Blogging From Mt. Olympus
August 31, 2006 | Leave a Comment
The USA Today is a pretty cool newspaper. I like it because it doesn’t waste my time, and it does a good job of giving me the most relevant news. I like to read, I just don’t have time to sit down and go through a paper as voluminous as the New York Times, that is why I love RSS. The USA Today is like a print version of RSS. Heck, I even get the RSS edition of the USA Today.
In yesterday’s edition, I came across an interesting article in the editorial section (the 2nd section that I read, after the sports). The article was titled, "Lieberman, ‘Snakes,’ and the seductive mythology of the blogosphere". Anything about blogging is going to catch my eye, and this was no different. The author, Bruce Kluger, makes the point that blogs might be popular, but they aren’t necessarily a good barometer for public opinion. He cites as his examples the recent campaign of Connecticut candidate for Senate, Ned Lamont, and the poor box office numbers for the recent release of "Snakes on a Plane." Apparently, both Lamont and "Snakes" were highly touted by bloggers. His point about the Lamont campaign is that it didn’t unseat Joe Lieberman, not yet anyway.
Kluger makes his point in the second half of the article:
what appears to be a coast-to-coast juggernaut
on a 17-inch monitor is, in the real world, simply an elaborate
PC-to-PC chain letter — enthusiastic, but not necessarily the national
mindset."There isn’t much point in detailing the chest thumping of the various blognut extremists," wrote Time’s Joe Klein in his analysis of the Lamont victory. "Their reach is minuscule."
For those who think Klein is underestimating the power of the blog, I have four words: Howard Dean for president.
But it is the underwhelming response to Snakes that reveals the real peril in relying on bloggers to take the nation’s pulse.
"There were a lot of inflated expectations on this picture, with the Internet buzz," New Line’s David Tuckerman told The New York Times after Snakes‘ lukewarm bow. "But it basically performed like a normal horror movie."
Tuckerman hits the problem squarely on its
blogging noggin. Ever since the first smarty-pants posted his first
unsolicited opinion on the Internet, Americans have become captivated
by blog-o-mania — for good reason. For once, we own and operate our own
public medium. Power to the people. Vox populi. Yadda-yadda.And yet, as the scrambling suits at Lamont
headquarters and New Line Cinema now know, it’s easy to be seduced by
one’s own hype, especially when that hype is preceded by a "www." Now
it’s time to play catch-up ball. Lamont’s handlers will have to face a
candidate who will surely try to have it both ways on the campaign
trail; New Line will have to sell a boatload of popcorn. That’s the way
the blog bounces.As an occasional blogger myself, I’m still wary
of the phenomenon. On one hand, it can be liberating to log on and
spout off, unencumbered by editorial oversight.On the other hand, as August 2006 clearly demonstrates, bloggers can just as easily get it wrong. That’s worth remembering.
The whole thing reminds me of child-rearing. As
the parent of any toddler can tell you, the younger the child, the
louder the screams for attention — and quite often, the degree of the
crisis is in reverse proportion to the decibels of the bellows.To that end, it’s important to remember that the
blogosphere is still in its infancy, and like any kid, it needs to be
watched very carefully.
Kluger is making a valid point. Blogs can most certainly get it wrong. But then again, who can’t? Even the most respected journalists aren’t above getting it wrong. Does anyone really assume that blogs and bloggers are the be-all end-all authorities on anything? Every blog has an editorial flavor. No blog that I am aware of is merely a recitation of facts about a particular issue. Anytime you are dealing with opinions, someone is going to be wrong.
There is also the issue of subject matter. No amount of blogging in the world was going to save the Howard Dean campaign in 2004. You can blog all you want– but the tape don’t lie. People are going to read blogs, sure, but no one is going to base all their opinions solely on the posts that float around the blogosphere. Personal experience and observation still counts for something. What makes the blogosphere different is that the opinions are unfiltered. They are being shared directly from person to person, instantly. They aren’t going through the hands of editors or the marketing department. One can try to make light of the vox populi, but it sure makes for interesting reading.
So how does all this relate to this blog? The Charlottesville Area Real Estate Blog has plenty of facts and information, but even more opinion. I’m not conceited enough to believe that I am the expert on all things real estate, or that my writings are edicts from on high. I am just one guy trying to carve out a little space in the universe because I think that some people might find my opinions and the information that I share to be informative and interesting. I’m not necessarily trying to change the world; although that would be a most welcomed side-effect.
