Another despicable splogger is stealing content from various places on the Internet, including this blog.  Sadly, the side gives no contact information, so I’m not able to send my usual polite “cease and desist” notice.

Hopefully this post and picture — which will soon appear on the Nationwide Home Mortgage Loan Corporate blog — will embarrass the owners into stopping this nonsense.

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(photo credit: mop squad)

Kevin Costner was hot 20 years ago in Field of Dreams. So was that comment “If you build it, they will come.” I received a fantastic comment from a home buyer today for my previous post How Listing Agents Unintentionally Sabotage Their Own Staged Listings:

1. Danica Says:
   May 12th, 2008 at 10:51 am That is so true. As a potential buyer, I have been frustrated many times by Craigslist ads that have no picture. There are a ton of houses out there, and I’m trying to weed out the ones I don’t want to look at - it’s really impossible without a picture.I’ve seen so many places, staged or unstaged, that sounded great on paper and then turned out to be hideous-to-unlivable in person.More importantly, even though online listings at a place like Craigslist are free and offer almost unlimited space, a lot of sellers just put up one or two sentences and no pictures - and to me that says “I don’t have it together enough to actually market this house.”

   And my experience has been that often, that means they don’t know how to deal with the paperwork, or with my questions, or even with basic social skills.I guess in a way it’s helpful to see a boring, picture-less, one-line house ad - because it tells me I don’t want to deal with that seller. But it’s still hilariously frustrating to see an ad online that says something like, “2 BR 1.5 BA NICE!!! MUST SEE CALL JAMES SMITH REALTOR 555-1414!”

This is a brilliant comment, it just goes to show that with that in this fast changing real estate market, our buyers’ behaviors have changed. The old attitude of “If you list it, they will come” no longer works. That worked in the movie Field of Dreams for Kevin Costner but guess what? Kevin Costner is OLD news now. That phrase was coined 20 years ago, so is that attitude. It’s freaking 20 years old. Shouldn’t we move on with the times?

A savvy marketer knows that today’s consumers are so de-sensitized by advertisements that they need more interactive and user-friendly contents [Note: “content,” NOT “ads.”] to make an educated decision before buying. You can see that through the fast rising numbers of business blogs and web 2.0 services. People want interaction, not sales agenda ramming down their throats.

Also, today’s agents no longer holds monopoly to MLS information. Internet has made today’s buyers more savvy, shrewed, efficient and much more likely to start their buying process without agents. Additionally, if the consumers cannot be satisfied by you, it’s very easy for them to go elsewhere. To be able to work in a competitive market, as a listing agent or FSBO (For Sale By Owners), you will need to get on with the time to provide a comprehensive and user-friendly marketing package.

To do so, here are a few tips as pointed out by Danika, our lovely buyer:

*Online presence is KEY. Staging the property will instantly make the home show-ready online. Once you have staged, having big & high quality photos is a must.

*Don’t just do 1 photo, if you are allowed to post 10, why not do 10?

*Place ONLY good quality photos that will entice buyers’ appetite. Photos like featuring the local eateries or parking lots are not really adding anything to your listing.

*Be creative, not boring and cookie cutter in your listing descriptions. “2Br for sale” is kind of a duh since anyone can read it from the sheet. Why not say something more descriptive that showcase the unique selling points of your listing?

*MOST IMPORTANT: Provide reasonable expectations for buyers. If your listing sounds like the “IT” property to buy and buyers walked into an ill-maintained home, they will turn around and leave immediately because you have wasted their time. If the house is staged, keep it staged while you sell. If you property was already on market then staged, showcase the staged photos online and on flyers and take out the old unstaged photos.

Happy selling!

Cheers,

Cindy

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Symantec

Tipped off by an anonymous Active Rain’er who had come across this discussion thread, which in turn had been prompted by good investigative sniffing [sniff one, sniff two, sniff three] by the pack at Bloodhound, Symantec’s elite Taskforce Realty Internet Permission Experts (TRIPE) worked through the night to come up with a patch. The head of TRIPE, Dr. Francois Viande-Fichu, released the following press statement:

With thanks to the ever-vigilant Active Rain-droppers for tipping us off, we were stunned to find some pretty damning evidence of foul play in Trulia’s widget, which unsuspecting Realtors have been deploying on their web sites in droves. Trojan Horses are one thing, but what they’ve come up with is something far more nefarious: a Peloponnesian Unicorn.

The Trulia widget does the following:

• Sucks out the hosting web site’s Google Juice, especially the Raspberry flavor.
• Decreases the hosting web site’s Google Page Rank to negative 5.
• Installs a little Trulia MarkerMan on the desktop whose eyes follow you around as you surf, and they roll sarcastically whenever you visit Zillow’s site.
• Automatically and instantaneously rises Trulia to the top of the Google rankings for all searches related to the host site.
• Makes the web site owner/blogger start chanting Gregorian hymns in the original Latin.
• Refers all incoming traffic to the hosting site’s owner’s fiercest competitor, in exchange for a 25% referral fee.

