Flaming for Ardell

There’s definitely a tech bent to today’s list…

  1. Starting off with Niki’s interesting take on the Reply.com launch. Niki runs Homethinking, a site dedicated to letting users review agents. I had a chance to talk with him at SF Connect over a beer (or two or three) and got to learn a fair bit about his site. It is definitely worth checking out as there is a lot to the backend of what he’s doing and it is not necessarily what you might fear (assuming you’re an agent!).
  2. Inside Google talks about a fun press release from Intermedia that talks to the snarky discussions that Galen and Robbie have been having around online office applications. Tech blogger Om Malik gives his reason for not using google’s new service.
  3. Others are asking if Google services are joined too tightly? I’d be really curious to get Robbie’s take on that.
  4. Thinking of Google, Ardell, does it help that Google could could be adding 1000 people in Bellevue? (via Greg)
  5. I’m not the only one thinking of Ardell… I noticed someone trying to start a flame war on Craigslist over Ardell (look for the post title: “Get the feeling Realtors read from a script?”)… It was great to see a few people come to her defense and unlike so much of the stuff over there, the flamewar never materialized.
  6. I’m all over microformats, so I was glad to see someone write this post about understanding microformats for the non-technical web professional or marketer. Most relevant to real estate is the hListing format currently being deployed by Edgeio.
  7. Watch out when Greg’s talking about rethinking everything. 🙂
  8. Also, considering Greg’s opinion on hosted blogging platforms is not exactly private knowledge, I thought he might enjoy this comic from Chris Pirillo
  9. The blogger from from hismove (a christian real estate network???) points out an interesting chart from the NY Times displaying the inflation adjusted home prices in the US since 1890.
  10. Not only are the For Sale By Locals people ready to launch, but these people are serious about going international. Interestingly, they will be launching their official site at a conference in Bolivia. Their temp site looks really bad in firefox, which doesn’t bode well for them in my mind, but considering the massive activity on their blog as of late, I’m definitely interested in seeing what they produce.

No Credits "For Repairs" Allowed

This excerpt from a recent comment to an old article of mine, deserves more than “comment back” attention.

“we said we would take $5,000 for…repairs…The addendum was signed by both seller and buyer….Our lender wanted us to take the word repairs out of the contact, but we wouldn’t do it, so our loan fell through…’

Lenders do not want to lend out money for future repairs to a home, nor do they want to finance properties that need repairs. Let’s say a house needs a new roof and the cost of that roof is $7,500. Agents cannot write a contract with an addendum that says “Seller to credit Buyer $7,500 for a new roof” and expect the sale to close. Nor can the lender simply say “remove that addendum”, as if the buyer is supposed to pay the same price without a new roof or the money to buy a new roof.

Clearly this situation has come up several times in my career. Most recently, the roof was OK, but was two layers of composite over a wood shake roof, meaning at time of replacement all three layers would have to come off. Also, since wood shake roofs do not have sheathing, the new roof would have to include all new components and not just new shingles. The owner agreed to “pay” for most of the new roof and the buyer “agreed to pay” for a portion of the new roof. The new roof was installed by the seller prior to closing, and the sale price was increased to include the buyer’s share of the roof cost. Excellent resolution as the lender financed a house with a brand new roof. Everyone is happy.

Another good and often used solution, if the buyer wants to take a credit and pick and install their own roof, is for the buyer to take a credit “toward closing costs”, They simply use the money they were going to use to pay closing costs, to put on a new roof. It’s just a replacement of these monies for those monies. It satisfies the lender, as they will usually allow a credit toward closing costs, but not for repairs. As long as the appraiser doesn’t “call” the roof and require it to be done before closing, the buyer can get the monies this way.

So is Denise “bad” to refuse to take the word “repairs” out of the addendum? Or are the agents (if there were in fact agents involved) “bad” for writing and accepting an addendum in the first place, that they should have known would cause the loan to fail?

It is no surprise to me that a lender would not fund a loan that included a $5,000 credit “for repairs”. It is worth noting here, so that others do not write or accept addendums that offer credits for repairs, that send up red flags to the lender that the house is not in good condition. Perhaps it was a For Sale By Owner that Denise purchased without the assistance of agents. So to For Sale by Owners and private individuals buying from For Sale by Owners. and attorneys who assist in transactions without agent involvement, please note that generally speaking, a lender will not fund a loan with a repair credit, especially if there is little or no downpayment.