My point is that you shouldn’t be worried about or abandon reading blogs just because some of them sometimes aren’t the best at prognostication. That isn’t why they exist. What blogs certainly do accomplish is giving a voice where it might not otherwise have been heard. That’s a good thing.
And if there is a "mythology of the blogosphere," then I would like to put my hat in the ring for the part of Zeus.
REALTORS Could Learn Something from Zebras
August 31, 2006 | 1 Comment
There are those among us that feel that the real estate industry has some real issues. There must be at least a grain of truth to this assertion, since Congress didn’t call industry leaders and government officials to Capitol Hill just to shoot the breeze. The concern of the federal government is the possible erosion of competition in the industry. The Justice Department has filed a few suits against an association or two for policies that they felt might be anti-competitive. Competition has always been an issue in real estate, and it isn’t likely to go away any time soon.
For me, however, the biggest issue isn’t industry competition, but the industry’s reputation. I’m not dumb, I know that REALTORS and agents don’t have the best reputation in the world. In case I needed proof, Harris Interactive is more than happy to provide some. Take a look at the following table:
This poll was taken in May of this year, so the data is about as up-to-date as one can reasonably expect. I know that people are supposed to possess a healthy amount of skepticism, but these results say that 20% of the people with whom I might come in contact in my capacity as a REALTOR would completely distrust my advice. That’s bad, people– very bad.
I’m not naive enough to believe that all REALTORS and agents are good people that are always out for the best interests of their client, “Million Dollar Listing” blew that idea out of the water in a very public fashion. I am, however, concerned with the way in which my profession is perceived. This is because it affects, in turn, the way in which I am perceived. Obviously, the public trust in REALTORS and agents is not very high, so the logical questions are, “why?” and “what can we do to change this?”
First, addressing the why?–
Every state in the country has rules that cover the way in which real estate licensees are to conduct business. Those rules are different in every state. The only state with which I have any experience is Virginia. In Virginia, the focus of most of the rules governing real estate licensees is the protection of the consumer. In Virginia, those rules are enforced through the Virginia Real Estate Board, what we call the “REB.” When consumers and or other licensees feel that a rule has been violated, they can file a complaint with the REB. The REB investigates the complaint, and holds a hearing, if necessary. If the REB finds that a law has indeed been violated, then it has the power to levy appropriate sanctions, including the revocation of a license.
In our area, there is also a second layer of rules. That is because most of the licensees selling real estate in our area are REALTORS. As REALTORS, we agree to abide by the REALTOR Code of Ethics. The Code of Ethics sets forth the rules for REALTORS in dealing with the public, each other, and their clients and customers. It is adherence to the Code of Ethics that makes up the difference between REALTORS and real estate agents. The Code of Ethics is enforced internally by REALTORS in their given geographical areas, and by the National Association of REALTORS.
To me, the problem with the reputation of REALTORS and agents is not necessarily in their practice, but in their enforcement. I touched on this issue in a previous post:
One of the benefits of working in an industry that is subject to little
government regulation is that people are exposed for who they truly
are. They act the way they do because they don’t think anyone is
watching. You wanna know someone’s true character? Put them in a
situation in which they don’t think they have any responsibility to
anyone else, and see what happens.
As I mentioned, much of the enforcement of the rules and ethics that govern REALTORS and agents is handled internally, by REALTORS and agents themselves. The problem arises when someone does something that violates a rule or standard of practice, and then other agents ignore it. Because the enforcement is handled by peers, there is also a personal element that comes into play. There are those that would rather avoid confrontation with another agent or REALTOR because they know they may have to work with that person later on, and they want to remain “friendly.” To me, this is a very dangerous situation. It is dangerous because it needlessly proliferates bad behavior.
I would much rather work in a profession where the rules are over-enforced than under-enforced. When you allow rules to go unenforced, it makes them very difficult to enforce when you need to. To choose not to enforce a rule is to give approval to the violation. Even if this approval is tacit, it is still approval. Tacit approval is dangerous because it gives the appearance that no one cares. To me, this is how the public is perceiving our profession. They perceive agents and REALTORS as dishonest because they don’t see anyone standing up to the dishonesty. The profession is not inherently dishonest. In fact, when all the rules are followed, it is very fair. The reason the public doesn’t trust REALTORS and agents is because they are unaware of the rules, and even less aware of any enforcement– that’s the “Why?” So that leads to, “What can we do about this?”
