Sage Advice
March 12, 2007 | Leave a Comment
Every real estate professional should read this post from Greg at the BloodhoundBlog. Not only should you read it, but you should meditate upon it and internalize it. If it doesn’t make any sense to you, then you may want to rethink your career choice.
If you aren’t a real estate professional, you should still read it.
Technorati Tags: real estate, realtor, charlottesville, virginia, reputation, bloodhoundblog
REALTOR.com Still Atop the Web 2.0 Heap and . . . The Leviathan Grows
March 9, 2007 | 3 Comments
I was working on this post about real estate web stats when I discovered that Joel at Future of Real Estate Marketing beat me to it. That’s okay, because he does a much better job with the information than Inman did, and his blog doesn’t require a paid subscription. Be sure to read his post.
Hitwise, a company that tracks internet traffic across major industries, released its most recent set of statistics about the real estate industry. According to their stats, Realtor.com remains the #1 website. Rounding out the top 10 are Realtytrac, Homegain, Rent.com, RE/MAX, Yahoo! Real Estate, Zillow, Apartments.com, ZipRealty, and Move.com. Realtor.com maintains an 8.78% market share, more than twice that of #2 Realtytrac. It appears that for all its faults, Realtor.com is still the big dog on the block, despite all the growling from the Web 2.0 puppies.
In another interesting announcement, Hitwise analyst Bill Tancer reported on the Hitwise blog that the internet Leviathan that is Google has been driving 13% of all of its Google Base traffic to Real Estate. Coupling this data with the fact that Hitwise reports that Google is the source for close to 16% of ALL traffic to the Real Estate industry, leads me to believe that the Real Estate arm of the Leviathan is getting a bit stronger.
So what is the point of all this? Well, for me, it confirms something that I already knew– if I want to be around and practicing real estate in 10 years, I had better be showing up in Google. Like it or not, Google is here to stay, and if they continue to grow, they may end up being the best game in town. Will they ever replace the need for regional and local MLS systems? I doubt it. Sites like Google Base, Trulia, PropSmart, etc., may be decent alternatives for the consumer, but they are no where near what the professional agent requires.
MLS systems are safe, for now. Agents, on the other hand, had better pay attention to the changing internet landscape if they want to remain relevant and employed in the future.
Technorati Tags: real estate, realtor, charlottesville, virginia, google base, hitwise, realtor.com, web 2.0
Charlottesville Area Real Estate February Stats
March 8, 2007 | Leave a Comment
It is time once again for a monthly sales report on Charlottesville area real estate. As always, the stats are taken from the Charlottesville Area Association of REALTORS MLS and cover the Charlottesville MSA. Let’s start with the stats for February:
February 2007
February 2006
Breakdown
To be quite honest, I was a bit disappointed by the February sales results. I didn’t expect them to be on pace with 2006, since early 2006 was really just an extension of the stellar year of 2005, but I did expect the sales to be a bit better than they actually were. Every area was down except for Fluvanna (+4%), which experienced one more sale than last February. The final results were: Albemarle -40%, Charlottesville -46%, Greene -25%, and Nelson -36%. The Charlottesville area as a whole experienced 33% less sales than February 2006. A 33% drop might seem like a lot, but the good news is that the median home price remained virtually unchanged. So while the number of sales may have dropped, homes seem to be holding value. In the long run, the importance of holding value will outweigh the importance of selling a lot of homes.
2007 Year-to-Date
2006 Year-to-Date
Breakdown
As expected, the YTD sales for 2007 are trailing a bit behind the pace of 2006. Every area was down: Albemarle -37%, Charlottesville -33%, Fluvanna -18%, Greene -41%, and Nelson -22%. Overall, the Charlottesville area has seen a drop of 33% in the number of sales so far in 2007 compared to 2006. Like the February numbers, the news is not all bad. The median price for the area has not seen a major drop, dipping only 4%. This early in the year, a 4% drop in the median isn’t exactly alarming.
The one thing that did surprise me about the statistics is the fact that total sales numbers have not been this low since 2000. Of course, the median home price for the area in 2000 was LESS THAN HALF what it is now. Sellers have been living the good life since then. The lesson to be learned from all of these statistics is that the market that currently exists is here to stay. I get asked all the time, “when will the market come back?” The simple answer is that it won’t. Prices aren’t really dropping and not skyrocketing either, which is a very good thing; but with the increase in active and potential inventory, and the decrease in sales, the days of one-week sales and multiple offers above list price are getting much fewer and much more infrequent.
Technorati Tags: real estate, realtor, charlottesville, virginia, real estate stats, home sales,
Do Inspired Work
March 8, 2007 | 2 Comments
One of the things I like about real estate is that success is left up to me. There is no safety net. This fact can be scary and exhilarating at the same time, but it makes for an interesting work life. Because I know I am responsible for my own success, I know that it is up to me to keep myself as motivated as possible, and to search perpetually for new ideas that could make my business better. Truly inspired work can be some of the most effective and productive work a person can do. There are sometimes little moments of inspiration arising from the most unexpected places that serve to enhance the way I work or the things I do.
