Archive for the 'Real Estate Technology' Category
I Said I Want to See ALL The Listings
April 30th, 2008 Categories: Real Estate Technology, Redfin
Also See:
Redfin The Transparent Real Estate Brokerage
The Psychology of Property Listings and Interest Rates
Sphere: Related Content
5 Tips For The Brave Soul Considering Real Estate Sales As a Career
April 29th, 2008 Categories: 4realz, Active Rain, Blogging Tips, Real Estate Technology, SEO Tips, social networking optimization, twitter
What are your three tips to someone wanting to become a real estate agent today?
Hi Im Rudy at Trulia, a social media guru, inspired this post with a question on Twitter last week.
My initial reaction was ‘Why would anyone want to enter the real estate sales industry today?’ but the prevailing thought became: It would be a great time to enter if you knew how to play the game with new rules and better tools.
The information below is nothing new to the experienced re.net professional, it’s meant to be a simple guide to help a new agent put their feet in the re.net pool without inundating them with too much information.
Study, Subscribe, Crowd Source, and otherwise increase your Social Networking Optimization Skillz.
Read the real estate sites indexed in my re.net tab (for starters). Look for other sites of interest from their blogrolls. Commit your favorites to an RSS Reader and read them like the daily newspaper. Track the latest news, trends and general pulse of the online real estate and mortgage community. If someone writes a post that inspires a question, comment thoughtfully and you’ll likely gain some influential friends along the way.
Once your social base membership increases you will be able to crowd source for information better than any search engine can provide. What is crowd sourcing? Leveraging mass collaboration amongst human beings to further ones knowledge and experience levels.
Enroll in social networks like Active Rain, Twitter, Facebook, and LinkedIn, doing so is a well guided, relatively easy process. If you get stuck ask someone in the community for help, there’s a high degree of altruism in these spaces.
It’s easy to get a little crazy joining new social networks, it gets even crazier trying to keep up with them all, so choose where you’re going to spend your time carefully. The communities I mention have all yielded positive returns in exchange for my time spent ‘in’ them.
Active Rain. The #1 social network for real estate and mortgage professionals. If the community does nothing else it gives a wide range of feedback, from active professionals to interested consumers, and offers good targeted marketing leverage/exposure. Most every ‘online’ real estate related professional I’ve run across has contributed to Active Rain at some point in time, it’s a great place to gain online traction.
Twitter is an enterprise class text messaging social network who’s potential upside is best described in my last post.
FaceBook is a more mature, clean version of MySpace in concept and user type. Throwing sheep, feeding a friend to a Vampire and a slew of other spamapplications argue the contrary, granted. But, Facebook also allows one to create smaller specialized ‘communities’, affiliate with specific geographic and demographic groups, and otherwise socially promote yourself and your wares for free. FaceBook can connect you with ALOT of people.
LinkedIn is a resume and networking community for professionals. If you’re looking for business, products, services and the people that provide them, LinkedIn’s ’six degrees of separation’ community is a great place to crowd source higher level expertise and experience and even land a better job.
Join Trulia Voices and Discussions on Zillow, engage the conversations as people subsequently tend to link back to your home site, which is the goal. One thing here: answer the damn questions honestly not according to the kool-aid infused NAR psycho-babbletalk rulebook that currently dominates these sites…get in there and mix things up, you’ll stand out and win in the end.
Give away your knowledge and listings freely.
Start a blogsite by paying a service provider (there are a number of them in the RE Tech section of the re.net tab) to create a nice clean ‘home’ in cyberspace for you. Yes you can do a lot of this yourself for relatively free but thats not where you should be focusing your time. Allow the professionals to handle most of this, at least the set-up, the cost in time savings alone is worth the price tag. Don’t make the mistake of putting up an ad hoc site, it’s the first thing most people will see of ‘you’ and first impressions are important.
It wasn’t all that long ago that uttering the idea of open listing distribution outside the traditional MLS would get one tarred, feathered and hung from NAR’s flagpole. Today it’s accepted as necessary for survival. Customers want to see listings, all of them, so give them the most intuitive experience possible. Make sure your site provider has a really good IDX User Interface (UI). In other words, you want something that looks almost as good as Redfins, Zillows or Trulias User Interface to redisplay the listings in your farm area. Push your listings out to these well trafficked sites too.
Consider yourself a real estate journalist, report (blog) on your market 3 times per week. Mix it up, the stories can vary from statistical to satirical but should always tie back to relative real estate information, and enlighten to otherwise benefit your audience.
Familiarize yourself with various multi-media tools to properly market yourself and the real estate you represent, i.e. Turn Here, Real Estate Shows, even sites as simple as Flickr can help make an otherwise vanilla listing drip with sweet sizzurp. Teresa and Daniel epitomize this practice. Current agents and profound bloggers are even developing their own technologies for the benefit of all…
If you notice another professional doing a property or client an underachieving disservice, pass these tools and advice along to them. There is nothing more frustrating to a buyer and insulting to a seller than reading some boiler-plate MLS description of a property with no (or disposable camera) pictures.