Allow me to give a real-world example from another profession with which I have first hand experience. . .
When I am not practicing real estate, I am usually officiating basketball. I officiate at all levels, right up to Division III college men’s basketball. I like it. If everyone had to do it for one season, they would gain a whole new perspective on the game. One issue that is omnipresent in officiating basketball is managing coaches. Obviously, coaches and officials do not see eye to eye all the time. This can lead to confrontation. Sometimes, that confrontation leads to rules violations, which lead to technical fouls and even ejections. This is the nature of the beast. A good official can do his or her best to prevent these situations, but they are going to occur. When they do, the good official knows what to do, and takes decisive action.
The two best pieces of advice I have ever received with regard to managing coaches and technical fouls are: 1) Set a limit, and stick to it. 2) A technical foul is just another foul.
By setting limits, a coach knows how far he or she is permitted to go before a technical foul is coming. This is important. The rule book doesn’t say a whole lot about what is or is not worthy of a technical foul when it comes to unsportsmanlike conduct. It is up the official to let the coach know when the limit has been reached, and the line is being crossed. Once crossed, both parties know it, and the technical foul is just the next step.
Remembering that a technical foul is just another foul helps to ease the tension that usually occurs after issuing one. Technical fouls don’t occur all the time, and the penalty is severe. Because of this, officials don’t like to use them if they don’t have to. That is why technical fouls are a lot like rules and ethics violations. When they do occur, the penalty needs to be enforced quickly, efficiently, and without a whole lot of hub-bub. Believe me, everyone has already seen what caused the technical, now enforce it, try not to do it again, and move on.
REALTORS and agents could learn a lot from this advice. The limits have already been set. Simply enforce the limits. When enforcement is necessary, act decisively, don’t make a big production of it, and move on. Just like coaches who receive a technical foul, REALTORS and agents who commit violations are either going to change their behavior in the future, or face ejection. Either way, we are all better off for it.
A Moment Of Shameless Self-Promotion
August 30, 2006 | 1 Comment
This site, and yours truly, were recently featured in an article in the Real Estate Weekly, one of the real estate publications for the Charlottesville Area. They don’t have a website, so you are going to have to go "old-school" and download the .PDF here:
Download RealtorsUtilizeTechnologytoMarketHomes.pdf
I thought it was pretty cool, and I hope you do, too.
Wait. . .it gets even better!
August 30, 2006 | Leave a Comment
Okay, so after I made that post about the premier of "Million Dollar Listing," I discovered that there is a blog for the show.
And if that isn’t enough for you, then you need to check out the message boards. There are posts on there from agents around the country. I wasn’t sure if I should laugh, cry, or just put my head in my hands.
“Million Dollar Listing” Premiers– You Need To Watch
August 30, 2006 | Leave a Comment
I think I mentioned this before, but I do like watching TV. I am just part of the TV generation. I am kinda dorky, in that I usually watch the educational channels most of the time and ESPN the rest of the time. One channel that I like to watch for its original programming is Bravo. They have some interesting shows every once in a while.
Last night, my wife and I noticed that Bravo was premiering a new show called "Million Dollar Listing." The show chronicles the trials and tribulations of luxury real estate agents. It is a reality show, of course. Being that we are both REALTORS, and we like million-dollar homes, we thought it might be interesting. . .
Boy, was it ever!
The show airs on Tuesdays at 9/8c, so check your local listings. Let me say this, if you have never heard of the show and you have TiVO, get a season pass– now. If you don’t have TiVO, then you can pick up the episodes at iTunes. I don’t want to make you spend money, but the episodes are only $1.99, and it’s worth it. If you are in the real estate industry, then you must watch this show. If you are a consumer, you should still watch it. Why? Oh, where do I begin . . .
Usually, the shows that follow agents through the transaction process aren’t all that interesting. The show usually makes everything as sterile as possible, leaving out most of real negotiating process. Most of the other shows out there also tend to suffer from uninteresting characters. Let’s face it, I don’t know if you would have very much riveting or entertaining footage if you followed me around for a month. With "Million Dollar Listing," on the other hand, you get all the juicy stuff, plus some crazy characters.
Characters aside, the first episode was pretty much a lesson in everything that gives REALTORS and agents a bad reputation. I know that Greg posted about a recent article in the Arizona Republic that didn’t exactly help the reputation of REALTORS. This show doesn’t help, either. Both of the agents featured in the episode seemed to be concerned much more with the commission than the interests of their clients. In fact, the one agent, Shannon McLeod, gives everyone a perfect example of why dual-agency may be legal, but it isn’t right. I know that producers can make anyone look anyway they want through editing, but as they say, "the tape don’t lie."
