360Digest

With an increasingly shrinking real estate pie, many companies are looking for ways to diversify their focus so as to cover more bases, get more eyeballs, attract more customers, make their site more “sticky”, and perhaps retain customer loyalty.

We’ve seen Realtor.com, Zillow and HouseValues branch out from real estate into financing and mortgage services. Local real estate firms are offering mortgage and escrow services under one roof. What other businesses have done the same thing?

There’s news out of Napa Valley, CA that Intero Real Estate Services franchise owner, Mike Bolen, has opened Mike Bolen Fine Art, a New York-inspired urban art gallery adjacent to his downtown Intero Real Estate office.

Several “Real Estate Cafe’s” have emerged, whether or not they serve real or virtual coffee, it’s a cute gimmick…. Both Good Earth Real Estate and Real Estate Cafe serve it up hot, and Seattle Realtor Louise Maxwell hosts Seattle Real Estate Talk with the byline “Double Tall No-Fat Real Estate Chat”.

And then, unrelated to real estate but it’s got the coffee thing goin’, there’s Seattle’s Espresso Dentist…….. (I guess they clean the coffee stains off your teeth….) And who could forget Sit ‘n’ Spin and Suds & Duds, businesses here in Seattle that combined beer and laundromats?

Claudia Ault notes a New York broker who managed to combine real estate with matchmaking and introduced a real estate client to her future fiancee…. a trend in real estate?

Then there’s MyHalfHouse.com . This is a web-based business model dedicated solely to connecting individual investors from around the world, together for the purpose of creating real estate investment partnerships. Think of it as a web-based dating-service, but instead of matching singles, we’re matching real estate partners.

And here’s a story from New York Magazine on another kind of real estate romance…..

How to become a professional matchmaker.

In response to solicitations and “cold-calling Congress” Redfin got itself 5 minutes before a Congressional Subcommittee on Housing and Community yesterday.

In their statement by Glenn Kelman, he complains about how the “industry is stifling innovation”. He continues, “We’ve posted photos of dirty agents on a Web site we called the Hall of Shame, only to have other agents apply to join.” He’s right, I did ask to be featured on the site… I’m not quite sure what I have to do to become a member, but consider this my official application

Redfin’s main complaint seems to be how “unfair” the whole system is, how they’ve been “threatened” and how they’ve met resistance from other agents. Let’s see……Kelman’s been quoted in dozens of articles, websites and press releases about how he’s going to “disrupt” the real estate industry and disintermediate the agent, and then they complain that they’ve met with some resistance from the very people they’re threatening. Hmmm…. It could also be because of their historical hostility to real estate agents rather than their current business model. Or maybe it’s just personal. Could this be the future of the real estate industry?

Anyway, bottom line is Redfin wants the federal government to pass legislation forcing private MLS’s to provide Redfin with all their private data, and they want the right to distribute this data any way they see fit. “Redfin thus asks that Congress act to give brokerages of all types equal and unfettered access to listing data, and to authorize the Federal Trade Commission to regulate states’ minimum-service and anti-rebate laws, so consumers can make their own choices about commissions.” And while we’re at it, allow all the listing information to appear free-of-charge on all the real estate portals and then sell the leads that they get back to the agents who own the listings. And make sure you charge the agents for ads on the portal, next to the listings that were originally scraped from the listing agents site….

BTW, “Realtor” is a copyrighted term referring to members of the National Association of Realtors. Please capitalize the term. Thanks!

Further reading:

The Top Sixteen Lies of CEO’s, at the suggestion of, and with the help of Glenn Kelman, on Guy Kawasaki’s blog (is this irony or sarcasm? I can’t tell….)

Discounters, FSBO’s and Redfin - Oh My! (Rain City Guide)

Scoble sell his house — Where was Redfin?

Redfin goes to Washington (From John Cook’s Venture Blog. Note Kelman is quoted as being “kicked and spat on” by by the Multiple Listing Services in California and Washington. But a few quick phone calls to each confirm that Redfin’s application was accepted and confirmed by each, and they are subject to the same rules and regs that every other licensed brokerage must abide by. One official noted that a Redfin rep didn’t feel as if the same rules should apply to them as to other brokerages …. I guess they won’t have to worry about rules and regulations if their dream of destroying the MLS’s comes true.

UPDATE:

Read all prepared statements from the Hearing entitled “The Changing Real Estate Market.”

Peter Coy of Business Week sheds a tear for poor Redfin getting punched around like a weight bag in a gym (sniff!)

