What’s a blog?
These guys rock. The ability to explain something in such a clear, concise, easily understandable way is admirable brilliance. I could have used this video on Wednesday when I gave a brief presentation on real estate blogs.
It’s funny that they posted the Blogs in Plain English video so long after they explained RSS. I think I’ll try to use both next month on a panel I’ll be sitting on.
Hat tip: Ben
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Why Use a Realtor - decoding NAR-speak
Inspired by these two comments on the BHB, today I’m going to respond to/pick apart the National Association of Realtors’ Why use a Realtor? page. I hope that few consumers had read the referenced page on Realtor.com. Numbers two, nine and ten in particular jump out as being particularly wrong/offensive to me.
If we eliminate Dual Agency and End Cooperative Compensation (have the buyer pay the buyer’s agent, seller pay the seller’s agent - simple, huh?) many of the problems, perils and public perception (reality) issues with Realtors will be eliminated.
1. Your Realtor can help you determine your buying power - by guiding you to the right lender for you. This is part professional recommendation and matchmaking. Choosing the right lender is crucial. Knowing his or her reputation, track record and competence is something that is almost impossible to do without direct person-to-person feedback. As of yet there are no tools online to rate lenders or check their professional histories. Local is usually better.
2. Your Realtor has many resources to assist you in your home search - sure - the MLS, Craigslist, Trulia, etc. Oh, wait - many of those are available to the buyers, too. The time when we controlled the flow of information is long gone.
3. Your Realtor can assist you in the selection process by providing objective information about each property. - yes and no. One of the key components is removing emotion from the negotiating process. However - a lot of questions buyers ask - Realtors can’t answer. Part of the foundation of a good Realtor is acknowledging the value of being the “source of the source” - and then knowing that source.
4. Your Realtor can help you negotiate. Absolutely. A good Realtor will look at all of the various factors. There is more to the equation that price. This is more and more a core component of one’s value proposition in today’s Buyers’ Market.
5. Your Realtor provides due diligence during the evaluation of the property. Absolutely. Good Realtors know what questions to ask, and to whom to address them. They also can recommend qualified and trust home inspectors.
6. Your Realtor can help you in understanding different financing options and in identifying qualified lenders. - Absolutely; but in today’s fluid lending market, I am more qualified to know who is the best lender than I am the best loan terms for you.
7. Your Realtor can guide you through the closing process and make sure everything flows together smoothly. It’s about the competence of the closing attorney/title company (we don’t do attorney review in Charlottesville) and the relationship and trust therein.
8. When selling your home, your Realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. Buyers can usually do this, too - but it’s a Realtor’s job to know this information; not yours. (What’s your time worth?)
9. Your Realtor markets your property to other real estate agents and the public. Often, your Realtor can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your Realtor markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your Realtor acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The Realtor Code of Ethics requires Realtors to utilize these cooperative relationships when they benefit their clients.
I should hope that more than 50% of sales are done with Realtors’ involvement performed without Dual Agency. More on Exclusive Buyer Representation here (and here).
10. Your Realtor will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF Realtors studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your Realtor, you do not have to allow strangers into your home. Your Realtor will generally prescreen and accompany qualified prospects through your property.
a - I want to see that study.
b - Allowing strangers into your home is the whole point of the MLS and lockbox system we use! (I have a great local anecdote about this coming soon)
11. Your Realtor can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your Realtor can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
Absolutely.
12. Your Realtor can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your Realtor is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
Managing the process and transaction and knowing the pitfalls and problems that may arise is one of the key components a good Realtor brings to the transaction.
It’s getting harder to say “I’m going to market your property better than the rest,” because the distribution tools are flattening; more on this in another post.
Did I mention that if we eliminate Dual Agency and End Cooperative Compensation many of the problems go away?
Technorati Tags: buyer’s agent, psychology, real estate, realtor, transparency
Thursday links 11-29-2007
A telling photo on human/consumer behavior.
Are listing providers advertising, media or neither? Defining this will help define the future
Charlottesville’s high-tech employment figures
Cheaper than coal - the impact of private investment versus government
It’s not just a subprime problem (it’s the whole market)
NAR continues suiciding their credibility - does anybody believe this guy anymore?
Passionate real estate representation
From Seth Godin this morning:
Every time you walk into a meeting, agree to sit in on a sales call, do a job interview or have a conversation with a consultant, you’re marketing. You’re either selling the story of your enthusiasm and attention, or you’re not. And more often than not, you get what you put in.