When challenged to provide evidence of the above, Dr. Viande-Fichu displayed the following code embedded into each Trulia Widget.

<;?Php Embed Java Script<Trulia Evil Widget.class.nefarious>;
While {5>1 DO:
Trulia.PageRank = Site.PageRank*2 / Slurp.Giant.SuckingSound;
Site.PageRank=-5;
Install.Icon = http:/trulia.com/images/trulia_markermen_icon.gif; option bug eyes=”true”;
If Site.Visit=”Zillow” Do {Icon.Roll.Eyes And Sigh.Loudly};
Google.LocalSearchRankings.Site.City = “Truliawful”;
Trulia.LocalSearchRankings.Site.City = “TopOfFirstPage”;
Launch Latin.hymns.InstanceGregorian;
End Do}
?end Php>

Agents who’ve installed this widget are advised to uninstall it immediately, then put the following badge on their web site to protect them in the future:

To install this widget, do the following:

1. Download this file to your computer.
2. Open the file in Notepad or some other text editor.
3. Copy and paste the contents of the file into a sidebar Text widget.
4. Rinse and repeat.

Full disclosure:

1. I did a consulting project for Trulia last year.
2. Trulia out-ranks my site for many Google searches.
3. My site outranks Trulia for many other searches, including, most significantly, peace corps volunteer botswana real estate palo alto.
4. Trulia’s no-follow policy applies, as far as I know, consistently across all broker’s listings, including mine.
5. No animals, Realtors, or SERPS were harmed in the production of this post.
6. Void where prohibited.
7. Do not ingest.
8. This blog is not a toy. Keep out of reach of children.

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No, what really fascinates me about this debate is how it accentuates co-opetition in the real estate industry.  Co-opetition is simply the notion that companies compete and co-operate simultaneously.  Arch-rivals Northrup Grumman and Boeing go mano-a-mano to get a lucrative government contract … and the winner often subcontracts part of the project to its rival.  Microsoft and Oracle have competing database platforms but often sell eachother’s products.

In our industry, co-opetition reaches nearly incestuous levels.  For instance:

• Brokers John and Betty compete for the listing at 123 Main Street.  Betty wins and puts the property on the MLS.  The very next week John brings potential buyer clients to the property.  Sure, he would rather have won the listing, but that’s in the past.  Now he’s working with Betty to consummate the transaction.  No hard feelings.
• Realtor Bob hangs his license with ABC Realty.  He puts an ABC Realty sign on the front lawn of all his listings, and the ABC Realty logo is prominent in all his media ads.  He’s co-operating with his real estate brokerage to promote their brand, and he in turn benefits from that brand awareness.  Co-operation.  A phone call from a prospective buyer of one of Bob’s listings, however, may well go through to the agent on “floor duty.”  That agent turns this phone call into a client, who goes on to buy a different listing, not Bob’s.  That’s competition — Bob would have loved to get that phone call and turn it into another client, but his competitor — the other agent, and to some extent his own broker — snagged that client.  Co-operation plus competition = co-opetition.
• A thousand local brokers — each fierce competitors — co-operate to run a local MLS.  They put their competing listings up on the MLS, and they compete to bring buyers to each of the listings.  At the close of each transaction, we again have co-opetition — competing parties co-operating for the sake of the deal.
• Broker Tom snags a listing and puts it on the MLS.  Via the wonders of IDX, that listing spreads its tentacles onto a thousand other sites, including that of arch-rival Broker Sarah.  As long as Broker Sarah indicates that Tom is the broker of record, it’s all good.  Her site is much better than Tom’s, so she gets more traffic and hence more clients online.  The fodder that draws in those visitors?  Listings … not only her own, but also Tom’s.
• Broker Rachel gets the listing at 789 Elm Street and puts it on the MLS.  She also puts it on Trulia, which, like the MLS itself, exposes the listing to a much broader audience than she could reach on her own.  She benefits from the increased exposure, and Trulia gets more inventory to display.  It’s a win-win — co-operation at its finest.  The next day, a prospective homebuyer passes 789 Elm Street and Googles the address to find out more.  Who’s on the top page?  Trulia and Broker Rachel’s listing site.  Now they’re competing — for web traffic.

There really is nothing new under the sun.   This business has always been a co-opetitive one, and we’ve always simultaneously co-operated with and competed against not only every other broker, but many of the third-party advertisers, aggregators, and media companies.

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First, a recap:  courtesy of our good friends the quant jocks over at Altos Research, we saw that the median price numbers for Menlo Park had dropped by some 30% — from $1.25M to $850K — over the 9 month period from April of 2007 to January 2008.

That drop in median price, however, by no means reflected the reality on the ground in Menlo Park — in other words, it is not true that a home in Menlo Park that was worth $1M in April 2007 was suddenly only worth $700K in January 2008.  The reason for that disconnect was simply the change in the mix of properties being offered:  in the last half of 2007, the inventory of lower priced homes east of 101 swelled, dramatically pulling down the overall median.

