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Zillow, in an overnight web transformation, has added the ability for agents and homeowners to place a virtual “For Sale” sign on the Zestimate home pages.  In case you’ve been living in internet isolation, Zillow is a web site that has combined over 70 million homes in the United States with satellite imagery.  They had also made it possible for homeowners to view a Zestimate of their home’s value.  In addition to the virtual “For Sale” sign, Zillow is introducing “Make Me Move” pricing.  Homeowners can post the price that it would require for them to sell their home now. 

 There is some great blog commentary to be found about what this means to the industry.  Here are a few links below.

BloodHoundRealty - 2006 is the Year of Zillow 

TechCrunch - Zillow knows that everyone has a price

DrewMeyersinsights.com - Zillow Adds for Sale postings…

Sellsius - Zillow Comes clean…

and last but not least,

ZillowBlog - We’re opening it up!

No need to rehash what was already said here.  There are really more questions right now than answers when it comes to what the long term acceptance by the public we’ll be.  I’m going to get into this a little bit so I can review the features before I start forming my opinions about it.

I’ve never met a seller who doesn’t want top dollar.  Some understand that top dollar in two weeks will be lower than top dollar in two months but they all want top dollar.   Whether you’re selling your first home or working on your 1st fix-n-flip, knowing what the market will bear is the starting point to a successful selling plan.   But establishing what top dollar is an art not a science.  On paper, prices for a neighborhood can usually be ‘ballparked’, usually within 5-10% of the home’s value.  Once you get inside a home, prices can get a little fuzzy.  Evaluating how much an improvement will raise the value of a home is tricky.  Any improvement to a house will improve the value, the question is, how much? Will you even get your money back and is it worth it before putting your home on the market? A recent cooperative study between Remodeling Magazine and the National Association of Realtors (Realtor Magazine) has produced a Cost vs. Value Report for 2006.

 Remember, in most cases you won’t see a dollar for dollar return on investments.  There is an invisible price cap usually dictated by what comparable homes with similar quality features are selling for.   Consider improvements to your home a neccesity if you want to sell your home at all in the current market.  Especially if you want the highest price for the neighborhood.  But remember, Read the rest of this entry »

  Long term success in real estate is built on trust and referrals.  With this in mind, it’s a shame that some fly-by-night agents are abusing their position at the expense of an industry’s reputation.  A recent article in REALTORâ„¢ Magazine discussed the problem of loan fraud. 
   I know there are many naysayers that are highly critical of the National Association of Realtors and would expect the article to be more of a ‘how to’ than a critical condemnation of the practice.  The truth is Realtors as an organization have high standards designed to protect the public and the reputations of Realtors.   If you truly believe you benefit yourself by working without one, I highly encourage you to take on the process of buying or selling a home yourself.  If you get sick of the experience, try it with a Realtor and you’ll begin to appreciate the whole idea of specializing in a practice.  That being said, I was once a naysayer too. 
         Realtors have a Code of Ethics.  If they violate the code or the law, they can be fined, have their license stripped from them, and be publicly humiliated. (All decisions and judgements are published in a newsletter.) One lapse of judgement and they may be barred from working in real estate all together.

  One of the best things people can do to protect themselves in real estate transactions is to keep in mind the following: Read the rest of this entry »

Being a real estate broker is not an easy job.  Real estate has the potential to make you a lot of money but the truth is it’s not easy money.
I would like to share a couple of things that I feel everyone, especially people thinking they should get into the business, should know. 
The National Association of Realtors (NAR) is your strongest ally and strongest opponent.
     The NAR has vast resources available for you to be successful.  In fact, I dare say it’s impossible to succeed in real estate without being a member or at least dealing with them.  They have gone to bat for you on every level of government to make sure its members can make a living for themselves.  They provide education and training to their members to better equip them for success. Their code of ethics have provided a guide for conduct that usually exceed what your state requires of a real estate agent.  The code also provides a way that the public can seek some retribution when the rules are broken.
    A drawback is that while you have the support of a large group of individuals, you also have the pressure to fit in.  Agents are encouraged to ‘protect their’ commissions. Agents at larger companies are told to sell people on their personality, their work ethic, and their brand.  “Put your picture on your cards and wear your Realtor pin”, is that really going to help you?…maybe but don’t believe all the hype.  Test the ideas to find out what works and what doesn’t.  There will be a lot of propaganda you will be confronted with.  Sift through it and figure out what works for you.
   I see competition on pricing as the most important issue facing the industry.  The job is easier than it was 10 years ago.  Home prices have grown faster than the cost of living.  The same percentage commission would go a lot farther today than it did in the past.  The public knows this so don’t feed them a load of crap if you expect them to respect you.  Find a business plan that works for you.  Check with your employing broker what flexibility you will have in negotiating your commission.  Compete on price to build your business.  Why else would someone hire an entry level Realtor?  Your skills?…  please.  And nobody wants to give thousands of dollars to you just because you have a pretty face either. (Well, I can’t speak for everyone.)  You price your services based off what you bring to the table.  There will be times when you’re going to be up against a monster agent, how will you compete? 
The competition will be fierce so prepare yourself now.
If you’re just getting started, remember these things.
TOP TEN things I wish I knew when I started. Read the rest of this entry »

The Denver Post Article announces that the home of the reality show “The Real World: Denver”, was recently sold for $3.3 million.  The show features the usual cast of upstanding examples of what showering your child with love and attention can accomplish.  The cast members’ jaunts around town to various clubs and bars shed light on the side of Denver that you may not have known to exist.  Much of the action though takes place in the 21,000 SF building.  The new owners plan to cash in on the buzz revolving around the show.  The sold price was only 500k more than before MTV accepted the lease and made it over for the show.   The developers plan to try to reverse the fortunes of the location as the last bar, B-52’s, went out of business with the owners in foreclosure.

 I hope the developers have a ‘plan B’ as this ill fated venture seems destined to fail.  The novelty will wear off within 6 months of its opening.  The bar is going to have to stand well on its own.  Perhaps a good happy hour.  $2 ’You call its’ and girls in tight black t-shirts that say “The Tequila made me do it.”  When you’re bored of looking at the Jeep Wrangler bar or wandering around with a black light to see what glows in the dark followed by the inevitable question….”Hmmmm, how’d that get there?”…. you’re going to move on to one of those trendy places with an ice bar and fancy color changing LED lights. 

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