I know of several examples of inacurate blogging that hurt Seller’s interest. For instance, agent put in her comments, “not a fixer”. The blogging company had their filters set for “fixers”, and actually blogged the listing as a fixer. One listing agent found this out as they had visitor come in off the street wondering why the lisitng was misrepresented in the blog as a fixer. Further research found several examples of this. The property was grossly misrepresented by the blogging company.

By Greg Perry @ 21:

By The Tim @ 19:

RE: Greg Perry @ 18 – What the heck is a “blogging company” and how is it used by real estate salespeople?

The “blogging” company in the above example was Redfin. The “not a fixer” properties were being represented as “fixers”.

By calling Redfin a “blogging company” you imply that Redfin’s primary business is blogging, and that the egregious mislabeling of the property occurred in a blog entry on that website. As far as I am aware, Redfin’s primary business is not blogging, but rather is real estate sales. One could argue that they are better known for their superior real estate search engine tools than for real estate sales, but that still wouldn’t make them a “blogging company” any more than Google. From your description of the problem, it seems to be a bug in their property search feature, not a mistaken blog entry; any real estate agency website with property search could have the same problem. At any rate, I don’t see how the new law on blogging would pertain to the output of a search engine.

Furthermore, Redfin also posts the full description when it links to the listing from their search engine, so whomever searched for fixers and found that listing should have easily seen in the description (and probably the pictures) that it was “not a fixer.” I’ve occasionally seen mistakes in the data listed there (e.g., prior sales data that doesn’t match the county records), but that is easily cleared up by cross-checking with other data (either within the same listing or from outside sources).

And finally, whoever marketed their product as “not a fixer” probably would be better served by describing it in a different way (i.e., using positive words, rather than negative words). It may be possible for somebody to see “not a fixer” and focus only on the word “fixer.” This would have the opposite effect on their target market. Probably something like “pristine condition,” or “excellent condition,” or “move-in ready” would be a better description. I’m not a marketing person, though, so maybe the best marketing strategy is also the counter-intuitive one. Agents should be aware of how their listings will play in search engines.. at the very least how they will play in the popular ones like Redfin’s.

Oh, also my wife was an agent, and with the crazy real estate hours I either had to join her or divorce her. ;-)

You were an attorney – why did you switch to being a realtor? More money in it and easier work? :)

By Kary L. Krismer @ 6:

Here’s a better analogy. Filing bankruptcy. Yes the forms are relatively easy, and someone with reasonably high intelligence could fill them out, etc. But they’re also very likely to make very costly mistakes, not realizing certain issues even exist. When I was first starting bankruptcy someone said to me that you could have whale sized issues swimming around that you had no idea existed, and that pretty well describes it.

Back when I was practicing law two of the biggest issues were whether a bankruptcy was necessary, and if so, when to file a bankruptcy. Even people calling who had obviously done some research on bankruptcy had little/no idea on either of those issues.

Anyway, buying or selling a house is somewhat as complicated, and also an area where experience is key. Yes you can do either yourself, but that doesn’t mean you’ll do them to the best result.

Oh, finally, it’s also an area where you need to be somewhat careful about who you select to help you. In the bankruptcy area there are attorneys that just file anyone at anytime, in order to bring in the fees as soon as possible. I’m sure there are agents that do similar things, like not pointing clients away from potentially problematic properties.

(Uninstall and reinstall if you don’t have the latest version–6.1.2.somethingorother).

“If I wanted to start a weekly tour of the most overpriced homes in Seattle, where we drive around town and gather outside homes for sale through the NWMLS and mock the granite countertops and other such faux-luxury “upgrades.”

But would you walk in front of an open house with a sign that says “the zestimate on this house is $50,000 less than the asking price.” (when you know the zestimate is dead wrong)? Of course not. Now you know why I support the opt-out of AVM.

It’s easy to say “say WTF you want about anyone’s property” and let’s put it online for everyone to see.

I’m cool with that, so long as it’s true.

But what if what’s said is untrue or misleading– like a misleading zestimate (Spencer Rascoff in the comment to this post said an inaccurate zestimate can be misleading: http://bit.ly/323D0S

or a blog post that says your crappy house has termites (when it doesn’t). [BTW, saying crappy is OK]

These factual untruths hurt the home seller (and possibly future homeowner) and wastes buyers’ time….
and hopefully gets your dumbass sued and crying on your lawyer’s shoulder when the judge "female dog" slaps you for a few mil…. [cut to plaintiff laughing and thanking Google for preserving your irresponsible WTF-ness]

Just this fella’s opinion.