As if to emphasize that disconnect, we see what appears to be a dramatic price recovery from January of 2008 to now in May of 2008; in fact, it looks like the market has regained all 30% of what it ostensibly lost late last year!

Again, the reality on the ground is quite different; that is, a Menlo Park home that was worth $1M in January of 2008 is most emphatically not suddenly worth $1.3M today.

Moral of the story?  Simple:  real estate statistics are good at telling some stories, but not very good at telling others.  In particular, the median often simply reflects the mix of properties currently on the market and not necessarily any underlying ups or downs in the market.

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In case you’ve been wondering why high-end real estate markets continue to perform relatively well:  One out of every 10,000 American families has an annual income greater than $10.7 million, according to two university professors who study the super-rich.  By their tally, there are some 15,000 Americans who fit into that category.  These individuals also are getting an increasing share of the economic bounty:  In 2006, the super-rich possessed 3.89 percent of total income, up from .87 percent in 1980 and the highest level since 1916.

Strong employment and wage growth are two factors that have helped the San Francisco Bay Area stave off the kind of home sales and price declines experienced in the inland regions of California.  For example, Santa Clara County residents earn nearly double the nation’s average weekly wage and surpassed Manhattan as the county whose residents take home the largest paycheck, according to the U.S. Bureau of Labor Statistics.  Santa Clarans take home an average of $1,585 per week, slightly more than Manhattanites, who earn an average of $1,544 a week.  San Mateo County ranks fifth in the nation at $1,322, while San Francisco is eighth at $1,286.  Nationally, the average is $818.  San Francisco ranked tenth in new-job generation, adding 18,000 jobs for the twelve months ending Sept. 30, 2007.

Despite the above, some worry that California’s technology sector may be in for another “dot bomb.”  But experts say technology and Internet companies are better prepared to weather the storm this time around.  Their reasoning?  Many Web 2.0 companies learned a lesson from their free-spending predecessors and have discovered ways to operate with fewer employees and at lower costs.  That appeals to venture capitalists, who have tightened their criteria but continue to seek companies with strong revenue models.

Lately, I have been describing the market as “upside down”, where I am seeing unusually strong sales activity in the over $3 million market, while under $1 million is about the same as last year, or a little off depending on the neighborhood. What is interesting, is the $1 million to $3 million market, what I call “tweeners”, because these homes are in-between the entry-level and high-end.

Gross simplification warning: Buyers of “tweener” homes have significant amounts of cash or equity to put down, but still need a mortgage, and often a significant one. As banks and other mortgage providers have tightened their lending guidelines from recent years, it has become harder to get a $1.5 - $2 million mortgage, and those have become more expensive. As a result, more people aren’t upgrading, or they are getting priced down from say, $2.5 million to $2 million. Thus reducing demand relative to supply and creating a soft spot in the market.

In my experience, in the $3 million and over market, Buyers have more cash, Euros, Rubles, Yuan, Dinars, stock, gold, trust money, etc. to use to purchase their new “executive home”, so they are less concerned or affected by interest rates and loan qualification hurdles.

Let’s hope that VC money mentioned in the article above keeps flowing so we can keep paying for our million dollar tract homes and $5 a gallon (you know it’s coming!) gas.

I know you will have an opinion or comment, share it here.

Thanks for reading.

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This case had lawyers salivating, and brokers trembling, as it potentially could provide precedent and open the door to lawsuits by home buyers who purchased homes during the recent run-up in housing prices, and are now seeing their local markets stagnate or fall.

According to the following article released by the California Association of Realtors, the jury on the case found in favor of the real estate agent.

There was no mention of the issues that I flagged in my earlier post, namely that the agent didn’t share the appraisal or list of comparable properties with the client, or that he encouraged them to get their home loan through him and use his appraiser.

I’m sure that there are many real estate agents out there who also are great mortgage brokers. I’m not one of them. Frankly, I’m not smart enough to keep up with all the issues in real estate law and the local market, plus all the ongoing changes in the lending market.

Thanks for reading . . .

REALTOR® WINS HIGH PROFILE JURY TRIAL
After only two hours of deliberation yesterday, the jury unanimously vindicated a buyer’s agent accused by his clients of failing to disclose that two other homes in the neighborhood sold for less than what they paid. As a trial court case, this decision in Ummel v. Little is binding on the parties to the case, but has no binding authority for other cases. Moreover, the buyers may file an appeal.

This case involved a couple who bought a home in a coastal Carlsbad community in 2005 for $1.2 million. They regretted their purchase when they discovered that two other homes sold for about $150,000 less than theirs. They sued their real estate agent for negligent misrepresentation and breach of fiduciary duty. Their lawsuit grabbed national attention, given the recent downturn in the real estate market.

At the trial, the agent’s attorney argued that there were valid reasons these two other properties sold for less. One home, for example, had a lap pool which was unappealing to many buyers, and the sellers wanted to rent back the home for two years.

