The Reality of Real Estate (BlueRoof Blog)

BlueRoof Blog has Changed Locations

2006-08-07T13:51:00.000-06:00

In an effort to increase the quality of the blog, I have moved this blog to blueroof.wordpress.com. Hopefully this will make your experience reading my blog more enjoyable.

Sincerely,

Greg Tracy
BlueRoof.com

New Blog Site

2006-08-07T00:05:00.000-06:00

Just FYI- My blog will be moving to the wordpress platform soon- the address is:

blueroof.wordpress.com

Of course this new blog will be linked to BlueRoof also... thanks for the visits, links and support.

The Fallacy of the Re/Max System

2006-08-06T17:35:00.000-06:00

Re/Max is making a big push with it's new marketing and trying to get the word out they now have all listings on remax.com (like that's innovative). And of course the ads always say their slogan of, "Nobody sells more real estate than Re/Max".

First of all, there is no real measurement of who sells the most real estate. And really, what does that even mean? Does it mean selling the most pieces of property, and does that include residential, commercial, industrial and agricultural? Does it mean selling the most actual land (vacant land)? Does it mean only residential? Does it mean selling the most in dollar volume? Does it mean transaction sides or listings sold?

Well, it means something different to many people and there is no one place to see every sale of every company compared to each other.

Re/Max actually isn't that big of a real estate company. Like other major brands, it's actually a big network of different companies and offices branded with one name. And almost all of their entire network is franchises. There are only about 30 company-owned operations.

Re/Max saying that nobody sells more real estate than Re/Max is like saying
nobody sells more Hondas than Honda dealerships...

In reality each office is independently owned and operated. Each different from the next, with it's own set of policies and procedures, it's own set of standards and culture. They all just share the same name. If you actually compare real estate sold from agents working for the same company, then Re/Max isn't even close to being the top. NRT outsells all the other companies in the top 10 combined in transaction sides. But NRT is also a big franchise collection. And it goes under different names like Coldwell Banker, ERA, Century 21 and Sotherbys.

If you called five agents from five different Re/Max offices and asked them about their marketing plan you would hear five completely different marketing plans. Because Re/Max the company doesn't actually do any marketing for home sellers. Re/Max, the company, is more a collector of franchise fees, licensing it's brand to anyone willing to pay it's fees and sign it's franchise agreement.

One agent may pay for newspaper ads and color flyers while another does neither. One agent may believe the internet is a powerful tool so they decide to have virtual tours of their listings and another may not even believe in the power of internet, like the founder of Re/Max, Dave Liniger, who recently claimed that the internet is over-valued, which also makes me wonder why they even care about having reciprocity of listings on their website.

The fallacy of the Re/Max system is that it's not even a system at all. It's a collection of different systems with a common name.

To be fair- most other national brands are also franchises and also operate in the same way. If you work with a Century 21 agent in Alaska and you're really impressed with their service that doesn't you know anything about the Century 21 agent here in Utah. And that Keller Williams agent that didn't do their job well in Texas doesn't have anything to do with the Keller Williams company in Salt Lake.

And almost all agents are independent contractors anyway, so they're all competing with each other- even agents in the same office and company. In most offices of every company the agent decides what level of service they'll provide.

A small number of companies have employee agents so they can dictate the level of service, and some companies have models that ensure the same marketing strategies are met with every client.

The reason I single out Re/Max is not because I think it's a bad company. I actually think it's a great company, mostly because it was formed with the agent in mind, instead of the broker. And that was a big step at the time.

I single out Re/Max because I have to endure their claim that nobody sells more real estate than they do in all of their marketing. And let's not be naive about it- they don't say that because they are proud of their work or something, it's a way to elicit trust and respect. So people will think, "Oh, they sell more than anybody so agents that work there will give me better service".

Many Re/Max agents are very good Realtors, in fact there is probably a higher ratio of good agents at Re/Max in Utah then at most other companies, but it's not because of their company name, it's because they are good people. Just like with all professions there are good and bad.

My advice is simple. When it comes time to list your house, ask your agent if they will put in the listing contract, "Seller may cancel this contract and receive an unconditional release at any time". That way if you aren't happy with their services you can cancel and hire a better agent.

The important thing to remember is in an industry where most all of the sales people are independent contractors who make their own schedules, marketing plans, and service levels it's important to work with someone based on the person and not by the logo on their business card.

Realtor or real estate agent- What's the Difference?

2006-08-05T02:35:00.000-06:00

Most people who are not in the real estate industry don't even realize that there is a difference between a real estate agent and a Realtor. Realtor (pronounced Real-tor with two syllables) is such a common term that most people just assume all agents are Realtors, which is not the case.

A real estate agent is someone who has gone through the required schooling and passed a test to gain their license to sell real estate. This usually requires 90-120 hours of class time, followed by a test with the school and then a test with the state. After which you are deemed an "expert" in real estate.

A Realtor is a real estate agent who has joined the National Association of Realtors (NAR). This means they have gone through some ethics training and have subscribed to a set of rules called the 'code of ethics'. And they have to pay dues, of course. ((See video))

So what's the difference?

Well, let's start with the question, why would a sales agent not want to be a Realtor?

Is it because they don't want to pay dues? A few hundred dollars a year shouldn't be too much for someone who is good at what they do.

Or is it because they don't want to abide by the code of ethics? This seems a more reasonable assumption, given that the state and national associations have committees to hear grievances and hold the members accountable for their actions. And these committees operate separately from the state divisions and can hand down discipline when appropriate.

Also, when considering the fact that your agent will be representing you and your financial interests in such a large investment, wouldn't you want to work with someone who has taken that extra step to be accountable and go through that ethics training? ((See Video))

NAR also has a political action arm called the Realtors Political Action Committee (RPAC). RPAC fights and lobbies for property rights and those politicians who would support property rights. I think this is one of the most important roles of NAR.

One reason to join NAR is so you can be a part of RPAC and help to protect the rights of individuals who own property, including fighting Eminent Domain, which is the power of a government to take private property for public use; the 5th Amendment of the US Constitution and articles in many state constitutions allow this practice provided that just compensation is made. For more information, see the Eminent Domain Watch.

There are differences between real estate agents and Realtors and I invite anyone to research for yourself and determine which you would rather have working with you.

Inman Innovator Awards- WTF?

2006-08-04T19:15:00.000-06:00

With any awards announcement there will be debate and discussion, agreement and disbelief, and the Inman Innovator Awards (winners announced last week) are no different. I think some of their choices were either politically driven, or just they screwed up.

For instance;

Most Innovative Brokerage/Franchise/Realtor- and the winner is...

Re/Max

(crickets chirping)

Are you kidding me? Re/max is the most innovative brokerage? In what way? They just recently included all broker listings on remax.com (about two years after everyone else did). This pick has got to be political because it's really stupid.

The founder and chairman of Re/Max, Dave Liniger just said that the internet is overvalued- and this is the most innovative company?

My pick would be ZipRealty- The have been cutting edge since inception. There are things about Zip that I don't like, but they are very innovative.

Most Innovative Technology- and the winner is...

CellSigns

This product is fine- it will send a text message to the agent's cell phone when a buyer calls on their for sale sign. Companies have been sending the callers phone number to the agents for over a decade. How can this possibly be the most innovative product they could find?

If lead generation tools are what they're looking for, why not leadalarm? This service will convert an email lead into voice and then call your cell phone immediately, and allow you to be instantly connected to that lead.

Inman gave it to NRT's Leadrouter a year or two ago and LeadRouter doesn't connect the agent to the lead. It just gives you the information (and then you have to be frustrated trying to keep the system satisfied with updates).

Or what about Redfin's mapping system? Everyone's got a map now, including BlueRoof, but Redfin's is smoother, richer, and the information around it is better than anyone else's by far. The technology they built is far superior to CellSigns.

Innovator of the Year- and the winner is...

Mark Lesswing, Vice President, National Association of REALTORS

This has got to be a political award- last year they gave it to Earl Lee from Prudential. And this year it goes to NAR's tech guy? Give me a break!

In 2006 no one person brought more innovation into the industry directly or indirectly than Rich Barton of Zillow.