The re.net community is rather ‘cliquish’ and protective of their own. Differentiating yourself with novel opinion is one thing, personally attacking someone for your benefit will get you ostracized in the greater community. It should also go without saying that plagiarism is stealing and will get you ‘rubbed out’ too. Never copy someone’s work without permission or proper citing.
Don’t expect instant success. Building an audience takes time, at least 3-6 months.
F*@k SEO
A good blogsite provider will build you a site that innately optimizes your content for the search engines. Many SEO pundits (trust me, you’ll run in to them) will have you chasing your tail focusing on template style (= boring) writing. You can’t ‘game the system’, trying to do so is often called ‘black hat’ or ‘grey hat’ tactics and will likely get your site penalized. The best SEO advice anyone can give centers around composing well written, compelling, relevant content and producing it with consistency. The rest will take care of itself.
The SEO related sites I link too in my re.net index are there because they’ve proven to spur the creative writing juices and address the basic do’s and do nots very well.
The time you spend trying to keep up with SEO tactics is time better spent researching your market data, trends and other far more interesting content to provide your readership and subsequent clients.
Always remember, you should be building an audience not fishing for ‘traffic’.
Don’t call yourself Realtor.
Sorry, but it’s the truth. Call yourself a licensed practitioner of the real estate arts, marketing guru for real property, property pimp, or whatever. The name Realtor creates strong feelings of aversion in the mind of a consumer, and the NAR doesn’t like anyone using the word very much anyway.
Drop the confusing acronyms. I get these visions in my head of local NAR meetings where Realtors wear their uniforms with patches and beads sown on, like in boy (or girl) scouts.
Distance yourself from traditional real estate economics. I’m not saying charge less, I am saying charge whatever you charge, just have it make sense to the consumer.
Don’t put your picture on biz cards or the front page of your website. People can be shallow, jealous and unforgiving…propping your face up for all to see may be deemed pretentious, too pretty/ugly, or doesn’t look enough like you (so you’re lying). One of the (many) things I took away from the 4RealzEd.com seminar was Jim Marks demonstrating via a real client example, where simply removing an agents mug from the front page of the website caused a substantially higher click-through rate.
It’s not personal, but its hard for a few good apples to un-spoil the bunch. For every Jay Thompson, Kris Berg and Teresa Boardman there are a hundred clowns out there insuring the name Realtor elicits a furrowed brow and curled lip on the face of the consumer status-quo. Imitation is the sincerest form of a compliment, it’s OK to try and emulate what these good folk are doing, the industry is better because of people like them, which leads to:
Pay it forward
For too long the real estate industry has been in competition with itself.
Sphere: Related ContentScarcity breeds scarcity, the bigger you give the bigger you get. Help out other agents that didn’t get the love you got and make the entire industry a better place than when you arrived.
Mortgage Yield Spread Premiums and The Transparency Thing
April 15th, 2008 Categories: Real Estate Technology, Real estate economics, Tranparent mortgage pricing, Yield Spread Premiums, ratespeed
Yield Spread Premium: A consumer option to finance some or all of closing costs by accepting a higher interest rate than they otherwise qualify for.
There has been much debate about Yield Spread Premiums (YSP’s), from overall required disclosure policies to their potential abolition. All mortgage professionals have a personal opinion on the topic, some resort to denial when it comes to their relative importance in relation to the overall mortgage transaction, others will get down right hostile regarding the topic of proper YSP disclosure and use.
Regardless of status-quo industry opinion, YSP disclosure is a vital component to address amidst the mortgage mess we’re in. Many other industry pundits have writtten about YSP’s, opinions vary as widely as the colors of the rainbow, most of the articles I’ve read were written after this article was posted on the Active Rain real estate social network. The post pales in comparison to the comment thread, which is most entertaining. The same article is linked internally (below) as well…
I started writing about YSP’s in early 2006, even before this site became a ‘blog’. They’re an interesting and important topic because Yield Spread Premiums drive business transactions in the mortgage industry, this is a hard fact. As a former mortgage broker (owner/operator), YSP’s were a focal point of who we did business with as a matter of practical business economics.
The wholesale lender who offered the ‘best pricing’ (paid the most in YSP’s for a given set of products) often got a bulk of our business, unless their processing was so terrible it caused closing dates to be missed or something of that magnitude. Any broker or banker who tries to represent otherwise is either lying or talking out of both sides of their mouth.