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Redfin’s initial business model, which made great sense in the VC’s conference rooms, was to outsource a big chunk of the buying process to its clients in exchange for a big chunk of the buy-side commissions.  For better or for worse, however, that model has continued to run dab-smack into the middle of the reality of real estate:  the listing agent, though representing the seller, is not usually responsible for showing the property to every interested buyer.  That service is usually provided by the agent representing the buyer.  The problem?  In order to make offers on a property, Redfin’s clients have to actually, well, see it.  If they don’t manage to hustle there during an open house, then they’re SOL — unless a Realtor-magic-key-toting Redfin agent comes by to open it.  And just like that, poof! goes half the business model.

Fast forward to today.  If you’re a Redfin client and you want a regular set of property showings, just give up a portion of the commission that was coming due to you and have Redfin show you around, just like a traditional broker would do.  Instead of getting 66% of the commission back, you get 50% back.

Possible explanations come from two different fronts:

First is my “Innovator’s Dilemma” proposition:   Redfin as a classic disruptive company, will first figure out how to be profitable serving the lower end of the market, the price-conscious clients that traditional brokers don’t mind losing.  Then it will move upmarket, charge more, and offer more service — ie. become more like a traditional brokerage, but with fatter margins.

At first glance, Redfin’s move seems to fit this pattern.  However. by Redfin’s own admission, they’re not growing as quickly as they would like, their business model is not as scalable as they had hoped, and they certainly are too young of a company to have taken significant market share yet.

So perhaps the better explanation comes from Mike Simonsen over at Altos Research.  Mike suggests it’s a simple pragmatic response to the harsh realities of the market place and their VC backers:  they need to become a $100M company as quickly as possible, and doing it at $10000 rather than $5000 per transaction will bring that about more quickly.

Other commentary:

• The Bloodhound notes that the rules around home showing seem strict and, well, a bit school-marm-ish.
• Greg Tracy suggests Redfin is becoming what they hate: a traditional brokerage.
• Jon Washburn notes the progression leading to this model and wonders if Redfin may end up becoming simply a lean-and-mean traditional brokerage.

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I have been toying with Facebook a lot lately because I am intrigued of how this thing can work for my business (since I am spending a ridiculous amount of time on it) and how fun it actually can be even for work. Facebook has exploded on the business sphere lately largely because of its user-friendliness, much more professional look than myspace, and easy to network quickly with a string of people in a more relaxed atmosphere (they now even added a People You May Know section, which is frankly scary how they know I know these people).

At first I only used Facebook for contacting old college classmates & long lost friends, secretly comparing looking where they are working now how much weight they had gained, but lately I am finding a lot more business applications being developed and used, as well as an increased number of contacts in both staging and realtor fields. (Finally, no more of those invites of “Are You a Vampire?” but “Have my online business card.”)

I also read Guy Kawasaki’s 10 Things You Don’t Know About Facebook: “the fastest growing demographic on Facebook is those ages twenty-five and older. [per Facebook’s own stats] Facebook is quickly becoming not just place for friends to meet friends, but for business users, baby-boomers…”

Which prompted me to establish a “store front” (in Facebook lingo: Page) for my staging business. I listed my mission statement, basic info, even added blog syndications and apps such as charity that I personally support.

It’s an interesting experiment so far. According to Facebook’s stats, (or “Insights” per Facebook lingo) I have received 88 hits so far in the last 2 days. Although it is unclear where these traffic are coming from…. While my page is not like a major consumer product’s page, such as Dr. Pepper or Guiness where they have legion of fans who have the kind of viral power that can multiply consumer bases quickly and sell more products through their Facebook pages, I am interested to see how small businesses or professionals can use this to help them increase exposure.

Moreover, more and more people every day are joining for the sole purposes of prospecting and expanding networks. Similarly to LinkedIn, you can seek introductions via Facebook by simply “poking” someone to view their profiles, nudging them to respond and even visually displayed how many friends you have in common.

Similarly to twitter, you can update your status quickly via your mobiles or on the internet to let your sphere of influence, as well as millions of other users to know what you are doing.

I also have to say, the SEO on the Facebook page is SCARY. I only made it couple days ago, it already popped up on my google alert. I am experimenting and I plugged in “Burlingame” just now, to test and see if it will pop up on future searches.

What do you think? Any success stories so far? What do you use Facebook for? Be part of my social experiment by becoming a fan of my page at http://tinyurl.com/3jryvf. Or simply add me as your facebook friend

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There is a cost to this:

Two weeks ago in North Lauderdale, Fla., funeral services were held for Russell Shaw, a prolific blogger on technology subjects who died at 60 of a heart attack. In December, another tech blogger, Marc Orchant, died at 50 of a massive coronary. A third, Om Malik, 41, survived a heart attack in December.

The article admits, of course, that “the premature demise of two people obviously does not qualify as an epidemic.”

My thoughts?  There’s more than enough stress in my life already, thank you very much, so I try to make sure blogging doesn’t add to this.  I’ve gone several weeks without posting when things just get too busy.  I find blogging in modest doses — say, 30 minutes per day — to be therapeutic.  I like writing, I like reading, I like the camaraderies and interaction.