I don't think Zillow is that wonderful- yet. Right now I think it's just a fun way of checking out other people's homes, but the anticipation of it and the excitement it brought to the tech world and the real estate world shouldn't be overlooked. Plus the innovation of Zillow is undeniable. Talk about a grand endeavor.

Rich: I want to get into real estate

Listener: That might be interesting. What would you do?

Rich: Create a database of every residential property in the country, giving an estimate of the properties worth and projections about it's potential worth.

Listener: ... uh, yeah... okay Rich. I need to go now. Good luck with that.

Hey, I like to think of myself as a visionary and I have moments of inspiration, but Rich Barton has inspired millions of real estate and tech people to drive themselves harder to be more innovative. He deserves the award- period.

As I said, any award will be questioned and complained about... but that doesn't mean I'm wrong.

For Sale By Owner Help from Realtors?

2006-08-04T02:26:00.000-06:00

My second week in the business I went to lunch with some experienced agents who each gave me their advise on how to be successful as a rookie and unanimously I was told to stay away from For Sale By Owner (FSBO) sellers because these were people who were very different. I was told these people were mean to agents and even when they did eventually list they were difficult to work with. I asked these agents how many of them worked with FSBO sellers trying to get listings and none of them did. They all stayed away from them and worked other sources.

I saw an opportunity. I figured if these agents weren't talking to FSBO sellers then I should. Over the years most of the listings I took have been FSBO sellers who eventually got tired of trying to sell on their own and listed with me. And I have learned to understand them, and their challenges, more and more. Most people who attempt to sell their own home do end up listing with an agent. Why is this?

To begin, almost all the buyers are working with an agent, and why not- it doesn't cost the buyer anything for this representation- and most real estate agents won't show FSBO homes. They don't show these homes for a few reasons.

First, it's much easier and effective to go to the MLS and do a detailed search of exactly what their buyers are looking for.

Second, with the MLS the agent knows they will be paid a commission by selling a home and with a FSBO they have no idea if the seller is willing to pay them.

And pride is a factor- Realtors want to support their trade.

It can also be costly to sell a home. According to the National Association of Realtors, here is how FSBO's market their homes.

Yard sign: 63%
Newspaper advertisement: 44%
Open house: 33%
Friends / neighbors / relatives: 25%
Internet: 24%
Direct mail (flyers, postcards,etc.): 6%
For-Sale-By-Owner magazine: 6%
Television: 1%
Other: 9%
Source: 2004 Profile of Buyers & Sellers, (NATIONAL ASSOCIATION OF REALTORSÂ® - Research, 2004).

Some of these numbers are changing now with the internet becoming so dynamic and accepted as a marketing forum, but it can be an expensive (and tedious) task.

So where does this leave the buyer who hasn't been able to find the right home with their agent? Many times they settle for something they don't like as much, other times they look without their agent at FSBO properties and end up having to go through the process alone, and some times they can find a FSBO home with an agent, and then the agent needs to worry about whether or not they'll be paid for their time.

BlueRoof can help. We have every listed property, from every brokerage- and all the virtual tours that are posted on the MLS. And we also have FSBO homes. We also allow FSBO sellers to identify if they are "Agent Friendly", meaning they are willing to pay a buyer agent a commission if they bring the buyer.

And the service is free.

This can help the FSBO sellers by exposing their property to more potential buyers, it helps the buyer by giving them more homes to see, and it helps the agent by giving them a searchable database of homes where the seller has already agreed to pay to a commission. And to place a home FSBO a seller only needs to register (for free) with an email address. We don't require you to committ to anything like ZIPRealty (who just started their new FSBO program) and other FSBO sites do.

When a buyer makes an offer to buy a FSBO home on the BlueRoof website- that offer is sent directly to the seller, who can then respond to the offer, which is sent directly back to the buyer. Once acceptance occurs, the offer details are sent to BllueRoof and an agent will contact both sides and ask if they would like our representation coordinating the transaction. If they do, we will help both sides all the way through closing for only $1000 total. If an agent brings a buyer to a FSBO property on our site, we will also represent that seller from offer on- for that same $1000.

In the market that Utah is in right now more people are trying to sell FSBO. Sure, most of them will probably end up listing with an agent, but until then we'll help best we can.

BlueRoof is not a technology company

2006-08-03T01:17:00.000-06:00

There are some incredible innovations and new technologies coming into the real estate industry right now. And there are some creative and exciting people coming into the business who are helping to change the landscape of it. At the Inman Connect conference last week I really enjoyed meeting more of these people and having the opportunity to share some ideas and thoughts with them.

But there are differences between some of the new real estate models and BlueRoof. Of the most significant is that most of these new companies are tech people who are entering the real estate space and BlueRoof is a company of Realtors who are utilizing technology.

That is an important clarification to me. So what's the difference?

Real estate, and more specifically, being a Realtor is about a few fundamental things to me. It is about protecting property rights, fighting for political issues that effect property owners, it is about agency and representation, and it is about helping people buy and sell property with confidence. And it's about being a resource for people with regard to real estate related matters.

Being a tech company who's earnings come from property sales and/or lead generation is not the same. Some functions are similar, but they are not the same.

It is my opinion that the influx of new technology will ultimately benefit the consumer and bring more transparency to a historically opaque industry. And frankly, the industry needs cleansing. There are too many crappy agents out there simply taking the low-hanging fruit and diluting the reputations and perceived value of good agents. Many of these agents hide behind respected industry names, but a franchise is just an independent with a familiar logo- the person is what makes the agent- not the company name. This is a topic for another blog that can devoted to it, but you get the point.

There are some pretty cool things that we're going to be doing with our site and some new technology in the near future and I'm excited to see it happen, but at the very center of BlueRoof is our commitment to the consumer, our clients, and being Realtors.

Competition in Real Estate

2006-08-01T18:09:00.000-06:00

The Department of Justice has been looking into the real estate industry to determine if fair competition exists. It started last September when the DOJ sued the National Association of Realtors (NAR) over a policy called "opt out", where brokers could choose to not include their home listings on other brokers internet sites. The DOJ feels that some brokers might choose this route as a way to push new internet-driven brokerages out of business.

Last week congress held a subcommittee meeting entitled, "The Changing Real Estate Market" and heard different points of view about the nature of competition in the industry. As expected, NAR's position is that there is plenty of competition in the industry and the consumer will ultimately dictate which companies survive and become successful based on their services and business model. Others argued that large traditional brokerages aren't playing fair and create a hostile environment for anyone trying to get into the industry if they don't conform to the traditional way of doing business. And both sides are right.

Here is how I see it-

There is a ton of competition in the industry. Millions of Realtors all competing for the same business. There are a lot of different companies with different business models and commission structures. New innovative business models (like BlueRoof) have to be strong enough to stand up to traditional brokerages, who don't like them doing the same things for less, or even worse, doing better things.

Historically, new models have been torn apart, pushed out of business, or just held down as much as possible by brokerages and agents who don't want their commissions eroded. I used to be in that same mindset when I was with Coldwell Banker and Prudential and GMAC.

Having competition that doesn't like what you are doing is not always a bad thing. It drives you to be better and it can push some companies to think more creativitely- and this is good for the consumer.

The real estate industry is evolving and this is a very good thing. The consumer today is more educated about the process and wants a better value proposition. And they are increasingly demanding better service and flexible commissions and really, who can blame them?

Realtors have an important place in our society as a resource and representatives and if we focus on that I think our value will go up.

Avenues Charmer- Most Viewed on BlueRoof Last Week

2006-07-31T16:38:00.000-06:00

This Home at 515 North E Street (500 East) in the Avenues of Salt Lake City was the most viewed home on BlueRoof last week. It's offered for $379,000 and has 2300 total square feet.

It's listed with Christine M Ashton of M.D. Realty, LLC. Christine's contact phone number is 801-521-8223 and her email address is krissyashton@aol.com.

Her comments are:

REDUCED $5,000. Absolutely charming home for sale. There is a detached apartment included on this property. Main house has 3bedrooms and 2 full baths, the apt is the other bedroom and full bath. Jetted tub. Central Air and much more.

And the avenues is a great area to live in- close to downtown, shopping, and a lot of good restaurants. If you have any questions you may want to contact Christine.