I had written earlier that the Hendersonville, Tennessee home of Johnny Cash and June Carter Cash, where the country music legends lived for 35 years and played host to a long list of musicians, movie stars and other celebrities, had been put up for sale by the late couple’s family. The asking price of the home on Old Hickory Lake was $2.9 million dollars. One of the most interesting angles about this story was that his brother, Tommy Cash, was the real estate listing agent for the property.

Well, as reported by The Real Estate Bloggers, the house has sold to singer-songwriter Barry Gibb of the Bee Gees. Barry and his wife, Linda, paid $2.3 million for the property, and, according to The Real Estate Bloggers, it’s the end of the world as we know it.

House put on the market (The Tennessean)

House sold (Wall Street Journal)

House of Cash (fan page)

Tommy also, apparently, performs a Johnny Cash Tribute Show.

If you’re worried about megahomes encroaching on your neighborhood, take matters into your own hands with these 5 tips.

5 ways to fight the McMansion expansion (MSN Real Estate)

Are American’s Spoiled? (Seattle Post-Intelligencer)

Are McMansion’s going out of style? (The New York Times)

Now that I have your attention, there was an article in The New York Times, Playing the Sex Card, that discusses using, of all things, SEX(!) to sell real estate. Though I haven’t seen that much in Seattle, I do see real estate brokers selling lifestyles, with ads showing glamorous couples laughing on the balcony of their new condo, champagne in hand, sharing a secret passion as they enjoy life on their 5×12 Seattle-view lanai.

Curbed LA featured Los Angeles’ sexiest real estate agents in their contest Broker Boys & Babes. Since the average age of brokers here in Seattle is just a shade under 50, I doubt we’ll be importing this charming tradition here….

I’ve waxed melodic on several occasions about Sex and Real Estate, and still subscribe to the old chestnut “Sex is like real estate: get a lot while you’re young….”

The Seattle Times recently published its list of local CEO’s salaries, and I saw that locally-based national real estate firm HouseValues CEO Ian Morris’ salary went up 227% since last year. Considering the latest inroads by Zillow and other 2.0 real estate websites have made in delivering an approximate value over the net, I would have thought that HouseValues would be hunkering down and re-examing their business plan. John Cook did make a note that they bought The Loan Page last year, so it’s obvious they’re not putting all their real estate eggs in one basket. If a homeowner can just type in an address and get a “value”, why would they give up all kinds of private information just to be contaced by a real estate weasel who’s under the mistaken impression that they want to sell their home? Zillow has also branched out with their loan page, and I expect other real estate portals to do the same.

HouseValues.com does not get it’s revenue from real estate buyers or sellers, but from real estate agents who are desperate for leads. These agents pay up $200, maybe as high as $500-$600 a month, for zip codes in targeted areas. For this, they are promised a certain number of leads per month.

But read the entries from angry real estate agents from across the country on Rip-off Report.com:

Realtors & Mortgage Brokers Beware!

Please read this notice carefully. Beware of HouseValues.com. They will do a bait & switch on you, they are basically scam artists. They promise you the world and pressure you to join, they say “just try it out” and they won’t lock you into any contract if it really doesn’t work for you. If you hesitate, they call with urgent messages saying another broker is about to buy out all the subscriptions and put a LOT of pressure on you. Then they say just try it out, they tell you if you really hate it, they won’t lock you into any contract (do not believe anything they say) but as soon as they have your credit card and rush you through the sign up process, it is too late.

Once they have your credit card information, they will continue to charge whatever they can on your card, they claim by signing up (regardless of promises your sales rep made to you about not locking you into any contract), you are locked in for 1 year, and in order to get out of the contract you have to “buy it out.”

Click HERE to keep on reading.

Uhhmmm… She sounds a little, uh, cross. There appear to be dozens of other sites that are filled with complaints about this company.

StockLemon.com suggests that HouseValues is not a viable business model, that it faces too many competitors offering the same information for free (i.e., not asking for personal information), and that there is radically increasing customer acquisition cost, since HouseValues already spends nearly 50% of every revenue dollar on line item “Sales and Marketing Expense.” They have recently begun to give seminars to teach agents how to “work the leads”. Seminars are a costly business that will eventually eat into the bottom line, and that in a declining market, their customer base (i.e. agents) will be leaving the business.

If Housevalues.com was providing a valuable service to real estate agents, if the leads were good and the service worked as promised, agents would be ecstatic and happily pay their monthly fees.

However, that is not what happens. Homeowners are promised that they will receive their homes value, online. What they receive, however, is an email or phone call from an agent. Why? Because the information the homeowner enters online is sold to an agent as a “lead”. Even if the homeowner isn’t planning on selling. But each homeowner contact is sold to an agent as a lead because there is not an option on the HouseValues input screen that says “Just Curious” or “Just Wondering”. It’s not the agents fault. They think they’re buying viable leads. It’s not the homeowners fault, as they think they’re just going to get a number spit out of a computer program.