"Carpet" Credits, et al

[photopress:w.jpg,thumb,alignright]We are at that time of year when houses are not selling like hotcakes. So we are back to that age old question, “Can’t I just offer a credit?”

Often agents will tell sellers that they need to remove wallpaper, paint rooms or put in new carpet. A common response from a seller is “Can’t I just offer the buyer a credit?” The short answer is NO. The long answer is, if you offer $2,000 as a credit to the buyer to remove that ugly wallpaper, the buyer will offer you less after having seen the wallpaper AND they will take your $2,000 on top of that as well.

So yes, you can offer the buyer $2,000 and he will happily take it. But he will still take $10,000 off the price of the house, because he hates the wallpaper.

10 Questions For Yahoo! Real Estate

Today I got an email from Haley at Yahoo announcing their new and improved real estate site:

Today Yahoo! Real Estate announced a revamped site which includes comprehensive tools and services to help home seekers chose their dream home. Yahoo! Real Estate is now more tightly integrated with Yahoo! Search and Local, giving users inside information (like mortgages, local market rates, even ratings and reviews on local restaurants, businesses and schools) for the more than 3 million homes listed on the site.

Below you’ll find a release detailing the improvements. If you’re interested in learning more, I’d be happy to arrange an interview with a Yahoo! Real Estate spokesperson, please feel free to email or call me on XXX.XXX.XXXX.

It is really not appropriate for me to do the interview, so I’d rather turn this back on RCG readers… Are there any questions you have for Yahoo about their new site?

If you do have questions, let me know ASAP because I’d like to aggregate the 10 best questions and pass them along to Haley by the end of the day today!

Would you lie for God?

Yesterday’s theme was PreFab, today I’m back to simply providing links to 10 interesting real estate conversations…

  1. Prosper is an online marketplace for people to lend money to other people. Shaun has been playing with Prosper and has some interesting observations.
  2. I don’t agree with Mark’s conclusions, but I think he makes an interesting case that a good time to “upgrade” is in a down market. (via Steph)
  3. For those looking to improve things before they sell, Rory provides some great home improvement links.
  4. If you are going to be upgrading (up market or down), you’d be wise to follow Noah’s advice and sell first!
  5. Will the number of sold homes rise in August as Bill suggests? But I sincerely doubt it.
  6. Todd, since you asked… My take is that if you are going to change domains, you want to do it sooner than later. You’ve still got lots and lots of growth left in your site, but the longer you wait, the harder it will get. Even better, consider getting a hosted version of WordPress that you can put under your own domain. Many hosts have made it so that there is a “one button” install of wordpress and they even manage the upgrades on the backend. (WordPress.org has a list of their “preferred” hosts.) In the long run, this will definitely give you the most flexibility with things like video/podcasts and stat tracking.
  7. Jim’s thinking he wants a sideblog plugin… I’m thinking just take notes and when you get to 10, hit publish. Have you noticed? 🙂
  8. Fran is good for providing a useful tip every few days… Today it is about the importance of the buyer walkthrough.
  9. Jay Thompson (of AZ) gives us a “pick of the week” that includes one hell of a house!
  10. Larry Cragun tells us to watch out for real estate transactions involving religious institutions. Some people are more than happy to lie for God.

I’m actually shocked at the number of emails these lists have generated. Don’t people know I have a job? 😉

Real Estate, Technology and Transparency

[photopress:transparent.jpg,thumb,alignright]I’ve been running two experiments, trying to find the true meaning and value of transparency in the real estate transaction. I’ve taken all of the things I have known forever, and added the things I’ve learned in recent months, and combined them into a Transparency Model using email.

For as long as I can remember, agents will tell each other things that they would never say to a consumer. Same with most ancillary service providers. We can talk to each other point blank and in short hand and with a clarity that has pinpoint precision. But when talking with the consumer everyone starts being guarded, balancing telling the truth with trying to get their business, and saying what they “know” the consumer wants to hear. Falling into what I call (and hate) “script mode”.

I’ve been having some conversations with agents, while copying “the outsider”…the owner. The other agent didn’t realize I was copying the owner at first, and was responding directly to me without hitting “reply to all”. That was a good thing, because it was quick, it was spot on info, and it was very good and valuable info.