So here then is my modest blogger manifesto, part serious, part humorous.  Tell me what you think!  Any more we should add to the list?

1. From Saturday at 6pm until Monday morning, no blogging.  [Present post excluded.]  There’s really nothing so important that it can’t wait till then.  [Again, excepting this article.]
2. No vendor pre-briefs less than 48 hours before the news embargo lifts.  I need time to digest the information and come up with a cogent response.
3. Once a month, I will prune my feed reader.  If I haven’t read a blog in a month, off it goes.
4. Many of us in real estate tend to be perfectionists, and our motto traditionally is, “Only perfect is good enough.”  Let’s turn that on its head and say:  “Good enough is perfect.”
5. If it’s starting to be a drag, then it’s time for a break.  A one week moratorium.
6. I will not take it personally when somebody in real estate says they’ve never read my blog, or they don’t know what a blog is.
7. I will not nickname any of my kids “Zillow” or “Trulia” or “Redfin.”
8. I will not obsessively update Wordpress to the latest platform.  Two upgrades per year are enough.
9. I will not tatoo my subscriber stats on my forehead.
10. Above all, I promise not to take myself, my blogging, or my blog more seriously that I need to.

Add your suggestions below…

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So, if you’re a buyer competing with other buyers, what should you do?  Our advice:  Pull out all the stops.  Here are some time-tested suggestions*:

1. Bring a large manila envelope stuffed with 100 dollar bills to the offer presentation.  Discreetly slip it to the listing agent.
2. Rename your first born after the owner of the property.  Bring said child to offer presentation, clearly labeled “I named him/her after you!”
3. Offer a 15-year free rent-back to the sellers.
4. Bring along your dream therapist.  Have him/her describe your last session in which you clearly saw yourself buying, owning, and living in the home.
5. Lobby congress to make it illegal to not accept your offer.
6. Stalk the seller for a few days ahead of the offer presentation.  Hold up signs saying, “Sell me your home!  Please!”
7. Add an extra zero to the price you’re offering.
8. Do a “presumptive close.”  The day of the offer presentation, show up with moving trucks, decorators, painters, and other assorted workmen.  Tell the current home owners you’re about to move in — didn’t they get the memo?
9. Bring along your burly cousin to the offering.  Have him sit menacingly in the corner, swinging a baseball bat.  Make oblique comments about “keeping him happy” and “how disappointed he’ll be if I don’t win the house.”
10. Put up a sign outside the offer presentation office saying, “The home has already sold!  Nah nah nah nah nah nah!”

* These suggestions are intended to be humorous.  Pleasure consult with your attorney and/or Realtor before following them.

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I respectfully call social networking and Web 2.0 great hype with great future promise. I just don’t think they help sell houses today in any proportion to the emphasis they are receiving.

[Sidenote:  What’s Michael doing writing an article about social media in a Realtor magazine?  Shouldn’t he be protecting diplomats in Iraq?  Oh, wait a minute — that’s the other Blackwater.]

Michael raises some very interesting points, definitely worth addressing in a future post.

Sherry Chris, CEO of Better Homes and Gardens Real Estate*, however, begs to differ.

Friend and business colleague Pat “Transparent Real Estate” Kitano and I had the privilege of meeting Sherry and Camilla — BHG’s new head of marketing — over breakfast recently.  Sherry’s team has the exciting task of building a brand new nationwide real estate franchise from scratch, but with the incredible advantage of using a name with incredible brand equity.  They’re pulling out all the stops in their pre-launch efforts, including some very interesting online social media initiatives, with participation from the whole executive team.

Taking a page from Rudy and Joe, Sherry always has a video camera with her, and she made the mistake of interviewing Pat and me.  Whether it was the content or the participants that caused this, I’m not sure — but the hotel did give her grief about filming without permission.

YouTube Direktvideo link

* Better Homes and Gardens Real Estate is a client of Domus Consulting, a sister company of 3 Oceans Real Estate.

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In a delicious twist of irony, however, the mechanical Turk behind this new product is … a person.  As in, homo sapien.  Specifically, a mortgage professional.

In a pre-launch briefing with “What would David Gibbons do” David Gibbons, he described the all-too-typical grief that a potential borrower goes through with many lenders, whether online or offline:  bait-and-switch salesmanship, hidden fees, inflated rates, and perhaps most egregiously, a complete lack of anonymity.

Zillow’s solution?  Let consumers ask for mortgage quotes without revealing their name.  Let mortgage brokers respond to these requests.  Let consumers sift through the responses and choose the broker they want to work with; then and only then does the buyer have to reveal his or her name.

What about the whole bait-and-switch thing?  Zillow deals with that in a very Web 2.0 way — consumer reviews of mortgage broker performance.  Plus, the participating mortgage brokers are vetted — at least minimally — to confirm that they are, in fact, licensed mortgage brokers.

And here’s something sure to make at least some mortgage brokers sweat a bit:  the competing mortgage offers are visible not just to the consumer who requested them…but also to the other mortgage brokers who submitted offers!

