I’ve noted Realtor (in)activity before – January ’06 and January ’07 as well as when the Minnesota Association of Realtors suggested some Realtors seek a new profession.So far this year, 105 Realtors have had more than 10 sides.333 have had more than 5 sides.286 have had between two and four transactions and 206 have had one transaction this year. Very few – 35 – have had more than 20 sides so far this year.The median sales price in the area is about $275k; for each transaction, one might “take home” about $3k (you can see the math here); how long until the “agent bubble” bursts?*A side is either a buying transaction or a listing transaction.*The top Realtors remain mostly those affiliated with new construction, condo conversions or teams of Realtors.
Browsing Category Public Perception
The web is changing accountability – for everybody
The defendant’s personal gain aside, what he is doing highlights how the rules have changed.At the heart of the fight is a Web site started by Mike Morgan, the real-estate broker, to collect complaints and dispense advice about what he considers shoddy workmanship on homes built by Miami-based Lennar Corp….Previously, companies might have felt free to ignore campaigns like these…. He wouldn’t.The house was in a newer development with buyers coming through frequently to see the sales center, model home, etc. So the new homeowners erected signs in their yard, factually displaying the problems with their house and the builder’s negligence for all to see…. Two things of note:1) It shouldn’t have taken relatively extraordinary steps to get the builder to remedy the problems.2) Today, the bar for educating others on builders’ faults and accomplishments is much, much lower…. AideRSS may be one way to monitor one’s reputation.As any good researcher would do, I searched Wikipedia for Slander and Libel laws and came to the legal determination that so long as the information is factually accurate, you’ll be just fine (you may want to consider consulting with an attorney yourself with more legal training than a blogger and Wikipedia).In speaking with a political lobbyist yesterday about some politicians’ trepidations about blogs, one of the points he made was that some were reluctant to accept blogs because they couldn’t control the message.
Is real estate blogging advertising?
I’ve happened to earn some clients from my efforts here, but that was never the specific and primary intent (I’d be lying if I didn’t hope that somebody would contact me because of the blog).The Commonwealth of Virginia’s Real Estate Board sent out its quarterly newsletter recently with an article that stated the following regarding real estate advertising:For a web site, either the firm or the licensee must include disclosure of their status as a real estate licensee in a prominent place, or have an easily identified link to such a disclosure if the firm or licensee owns the webpage or controls its content.For emails, blogs, and bulletin boards, disclosure should be provided at the beginning or the end of the email.Are websites and blogs so different that they need to be regulated differently?Aren’t blog readers generally savvy-enough to determine whether the author is or is not a licensed Realtor?… With regards to both real estate agents (not necessarily Realtors) and consumers?When participating in or hosting a blog or chat for real estate business purposes, be sure to disclose your status as a licensee and the name of your firm PRIOR to offer to provide licensable services or disclose in text visible on the same webpage that contains the chat session or blog, especially if the licensee controls the web site hosting.The world of new media is too large, too fluid and too misunderstood by those writing the regulations to be covered by a “one-size fits all” system. Look no further than the diversity of the arguably arbitrary “top 20 real estate blogs” – stipulating that they’re not all from Virginia, how many advertising rules would it take to regulate these effectively?… It is important to remember that disclosure of your status as a real estate agent is important in all forms of advertising.For online advertising, disclosure means (1) the advertising contains the firm’s name, city, state of firm’s main office or (2) the advertisement contains the licensee’s name, the name of the firm with which the licensee is active and the city and state in the licensee’s office is located.In all instances — including classified ads — the firm’s name must be provided.For a web site, either the firm or the licensee must include disclosure of their status as a real estate licensee in a prominent place, or have an easily identified link to such a disclosure if the firm or licensee owns the webpage or controls its content.For emails, blogs, and bulletin boards, disclosure should be provided at the beginning or the end of the email.An acceptable email signature would look like this:Jane Doe, GRI, licensed salesperson in the Commonwealth of VirginiaHappy Daze Realty1500 Sunshine CircleRichmond, VA 23225804-999-9999 Office804-222-2222 CellWhen participating in or hosting a blog or chat for real estate business purposes, be sure to disclose your status as a licensee and the name of your firm PRIOR to offer to provide licensable services or disclose in text visible on the same webpage that contains the chat session or blog, especially if the licensee controls the web site hosting.Keep in mind that we need to inform the public of our licensee status when we share real estate related information or whenever we are sharing our expertise, even online.”
Realtor competence at an all-time low
Shocking. Anyone who has been in this business for more than three years can attest to this:”With the expansion of the number of Realtors, the level of competence has fallen to its lowest point ever,” says former NAR Chief Economist and best-selling author Dr. John Tuccillo……. real estate is no longer a part-time, halfway station on the road to making a quick buck. The new online consumers are expecting a great deal more than their counterparts a decade ago.I still think that NAR would do well by the professional Realtors to advocate for the use of a competent Realtor, rather than any Realtor; maybe local associations should triple their dues
All the agents wanted my business!
Many of my clients are sounding boards for my ideas, mini-focus groups if you will. The following is a snip from a conversation I had this morning with one of my favorite clients.Me: Did you know about buyer’s agency before we started working together?A: No.Q: What did you do when you wanted to see a house?A: I’d call the agent and ask if I could see it.Q: Did any of them explain agency to you?A: Sure!… (buh-dum-bum)What is a Buyer-Broker?Being Selective (sample Buyer Agency Agreement – pdf)Competent representation is more crucial than ever, particularly in this market. I am working on a horror story now about the consequences of not having representation.
NAR’s greatest mistake
The National Association of Realtors, by advocating for the use of just any Realtor, does a disservice to all Realtors, particularly those who take this profession as such – a profession rather than a hobby. Saying “Use a Realtor” is much less effective than saying “Use a good Realtor.”
FSBOs in Charlottesville?
But, a couple of readers emailed me the article, so I feel obligated to comment (and I am grateful for that obligation – thank you for reading)The study (pdf) is less a story of how much more unrepresented sellers sell their homes for than those who choose to hire a Realtor, and more about the effects of a viable alternative to the MLS, which is currently the best way to market a home.We focus on the city of Madison, Wisconsin, where a single web site (fsbomadison.com) has become the dominant for-sale-by-owner platform.A few thoughts:1…. The National Association of Realtors (NAR) argues that Realtors provide valuable help with setting the listing price, preparing the house, checking potential buyers’ qualifications, showing the house, bargaining the terms of the deal, and handling the paperwork.5…. Maybe the best “by owner” site in Charlottesville is c-villebyowner, but their market share remains infinitesimal.In the Charlottesville area real estate market, some neighborhoods are more likely to be successful for those who choose to represent themselves in the sale of their homes – those that are fairly cookie-cutter and high-traffic neighborhoods may be better candidates than those that are not, but why would someone want to limit the number of people to whom they market their most valuable asset? What about the pictures?By the way, the study is outdated.The study found, however, that homes listed with agents sold more quickly — with a 25 percent probability of selling within 60 days versus a 16 percent probability for FSBO-advertised homes.The average days on market in the Charlottesville area, right now, is trending between 74 and 106 days.