Sometimes the consumer doesn’t know the right questions to ask, or they are just not in the same conversation with us. So we end up “communicating” with the consumer out in left field on some irrelevant tangent, while trying to focus on the real issues all at the same time. Owners tend to fall back into the past, remembering when and why they painted that wall bright purple when their daughter was 10. She is now grown, married and has children of her own. We’re trying very hard to say get rid of that purple, but they’ve lapsed back in the time machine and are standing in the room with their ten year old daughter. When they finally come back and realize you are in the room, you end up saying “yeah, love that purple!”.

By letting the owner watch two agents email back and forth quickly about their home, they “see” the real issues at hand. Very much like that photo up there, it’s as if they are looking through a two sided mirror where they can see us and we don’t see them. If they can’t comprehend it at the moment or if they just can’t take the mental picture of their ten year old out of their head, they can come back later and read it again and again. They absorb the information in small doses, and eventually “get it”.

I remember one owner way back when, who came up with a brilliant idea “in a dream” nine months later, that was exactly what I told him to do, on the first day I met him. He just wasn’t ready to hear it at the time. Too much going on that night. By using email, he can revisit and address all of the ideas in smaller doses.

Email is scary sometimes, because you are putting some hard facts “on paper” that we, in the past, would only say, but not write down. But it introduces a higher level of transparency, because the consumer can go back later and read it again and again. Different people absorb different things each time they read it. I just received an email from a seller in answer to an email I sent maybe ten days ago. She read it ten times before coming to a satisfactory conclusion. Then she emailed me…she’s about 80 years old 🙂

I am going to try, with my “Ardell & Oxford” real estate talks, to bring this “transparency” to RCG. To talk to an agent, woman to woman, pretending no one is watching us talk. NOT about the industry at large. NOT about how agents feel about the industry. I want to talk to an agent about a house and what the seller needs to do to get it sold. I want to talk about a buyer, and why they are or are not being successful in their quest. I want to talk to another agent the way we talk to each other, while everyone else is watching and learning.

Contrary to what Dustin said, it really wasn’t hard for me to find someone who will do this with me, as agents do this with me every day, always have. Now finding someone willing to do it with me live and in your face on RCG, well yes, I have found someone. But that was pure happenstance. Let’s run with it and see what happens. I should have her set up by the end of the week, if not sooner.

We are the “innovators”. Let’s kick transparency up a notch. Instead of asking others what that means, let’s create what it REALLY means…as only we can. Not because we are smarter…just because for some reason, we seem to have the cajunes to make fools of ourselves in open view 🙂 Speaking for myself, of course.

Five reasons to ditch Outlook for Google Apps

If I had a 5-30 person office, I would jump on Google Apps in an instant, particularly if I didn’t already have an imap server and all the other hardware and software jazz Microsoft likes to sell you so Outlook will actually work.

Here’s why:

  1. You will never run out of space on your email account: Every email account comes with 2+ gigs of storage.
  2. You can easily add and remove email addresses from a web-based panel (no more calling the tech guy for basic tasks).
  3. Your employees can access their email from anywhere and on any operating system (the Mac guy can keep his Mac!).
  4. You get my new favorite Calendar system – it’s really easy to add events, invite others, and manage multiple calendars including group calendars (we use group Calendars for the very infrequent events that we must all attend at ShackPrices). Also, you can access your calendars from other people’s computers.
  5. Your employees get all the nice little touches that are quickly being added to Gmail – the ability to preview word documents, excel spreadsheets, and pdfs without opening up a new program, in-browser chatting with other gmail users, and the ability to send voice mails (to anyone!) from Google Talk.

You can already download all your email from gmail to any email program and Google will be offering an API, so you can hire a programmer (or download plug-ins) to access all the rest of your information should you ever decide to quit.

Via John Battelle’s Search Blog (a great blog if you haven’t checked it out)

For Mother

[photopress:for_mother.JPG,thumb,alignright]I found this photo on my desktop titled “For Mother”. Isn’t it amazing what kids can do with their cell phones.