The subsequent episodes of the show will feature different agents. Their bios can all be found at the website for the show. I don’t know what the other episodes are going to hold, but if they are even 1/10th as shocking and entertaining as the first episode, then viewers are in for a wild ride.
I just hope it stays on the air. I can’t imagine that the execs at Coldwell Banker and RE/Max were exactly thrilled with the portrayal of their agents. But as long as "Million Dollar Listing" is on, I will never be in want of blog material. . .
Credit Where It is Due
August 29, 2006 | 1 Comment
In looking over the list of blogs that Cathleen Collins paid tribute to in her eloquent post, I wanted to make sure that all of those excellent blogs are located firmly in my Blog Roll. I realized there were three omissions. Those omissions have been rectified. I added:
Searchlight Crusade, Mike’s Corner (mlpodcast blog), and Real Central VA. All of these blogs are excellent, and deserve the credit they receive.
My Favorite Dog is the Bloodhound
August 29, 2006 | Leave a Comment
Cathleen from the BloodhoundBlog published a wonderful post today. I’m not just saying that because she plugged my blog, either. I am saying it because the message of her post deserves repeating.
Read the entire thing here.
Then make sure you check out all the blogs mentioned in the post. You deserve it, and so do they.
Here’s to you Cathleen. . .
Take My Broker. . .PLEASE!
August 29, 2006 | 1 Comment
I realize that as far as my real estate career is concerned, I am a pretty lucky guy. I get to work with my wife, who is a great agent, and my Broker is a great agent as well. And I’m not saying that just because she is my Mother-in-law.
I also realize that not every REALTOR gets to work in that type of environment. I have some first-hand experience in that regard as well. I recently wrote a post about how much experience matters in the real estate industry. My post was in response to an article I read that seemed to be bemoaning that the many problems in the real estate industry are coming from the influx of new agents. I happen to disagree.
In the comments on the post, Todd Tarson, a REALTOR from Arizona (his blog is in the blog roll), responded thusly:
I want to tell these brokers that I think the real problem is that it’s
entirely too easy to become a broker and there are too many bad brokers
for newbies to choose from. But I know thats a fight for another day.
Well, maybe that day is today. . .and maybe not.
While Todd may have a point, I don’t think that it is entirely fair to blame the Broker licensing requirements. First, I would have to subscribe to the premise that it truly is too easy for agents to become brokers. On their face, the requirements to obtain a Broker’s license don’t seem too easy, at least in Virginia. I am about to find out in person how difficult the requirements are, as my wife and I will be beginning the education requirements later this year. At the very least, the requirements to become a Broker are no more lenient than the requirements to obtain a salesperson’s license. As far as I’m concerned, when you compare the two, it’s a wash.
Of course, I am merely referring to the requirements of the licensing body. Obtaining a broker’s license from the licensing body is only half the battle. Once someone has the license in hand, that person is not automatically placed in charge of a herd of newbie REALTORS. One must either become a Managing or Supervising Broker of an existing firm, or take the substantial risk of starting a brand-new firm as the Principal Broker.
The latter of those two options is exactly why I am in my current, and optimal, situation. Myself, my wife, and my Mother-in-law made the decision that we were better off on our own, so we did it. My Mother-in-law took the risk of being the Owner/Broker, and Kari and I took on the responsibility of managing just about everything else.
Trust me when I tell you this, the barriers to becoming a Broker are many, when it comes to being a Principal Broker. As just about anyone who has started a business can tell you, it isn’t easy. It takes quite a bit of money, and even greater amounts of good Ole fashioned hard work. It is completely worth it, but it definitely cannot be described as "easy." I can’t imagine that it is very easy to become a Managing or Supervising Broker of an existing firm, either. Moving up the corporate ladder requires its own commitment.
Now, don’t mistake me. I’m not saying that every Principal or Supervising or Managing Broker is a saint, or even competent. What I am saying is that it isn’t easy, no matter how you do it. I fully recognize the fact that there are incompetent real estate Brokers out there, just as there are incompetent managers in just about every corporate endeavor; but to say that the incompetence of those individuals is due to the facility of their rise to power is too simple.