The cost to mortgage brokers?  Zero.  In David’s words, Zillow remains committed to being an advertising platform.  The data they can now gather about consumers — what their home is worth, other homes they’re interested in, and now their income and credit score — makes it possible to target-advertise with nearly pinpoint precision.  David assures us this is not being done in a “Big Brother” kind of way, but if I understand him correctly it may soon be possible, for instance, for Mercedes to target ads that will appear only in front of prospective buyers with an income of at least $100K and a credit score of at least 720.

Other commentary:

• Todd Carpenter likes it.
• Tribute Media reviews the product.
• Further explanation from Rich Barton, Zillow CEO.
• Drew Meyers weighs in.
• Greg Swann notes that this product reduces the information asymmetry in the mortgage lending business, and sheds further light on how Zillow manages the wealth of personal information they’re able to gather about consumers.
• Joel Burslem has some questions, but is submitting a loan request as we speak.

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Said listing agent Trevor Blackstone of Stockton Realty: “Phew! I’m glad that’s over. I’m the fifth Realtor for these folks! They went on the market at $750,000 and after 25 price reductions they finally reduced it $275,000 and it sold! In fact, we got two offers, both just above the list price.”

CAR chief economist Leslie Appleton-Young broke out the champaign at CAR headquarters in Los Angeles. “We’ve been keeping our eyes on that property for a long time. We knew that when it sold, the housing recession would officially be over.”

Mike Simonsen over at Altos Research had this to say: “Our charts predicted this a few months ago already. The 7-day rolling average of the ratio of the median days on market for the upper quartile in the worst area of Stockton has been steadily moving upwards. That’s the sign that’s accurately predicted the bottom of every single market since 1900!”

TJ Shanahan of Realty World in Sacramento was also not surprised. “Seven of my top 10 ways of predicting the market bottom came true literally in the last week!”

Astoundingly, every single market bottom has also happened on April 1st, and at the exact same time. Here’s the Altos Chart to prove it:

Bubblistas are already salivating over the next real estate recession, scheduled to start in late 2024. The domains IToldYouSo.blog and WorstHousingRecessionEverWillStartIn2024.com have already been reserved. “In the meantime,” said a prominent bubblista, “I’m gonna stay renting.”

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Reached for comment, Teresa said, “What am I, waxed fruit?”

The string of poor corporate decision-making continues with other little-known recent non-invites from within the re.net world:

• Brian Brady, though often consulted by Uncle Ben, was not invited to speak at the Fed’s recent “Bail Out Bear Stearns” party.
• Athol Kay, despite his photography prowess, was not invited to speak at this year’s Kodak convention.
• Kris Berg was not invited to the annual “Scripps Ranch Market Is Tanking” convention put on by the bubblistas.

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This just in via the grapevine…despite an earlier, uh, tiff, Dustin Luther and Greg Swann, formerly best friends, most recently not so tight…have made up.  Dustin’s highly acclaimed 4Realz seminar series and Greg Swann’s Bloodhound Unchained conference will soon be merging.

Surprising news for those of us inclined to follow such events.  Still, it makes good sense.

In Dustin’s words:  “You know what?  We’re targeting the same group of clients.  We’re both trying to help the real estate industry better understand how to use online and offline marketing effectively.  It just didn’t make sense for us to stay separate.”

Greg Swann concurred (I think):  “Luceat lux vestra!  Luctor et emergo,  silentium est aureum.  sic semper tyrannis.  Quid pro quo — quo vadis?  Ipsom lorem.  Sine quo non. In dentibus anticis frustrum magnum spiniciae habes!”

A potential sticking point — where to hold their joint conference — was easily resolved with the help of a slide rule and Google maps.  Palm Springs, CA is more-or-less in between the two previous venues, so attendees of both upcoming conferences will be meeting in the middle.

The truce was apparently brokered by none other than Joe Ferrara, broker, attorney, and blogger extraordinaire.

Other surprising related revelations:

• The combined entity, to be known as “Bloodhound 4Realz Unchained,” is engaging the dynamic duo at 1000 Watt Consulting to market the event.  At Greg Swann’s insistence, all market collateral will be in Latin haiku.  Said Marc Davidson of 1000 Watt:  “The haiku bit is no problem.  My Latin’s a little rusty.  But it should be no problem.”
• The combined entity is said to be in talks with Inman.  Joel Burslem:  “People were getting sick of the whole San Francisco and New York thing and indicated a different venue would be quite popular.  We figured we should just combine all three of us.  Details haven’t been finalized, but we’ll let you know as soon as we can.”
• The official exchange rate will start at 44 Realz to 3.7 Bloodhound Bucks, and 88 Realz will get you on the short list of the weekly Odysseus Medal.
• The official uniform of the conference will be day-glo-hued spandex tights with huge cod-pieces.
• Kevin Tomlinson, self proclaimed Google backlink whore, will provide refreshments, primarily Diet Coke and popcorn.

