Archive for February, 2009

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As a preview of what goes on at Bloodhound Unchained, Greg Swann and Brian Brady came to Seattle last week to lead a 1/2 day seminar at the Zillow headquarters in Downtown Seattle.

Blogging, social media, search and Real Estate 2.0 was discussed in earnest, and the day wrapped up with Mr. Swann and Glenn Kelman debating whether or not VC-backed real estate firms are going to eliminate the Mom-and-Pop real estate brokerage.

I don’t think they actually resolved this question, but Kelman’s musings on his business plan and the profile he presented of his current and future customer was interesting. (You can view the video here.)

Kelman said that he doesn’t expect to get all the real estate buyers out there, but a certain kind of buyer would be attracted to his business model. Typically those buyers would be techies, perhaps even described as nerds. He even told of a story about one of his employees wondering aloud why their clients were all so weird!

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He recounts the story of the purchase of his first home. He said he was annoyed because the sales agent wanted to be his “friend” when all he wanted was to be shown houses that fit his criteria. He was especially annoyed when the agent wanted to take him to dinner. Kelman would have been just as happy to stay home and get the money instead. He guesses that there are other anti-social buyers out there that don’t want a personal relationship and would prefer to communicate via email and text message and avoid actual human contact as much as possible. For this person, Redfin was created.

Under discussion for several years now has been the observation that a great many people employed in the IT industry share some of the same traits as those described as having autism or Asperger’s Syndrome. Many seem to lack basic social and motor skills, seem unable to decode body language and sense the feelings of others, avoid eye contact, and frequently launch into monologues about narrowly defined - and often highly technical - interests. They often want to avoid interaction with other humans and prefer numbers and logic to emotion and human interactions.


(Video from Wired)

Aside from some usual suspects from history (Isaac Newton, Emily Dickinson, Albert Einstein) and fictional pop culture (Mr. Spock, Mr. Bean, Sherlock Holmes), the name that most often comes up when discussing Asperger’s is that of the Master Geek himself, Bill Gates. (I doubt, however, that a true Asperger’s individual could ever endure the social requirements of Gates’ public life.)

I was wondering how I was going to work this photo into a blog post...

I was wondering how I was going to work this photo into a blog post...

After listening to Kelman discuss how Redfin was created and who it was created for, there appears to be a definite link between their creators, their customers and the range of the autism/Asperger’s Syndrome.

What I’ve noticed with my business and the type of client I do best with, are those who buy for emotional reasons. They rarely ask about statistics or the market, they just seem interested in how the house makes them “feel” and in envisioning their future home full of love, family and happy moments and memories. This seems to be completely opposite with a Redfin-style of buyer. Redfin’s individual city blogs have been converted from chatty commentary about homes and neighborhoods to columns full of dry statistics, mathematical formulas, bar graphs, charts and numbers, compiled by nerds for nerds.

I thank God for nerds, as we’d probably still be living in caves without them. We certainly wouldn’t have modern engineering, automobiles, airplanes, skyscrapers or computers. But obviously, society needs those who “think” and those who “feel” to function fully and thinking about that dichotomy in this way makes me understand their business model much better.

Asperger’s and IT: Dark secret or open secret? from Computer World

Revenge of the Nerds from the Autistic Society

Napoleon Dynamite: Asperger’s Disorder or Geek NOS? from Academic Psychiatry

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Six immigrants who were prequalified for huge mortgages are suing Bellevue Towers and JP Morgan Chase Bank after they lost a combined $174,050 in earnest money. They allege the preferred lender put down false numbers for their income, which made it possible to prequalify but not to qualify for the actual loan, resulting in the loss of their earnest money.

However, there may be more to this story than just the facts put forth from the plaintiff’s lawsuit and the resulting news article in The Seattle Times. Read the comments for some surprising information about the complainants in the suit.

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The name “BarCamp” is a reference to the events origin, with reference to the hacker term, foobar: BarCamp arose as a spin-off of Foo Camp, an annual attendant-driven conference hosted by Tim O’Reilly.

The ideas were absconded by and riffed upon by techies in the real estate field and Real Estate Bar Camp was born.

The most interesting thing about it is that it’s user/attendant created: the program is developed by the attendees at the event, using big whiteboards upon which a schedule is hastily put together, that can be rewritten or overwritten by attendees to optimize the days events. The goal is to reach out to new people who will increase the common intelligence about new technologies, and to create opportunities for cross-fertilization between people and new ideas.

How cool is that?

Seattle’s event was held at the lovely Zillow offices and a big shout-out and thank you goes to the management who allowed us to use their vacant offices for the event.

I enjoyed seminars on blogging, creating dynamic websites, Twitter and other social networking sites, something from Greg Swann called Scenius, a great presentation by Mike Simondson from Altos Research, and another about Active Rain from Rich Jacobson. I met the fellow behind WalkScore.com, which is a great way to rate the walkability of a neighborhood.