Carnival of Real Estate

2006-07-30T23:19:00.000-06:00

I forgot to mention this on the blog two weeks ago and this last week I was in San Francisco all week for the conference, but Zillow started a blog carnival for real estate two weeks ago. If you are unfamiliar with a blog carnival - here is Wikipedia's definition,

"A blog article that contains links to other articles covering a specific topic. Most blog carnivals are hosted by a rotating list of frequent contributors to the carnival, and serve to both generate new posts by contributors and highlight new bloggers posting matter in that subject area."

Last week Searchlight Crusade hosted the carnival and our post was named the "Pick of the Week".

Next one will be hosted by Future of Real Estate Marketing blog, look for it tomorrow (Monday).

We'll be hosting the carnival here on our blog September 18th so watch for it then.

Inman's Real Estate Connect is a Blast

2006-07-27T23:00:00.000-06:00

Thousands of people from the real estate, mortgage, title and tech fields descended on San Francisco this week for the Inman News Real Estate Connect event. I arrived Tuesday night and it's been a blast every day (and night!).

Mike and I came with the goal of meeting some interesting people, learn, and have some fun. Mission accomplished. We're here until Sunday, but the rest of the trip will be vacation more than work.

Some things I'll take away from the event-

Some people are much more interesting than you think they might be- like Michael Arrington of TechCrunch who kicked off the event with a rousing presentation of where the industry is heading and some of the challenges it faces.

Redfin's CEO, Glenn Kelman, is a great speaker- very engaging.

Some of those Canadian guys can party.

The Palace hotel needs to staff up when they host an event.

Before you announce that you have FSBO properties and MLS data on the same map- make sure your local MLS representative is not in the room (apparently we're not supposed to do that).

Mike, the president of BlueRoof, showed me that if a girl takes you to a club and upon arriving you ignore her and hang out with other girls- she won't like you very much (go figure).

San Francisco cab drivers can actually defy the laws of physics (and gravity) if there's an extra $20 in it for them.

Perceived value doesn't apply to $12 jack-and-coke's.

The Wasatch Front Regional MLS (Salt Lake City's) is just as control-hungry as ever.

Re/Max doesn't have a clue about the internet's influence on the real estate industry.

I'm leaving this event with some great ideas for BlueRoof and some new friends- what more could I ask for?

Business Card Design Makes an Impact (or not)

2006-07-24T14:12:00.000-06:00

Tomorrow morning I fly out to San Francisco to attend the Inman Tech conference. I really enjoy these types of conferences because it gives me a chance to get away, meet some interesting people with interesting ideas, and enjoy a tax-deductible vacation. Sweet!

When I return home I will surely have piles of business cards from all sorts of people from different companies and positions. Some I will want to keep in contact with, and some I will want to remember the conversations we had. And while I am perusing the assortment of cards I will, no doubt, be impressed by some of them and disappointed by others.

I offer my suggestions...

Use a high quality paper- flimsy cards just suck. Spend the extra ten dollars and get good paper.

No standard clip art- Using images that come from standard clip art makes your card look generic, but even worse, it makes it look like you were trying to not be generic and failed.

Have a credible email address- If your business email is lizzydizzy@hotmail.com or disneylover@gmail.com or even jennifersmith3245@yahoo.com you really need to get with a company that will provide you with a company account.

Watch for typos- If you can't spell your name right you need to go back to school. Pre-school.

Use Color- A bit of color makes the card much more pleasant. Tie-die or rainbows aren't necessary, but some color can really give your card some punch, or at the very least it won't be as boring as monochrome.

Have a blank back- When people receive your card they'll want to write notes on the back about you or your company or your conversation. Or maybe you can write the address to a great local bar so if that person ever makes it to your city they'll know where to go.

Have a URL- In today's business world you should have a website to send people to. Whether your business is plumbing or software, have your URL on your card.

No fold-overs- Cards that fold over get caught on things and take up extra space in my pants pocket. Remember the first rule in marketing, which is my next thought...

Keep it simple- We don't need to name call here, but keep your message simple and clear. Have a clean design that is easy to understand and makes a statement.

Readable Fonts- Lettering should be easy to read and, with the possible exception of the heading or logo, consistent throughout the card.

Have an actual designer create your card- Don't jump on to Publisher and draw up a design. You want it to be polished and look good.

No stupid titles- We've all see the start-ups where every employee has some "cool" title like "VP of Fun" or "Director of Computer Stuff". Having something clever to say is good, lame titles are just lame.

Most of us have heard of Matt (creator of Wordpress) Mullenweg's business cards that simply say: "1. Go to Google. 2. Type 'Matt.' 3. Click 'I feel lucky.' " That's pretty cool until your google ranking crashes, like Matt's did for a while.

Have a card that shows your image and has some fun, but just remember that good design makes an impact. Well, so does bad design, but good design makes the impact you'll want.

First Impressions- Blind Dating for Homes

2006-07-22T18:32:00.000-06:00

Ever go in a blind date? Beforehand, aren’t you just praying that they won’t be unattractive. If they are, most of the next hour will be spent thinking of reasons to leave early. Even if they are a wonderful person- you may never find out.

Home owners are going on a blind date when they come to see your home, or at best it’s like interenet dating. They may have seen some pictures and know a little bit about the home, but once they actually show up- none of that matters anymore. And if your home doesn’t look good outside they may never discover how great it is inside- they may just drive away.
If a buyers pulls up and thinks the home looks bad they know all of their friends will think the same when they come over to visit. We all want to have a home that we’ll be proud of.
When selling a home it’s important to present it well and this begins with the home’s curb appeal. You want the outside appearance to draw them in and make them feel comfortable. You want your home to be a place they would be proud to invite people to.
Some tips to make a good first impresson;

-Kill mold and mildew on the house, sidewalks, roof, or driveway.

-Stow away unnecessary garden implements and tools.

-Clean windows and gutters.

-Pressure wash dirty siding and dingy decks.

-Edge sidewalks and remove vegetation growing between concrete or bricks.

-Mow the lawn. Get rid of weeds.

-Rake and dispose of leaves, even if your lot is wooded.

-Trim tree limbs that are near or touching the home’s roof.

-Make sure your driveway is clean and clear.

-Spruce it up with some accent lighting.

-If you can budget it, a fresh paint job does wonders for a dingy house. Drive around your town to find color schemes that are appealing.

-Install a more attractive front door, maybe something with leaded glass inserts.

-If you can’t justify the cost of a new door, consider replacing plain doorknob hardware with something more attractive.

-If new hardware is beyond your budget, repaint or stain the door and polish the hardware?

Bring out the best in your landscaping and bring in the highest and best offer for your home. And as you look for your new place be sure to notice why your first impression is good or bad.

Improving Your Credit Score

2006-07-19T18:57:00.000-06:00

Credit scores are more important today than ever. This score plays a large part in what interest rate you'll pay on loans, and whether you'll even get the loan, and it also effects your insurance rates among other things. A credit score is basically a summary of your credit report and a numerical measurement that reflects your management of credit.

Credit scores range from 300-900. A score above 620 is good, above 700 is very good, and above 750 is great. If your score is below 600 you'll be paying higher interest for your loans. If your credit is low, there are ways to raise it.

There are three basic principles to follow to raise your credit score.

First, pay your bills on time (or early if possible). When lenders look at your credit they want to see that you pay your bills as agreed. Having on time payments is one of the biggest factors on your score. Occasionally being late should not affect your ability to get new credit, as long as your late payments aren't too close together and too frequent. If you have a pattern of paying late you'll be considered a higher risk.

Second, don't declare bankruptcy, have an automobile repossessed, or have your home foreclosed on. These are the BIG ones. One of these and your credit will go right down the drain so be careful to plan your money.

Third, keep control of how much money you owe, especially on credit cards. It's good to have credit cards to show a track record, but your score not only looks at if you're paying your payments on those cards, but if you are "maxed out" on your cards. Lenders like to see that you haven't spent every dime you don't have. Plus, if you're maxed out on cards the chance you'll pay on time if an emergency comes up is not good. If you have three credit cards and each has a spending limit of $3000 and you only owe $300 on each card, that shows the bank (and is reflected in your credit score) that you can manage your money and you have a safety net if you need it.