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What does this mean?  Quite simple — if you’ve been thinking of starting a blog, you may have noticed that every single possible domain name has already been taken.  Seriously.  Trust me on this.  Say you’re in Wapatachee, WI.  WapatacheeBlog.com, the obvious choice, is already gone, as is its plural form.  WapatacheeHomeBlog and its plural twin — taken.  Same with WapatacheeRealEstateBlog[s].com, WapatacheeHomesForSaleBlog[s].com and so forth…you’d have to content yourself with something like WapatacheeRealEstateAndMortgageServicesInformationForYouFromMeYourTrustedRealtor[s].com

With the new .Blog domains available, you’ll now be able to settle for something much simpler and much more memorable.  Wapatachee.Blog, for instance, would be a good choice.

At just a few minutes after midnight, just after the domains had become available, I thought I’d reserve a few obvious choices for myself — 3Oceans.blog and 3OceansRealEstate.blog.  Guess what — taken!  I did some sleuthing and found both domains had been registered just minutes earlier by a company named DotBlog.Blog, headquartered in Cincinnati OH at 10979 Reed Hartman, Suite 118B.  Some more investigation proved my suspicion:  DotBlog.Blog’s head office is in the broom closet of Dan Green’s mortgage business.

You see, Dan Green is not, in fact, a mortgage broker.  He’s actually a domain cyber-squatter.  He got wind of the new .Blog domains a few days ago and took the time to write an automated blog that reserved every single conceivable re.net domain name within minutes of them becoming available.  Greg Swann — want Bloodhound.blog?  Sorry, Dan’s got it.  Joe — looking for Sellsius.blog?  Same news.

It turns out that through another of his nefarious shell Cayman Island-based shell companies, Dan has started another venture called BringTheMoolahForYourDomain.Blog.com  If you want to ransom your hijacked domain name, send $50 in crisp $3 notes to Dan Green’s West Coast office in Menlo Park.  Email me for the address.

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In the last few years, so many people bought homes with either 100% financing or risky loans that have negative amortization and/or an interest-only payment for a couple of years which adjusts after the initial period. God forbid if your loan has all of those characteristics! Consequently, lots of those loans are now resetting to a higher interest rate and therefore a much larger payment. As home values decline in some areas, lots of people owe more than their home is worth. This can be best illustrated with a quick story.

There’s a man here in the Willow Glen area of San Jose who bought a beautiful, newer home at the end of 2005 for $940K with a 100% financing, 2 year interest-only option ARM loan. His payment, between the 1st and second mortgage, was about $6,000 per month.  “Don’t worry,” Mr. Sub-Prime Lender told him at the time, “since property values are going up at more than 20% per year, in two years you can simply refinance your house with a more stable, long-term loan and you’ll have plenty of equity to get an 80% 1st mortgage.”  Yeah right.

Fast forward to a month ago. Mr. Homeowner-Been-Screwed gives me a call and says that in December, his payment jumped from $6K per month to over $9,000 per month!  Not only that, but the house across the street from him which is the same age, about the same square footage, is of similar design, features and construction has been sitting on the market for the past 6 months at a list price of $850K. Ouch.

He tells me that he lays tile for a living, and has been working a second job over the past couple of months to try and make his new $9K mortgage payment, but he just can’t seem to make ends meet anymore and is going to miss this month’s payment, so he’s afraid that his lender is going to foreclose on him. He says he feels angry, betrayed, helpless and stuck between a rock and a hard place and doesn’t know where to turn. I tell him that he actually does have options, 11 options in fact. So I offer to sit down with him and show him a new report I just wrote entitled “11 Options for Homeowners Facing Foreclosure.” He was delighted to know that there are things he can do to avoid foreclosure.

So in this first part of a three part series, I’ll share with you the first set of options in my new report, which break them into three categories:

1. Things you can do to try and keep your home,
2. Things you can do to sell your home,
3. And finally, some “last resort” options.

Lets look at the first category and review a summary of the options.  First of all, if you want to try and stay in your home, then you need to open a dialogue with your lender. Ask them if the will do a loan modification.  This is where the terms of your loan are changed to make the mortgage payments more affordable. If you are behind in your payments, then you may be able to work out a payment plan, where the missed payments are either added to the loan balance or simply divided up and paid over time. This option will usually go in hand in hand with a forebearance agreement where the bank agrees to postpone taking further foreclosure action, particularly if you can prove that your setback is temporary.

At any time during the foreclosure process, you have every right to cure, or reinstate your loan by paying it off. This can be done with a conventional refinance, however many times, a conventional refinance is out of the question, because a new bank will require at least 10% equity in your home, and if you’ve missed payments, then your credit is likely suffering enough to prevent you from getting that new loan anyway. Another option might be an equity loan or what is know as a hard money loan. Hard money lenders don’t really care about your credit, they are just concerned that your property can secure the loan. These loans usually have incredibly high interest rates and all kinds of up-front fees, so they should only be used as a short-term solution, usually buying you enough time to stop the foreclosure and sell the home. Again, these types of lenders will need to see significant equity in your property.

