staying because it was a recessed, built-in, medicine cabinet, he just shook his head and took my word for it 🙂

This brings up a point that a recent commenter raised. He said he sometimes has to read my writings twice to “get” what I am talking about. In almost every real estate transaction a client has to trust that the agent is correct, rather than totally understand everything involved in the transaction. For persons who speak English as an additional language, who have not been involved in home ownership issues for most of their lives, being able to trust the judgment of the agent is even more important than almost anything else. Trust becomes the all important factor in the relationship.

Even if they do not understand all of the details and the “whys”, if they trust the person at the helm, life becomes a whole lot easier for them. Being able to focus primarily on which home they want, as opposed to each and every detail of the process, can be quite a relief for anyone, but especially for EAL clients.