It may not be as bad as you think, at least for buying a home. I've had clients who had just gone through bankruptcy and we still got them into a house, they just paid higher interest. Plus, it's actually easier to buy a house than a car (you can't drive away with a house). Owning a home and paying your mortgage on time is a great way to raise your score.

Follow these guidelines and your score will increase. Make sure you keep your credit report accurate. Periodically check your score with the three credit bureaus and be cautious before closing an existing credit card account because that can hurt your score. If you have an account for a long time and it has no balance that is good. Keep it open.

To get a copy of your credit report, contact the credit bureaus:

Equifax- 800-685-1111 - www.equifax.com

Experian- 800-682-7654- www.experian.com

Trans Union- 800-916-8800- www.tuc.com

Missing Child Alert- Destiny Norton

2006-07-19T14:30:00.000-06:00

Destiny Norton, a local 5 year old girl from Salt Lake City, has been missing since about 8:30pm Sunday night after walking out of her family's front door.

Destiny is described as about 3 feet 6 inches tall, about 45 pounds, with short blond hair that had a green streak in it. She was last seen wearing a black adult-size T-shirt with gray stripes. She has silver caps on her teeth and also goes by the name Annie. Anyone with information about this case is asked to call 801-799-4636. Information may also be sent to www.tipsforcash.com

* The volunteer search headquarters has been set up at an LDS wardhouse at 445 E. Harvard Ave. (1142 South).
* A Web site - www.finddestiny.net - is up and contains the latest information about the search for the 5-year-old.
* A fund has been established under the names Rickey and Rachael Norton at Washington Mutual Bank to help defray the costs of the search and assist the family.
* MeadowGold and The Carole Sund/Carrington Foundation have donated $15,000 as a reward for information leading to Destiny's recovery.
* Anyone with information about this case is asked to call 801-799-4636. Tips can also be sent to www.tipsforcash.com.

Freshman class of 2006

2006-07-19T10:40:00.000-06:00

The Beloit College in Wisconsin puts together a list every year for their faculty to give them a sense of the mindset of that year's incoming freshmen. The people who are starting college this fall were born in 1984 and here are some of the items that made the list about them;

They have no meaningful recollection of the Reagan Era and do not know he had ever been shot.
Black Monday, 1987 is as insignificant to them as the Great Depression.

They were 9 when the Soviet Union broke apart and they don't remember the Cold War.

They have never feared a nuclear war.

Their lifetime has always included AIDS.

They have likely never played Pac Man and have never heard of Pong.

The compact disc was introduced when they were 1 year old.

They have always had an answering machine.

They cannot fathom not having a remote control.

Roller-skating has always been in-line.

Jay Leno has always been on the Tonight Show.

They have never seen Larry Bird play.

The Vietnam War is as ancient history to them as World War I, World War II or even the Civil War.

They have no idea that Americans were ever held hostage in Iran.

They don't know who Mork was or where he was from.

They never heard "Where's the beef," "I'd walk a mile for a Camel," or "de plane, de plane!"

The Titanic was found? They thought we always knew where it was.

Michael Jackson has always been white.

Kansas, Chicago, Boston, America and Alabama are places, not groups.

McDonald's never came in Styrofoam containers.

There has always been MTV.

For us in the real estate industry these people will be potential home buyers in the next few years. Most of these people do not read the newspaper and all of them are online, many have never had to deal with dial-up.

Where are all the singles?

2006-07-18T22:18:00.000-06:00

Money Magazine has listed it's Best Places To Live for 2006, and tops on the list is Fort Collins, CO, followed by Naperville, IL and Sugarland, Texas. Interestingly, the top ten are all in different states. Representing Utah in the top 100 best towns/cities to live in were Sandy (23), Orem (38), and Layton (41). I remember a few years ago the Places Rated Almanac rated Salt Lake City as the top city in America overall and listed about a dozen Utah cities in the top 100. Ah, those were the days...

Highest average income honors go to Greenwich, CT ($112,493), Cupertino, CA ($110,518) and San Ramon, CA ($109,500), while Bloomington, IN has the highest percentage of singles (58.2%) and the skinniest people, based on body mass index, live in Roseville, CA (24.5) and San Francisco (24.8).

You'll also find cleanest air, youngest (three Utah cities rank in the top 25), most educated, hottest, and priciest to buy a home among others.

Top Ten Reasons Salt Lake City isn't Seattle

2006-07-18T15:59:00.000-06:00

I was living in San Francisco during the tech boom and it was a total blast. Whether or not you were into technology or cared at all about start-ups or the internet, you could just feel the energy. There was electricity in the air and everyone could feel it. That's how Seattle seems to me now, too, with all the start ups and tech companies and the energy that's swirling around in the air. It's a pretty cool environment to be in if you are interested in technology.

The Salt Lake area (Wasatch Front) is a great place to live and it's growing and it has a ton of potential, and Utah actually was an early adopter state with regards to the internet, with more people per capita online in 2002 than any stat in the nation, so what's the deal? Why isn't Salt Lake, with all of it's incredible recreation, people online, and good working class, more tech-centric?

Here is my Top Ten list of reasons why the Salt Lake area isn't more tech:

1. Salt Lake is a bit cheap. And by cheap I mean people will go out of their way to save every penny they can. People sell their own homes, people sell their own cars, yard sales are everywhere (and every day people are going to them), and there are possibly more fast food places in the area than the rest of the universe combined. Some people are so focused on saving money they miss out on the big opportunities, stepping over a quarter to pick up a dime. And that's unfortunate because there are a ton of innovators in Salt Lake.

2. Too many people doing the same things. Being innovative is not the only quality a business needs. There are a lot of things that can contribute to a company having that critical early success, and one of those things is being first to market. In this area noone can be first to market because everyone here is doing every thing.

3. People are doing pieces of things. Instead of putting together a solid business plan, raising capital, recruiting a top notch staff and implementing a well thought out plan, many businesses here are really just a couple guys thinking they have a cool idea so they register a business name and website and open for business. No focus or direction really, just a cool idea.

4. The city/government doesn't encourage a start up environment. We have weird liquor laws, even stranger bar/club laws, and a spread-out and sparse nightlife. The culture is not a young, hip, fast-moving tech culture. It's a family fun, get home early for the kid's soccer game, work three night's a week for the church kind of culture. That's not a bad thing- just one way the area is different.

5. Utah is the youngest state in the nation. You might be thinking, "Younger people are more tech savvy and bring that into the workplace". You would be right, but also wrong. Young people in general are much more tech savvy and do bring that into the workplace with them, but our youth is largely in children, and many of the brightest move out of state to chase their tech careers- we need to encourage them to stay.

6. Too many tract homes. Cookie-cutter homes are everywhere in Utah. Even many of the custom homes aren't custo, they're "semi custom". So people live in these boxes that are the exact same as everyone else's boxes and that just doesn't encourage creativity. You can't think outside the box if you spend your entire life in one.

7. Not enough people. There's something about being in a highly-populated area that makes people thrive. Maybe it's a competitivness that develops or a wanting to get ahead, or maybe it's that with more people come more ideas and it's just the law of averages and the more people the more chance some will make it. Maybe being stuck in hours of traffic just gives people time to be creative and the road rage gives them the energy to keep thinking.

8. No NFL Football. I don't really know how this could effect things either way, but Seattle, San Francisco, New York, and Boston all have NFL teams and they seem to be the most techy (that is a real word) cities in the country and I need some filler.

9. Not enough tourist attractions. Most of the VC money is not here and since most of that money goes to regional, if not local, start-ups, we don't see a lot of it. And because there aren't enough people flying in to Salt Lake to check out the dinosaur exhibits, we have a harder time meeting these people. We do have a phenominal ski industry- maybe the resorts could host some tech events.

10. Not enough coffee drinkers. The LDS religion frowns on drinking coffee, and much of the population is mormon so there aren't enough Starbucks- and we all know that that's where the tech deals are made. Probably has something to do with people who in the tech industry get their brains so wired up on cafeine that they can think of outrageous ideas and then have the energy to actually make those ideas work.

Salt Lake and it's surrounding areas are beautiful and there are a ton of outdoor activites, incuding the best skiing in the country. Low crime, friendly people, big mountains... but not nearly enough people blogging or conspiring to become the next Google. That's not all a bad thing, but it sure would be cool to see Salt Lake grow it's tech sector.