According to the SEC filings on HouseValues, their churn rate, which measures the rate at which subscribers cancel, ranges from 6 to 6.5% per month. Essentially, 72% to 78% of its customer base cancels its subscription every year. This does not speak well of the HouseValues product. It could be that its questionable marketing tactics, the high customer (agent) churn rates, and the importance and validity of such sites as Zillow will soon catch up to Housevalues.com.

I received an unusual request recently to help find a location for a new film based on a local true story about a man and his horse. Well, not his horse, someone else’s horse. You may have read this lovely little story in one of our fine local newspapers….. Horse case made into movie (The Seattle Times).

What kind of place are they looking for?

Independent film production is seeking the following for a shoot in
late July and early August.

LUSH HORSE FARM with:
-LARGE estate house
-horse stables
-fencing

The stables we are seeking should ideally be in a remote area. The
horse farm should be very green or magical in its setting, and have
large open fields lined with split-rail fencing and possibly a silo.

We are also seeking a SMALLER RANCH HOUSE (one story),
though not necessarily on the same property. Ideally,
it should be furnished and avaiable for some interior
shooting. The older and more lived in, the better.

A fee can be paid for the days of shooting. The production is fully
insured. Must have an appreciation for the arts. The director’s
last two films have played at the Sundance Film Festival.

The subject is controversial but the filmmakers are approaching
subject with great care and sensitivity.

If you are interested in more info, please contact me
at elisaharadon@hotmail.com

Feel free to send photos as well.

I am so flattered that they thought of me and asked me to assist! What were the thought processes that went into that, I wonder?

Anyway, Elisa also sent a photo of the kind of property they were looking for, so if you know of anyone who owns a farm and wants it immortalized in film history forever, please contact us.

Here’s more press about our local story soon-to-be-made-into-a-major-motion-picture:

The Animal in You (Charles Mudede, The Stranger)

Senator sponsors ban (The Seattle Times)

Restraint (Nicole Brodeur)

Most clicked on article (Danny Westneat)

Man enters plea (The Seattle Times)

Charges filed against man… (The Seattle Times)

Man Charged with Trespassing (Seattle P.I.)

Letter from The Horse (The Stranger)

One red paperclip.
One house.
One year.

His name is Kyle MacDonald and he traded one red paperclip for a house. He started with one red paperclip on July 12 2005 and 14 trades later, on July 12, 2006 he will trade with the Town of Kipling Saskatchewan for a house located at 503 Main Street.

Read his story here.

Stephen Jagger of The Uberator and his business partner Michael Stephenson, as well as 3 of their sales team, have moved to Seattle to get things rolling with their software sales, training and website development business.

They’re running several free training sessions for Realtors and real estate agents, and topics include, why and how to blog, how to submit listings to Craigslist, Feedburner, Google, etc. They’re also doing training on how to use the Ubertor software and best practices for getting websites indexed in the search engines.

Uberator events (ongoing)

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Just got an offer from www.MLSOnline.com to buy into their lead-generation program. “You will be able to select territories and view the prices and the terms of signing up with MLSonline.com. We offer Month to Month, 3 month, 6 month and 12 month subscription terms. Territory prices range from $49.95 per month to $249.95 per month depending on the territory that you are interested in.” And exactly what does one get for that $249.95 a month?

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The folks at Emongoo.com posted the following message to 360.Digest:

“Please don’t take this as spam. I am blogging everyone I can to let people know about Emongoo.com. Ok, ok so that sounds like spam, but really that is not my intent. The goal is to just let people know. The website emongoo.com is a new “For Sale By Owner” website that offers more ways for sellers to sell real estate. Buyers can also search for free on Emongoo.com. The goal is to let everyone know about our company and to get feedback.”

And I take these quotes from their blog:

“People are finally starting to see through the false standards of the real estate status quo”

“A change has been needed in real estate for quite some time and both Zillow and emongoo are paving the way for changes in the real estate industry.”

“With the launch of www.zillow.com so many more people are looking at Real Estate and the web and seeing the enormous possibilities. Good thing we got our foot in the door! Trust me in the next few months it will only get more insane.”