If you would like more detail on each of these 6 options to stay in your home, as well as all the other options I will be discussing in part 2 & 3, you can download a full copy of my report, “11 Options for Homeowners Facing Foreclosure” right here on my Website.

In part 2 of this three part series we will examine the three options to stop the foreclosure by getting out of your property and the loan. Stay tuned!

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We’ve all heard the cliche, “the devil’s in the details”, so what are the latest requirements to obtain a conforming loans between $417,001 and $729, 750?  Since I’ll provide you with a link to Fannie Mae website and announcement , I’ll provide you with some highlights that I think are most relevant and let you read further at your leisure:

1. Single-unit properties only

2. Purchase and “limited cash out” transactions only (i.e. no greater than $2,000 going into your pocket upon settlement)

3. If primary residence purchase, up to 90% loan-to-value (”LTV”) allowed if fixed-rate program is selected–700 minimum FICO(R) required; 80% LTV if an adjustable-rate loan is selected–660 minimum FICO(R) required; if refinance

4. If second home or investment property purchase, maximum 60% LTV allowed with minimum 660 FICO(R) regardless of eligible loan program selected

5. If refinance, regardless of type of eligible mortgage program, up to 75% LTV allowed, plus subordinate financing allowed in addition up to 20% LTV–660 minimum FICO(R) required

     a. SPECIAL NOTE, consolidating existing first mortgage and subordinate mortgage into one loan NOT eligible AND six  months of “seasoning” (six payments made on existing mortgage) required to refinance!

6. Loans are eligible for origination NOW 

7. Eligible programs include 30-year fixed, 15-year fixed, LIBOR-based 5/1 ARM (amortized and interest-only payments allowed for this program)– more programs may become available

8. Sufficient employment, income and assets must be verified and each file will require manual underwriting– automated underwriting engines not allowed at this time

Again, I do encourage you to read the Fannie Mae announcement from the 6th of March for all the details, but the above are the top highlights.

So what will pricing look like on these “new” conforming mortgages?  Well, pricing has just recently been released by only a few institutions, but it looks like the 30-year fixed is running at about 6.375% and the 15-year fixed is running at about 6.25%.  The 5/1 ARM pricing is expected to be released next month.  What I do think is that pricing may actually get a little better in the short term as more institutions post pricing and auctions are successful with Fannie Mae and Freddie Mac. 

What’s right for you as a would be home buyer on the Peninsula?  That depends of course on your specific situation, and I do encourage you to consult with your trusted mortgage and financial consultant before placing an offer on a home or refinancing your mortgage.  What I can say is that the majority of our clients who are buying or refinancing today are selecting a jumbo 5-year ARM in the mid-5% range due to its balance of savings, security and flexibility.

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First of all, he is no Paris Hilton. People don’t want to link him with a sex scandal. Second of all, there is a drastic difference between his political image & persona comparing to his exposed image, unlike Paris Hilton who has at least been very consistent in her image as a party girl. So it was not a huge shock that Paris made a sex tape somewhere.

Eliot Spitzer, right, apologised to his family for “private failings” [AFP]

What does Spitzer have to do with Real Estate & Listing Photos?

Like someone in the limelight, your listing needs to present a consistent image front and back, inside and out. In a competitive market, your buyers are critical and they will be picking your listing apart. Also with the ease of internet shopping, it is very easy to overlook your listing while someone else’s looks much nicer and easier on the eye.

I see many MLS photos that present an inconsistent story that does not tell the story of the house.

Let’s look at some real MLS photos I recently pulled off the web:

It’s too dark to see anything. How big is the room, what is the purpose of this room, can you see? The room also has the “Titanic Effect” where everything is tilted to one side.
What’s the selling point of this kitchen? More importantly, where is the counter? Does this image say “I am a good seller who takes care of my house?”
Ah I get it, your listing has a floor.

What an interesting splash pattern on the floor, was there a dead body?

Am I looking at your floral arrangements or at your house?

Are you trying to sell me this house or this giant cabinet? I see I can fit, oh just about 1/3 of the bed into the room.

Are you advertising for your listings or its neighborhood vendors? Shockingly I see this very often in MLS photos where people show signs of local shops, etc. where there are less than 10 pictures of the home itself. In real estate photos, quantity does NOT equal to quality. As buyers, we want to see quality photos that represent the home well.
Are we selling the seller’s interesting collections or the house?

Now you see why photos are important? The MLS photos is a tool for you to tell the story of the house that you are selling. Leverage it well will bring you success in driving traffic to the open house and showing. We all know a photo is worth a 1,000 words, so let your pictures do the talking.

As the listing agent, you have a tremendous power and control over how you can present and market your listing in the best light. After all, presenting a listing is like presenting your single friend to the dating market — your single friend is gotta look good out there! So let’s make a pack together: us stagers will provide the nice staged home effects ready for show and you the agents will present wonderful and well-shot photographs on the MLS!

Happy selling,

Cindy

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