How Agency Agreements are Ruining the Real Estate Industry

2006-07-17T18:50:00.000-06:00

Editors note- my blog address has changed to:

blueroof.wordpress.com

This is a much better blog host for me, thanks! Post follows:

First, let me start by saying that I believe in agency. I believe in the concept of agency and I believe in it's place within the real estate industry. I teach the agency classes at the real estate school and have never accepted teachers pay, because I teach agency for one reason only- to teach agency.

Having said that, agency agreements, as they are and as they are used (at least in Utah, Colorado and California where I have been a broker) is hurting the industry and clients as much as they are helping. This is mostly due to the fact that there are too may crappy Realtors out there doing a crappy job.

See, the problem is that many Realtors use these as a ball and chain for their clients. They meet the client, give them their schpill about why they should sign the agency agreement and then stop trying. Sort of similar to how a lot of people try so hard to make a good impression while they are first dating someone they like and then after they get married/committed/engaged they stop trying.

An agent meets a buyer, convinces them to sign an agency agreement, and then feels entitled to a commission whether they do any work for the client or not. The client can get tired of the agent not answering their phone (very common) and not returning their calls (very common) and find another agent, then go out with that new agent and find a home they like and the first agent feels like they should get the commission because they got an agency agreement signed first.

An agent meets a seller and convinces the seller that the best way to sell their home is to "price it right" and put it on the MLS. This is my favorite line used by agents. I'll have to dedicate an entire post to it later so this one doesn't go on too long. But, essentially, "price it right" means price it as low as the agent can get the seller to go, and then put the home on the MLS so some other agent can do their work and sell it. This way the listing agent has no marketing expense and no work to do. And then if the seller is unhappy with this "service" they are stuck in this contract, usually for six months.

I wonder why people would have a bad taste for Realtors after this...?

Here's my solution;

All agency contracts should allow the client to cancel anytime they feel they are not being taken care of. There could be a provision in a listing that states any actual marketing expenses incurred during the listing period will be reimbursed by the seller, but the seller can cancel and find a good agent if the one they got doesn't do a good job for them. The government tries to keep corporations from having a monopoly so consumers will benefit from competition. But when some schmuck lists a home and for six months no other Realtor can approach that client, help that client, or even talk to that client, there is a six month monopoly happening and often times the seller suffers. And the same goes for buyers working with an agent that does not do their job.

My solution is to let agents earn the business. Sign an agency agreement and represent the client, and know that if you do not represent the client well you will lose out on that business. Isn't that what agency is really all about? Representing the client? Putting the client first?

There are a lot of really good agents out there and they do represent their clients well and they do earn their business. If agency contracts could be cancelled the bad agents would suffer and the good agents would be able to show more people what it feels like to represented well by a good professional Realtor.

Editors Note-
Apparantly I'm not alone- Ardell at RCG wrote a post about the same thing on 7-25-06.

Backyards Get Extreme

2006-07-17T14:04:00.000-06:00

Used to be that people wanted some room for a small garden where they could grow tomatoes or maybe a swingset for the kids. Some even thought about room to plant a few fruit trees. Today more people are choosing to turn their backyards into full out waterparks and outdoor living areas. Some want a place where the kids can have fun while under the watchful eye of mom and dad, while others would just rather have the fun of a park without losing their privacy. Here are some of the latest trends;

Rock Your World

Don't let little things like space get in your way. Go vertical with huge boulders, rock and brick. Shape waterfalls, waterslides and just about anything else you can think of.

Outdoor Kitchens

The kitchen may be the most important room in the house, but it's also becoming the center of the outdoor living space. Whether part of a patio or bar area, or an all together separate space with a fireplace and ceiling, today's outdoor kitchens are getting to be as nice (and expensive) as their indoor counterparts.

Pools, Waterfalls, and Water Features

Remember that little four-foot wide blue plastic wading pool you played in as a kid? You could use that to slide down some of today's waterslides. Fifteen foot waterfalls, rope swings, hot tubs that flow into the pool from five feet above, fiber optic lighting systems, and audio powerhouses that turn your home waterpark into a concert venue.

Make friends with your neighbors and maybe they'll let you come over without admission.

Making Money vs Earning Money

2006-07-16T13:37:00.000-06:00

You've probably heard the phrase, "The richer get richer while the poor get poorer) and there's some truth to that. And one of the main reasons for this is the education and understanding the rich, or their representatives, have toward money, and more specifically, how to make, and even more important, earn money.

today's lesson- there is a difference between making money and earning money.

When I was about twelve I started mowing the lawn of a woman who lived behind us. She paid me $5 to mow and trim her lawn and she'd give me all the lemonade I could drink. And this was actually not even just lemonade, it was freshly squeezed and had a twist of other fruit (usually strawberry or raspberry). She could have paid me with just the lemonade and I would've been happy. That would have been a fair trade for me. I didn't mind mowing her lawn and she didn't mind making me lemonade. She offered me the lemonade as a bonus and so I sipped it up and then took my money as payment.

Most people have that same mentality. They go to their job and they work hard day after day after day. When they receive their pay they are happy. Sure, most everyone wishes they had more, but as long as they feel like they are making a fair wage and they have enough to pay the bills they are content to keep doing what they are doing. At least to the extent they don't change their habits.

Two friends, Ben and Jim, both get a job at the local grocery. Ben takes $100 from every check and puts in his savings account. Smart. Jim takes $100 from every check and puts it into a stock account. Smarter. See, Ben earns 4% and Jim earns 12% on their money. Over the course of five years Ben now has $6760 saved up and Jim has $8538. They both saved $6000 in made money but Ben only earned $760 on his money and Jim earned $2538 on that same money.

Now let's apply this concept to real estate. Ben rents a home $1200/month plus utilities. Jim buys a home worth $160,000 and has a monthly payment of $1200. After five years Ben has earned $0 on his rented home while Jim has written off an extra $10,000/year on his taxes by owning and now his home is worth $200,000 so he's also earned an extra $40,000 owning his home.

People who are wealthy earn money and as their money grows they earn even more on that money and they begin to brag about how the rich get richer. Those who only make money continue to make enough to get by and then begin to complain about the rich keep getting richer.

In five years Ben and Jim both made the same amount of money, but now Ben has earned $760 and Jim has earned $42,538 on his money. Is this fair? Is this because of the system or their environment? No, this is because one person learned how the system works and benefited from it and the other did not.

I'll bet Ben is the one complaining.

Utah Real Estate Market Continues to be Strong

2006-07-14T14:42:00.000-06:00

All the recent talk of a bubble and the cooling off of the markets on left and right coasts seems to have only strengthened the local market for Utah. Many of the people selling in the coastal regions are moving inland, away from the natural disasters and high cost of living and realizing how beautiful a place like Utah really is. And real estate is local and is effected by local factors as much as by general factors, such as interest rates.

Here's the most recent story about the Utah market from the Salt Lake Tribune. They mention that some areas have appreciated more than 40% during the last twelve months, but don't let that fool you into thinking that the market is headed for a bubble. It's not- and here are some reasons why:

First, the Utah market is not only appreciating- it's correcting from the last few years of being flat while the rest of the country went up in value.

Secondly, being undervalued has brought in some investors, but most of the homes are being sold to homeowners. When markets get too many investors buying and flipping properties, like what's happened in Vegas the last couple years, the appreciation is hollow. It's self-created by the market and doesn't have a solid foundation, so eventually the market has to correct downward. Utah's market has not been mainly because of investors

Job growth is stronger than normal now and will continue to be during the next few years. An influx of businesses moving to the area and the low employment rate mean that there is, and will be a need for homes. This is a natural and healthy way for a market to appreciate.

Utah has the youngest median age of any state in the nation. Larger families and more children means more future housing needs for the area. A large percentage of the population in any area will continue to live in that area even after becoming adults, but the rate is higher than average in Utah, probably in large part because of the focus on family in the state.

There is still room to grow. Many areas around the country are running out of room, but Utah is still relatively rural and the metro areas, such as Salt Lake, Provo and Ogden still have some elbow room that allows new communities to be built and allows for homes in the first time buyer range to be built, getting these kids and young families started in the market so they can later move up (and pay more) for a future home.