I wasn’t trying to be cranky too. Just pointing out some things from my view.

The internet has a lot of hype and disinformation. People talk about expedia like it’s a great thing. In my opinion it’s a complete rip off. My family and I spend more time figuring out the trips, spend more for hotel rooms, then get on some over crowded flight where we can buy a sandwich.

The post is about the NWMLS and it’s attempts to curtail internet business models for Real Estate. They can’t, but the consumer can choose better alternatives.

I say let people look at listings on line and comment. Who cares? If you are a serious buyer you look by location, you make your own choices, no body can tell you anything. At the same time I think there should be some respect for people who are just trying to do the right thing for themselves and their families.

Let’s start with the selling price is set by the buyer. What a buyer is willing to pay and what a seller will accept determines the selling price. So whining about high prices is ridiculous. If you don’t like the price make an offer.

Make the agent work for the commission.

There again I think the real future will be consultants, paid by the hour, to give guidance.

Enjoy the weather? Kind of drab out. I was stuck in a mob scene at Ikea after my daughters team got ripped 14-4 in soccer and then I had to endure that place.

Mukoh, I apologize for being so cranky and if you would have met me at Ikea I would have bought You, Greg, and Kary the meatballs in a cup. No insult intended, they are actually pretty good and I had 10 while trying to hear the Husky Game.

Maybe Ray’s clients don’t value their time much. ;-) >>>>> Could be…………..

“We absolutely cart people in our car! In fact at times we still preview prior to showing! The side by side comparison is one way our buyers determine value.”

Greg, you are correct. We are different. I will place no Buyer in my car unless theirs breaks down on a tour. We also do not Preview.

If I find any buyers that demands to be driven around I will surely send them your way.

Maybe Ray’s clients don’t value their time much. ;-)

RE: Kary L. Krismer @ 37 – I don’t think anyone is saying agents will go away. I think many of us are saying the 6% model coupled with an NWMLS information stranglehold will dissolve into oblivion. If companies like Windermere and John L. Scott can adapt, more power to them.

What information stranglehold? Who do you think is providing consumers the information on listings?

Some stuff might be hidden, but that is slowly changing on some things (e.g. DOM), but won’t on others (owner name and phone number.)

What amazes me is people think the model will change because people now get it off a computer instead of a newspaper. It’s not like the NWMLS is opposed to it being easier and cheaper for people to get information on listings.

“Greg, because we do the same job as you! I doubt you cart people around in your car to show them homes. I believe you send emails out. The Buyer deserves/needs this money NOW more then ever. We educate every buyer of what they should/should not do as well. But, in the end its their decision.”

We absolutely cart people in our car! In fact at times we still preview prior to showing! The side by side comparison is one way our buyers determine value.

Your model has failed enough times to have its future spelled out. Just look at sutton. :) Dale had a great run even tv ads, in the end it is a fun little deal for dinosaurs who think they are changing something to have had a lot of fun. :) Enjoy the weather. I sure am.

No Mukoh. As usual you bring nothing to the table. So you are not worthy of a response.

“Ray, the client you want and the client I want are very, very different. I don’t want to make every person think that they need to use an agent like me. Why do you try to convince the world that every buyer should use your model?”

Greg, because we do the same job as you! I doubt you cart people around in your car to show them homes. I believe you send emails out. The Buyer deserves/needs this money NOW more then ever. We educate every buyer of what they should/should not do as well. But, in the end its their decision.

Greg, I respect your opinion but I also know that each and every Agent knows the truth about real estate. They all know this 3% to LIST and 3% to help a Buyer find a home is a SHAM. I don’t need to tell you this, your too smart and already know it.

Google envisioned the future of Real Estate long before I did. Their model they have brought forward I embraced since day 1. When it gets rolled out 500 Realty/Red Fin, JLS, RE/MAX, CBB, and WIND will demise within 24 months. The MLS system is getting closer and closer to extinction each month that goes by.

Until, then Greg you and I must still work and I wish you luck going forward!

Its kind of like an accountant. I would never trust one that screams I will do your taxes for cheaper then ANYONE!!!. Come to me NOW!!!, I don’t need the business or money from it I DO IT FOR FUN!!!!