Yikes! They really want to know what I think? I think they have a worthless website that takes advantage of desperate sellers. Attention sellers! It is doubtful that a listing there will sell your home. Do not buy legal forms from this company! It is doubtful that they will protect your interests. See an attorney instead. Do not buy their directional signs before checking with your local municipal government. Many cities and towns have rules against posting signs that are not directly on the sellers property. Do not send them the $625.95 for “e-coaching. I’m pretty sure it’s a waste of money. If you want to sell your home yourself, there are plenty of local options for you. Do not be swayed by their slick website. Hire a local real estate attorney instead. It’s safer. Good luck!

Emongoo Spam

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IKEA invades New York City with everyday fabulousness.

A strange photo collection of Japanese kitchens.

Pastor sentenced to 3 years in jail for real estate fraud.

HUD charges N.J. Landlord with discrimination. They allege Cottage Manor Apartments sought to group tenants based on religion, race, color, and national origin.

A $200K garage for your car.

Utah company BlueRoof launched this weekend, with much fanfare and celebration. In their blog, they state:

“It only makes sense that consumers are tired of the old guard of Realtor and want a fresh alternative. Enter Propsmart and Trulia and Redfin and Zillow and now BlueRoof to give the consumer better technology that can add more value to their experience.”

They continue, “The BlueRoof business model is to connect buyers and sellers together in one place with a Realtor coordinating the transaction so everything goes smoothly. Sellers can list their home and have full representation and a complete marketing plan for 1%. Buyers receive a rebate of any commission received, and when a buyer buys a home that is for sale by owner we’ll help them coordinate the transaction for $1000.” When I checked with the National Association of Realtors, however, there was no “Blue Roof” in Utah listed as a member.

Blue Roof, like Redfin and Zip Realty, misrepresents their status as “Realtor” and claims to be a member of the National Association of Realtors and adher to its strict Code of Ethics, while actually NOT being a Realtor subject to their rules, regulations and ethical code.

Are agents at these companies “Real Estate Professionals”? Not according to Dr. Kevin Boileau in a recent Inman article Real Estate Ethicist (registration required). He says, “there really is a technical, traditional definition of “professional” status, which includes three criteria: 1) specialized knowledge; 2) group identification and membership; and 3) agreed-upon education and training, including ethics training, certification by examination and continuing education.”

So, while these agents who work for these new breed of real estate companies may have learned some specialized knowledge, they must also be obligated to follow certain, written ethical standards of practice. “This allows individuals in a specific industry to maintain specific behavioral expectations amongst themselves as well as toward their target consumers. Without a written code of ethics, standards are nebulous and therefore cannot be formally learned or enforced. This breeds moral chaos.”

You have to wonder why so many real estate agents and companies want to claim association with an organization that they despise. They want all the benefits and good will that comes with this association, but refuse to pay their dues and continue to “Realtor bash” whenever they have the opportunity.

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Happy Fourth of July.

Graceland was honored to welcome two world leaders to Elvis’s home last week. President George Bush and Japanese Prime Minister Junichiro Koizumi toured Graceland in a historic visit. Priscilla and Lisa Marie Presley greeted the two leaders along with First Lady Laura Bush upon their arrival. Watch a video to see what the President and Prime Minister had to say about Graceland and Elvis after their tour and see photos here.

Graceland has the honor of being the most visited historic home in the United States, hosting a mega Open House nearly every day of the year.

Graceland is one of the most valuable pieces of real estate in the country. But it’s more than just a house, it’s a business. Graceland and Elvis Presley Enterprises was sold to media mogul Robert Sillerman several years ago in a sweetheart deal for Pricilla and Lisa Marie.

I had the good fortune to attend the Penticton B.C. 5th Annual Elvis Festival last month and met dozens of top Canadian Elvi as they swiveled and shook they’re way to Canadian Elvis infamy.

I was thrilled to see Dino Macris perform again, after winning top honors at the Elvis Invitationals earlier in the year at Paul Allen’s EMP, where I’ve been a judge for several years.

What does this have to do with real estate?  Well, Dino’s married to none other than real estate educational dynamo Denise Lones.  Based in Bellingham WA, Denise has a company that specializes in assisting agents and companies fulfill their full marketing potential with coaching, sales systems, marketing help, business analysis and broker/agent “bootcamp”. I’ve attended several of her seminars and found them super-fab and inspiring (plus, gotta love those clock-hours!)

Other agents and real estate folks love Elvis too….
 

Grow-a-Brain loves Elvis

Rodney Hamrick, Elvis Impersonator and ERA Real Estate agent in Mobile, Alabama.

The Cheesy Realtor

Elvis Vogrin, Re-Max Agent

Elvis Nail, Realtor

Elvis Webster, Jonesboro, GA Realtor

Boston real estate agent, Elvis Doda

Buy “Elvis Real Estate” in Turkey

Zillow loves Elvis