Anyway, I really shouldn’t tell this story, but it’s going to fade away if I don’t. I met this young fella at an Open House. He was just the cutest thing and he was all excited about buying his first place. He was asking me if he could make a cutout in this wall between the kitchen and the dining area. Then he wanted to know if he could move the washer and dryer from in the kithen out to near the front door away from the bedrooms. The next day I called him and told him I found a place like the one he was trying to “make” out of the one where I met him. He came over and bought it.

It was dirt cheap. $130,000 for a two bedroom (two years ago in May) and it had a jacuzzi! A huge “yard” open space, fabulous upgrades and it had been on the market for awhile. Crazy. None of the mls photos had any of the upgrades. No real sign on the property. It was just sitting there waiting for someone to steal it. We were so happy.

Then he looked sad, and when I asked him why, he said his Mom in Eastern Washington was very ill, cancer, and she couldn’t come and see his first home. I went over to the property and took photos of all the things the listing agent didn’t. All the upgrades. I made a book that I bound with my GBC of 8X10 color glossies titled “Xs First House”. I went around the complex and took pictures of every different variety of Rhodie in bloom. I made a “frame” with all the Rhodie pictures in pink and red and purple flowers. I gave him two copies of “the book”, one for him and one for his Mom.

His Mom passed away before we closed and he couldn’t express how happy she was to “see his first home” with him before she passed. He brought the book to the hospital and they “walked through the condo” together in book form.

Recently I sold that same condo. He had a net return of $50,000 in two years. Now most people look at the King County appreciation rates at whatever…12%, 20%, whatever per year. The reality is this. He only spent $4,500 out of pocket. He had no downpayment and I wrote most of the closing costs into the offer.

So what is the return on $4,500 that turns into $50,000 in two years? Did his neighbors see that kind of return? No. Why. Why were we so darned lucky on both ends of this transaction? It just had to have something to do with his Mother, don’t you think? It’s just amazing that someone can turn $4,500 into $50,000 after all costs, both the costs of purchase and the costs of sale. And I adore him and he trusts me implicitly and that is really what “selling” real estate is all about. Helping someone else’s kid. Just like someone helps my kid when I’m not around. Everyone is someone’s kid to me…but I really shouldn’t have voted for George for Barbara’s sake 🙂

We Deliver Anywhere

PreFab housing is a foreign concept to me, so I decided to investigate…

  1. There is no single definition of prefab. In fact, one could argue that almost every house built today has elements of prefabrication, since components such as roof trusses and windows are built off-site. Prefab can perhaps be best understood as a continuum with several points along a path—from a unique, custom-designed, stick-built home at one extreme to a complete factory-built house delivered on-site as a single unit.”
  2. [photopress:FF_82_prefab3_f.jpg,thumb,alignright]Are prefab homes destined for middle America? “Other architects are embracing this vision of mass customization. Charlie Lazor, a founder of the iconic Blu Dot furniture company, recently left to start his own concern selling FlatPak houses. Los Angeles-based architecture firm Marmol Radziner + Associates just opened a 64,000-square-foot factory to fabricate the steel frames for its new prefab line. And renowned LA architect Ray Kappe has designed a model for a prefab venture started by former dotcom mogul Steve Glenn.”
  3. The people from Royal Homes Modern remind us that size isn’t everything (so does the WSJ)
  4. However, small does not mean cheap… At least when Ray Kappe is involved.
  5. Prefab park?
  6. Wouldn’t it be nice if Seattle Modern got “modern” (i.e. a blog!) so that I could add him to my feed reader and link to his articles?
  7. Modern MyWay: Modern-style designs submitted by Dwell readers.
  8. Allison (the recently announced former editor at Dwell) literally wrote the book on PreFab.
  9. (Considering Alison helped market modular homes in addition to being an editor, Dwell has some work to do to fill her shoes…)
  10. Container Bay: “for shipping container enthusiasts”.