One such source of inspiration for me is BMW. Because my wife and I are members of the BMW Car Club of America, we are constantly exposed to the culture of BMW, both popular and corporate. I am always impressed by what I call the “BMW Experience.” BMW is a quality company from the top down. It may start in Munich, but it doesn’t end there. It continues right behind the steering wheel and even beyond.
For me, the thing that makes BMW such an inspirational company is their unwavering focus on the driver. BMW knows that their company lives and dies with the driver of the ultimate driving machine. To that end, the entire company is centered around the driving experience. They listen to what their drivers want, need and expect. They then take that information and use their knowledge and experience to exceed drivers’ expectations. This total commitment also means that they are committed to the driving experience outside of the car as well. From the sales associates, to the mechanics, to the corporate and club publications, everything is centered around delivering a high-quality experience.
The BMW experience inspires me to strive for a similar commitment to my clients and customers. The real estate industry has long be known for focusing on the transaction, and not so much on the people involved in the transaction. That must change. Real estate is one industry that lends itself perfectly to being a people-oriented business because it relies so heavily on personal interaction. When it comes right down to it, real estate isn’t about houses, it is about the people who live in those houses. The focus shouldn’t be on listings or sales, but on the people who choose to list and buy.
Sure, an agent could choose to focus on production and sales numbers. After all, we all have to eat, don’t we? If, however, the urge to produce comes at the expense of the positive experience that customers and clients deserve, success will be fleeting. That same agent could also choose to focus on delivering an experience for customers and clients that exceeds expectation. This unwavering focus on customers and clients will serve to bolster the success and longevity of that agent’s reputation and career.
BMW is one of my inspirations, and hopefully that inspiration will help me achieve my goals. Like I said, inspired work can be some of the best work a person does.
Where will you find your inspiration?
Technorati Tags: real estate, realtor, charlottesville, virginia, bmw
Talk Show Button in Sidebar
March 7, 2007 | 1 Comment
I placed a button at the top of the sidebar that gives you instant access to my host page on BlogTalkRadio.com. Any time you want to find out what is going to be on RE ZebraTalk, just click the button!
The Zebra Launches a Talk Show
March 6, 2007 | 6 Comments
Last week, I posed the idea of creating ZebraCasts for the blog. I still think that is a good idea, and there has been much discussion in the RE.net about the creation of a hosting community for such podcasts. While I was kicking around ideas for ZebraCasts, I remembered something I had read about internet-based talk radio shows. Luckily for me, I had saved in my RSS reader a post about BlogTalkRadio.com. It is a site that enables people to host their very own internet-based talk show for the world to hear. It even enables listeners to call into the show live. Best of all, its FREE.
So, I am here to announce the launch of the Real Estate Zebra Internet Talk Show. Perhaps I will call it, “ZebraTalk,” for short. The premier episode of the show will be Thursday, March 29th, at 7:00PM EST. I am in the planning stages of setting up the show, and I will hopefully announce a guest in a few days. You can also be sure to check here for future posts about how you can listen to the show. It should prove to be both fun and interesting. . .
Technorati Tags: real estate, realtor, charlottesville, talk radio, blogtalkradio,
CoRE Keeps Basketball Theme Going
March 6, 2007 | Leave a Comment
The 32nd edition of the Carnival of Real Estate is up at the Salt Lake Real Estate Blog. The Zebra used a basketball tournament theme in the 31st edition of the CoRE, and Nigel keeps things going, even taking it to the next level. The 32nd edition of the carnival as a definite March Madness theme, so be sure to read on . . .
Technorati Tags: real estate, realtor, carnival of real estate, march madness
Is Your Copy Hurting Your Real Estate Sale?
March 2, 2007 | Leave a Comment
Most of the time, people speak and write without giving a tremendous amount of thought to what they are doing. As an English major in college, I learned very early on that words mean something. Depending on the context, words can even mean different or unintended things. The meaning of words is paramount in advertising and marketing copy, where space is often limited, and the purpose is to cause people to act. Real estate listings are no exception.
My interest in the meaning of words was especially piqued by an article I came across from MSN Real Estate. The article is about a recent Canadian study that attempted to measure out how certain words or phrases affect real estate listings. The accuracy of the findings may be questionable, but they are interesting nonetheless. Take a look at this chart from the article that shows what effect certain words and phrases appear to have on the sale of a property:
The right words pay off in speed and money*
| Term | Effect on time until sale | Effect on list price | Effect on selling price |
| Beautiful | -15% | +5% | +5% |
| Move-in condition | -12% | Insignificant | Insignificant |
| Good value | -5% | -6% | -5% |
| Must see | Insignificant | +4% | Insignificant |
| Starter home | -9% | -10% | -10% |
| Vacant | Insignificant | -5% | -8% |
| Rental property | +60% | -7% | -9% |
| Handyman special | -50% | -30% | -30% |
| Moving | Insignificant | -1% | -1% |
| Motivated | +30% | -6% | -8% |
| Landscaping | -20% | +5% | +6% |
| Source: “House Prices and Time-till-sale in Windsor,” professor Paul Anglin, University of Guelph, Ontario*The study examined roughly 20,000 listings in Windsor and Essex counties, Ontario, from between 1997 and early 2000. The effects shown are averages; wide variations appeared within categories. | |||
It would appear that if your listing copy contains the word “motivated,” as in “motivated seller,” it will take 30% longer to sell, and sell for 8% less money. On the other hand, simply using the word “beautiful” in the property description will help the property sell 15% faster and for 5% more money in the end.