Rhonda Porter and Jim Reppond

Rhonda Porter and Jim Reppond

Greg Swann

Greg Swann

David Gibbons

David Gibbons


Whitney Tyner

Whitney Tyner


Rich Barton

Rich Barton

Jim, Lloyd Frink & Spencer Rascoff

Jim, Lloyd Frink & Spencer Rascoff


I got to listen to statistician Stan Humphries discuss Zillow’s data. I had a nice chat with Rhonda Porter and I guess Ardell was there, but I missed her somehow. I enjoyed seeing David Gibbons again and hearing about his roundabout journey to Zillow. I also got to meet a lot of the brains behind Zillow, Spencer Rascoff, Rich Barton and Lloyd Frink, and had a beer with my friend Whitney Tyner at the after-party beer blast that Zillow hosted in their 46th floor office suites.


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The ups and downs of real estate in Miami. Carlos gets in over his head.

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BlockShopper, a site which uses public records, Facebook and Linkedin to track down who’s buying and selling what, has been sued by a law firm for linking to its website.

The law firm didn’t say why it sued, but maybe they thought the posts compromised their lawyers’ privacy. Housing records are public documents, but the Web turns public into accessible, and the firm probably wasn’t thrilled about having its attorneys’ home purchases blabbed all over the web. Someone at BlockShopper must sit around all day and cross-check public records with names on social networking websites, because there seem to be a lot of photos of homebuyers and sellers sitting around the pool or posing in front of the Eiffel Tower.

The law firm demanded that BlockShopper remove the items and links. When BlockShopper refused, the firm sued the 15-staff startup for trademark infringement. Jones Day’s legal theory was that BlockShopper’s link would trick readers into thinking that Jones Day was affiliated with the real estate site. Which is ridiculous, of course. They were probably just trying to drive them out of business.

Faced with the prospect of big legal bills, BlockShopper decided to settle. On Tuesday, the real estate site said it agreed to change how it links to Jones Day. This could have had repercussions for all of us if it had acutally gone to trial, and it sounded like the law firm would have won.

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Government may begin to subsidize at risk homeowners mortgage payements

-The plan under consideration would aim to reach borrowers before they fall behind on their payments.

http://www.cnbc.com/id/29164998

Congress says no to the $15,000 buyer tax credit

-In a surprising reversal, lawmakers remove the needed incentive that was unanimously passed by the Senate. The first time home buyer credit is increased to $8,000.

http://www.msnbc.msn.com/id/29136678

Washington sees the largest drop in home sales in the nation in the 4th quarter

-A reminder to sellers that they need to ask themselves if they are prepared to do business in this market.

http://seattlepi.nwsource.com/business/399873_homeprices13.html

Retail sales unexpectedly rise in January

-Consumers begin to take advantage of lower prices and sales.

http://www.msnbc.msn.com/id/29158095/

Inventory in some local areas indicating a sellers market?

http://seattlepi.nwsource.com/local/399922_sellers13.html

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With the future of my group blog Seattle Real Estate Professionals at the Seattle Post-Intellligencer at risk and newspapers all across the country in tenuous circumstances, I’m sharing this intriguing article from a few months ago in the New York Times, Newspaper Shuns Web, and Thrives.

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We’re all going to be sick of each other by the time this month is over:

1. Rain City Guide Meet Up at Crossroads in Bellevue on February 4th at 6:30 p.m. with Ardell, Rhonda and Jillayne.

2. Bloodhouse Unchained Preview Event where you can catch a preview of the marketing curriculum in Seattle on February 12th. It will be at Zillow HQ, 999 Third Avenue, Seattle, WA, on Thursday, February 12th from 1pm to 5pm. Scott Cowan is organizing the event with help from Drew Meyers and David Gibbons from Zillow. The grand finale will be a debate between Redfin.com CEO Glenn Kelman and BloodhoundBlog iconoclast Greg Swann, moderated by Brian Brady.

3. REBarCamp is a free One-Day Event where industry experts share freely with those who want to learn more about marketing and the business. The Seattle meetup is Friday, February 13, 2009 at 9:00am at the Zillow Corporate Headquarters, fancy penthouse-style offices at 999 3rd. Avenue, Floor 41 in downtown Seattle.

I am so in to carpooling (I’m on Capitol Hill), so let me know if you want to.

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Buyer makes an offer on a Paul Allen/Vulcan owned building.

Buyer used Paul Allen/Vulcan site agents and Paul Allen/Vulcan-recommended mortgage broker.

Chaos ensues.

Read the comments. Apparently, the wronged Buyer consulted a independent Realtor and was told not to sign the contract, but Buyer went around Realtor and used site agent to sign Paul Allen/Vulcan/owner/developers contract. Terms of the loan have changed and Buyer cannot complete and close sale and Paul Allen/Vulcan wants to retain the non-refundable earnest money.

Paul Allen & Vulcan are behind the redevelopment of South Lake Union in Seattle and major funders of money-losing brokerage “Redfin”.

#1 Do NOT use site agents to make your real estate purchases. Hire a Realtor or a lawyer, do not use the site agents.

#2 Make sure you have a Financing Contingency in your contract, so you can get your earnest money back if you are unable to get your loan.

#3 You may get a better deal with site mortgage brokers, but you may not. Shop around. Get references from your Realtor or lawyer.

#4 Think twice about buying anything UNBUILT. That’s a risk I would be unwilling to take.

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