Improper disclosure of YSP’s have had a staggering detrimental effect on this industry. Very viable, valuable programs like Option ARM’s were destroyed because of improper YSP disclosure. Brokers sold these programs based on the low monthly payment option they offer and then juiced them with margin that caused consumers to defer inordinate amounts of interest to the loans principle balance and caused future rate adjustments to blow people right out of their homes. Similar dynamics exist within other mortgage programs as well.
I’m willing to step out there and say that improper YSP disclosure and use are the cause for many foreclosures in todays market. YSP’s foster higher interest rates via higher margins. Higher margins are especially apparent when an ARM adjusts, (can) cause substantially higher payments. Higher payments, or payment shock, cause defaults and subsequently foreclosures. It’s not a stretch to ascertain that proper YSP disclosure, implementation and greater consumer understanding could have prevented a number of foreclosures.
Its worth mentioning that I’m not here to lobby for the elimination of YSP’s…eliminating Yield Spread Premiums would be a catastrophic mistake, they are a vital tool for many consumers in the market for a mortgage. The average mortgage broker(age) would close as soon as their current pipeline of grandfathered business dried up if YSP’s were outlawed, it would crush the small business owner brokerages, although this may appeal to big business and the retail banks.
Properly enforcing how YSP’s are disclosed and used is vital to a fledgling mortgage broker (and banker) industry. Many in the industry will argue that Wal-Mart or some other retail outfit doesn’t disclose how much they make on a given product so why should they?…Such analogies are akin to comparing apples to arsenic. It’s worth mentioning the ridiculous laws that allow for mortgage bankers (and retail banks) the leeway to NOT have to disclose YSP’s while mortgage broker must disclose them. Hypocrisy isn’t a strong enough word here to describe the two-faced mug of the greater mortgage industry.
If their definition is as the first line of this post dictates, then every last penny of YSP on any given loan must be disclosed and credited to the consumer. If a wholesale lender is offering ‘50 bps (.5%) in YSP for closing a 5 Year ARM Purchase’ as this months ’special’, that ’special’ must be credited to the borrower.
Mortgage professionals must recognize that they are not entitled to YSP’s, they’re not a tool of personal enrichment, not a profit center, and are the business of the consumer. They need to drop the elitest attitude, compete on service and experience, and most importantly of all disclose interest rate pricing with 100% transparency, not 90% or 99%…100%.
For the mortgage professionals who say ‘I already disclose/do business this way!!’ Even if you are telling the truth in fact, nobody believes you. Consumers should ‘trust but verify’, alas there is no way to verify using todays web-based tools; blind trust is something a consumer is less and less willing to afford a perceived perpetrator of deceptive practices. A mortgage professionals value is in their service, fulfillment, and expertise levels, not interest rates. Interest rates are a commodity, a good mortgage professional is not.
Running a mortgage business under the Transparent monkier isn’t easy, you just don’t flip a switch…I was engaging David Podgursky via a Facebook convo, he was telling me that while he wanted to run with the Transparency movement, he was having a difficult time with how to ‘work’ this paradigm shift:
David:
I don’t know… I want to like transparency but I think that sometimes haziness is better … and it isn’t like I hide things but transparency in broad strokes seems to me would have implications that clients would shop based on the professional fees and that alone…
I work in Florida… we HAVE to disclose front and back end… so it is transparent! that BS HUD change makes it even more so!!
TXB:
Transparency in any marketplace causes that marketplace to have to figure out how to run more efficiently, so they can cut costs to accomodate the ever enlightened and discerning consumer. Its a nebulous, tricky proposition but an eventuality none the less…
The way traditional mortgage shops run, split % based commissions and all, are counter to participating in a transparent marketplace. This is where change needs to happen, at the core of the business model.
It’s professionals like David that inspire and motivate me. He does business the right way and wants to be as transparent as possible but the fu*#ed up system gets in the way.
Consumer demand is what can and will change how this industry operates. Consumers are demanding greater transparency and lower costs…and RESPA law happens to back them up. There are plenty of professionals who currently and/or willingly do business this way and I want to help. My intent is genuine, purposely designed to enlighten the consumer and empower the maligned quality mortgage professional.
While this article is sure to be deemed as self-serving, since I’m about to launch an anonymous mortgage application that discloses a participating mortgage professionals wholesale rate pricing feeds, every penny of YSP unveiled, what shouldn’t be lost in translation is the importance of higher education and transparency for the mortgage industry. No amount of legislation will fix whats wrong here, big biz lobbyists will make sure of that.
The mortgage industry still needs an enema and I believe I’ve got a potent one 
Next: How to Run a Successfull Transparent Mortgage Business
Also See:
Yield Spread Premiums, a Quick Study
Yield Spread Premiums, Capital Hill Testimony
RateSpeed, The Mortgage Rate Search Engine
Indecent Disclosure, Yield Spread Premium Class Action Lawsuits on the Rise
RateSpeed, The Automated Transparent Anonymous Mortgage Rate Pricing Widget
Sphere: Related Content