What this all means is that the overall market in Utah is healthy and will continue to be strong for a while, regardless of what happens on the coasts, where most media is focused.

How the Salt Lake Real Estate market Got Hot

2006-07-13T14:58:00.000-06:00

I remember my first few years selling real estate here in the Salt Lake area. It was a good market back in the mid 1990's with a lot of people moving in from out of state and the market appreciating well. We would list a property and do some good marketing and the average days on market was around 45- 60 days, which suited my sellers fine.

Once a home went under contract we would schedule an appraisal and then didn't even think about it again because the appraisal always came in fine. Not even once did I even consider that an appraisal would be anything less than what the sales price was.

So I left the state to work in Colorado and then went to California and about five or six years ago I came back to Salt Lake and the market was totally different. It was slower and homes were taking longer to sell.

Then, about four years ago or so when Utah was ranking as one of the worst states in the nation for foreclosure rates the state decided they needed to do something to slow down these foreclosures. Well, they couldn't tell home sellers what to price their home at and they couldn't tell Realtors how much they could list a home for, so the only control they had was with the appraisers. So they started fining and suspending appraisers and taking away licenses and in a few years the numbers of appraisers in the are went from over 2000 to less than 900. And the appraisers were all so worried about audits and getting in trouble that they wouldn't appraise anything anymore.

You could have three homes in your area sell for $200,000 and one sell for $201,000 and one more sell for $203,000 and try to sell a home that was upgraded to the hilt with granite and stainless steel appliances and new windows and a new roof and upgraded hardwood floors and put it on the market for $215,000 and you would get an offer for $215,000 and the appraisal would come in at $203,000. So we would call the appraiser and explain about all the upgrades but the appraiser still woudln't change their value because they were scared. So the Salt Lake market didn't appreciate for years. For a few years the market was just flat because no matter how much a buyer and seller were willing to negotiate- the appraisers wouldn't come in with a value that was more than what had already sold.

Then, finally, last March or so some news channel broke a story about how the Salt Lake market was the most undervalued market in America. And then another story followed and then another and pretty soon we had a bunch of investors and people from out of state buying property here in the area. And the best part was that many were paying cash. They would sell their home in California for over a $Million and take their $500,000 and buy a home twice the size for cash. So the appraisers didn't have any say in it. The sellers could sell and actually see some appreciation, the buyers could buy the home they wanted, and everyone would win. And the market started to appreciate.

Now the market is hot and homes are selling, but it's a very healthy, steady appreciation (around 14-18% in most areas) and it's fueled by job growth and people moving into the area, not just investors, so it should stay healthy for a while. Even with the market appreciating the appraisers are doing their best to be conservative, which can be tough for everyone else. It sure is nice when we get cash buyers who care more about getting a good home at a fair price then they do about one person's opinion.

When appraisers sell their own homes hopefully they realize how frustrating it can be when some stranger decides to choose certain homes for comps and not other homes and the value comes in low. At least I hope they feel that so they can appreciate what everyone else has to go through...

There's Enough Real Estate Business for Everyone

2006-07-12T16:57:00.000-06:00

So many different business models- different value propositions, different benefits, different strategic unfair advantages... Everyone has their own reasons why they are the best or they are the right choice but really, does everyone have to be the one and only? Gets sort of tiresome to me.

Sure, we all have our strengths, but there is no one and only choice in any industry, especially an industry like real estate where most companies are the same. Thank goodness for the new models coming into real estate- talk about a breath of fresh air.

When the consumer has informed choices they'll choose what's right for them. The best advantage is in having choices that many consumers will like- and not because they were persuaded it's the right choice, but because they know their options and they understand the differences and then they choose you.

Some people think that if one person or company does well, then it must mean that they won't/can't and that's just silly. There is plenty of business to go around. And it helps to be supportive of your competition. When sales people talk down the competition it only makes them look desperate and unprofessional. It's good to point out differences and explain options, and then leave it with them deciding what they want.

I hope the days of the "hard close" are over for most sales people. Nobody likes to be pushed and everyone likes to have options. So let's give them options. Oh,and good service would be nice, but that's a whole different post.

To all the business owners- good luck- may we all do well, Cheers!

Realtors shouldn't be worried about BlueRoof

2006-07-11T13:17:00.000-06:00

I was speaking to the broker of a large local real estate company earlier today and he was telling me that his agents were looking at BlueRoof and talking about how we might impact the industry in Utah. And he told me that one of his agents made a comment about getting out of the business because we would take all the clients. And while that's flattering, especially since I know the agent who made the comment and she is a good agent, it's not something I believe anyone is really concerned with, or something that anyone should be concerned with. Sounds like a natural curiousity of the unknown.

The traditional brokerage is not going away and I don't think that's a bad thing. If people have relationships with Realtors they have known and trust and they don't mind paying whatever the commission is than that's a win-win. It's not only about commission, it's about value. And how do you place a price on working with someone you know and trust and like? Redfin is a company that I really like and they're doing some great innovative things but other local companies in Seattle like John L Scott and Coldwell Banker are still doing well also. And buyers who work with Redfin save a bunch of money and buyers who don't maybe would rather work with an agent they know and like already instead of saving money.

BlueRoof is about giving the consumer more options. Some will like our options and some won't and that's why it's good to have the choice in the first place. For too long the industry has been the same and the consumer didn't have much choice- they could either pay high commissions or they could go it on their own.

And part of our model is to help identify those For Sale By Owner sellers who are willing to pay a buyers agent, which hopefully will help agents by giving them more homes to show and help the sellers if they don't want to pay a listing fee and help the buyers because they'll have more homes to see. And hopefully local appraisers will be able to use some of our FSBO sold comps for their appraisals so their appraisals don't have to kill so many sales.

Everyone working at BlueRoof is a licensed Realtor and I take pride in that. Realtors have a larger role within the community than just showing homes and just like every profession there are good and bad. I think blogging will help weed out some of the bad and sites like Homethinking.com will help promote the good. And that's definately a good thing!

Start ups need extra love

2006-07-10T19:26:00.000-06:00

Before launching last week I had read a few books, countless blogs and spent thousands of hours researching everything from CPM to market on TV vs Billboards (Billboards are better for long term branding) to where to buy staples at the best price (Staples). I prepared and thought, analized and deliberated, argued and conceded, and when I finally started putting it all together it seemed like it was going to be much easier than I expected. That was two weeks ago...

Switching from being the broker at a large real estate company (Coldwell Banker) to my own smaller company has been a big pain in the ass. I left on good terms, of course, so I have had to wait until my replacement was ready to take over the office (tomorrow) and I've had to switch over everyone's real estate license from the old brokerage to the new and file with the Division, who are so backed up with new applicants for real estate licenses that it usually takes days to get a phone call returned, and then the logistics.

Wow- it was a lot more work than I thought. Just the details, like setting up the computers and switching all the operating systems to be the same and networking the printer and organizing where the fax machine and copier will go and parking and coordinating business cards for 13 people at the same time and getting the new for sale signs designed and, and, and... and then the website. Oh, my word- the website... there have been glitches and problems and delays and today it went down for a few hours from the server being overloaded (which is good) and noone warned me (which is not good) and there just seems to be a million little things that need to be changed all the time.

And it's expensive starting a new company with office space and IT and marketing and everything else you can think of. You plan for the expenses but then when you actually see the money leaving your account it's scary. And I'm self-funded so I can't call up my investor and calmly ask for more.

The emotions of helping all these people with their anxiety and the stress that naturally comes with change has been easier than I thought- everyone has either been really good about it or they've fooled me into thinking that they are handling it all well. And either way I'm just grateful.

Every person that goes to the website is so important to me and every contact from someone is so important that I can't imagine how so many companies have such crappy service. My hosting company has the worst service times in the history of the known universe and they don't seem to care. Being an owner of a business that blows me away, even if they are a large company- I would think they would hire more people to make sure they don't lose clients, but obviously they don't.

The support I've received from the local real estate community has been great and it means a lot to hear people saying good things, and the critique's that come with a new idea can be brutal and very helpful. Anyone reading this please go to www.blueroof.com and let me know any suggestions and if you're looking to buy or sell a home in Northern Utah let me know. You'll be smothered in attention.