It takes passion to succeed - in real estate, that passion shows itself through selection of clients to represent, through blogs, ethics, associations and pursuits. If you’re not passionate about what you do - why not? When choosing a Realtor to represent you - do you include in your evaluation their dedication and passion?
Take the Recycling Survey
The RWSA has put up a fairly comprehensive survey. If you live in Charlottesville/Albemarle, take three minutes. How they’re looking to pay for any improvements? That’s fodder for a longer-than-three-sentences post.
Technorati Tags: albemarle, charlalbemarle, charlottesville, recycling
Charlottesville’s Town Centers
NBC29 starts a series on Town Center Living - I bet their video is utterly fascinating, but alas it doesn’t work on a mac. (some people use macs - did you know your competitor figured out that people uses macs, and their video works?) Read this story: I Don’t Want to Consume Media that I Can’t Interact With.
Hollymead Town Center up 29 North (near NGIC) A model town center, in Reston (Northern Virginia).
For another look at Charlottesville’s town centers, see this post from May (and read the comments). A completely honest, non-snarky question - will residents of any of our area’s town centers say anything like this in forty years?
I live in Reston, and unlike Columbia, it’s a roaring success, with both internal and external transit services, five village centers — one of which is usually within walking distance of most residents — and a fabulous Town Center (I don’t understand the reference to a “Midtown Town Center” — there’s only one) which is easily accessible by transit, auto, and for the numerous residents in the urban core, as pedestrians. I have lived here for forty years, so have observed the development almost from the beginning.
The map below shows the town centers in the area.
More and more, people want to be able to walk “to stuff;” Hollymead Town Center does not yet qualify for that. So far, it has the feel of a glorified strip mall (with lots of stuff - Bonefish Grill, Target, Harris Teeter, etc) - you just need to drive everywhere.
What’s the basis for this conclusion?
And soon all of the construction will give way to a more relaxed, convenient and environmentally friendly way of life at Hollymead Town Center.
Lastly, showing my ignorance, how will the the addition of a hotel make the site more vibrant and welcoming to residents? Won’t that create more opportunities for people to drive to work?
Technorati Tags: albemarle, charlalbemarle, charlottesville, growth, real estate
The NAR Gateway inches out of the box
Read it in today’s Inman before it goes behind the pay wall.
“We think that there is a demand by practitioners wanting to have all the data they can, and having a database that has all properties throughout the country and is as deep and as rich as we can make it is only going to enhance the practitioner, whether they use it in their own community or they use it in looking up something for a relative in another state … to help them understand what’s going on in that different area.”
Consumers and Realtors want the same thing - every property, and its history in one place.
Here is one of the keys -
The Gateway, unlike MLSs, would not allow the offer of compensation and cooperation, he said, “at least not initially.”
Buyers agents would have to negotiate their commissions independent of what is being offered through the MLS. How ’bout that? (hint: Divorced Commissions)
Disclaimer: I happen to sit on the reference Group and will be at another meeting on Monday.
Update 11/29/2007: 1000Watt Blog and Michael Wurzer weigh in.
Technorati Tags: mls, move.com, NAR, realtor, realtor.com
Lest you get the impression that things aren’t selling
Let’s put that myth to rest. Properties are selling in the Charlottesville/Albemarle area … but -
Two properties clients of mine were interested in recently went under contract.
What made them sell?
Property #1 - in the City of Charlottesville (property links will expire in 7 days)
Came on the market in March - asking price of $199k. One moderate price reduction in September. One dramatic reduction on 30 October - four offers followed.
Property #2 - in the City of Charlottesville
Came on the market in February for $630k, $50k price reduction in March. Property expired and went to another Realtor - new asking price of $489,9k. A few moderate price reductions leading to the final one to $375k. The property went under contract seven days later.
Lessons learned -
1 - Price it right from the beginning.
2 - If the market says the price is high, reduce it. Beat the market down, don’t chase it.
3 - Sometimes, what the Realtor is doing is not the problem - it’s the price.
4 - This is the hard part - try to maintain objectivity. What you need to make to buy the next house is irrelevant to what your home is worth today.
5 - Both clients found me because of this blog.
Point of clarification: we wrote an offer on the first one and “lost” and serendipitously never made it to the second.
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