I believe that real estate agents are either in marketing or…

  1. Google is doing a major update on their backlink calculator. One of the updated datacenters is showing over 1600 backlinks to RCG while the regular search is still only showing 733. This is great news! The more often Google re-indexes backlinks the better because we get so many more (recognized) backlinks than the typical agent website and I’ve noticed that each time Google updates these backlinks (they only do it every 3 to 6 months), we placed much better in organic search results shortly thereafter. Yum!
  2. Talking about organic search results, I let Greg know that I thought he was potentially hurting himself in Google by posting identical articles on both his regular blog and his ActiveRain blog (no longer available). Put very simply (and definitely an oversimplification), when Google sees two identical articles, they are forced to make a choice in determining which article is “good” and which one is “spam”. Assuming you don’t want either of your sites to be labeled “spam”, then don’t have identical content floating around in full. (When a spam site copies your articles in full, you’re just have to trust that Google will figure it all out!) If you’re going to put articles on more than one site, make sure that you change things up a bit, or better yet, summarize the article and link to your main site where the full article can be found. I would point out some of the other people besides Greg who are doing this same thing on ActiveRain, but it appears that word travels fast via email and most of the guilty have taken their ActiveRain blogs down (Joel being the only exception I’ve found at this point… and he really should not be doubling up his content at this point considering he’s still in the process of “teaching” google about his new domain.)
  3. However, all this makes me feel bad… Matt, I promise my intentions were good and I wasn’t looking to get people to drop their activerain blogs. I think you’ve got a great platform and others should definitely consider blogging on your site. I just wanted to warn people that they might be committing googlecide (a great phrase coined by Greg!) if they post identical content in both places! For everyone’s benefit, Matt Cutts gives a comprehensive explanation on how to get re-included in Google searches should your site ever be listed as spam, but I don’t think that should be necessary as the re-inclusion request is typically for sites that have actively tried to trick Google in ways much more devious than duplicate content.
  4. Steve Hurley let me know about his new blog for the Tacoma area (South Sound) and he asked for some advice on how to get more readers. My advice: start linking to other real estate blogs! There are a lot (a ton!) of real estate blogs with good content that will never get “discovered” because they live in their own bubble (yes, real estate has lots of bubbles!). I think a lot of real estate agents have a view that they are smart enough to be the one and only resource of real estate information. Even if that held water, very few agents are good enough to break out of the mold without some major help from other real estate bloggers. So, regardless of how good your stuff is, find someone else to link to in every post! Really, every post!
  5. Another way to drive traffic is to leave comments on other people’s blogs. The nice part about leaving a comment is that you’ll get a link back to your blog with each and every comment. However, that won’t generate traffic nearly as effectively as if other bloggers are linking to you within their posts. What is the most effective way to get the attention of other bloggers so that they will link to you? Link to them! Want more? Here are the three most important elements of real estate… blogging: Linkation, Linkation, Linkation.
  6. Greg: Ardell’s going to kill me for that title. I promise I wrote it before I became a believer in the church of Ardell! 🙂 I really wish I could give you a “on a related note” to this story, but I simply can’t blog about a meeting I had last week with the master of real estate marketing…
  7. I agree with Chris Pirillo that social bookmarking buttons have gotten out of hand. I’ve not added any to RCG because it seemed like it took up valuable real estate and I’m not sure it provided a valuable service to our readers. The only one I’ve considered adding is del.icio.us, but considering most del.icio.us users have a button installed on their browser (they tend to be a tech-savvy bunch), I’ve never bothered. Adding a button for a site like digg (let alone sites like reddit) seems pointless for a real estate blog since I’ve never seen one real estate article promoted by those communities. (In other words, why would I give them an ad (i.e. their logo) on every one of my posts if they are never going to send me traffic?)
  8. I want one… Sony is preparing to introduce a light-weight geocoder with software to make geocoding photos easy. Although I wish geocoding photos was easier than dragging along another device…
  9. Taken one step further (and two steps too far): Wouldn’t it be great if you could search for an item based on where you were when you were working on the file? As in, “I remember taking those notes while in San Francisco…” and then have a document filter based on where you were when you made those edits (obviously, this only makes sense if you’re working on a laptop or mobile device). The secret weapon in this idea would be taking advantage of the wifi positioning from Loki so that you don’t have to lug around another device…
  10. Everyone knows that Loki was the god of mischief, right? (Due to a simple twist of fate, I know a lot more about Nordic gods than I do bible stories, but I can’t go there because I’ll get to sidetracked…). Well, the mischievous people over at Trulia have blocked Move’s IP address so that I didn’t read what Greg liked so much about their post until I got home. (I know I could have proxied in, but I didn’t bother). Anyway, the article is hilarious and definitely shows the benefit of not taking yourself too seriously. Tell your kids: real estate is fun!!!