Greg

Real Estate is Not Like the Stock Market

2006-07-09T17:11:00.000-06:00

In every city across America right now there are people investing in real estate. In markets where the so called bubble has burst (dumb cliche) there are people buying up the land, bidding at the sheriff's auctions, and making offers on run down homes. These are investors who understand real state. Real estate is always a safe investment if you own for more than a decade. Always.

The real estate market goes up and sometimes creeps down, but it is not like the stock market. It doesn't have the huge upswings and downswings that the stock market has. And real estate investors aren't nearly as sensitive about things. A stock investor sees the CEO of a company wearing the wrong color tie and they freak out and it's SELL! SELL! SELL! A real estate investor looks at the cycle the market is in and buys, sells, or holds accordingly, but it's not a right now or you lose everything proposition.

And real estate never goes out of business. No matter how bad things get with a local market the land is always worth something. After Katrina hit New Orleans the whole place was devastated, but now, even with everything destroyed, people are snatching up as much land as they can get their hands on because they understand that in ten years that land is going to be worth a lot of money. More money than ever before.

There is no place in America where the land is not worth more today than it was ten years ago. Nowhere. When California crashed in the early 90's a ton of people bought up property and waited. By 2000 that property had doubled in value and by 2005 it had doubled twice more. And now that the market is cooling it will still never be less valuable than it was in 2000.

And when the real estate market does come down it comes down much slower than the stock market so people have plenty of time to sell if that's what they are going to do. If interest goes up it won't go from 6.5% to 13%- it will be much more gradual ad there are many indicators that can tell when a local real estate market is heading up fast or slowing down. Job growth, interest rates, the commercial market, availability of land, and other factors all gives us an idea of where the market is going.

The "Bubble" is the stock broker's way of projecting their bad hype on to real estate. And it makes for good reading so of course the media loves it.

In markets like Utah is going through right now people are buying run down homes to fix up and flip for profit. And they're making a ton of mone. My sister-in-law just bought a new build home here for $1Million and sold it when it was completed for $2Million. Not a bad way to make some money, figuring they didn't have to do any of the work.

And with our job growth we're looking pretty good for a while. And even if interest rates go through the roof and a tornado rips the city apart people will still be making a lot of money investing in the local real estate market.

How BlueRoof is different from Redfin and BuySide

2006-07-07T17:12:00.000-06:00

This afternoon I attended a Board of Realtor business luncheon and I spent some time explaining to my friends in the business what BlueRoof is all about. Naturally, people were curious about it because it is a new concept so I would like to explain a few things about the site, and in particular, how we are different from Redfin (which many people asked).

Lately I have been teaching the agency 1 & 2 courses for the real estate school and I tell the students that I teach the courses because I believe in agency and what it stands for. I don't ask to receive a teachers salary for my time because that's not why I teach. I just like the opportunity to discuss with these new agents entering the business how important agency is and how you always win if you put the client first.

BlueRoof is all about the consumer. Our business model is about empowering the consumer with choice. We connect buyers and sellers together in one place with a Realtor coordinating the transaction so everything goes smoothly. That sounds canned to me now because I've made that exact statement so many times, but it is the essence of what we are doing.

Buyers can find a home on their own and make an offer directly on BlueRoof.com and receive 50% of the buyer side commission. We do this because they did the work of finding the home. We are still compensated for representing them but they will receive benefit from doing the work of finding the home, if they want to choose that option. In that way we are similar to Redfin.

But we are a company of Realtors and even our staff members are licensed Realtors. If a buyer wants to have an agent help them right from the start, as most have and probably will, one of our licensed agents will help that client in the traditional way, including setting up showing schedules and showing them through the homes. And the buyer will still receive a rebate of the commission as our closing gift to them (many agents give a gift basket, we give a rebate). In this way we are not the same as Redfin, as we do not refer the buyer to an agent with another brokerage and collect a referal fee, we have Realtors at BlueRoof who do this work.

Another difference between us and Redfin, or any other real estate website that I know of, is that a major part of our model is to have FOR SALE BY OWNER (FSBO) homes on our website and help them sell also. Hopefully local agents will find this helpful because they can search for "Agent Friendly" FSBO homes, which means that the sellers are willing to pay a buyer agent commission. So these agents will have more homes to show their clients while still knowing they will be compensated. And hopefully this will also be another source of comps for local appraisers trying to get an accurate value on a property, especially if they are having difficulty getting the value to come in on a property because of the appreciation we are seeing in our market right now.

Sellers can sell FSBO and market their home on our site for free. When they find a buyer (buyers can make an offer on the home on BlueRoof.com) they can have us coordinate the transaction for them for $1000. Most FSBO sellers want an agents help, they just don't want to pay the traditional fees.

A seller can also have a full MLS listing for 1% of the sales price (plus whatever they want to offer the buyers agent- we suggest 3%). This includes full representation, placement in the MLS, a full professional virtual tour, showing coordination, and a professionally installed yard sign. We help them all the way through closing.

I think Redfin is a good concept because it gives the buyer a new option. And we give the client a couple more options, and I think that's a good thing. As I stated in my last post, this has been an exciting year for real estate. When I first about Redfin's new business model I was a bit dissapointed because I had not put BlueRoof together and they beat me to being "first to market" with the concept of making the offer online, but then I realized it was also a good thing because now I had an example to look at. I was also relieved that my concept has a few pieces that, as far as I know, nobody else has done.

The new business models that are coming out now, like Redfin, Zillow, Prosmart, Trulia, and now BlueRoof are all ultimately good for the consumer because the consumer has more choice and, finally, real options outside of the traditional real estate mold. The large brokerages aren't going away and that's not a bad thing. If someone wants to pay a traditional fee so they can work with someone affiliated with a national brand, or they just like that agent, then more power to them. And for those who want the choices we offer...

BlueRoof website launched this weekend

2006-07-04T01:24:00.000-06:00

I've been anxious to finally be able to say that. Our website launched this weekend, although it is still far from being a finished product. Hopefully consumers will see the value in the model we have developed.

I've been researching and designing the model for a while now and it's been interesting to see how fast the industry has been evolving this year. I think the industry is finally going through a revolution, and it's really an exciting time to be in the business of real estate.

I think that the consumer wants to have the help of a professional Realtor when they buy or sell property. Having someone with real knowledge and expertise to guide you through the transaction and ensure the correctness of it- that is important. But the consumer is starved for choices and value. The historical commission structures don't appeal to most people and haven't for a long time, but they only had two choices- either go it on your own and try to sell "For Sale By Owner", which means being unrepresented and having all the buyers who are working with agents not see your home, or they could pay very high commission rates of 6% or more to have an agent represent them.

And if it were that simple the choice would be much easier. But then consider that most agents are horrible service providers and spoil the experience for their clients and the fact that most brokers lock their clients into contracts for months that not only guarantee that the broker will be paid, but also prevent the consumer from hiring a better agent to help them.

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.

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.

Buyers can find their new home on their own and make an offer on BlueRoof.com and receive half the commission or they can have an agent help them find their new home right from the start and still receive a commission up to $3000 (plus an additional rebate of up to $3000 if they use BlueRoof mortgage).

The website having "For Sale By Owner" homes on it hopefully can help local agents as well by providing a search for these FSBO homeowners that are willing to pay a buyer agent commission. Also appraisers can benefit from having a source to find comps when the MLS can't provide them with homes that will help with their appraisal.

I'm sure we'll learn a lot as we go, but it's exciting to see it begin, finally.

Yahoo is a Mess

2006-03-11T08:49:00.000-07:00

If you spend a lot of time online working, searching, researching, and running a business, as I do, you probably already know that Yahoo is a mess.

Trying to use their paid advertising system is like getting your head kicked repeatedly by a mule. They've made the process about as complicated and user-unfriendly as possible. It's almost like they have tried to make it a crappy process. Either that or they are untalented at design and customer service.

They're pretty good at making a lot of money from people in a ton of different ways. But it seems like the money is all they care about.

Their search results are not relevant and they seem to make no strides to make it any better. They make you go through this intense process to get your paid ads online, including having a worker personally approve your ads, which is a total joke. My real estate website was originally deemed to not be a real estate website, which is interesting because the only thing it has on it's landing page is real estate information.