The problem with Brokers is the same as the problem with newbies, some of them are bad as individuals. Some of them are really, really bad. Chances are, those that are bad brokers were bad agents as well. Sometimes they have been able to hide it, sometimes they have just been lucky enough to escape scrutiny, but they are definitely out there. I don’t think that either of these awful specimens are merely a product of the system. They are the product of something far more powerful– genetics. Perhaps there is a small margin of each group that could be made better by some additional training or supervision, but that margin is very small. People who do bad things as REALTORS don’t just go home or go to another job and act ethically.
One of the benefits of working in an industry that is subject to little government regulation is that people are exposed for who they truly are. They act the way they do because they don’t think anyone is watching. You wanna know someone’s true character? Put them in a situation in which they don’t think they have any responsibility to anyone else, and see what happens. Don’t believe me? check this out.
There are people in this world who are willing to shock other people to near death, as long someone they trust gives them approval. In this case, the people administering the shocks were able to put their conscious aside because they were being given the approval of a person whom they perceived to be a "scientific authority."
So if the problem isn’t the Brokers, and the problem isn’t the newbies, who is responsible? I hate to be sound facetious, but the answer is both. Or, to be more specific, every agent out there who holds the title, REALTOR.
You’ll have to wait for another post for me to explain how REALTORS continuously give their approval to activities that are to the detriment of the profession.
Semper Paratus– emptor et vendor
August 29, 2006 | Leave a Comment
I spent a great deal of my college education and my summer employment around lawyers. Truth be told, both my wife and I had every intention of going to law school when we graduated. As life often does, it threw me a curve ball only months before we were to begin our first year. Lucky for us, we waited on that curve ball, keeping the front shoulder in, and drove the pitch right into a career in real estate.
I fully enjoyed the time I spent with lawyers. The vast majority of the ones with whom I came in contact were very smart, nice, people, and they helped me learn a great deal. Many of these lessons are things that translated very well into real estate. Especially when it comes to client representation. Perhaps that is why I sometimes find myself looking at real estate through a different lens than much of my competition. Most REALTORS look at their job as a sales job. While I don’t deny that there is an aspect of sales in real estate, especially on the listing side, I think of real estate in terms of representation. Also consider that not many people get dragged into court over poor marketing. Poor representation, on the other hand . . .
I consider the chief purpose of my job to be the representation of the best interests of my client to the best of my ability. Sometimes, that best interest is the sale of a client’s home, so sales and marketing skills play a larger roll. Other times, that best interest is the purchase of a home, in which case my skills of representation and consultation are paramount.
The thing that I learned from attorneys is that the party that most often achieves their desired goal is the one that is most prepared. That is why I live and work by the motto, "Semper Paratus," always prepared. If it’s good enough for the US Coast Guard, it’s good enough for me. This is true because the most prepared party is not distracted by the many things that can happen unexpectedly. Preparation allows that party to deal effectively with the unexpected, and not get caught up and slowed down by it.
Of course, there are two sides to every real estate transaction, buyer and seller. Therefore, both must be as prepared as possible. Many of us are familiar with the Latin phrase, caveat emptor, "buyer beware." I have always felt that a prepared buyer has little or nothing to fear or beware of. That is why I work as hard as I can to prepare my buyers for the task at hand, and the many steps along the way. Are there things that come up that we may not have prepared for? Certainly, but a prepared buyer is much more able to handle those few surprises without unnecessary stress and anxiety.
The same goes for sellers, vendor, in Latin. Those that are going to sell their homes need to be prepared in much the same way as buyers. They need to understand all the things that are involved with selling a home. As always, unexpected things are bound to happen, but proper preparation can make those unexpected things much easier to handle.
So for all you vendors and emptors out there, remember this– semper paratus.
More on what this preparation means in a future post. . .
Another Fabulous Carnival
August 28, 2006 | Leave a Comment
The latest edition of the Carnival of Real Estate was posted at The Landlord Blog. Plenty of great material, so be sure to check it out!
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Disclaimer
My name is Daniel Rothamel. I am a licensed real estate agent in the Commonwealth of Virginia and a member of the National Association of REALTORS. As such, I adhere to a strict code of ethics and all laws with regard to equal housing, which is reflected in the content of this blog. My broker is Strong Team REALTORS, 86 Joshua Lane, Palmyra, VA 22963; (434) 589-5800. My VA Real Estate License number is 0225 077325. All of the opinions in this blog are mine, unless otherwise noted.