I think there are a lot of variables that would go into a study like this one, enough that it would seem to make the results highly debatable. What cannot be denied, however, is that words most certainly have an effect on the way a property is perceived by potential buyers and their agents. The article makes that very clear.
So the million-dollar (or tens-of thousands, as the case may be) question is, have you read the copy of your listing lately, and how might it be affecting your sale?
Technorati Tags: real estate, realtor, charlottesville, buying, selling, marketing
Don’t Get Sidetracked by the Green-Eyed Monster
March 2, 2007 | 1 Comment
Jealousy is part of the human condition. Everyone experiences it at some point. For some, it can be a daily experience, for others the green-eyed monster rears its ugly head in rare instances. Either way, one time when you don’t want jealousy to cloud your judgment is during the home-buying process.
The point at which jealousy is most likely to show up is when a buyer discovers what the seller paid for the home when he purchased it. It seems that unless the seller has owned the home for a decade or more, buyers will become momentarily preoccupied with how much potential profit a seller can make from the sale. This preoccupation, if allowed to fester, can turn into jealousy and poison a transaction.
It is important for buyers to remember that sellers are supposed to make money when they sell their home. I don’t know anyone who buys a home expecting to lose money. Financial profit is as American as apple pie. Buyers should not let the amount of money a seller is going to make effect the way they go about making an offer and negotiating. The focus should be on getting the best purchase price possible, not limiting the seller’s profit. So what if he is making a boat-load of money? Buyers should be happy for him and hope that they are able to experience a similar fate if they choose to sell.
Real estate negotiations are always emotional. Jealousy may be one of those emotions. The important thing is not to let those emotions, especially jealousy, effect the way you go about buying a home. To do so could destroy what might otherwise be a very successful transaction. The green-eyed monster can be quite a devil if you let it. Just make sure it doesn’t keep you from achieving your goal of buying a home.
Technorati Tags: real estate, realtor, charlottesville, buying a home
Witnessing the Birth of a Great Idea
March 1, 2007 | Leave a Comment
My previous post discussed the idea of creating a ZebraCast, an audio podcast for the blog. This post sparked an email from Mike at MLPodcast that involved me in a discussion about creating a place for RE.net bloggers to post podcasts for the world to find and hear. Mike felt that bloggers should cover the topic in future posts to judge the demand for such a thing. I think it is a great idea, and Greg recently wrote a post raising a few questions about how the whole thing would work. He asked:
1. What kind of content should be accepted, and what should be omitted? Feelings are running strongly against spammy or self-promotional podcasts — for instance, video virtual tours of listed homes.
2. How local is too local? Obviously I am strongly biased in favor of general-interest, nationally-focused and industry-oriented podcasts. Should locally-focused podcasts be accepted, and, if so, should any limits obtain on what kind of local content should be accepted?
3. What’s a good length? I personally prefer podcasts that run from 45-75 minutes, the length of a good workout. The Sales Success podcasts we’re putting together will run from 10-30 minutes. What do you think is a good length?
4. Finally, do you have plans either to create or to subscribe to real estate podcasts, and, if so, would a system like this appeal to you?
My answers to Greg’s questions are:
1) Video podcasts of active listings and purely self-promotional material would have to be prohibited. There are plenty of outlets for that type of thing. The question would be who would be responsible for the monitoring of content, as that could prove to be a bear of a task.
2) Anything local that goes beyond anecdotal examples in the service of addressing a broader issue should be prohibited. After all, aren’t our personal blogs designed for that purpose? Someone else’s server space shouldn’t be clogged up with podcasts that only pertain to Charlottesville.
3) As far as length is concerned, that is a personal thing. My opinion is that the more brief, the better. I don’t know how willing people will be to listen to a 30 minute podcast about industry issues. That might cause people to fall asleep in the pews. When I start my ZebraCasts, I will probably try to keep it under 10 minutes or so. I think that is appropriate for most subjects. The other option is if someone is going to do a longer podcast, make sure that it has ample chapter breaks so that people can take a break and come back to things later if they want. A series of podcasts may also be a solution to the length issue.
4) I definitely have plans to create such content, and a service like this sounds like a great idea. Hopefully, it will come to fruition sooner, rather than later.
There are a lot of good people mulling the idea. It looks to me as if we maybe witnessing and participating in the creation of a significant development in the RE.net world.
My two cents is in. . . how about you?
Technorati Tags: real estate, realtor, blogging, podcasting, marketing
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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.