If they had people actually look at search results maybe they would be able to place better sites higher on their organic results, instead of only wordy sites with as many useless links as possible. I go to a website to find information, not a hundred links to other sites with links so I can go to more sites with links. Where do the links stop and I find a good, user friendly site?

SEO in general is retarded. It rewards a site for being as generic as possible. Search engines like wordy sites with lots of repetitive phrases and tons of links. There is no algorithm for user friendliness or design, or even functionality, which is important to the person using the site.

All search engines have challenges, but Yahoo has more than the rest, beginning with the company's want to make as much money from as many people as possible without caring about those people and what they want.

Google, by contrast, has such a simple process to place ads and much better relevance in their results, although Google also doesn't reward a site's user-friendiness, functionality, or design.

If search engines really want to make a great leap that should be their focus. Placing the very best overall sites at the top of the results. And Yahoo might want to get a soul...

Buyer Power

2006-03-06T22:40:00.000-07:00

Buyers searching for a home today have more information and leverage than ever before. There are thousands of websites that give a buyer information on local markets, including school reports, area info, crime stats, geographical concerns and climate. And of course home information, too.

Even in a "Seller's" market the buyer has a lot going for them. It costs them nothing to have a knowledgeable Realtor assist them and there are tons of great markets right now to invest in.

Real estate purchase contracts are written to protect the buyer and with all the disclosures and inspections available nowadays most buyers can avoid the pitfalls that were more common in years past.

Most of the people who rent just don't realize how easy it is for them to buy. If children were taught by their parents how easy it can be to buy and how smart it is to buy, the rental markets around the country would probably crumble because noone would want to rent.

If buying your own home is still the American Dream, it's easier now to get it than ever before...

Good Agent/ Bad Agent

2006-02-25T11:14:00.000-07:00

First off, let me say that of all the Realtors in the three states (Utah, Colorado, California)I have been a broker in, only about 5 percent of Realtors are what I would consider to be good agents. And most brokerages and agents put themselves above their clients. Good agents put their clients first.

If you call three agents from the same office of almost any real estate company and ask them to present you with a market analysis and maketing presentation to sell your home you will almost certainly get three completely different marketing plans and three different values for you home. And these are three people in the same office of the same company.

Why?

Because each agent decides how much money they want to spend marketing a home based on any number of factors, including how much money that agent has, how much time they want to spend creating marketing, how much they think they will make from the sale of the home, how talented they are marketing, the resources available to them, the culture of their company, the seller's needs and demands, etc.

And if an agent doesn't want to pay $120 for a virtual tour do you think they are going to say to the seller, "I'd rather not pay $120 for a virtual tour, even though it would really help us sell your home, is that okay with you?" Of course not! They'll tell the seller that they don't need a virtual tour or that tours don't sell homes or they just won't bring it up at all. But no matter which of these opptions they choose the seller loses. The seller, their client, is the one who is hurt. And this is from the person they are asking to help protect them.

The agents usually want to "Price it right" which means price it for as low as they can get the seller to price it. So they are actually trying to get the seller down in price, working against their own client, before they even put it on the market.

The lowest priced home in any group of comparable homes will theoretically sell first. But who wants to be the lowest priced home in a group of comparable homes?

I work for a company called Coldwell Banker Residential Brokerage in Salt Lake City, Utah. What makes us so different? If you call three agents form my office and ask for a marketing plan you will get the same marketing plan all three times. Because the agents don't even have a choice of marketing. Everything you can do to market a home is done for the client and paid for by the brokerage.

When we market a home we send a licensed interior designer to go out and spend hours walking through the home with the seller making reccommendations for placing the furniture, painting, de-cluttering, etc. They stage the home so it shows it's very best. Then we send out a professional photographer to take a full virtual tour including panoramic and still shots. We send out color "Just Listed" postcards to the area, place the home, in color, in the largest home buying magazine in the area, we advertise in the two largest newspapers and create full color flyers including inside and outside photos. The for sale signs have a sign rider that give a local phone number that buyers can call to get free recorded information about the home. And we place the home on over ten websites, including the top three national websites and the three largest websites for local real estate. And every agent has a full time personal assistant so the clients always have someone to help them if they can't get a hold of their agent directly at any time during the work day. Buyer can even use our moving trucks for free when they buy a home with one of our agents. And all the agents are full time and very highly trained agents.

We teach our agents to always put the client first. And this includes giving the sellers the very best information on pricing so we can price the home to get the seller as much money as possible, even if it takes us a little longer and costs us a bit more to sell. Because that's what the client wants- as much as they can get.

This helps explain why we sell more homes than the next companies combined in our market and also why agents in my office sell homes for more than $40,000 more than our nearest competitor.

Good agents put their clients first and don't cut corners. Bad agents don't have anything to offer so they market their commissions as being lower to trick people into thinking that will save them money. But saving $2000 in commission after selling your home for $10,000 less than it could have sold for, doesn't save you anything- it costs you $8000. They don't tell you that part of it.

Bad agents market their commissions, good agents market homes.

Bad agents sell homes as quickly as possible, good agents sell homes for as much as possible.

Bad agents tell you what to price your home at, good agents help you determine the highest price possible.

Bad agents are hard to get ahold of, good agents are easy to get ahold of and have an assistant to help.

Bad agents take a listing and then you don't hear from them, good agents are always involved.

Bad agents count on other agents to sell your home, good agents market directly to buyers as well as the MLS.

Bad agents do as little as possible, good agents do as much as possible.

There are major differences between brokerages and agents. It really does matter who you choose...

How Blogging can Revolutionize Real Estate

2006-02-23T21:02:00.000-07:00

The real estate industry has been in a constant state of reluctant change for over thirty years. In the 1970's and 1980's the brokers had all the power. Agents would be told how they would do their business and where to work and even who they could work with. And the public had to go to a broker to get any information and for help selling their homes or finding a home.

In the nineties the power shifted to the agents. Agents started to go from company to company and brokers were allowed to recruit agents so this created a sort of free agency market for Realtors. Brokers would try to woo the good agents to their company by offering incentives and more agent-friendly policies. The public still needed to contact an agent or a broker to get information, so the agents had the power.

Today the power has shifted to the client, where it belongs. Todays home buyer and seller are more knowledgeable and educated in the process than ever before. Some buyers and sellers are more educated than many Realtors because many Realtors simply have not learned their profession well. Many agents make as much money as they can by doing as little actual work as possible. And hopefully those agents will be removed from the marketplace.

The value of a good Realtor today is more facilitatory. They coordinate the home buying or selling process and give area knowledge and expertise to their clients while protecting them and their best interests. The client can get a lot of information, but there is a difference between information and knowledge. A good buyers agent can inform their client of which areas have a better commute time to downtown and which shopping centerhas the freshest produce or what the basic feel of a neighborhood is. They can organize the information and help their client make good decisions.

A good seller's agent can help the seller know the market value of their home and what the highest possible sales price most likely is. They assist their clients with showcasing their home or "staging" it so it can sell for top dollar and they market the home to the broadest possible audience.

And a good agent in either agency relationship will help coordiante inspections, disclosures, appraisals, and all the details- all the way through the settlement and closing.

Blogging can play a unique role in the evolution (not revolution) of the real estate industry. Companies and agents who stay in touch with the public and keep the pulse of their market's needs and wants will undoubtedly be the ones to succeed at the highest possible level.

Blogging is the ultimate form of word of mouth marketing.

Often a company (not only real estate companies) will think they know what their clients need or want but actually be completely wrong. Usually this is because they have not listened to their clients. Many compnies make a habit of telling their clients what they want and trying to position themselves as the expert in areas that do not matter to the client. By utilizing the realm of bolgging a company can discover what their clients actually do need, and more importantly, want. They can listen. They can peek into their clients conversations and have real dialogue with them, resulting in better communication.

Blogging is such a valuable tool for any industry, but especially for one that is client-centric, like real estate. One of the key roles blogging will play in this industry will be it's ability to help weed-out those agents and companies that continue to think that the most important factor in the transaction is the agent. This will allow greater market share for those of us who believe the most important factor is the client.