RE: Greg Perry @ 34 –

Ray, Ray, Ray,

“I do not believe you present ALL the facts. You gladly advise clients to seek their 8000 before the time expires yet you do NOT offer alternatives to the Buyers how they can EARN far more by simply assisting the Agent looking for their home. You see Greg, I’m full service as much as you are, however- I want the Buyer to assist me in looking for their home. In turn, I pay them. They know what they want far more then I do! ”

You are so focussed on your clients saving their nickels. You silly guy, they can go out with you, save their nickels AND get that $8,000 tax credit because they know what they want! They’ll get the best of all worlds! Awesome! If it works for you and it works for them great! I think your model IS good for some…..

And here’s the $200,000 question:
Also at our seminar, Eric Campbell, president of Cam West homes showed examples from the early ’60’s where a buyer could buy a home in the Lake Hills area of Bellevue and Fairwood in Renton for virtually the exact same price. Today, that Lake Hills home is worth about $200k more. Why? Both are good areas.

Hmmm. Your paradigm is that
“we want the Buyers to do the hardest part—————FIND THEIR HOME! Thats why they deserve the 75% They did the hardest part!”

I absolutely do not agree with this. This is one of the parts of the process. Often, many parts of the process are much more difficult than finding the home. AND, often I spend a lot of time talking clients out of buying homes they are initially attracted to. Left to their best emotional thinking, many buyers will get themselves in a peck of trouble.

Ray, the client you want and the client I want are very, very different. I don’t want to make every person think that they need to use an agent like me. Why do you try to convince the world that every buyer should use your model?

Reply – Quote

Greg, you did not answer a few of my questions so I will not bring them up again out of respect for you and your family.

” Yup. I agree. That’s what we did at our seminar. Present the facts. Brought in a neutral party to talk about the economy (Jim Hebert, Hebert research) and let people make their minds up for themselves! ”

I do not believe you present ALL the facts. You gladly advise clients to seek their 8000 before the time expires yet you do NOT offer alternatives to the Buyers how they can EARN far more by simply assisting the Agent looking for their home. You see Greg, I’m full service as much as you are, however- I want the Buyer to assist me in looking for their home. In turn, I pay them. They know what they want far more then I do!

They do NOT want to drive with me in my car searching. They want to do it on their own but need assistance in getting into the homes. In addition they need assistance and education in all the dynamics associated with the Deal including offer/counter-offer, and all the variables that come into play when buying a home. This is a wide spectrum that includes what should they offer? Inspection? Representation? Everything! We do exactly what you do but we want the Buyers to do the hardest part—————FIND THEIR HOME! Thats why they deserve the 75% They did the hardest part!

We can go on and on. I have been educating conventional Agents for years with everyday transactions. Slowly but surely they are starting to get it. Some Agents never contact me directly but only by email because of their incessant need to be RUDE. But, thats ok.

YOUR Conventional Model of Real Estate and the Model of 500 Realty/Red Fin will go away in time but I will tell you this…………….What emerges will be so much superior and consumer friendly that AGAIN we will all look back and laugh at this 6% charade…………

Until then we will continue to offer the BEST DEAL YOU WILL FIND for Consumers who are fortunate enough to have been educated.

1. CPA (These are licensed by the state, and they can represent people before the IRS, but not in court)
2. Enrolled Agents (These are qualified by the IRS, and they can also represent people before the IRS, but not in court)
3. Real finance people who do not fit one of the above categories. An example is a CFA. I am not so interested in anyone who sells financial products, nor am I interested in the wanna be finance people–there sure are a lot of sharks in the sea.

CPAs and Enrolled Agents are excellent for tax specific questions. Often the Enrolled Agents are better equipped than a CPA that does a lot of financial statement work. Enrolled agents are not as skilled at creating financial statements. These two are excellent at the front-line maneuvering.

The third category is about strategy. Have you ever heard about the CPA who suggested borrowing more and moving up to the bigger house to maximize the interest tax deduction? Sure he is 100% correct, but is that a good financial strategy? As always, CPAs are not all equal, and there are many very skilled CPAs.

Finally there is the observation of Sun Tzu. Tzu suggested that the ability of troops to follow the command will determine the success of the strategy, or something similar, I am going by memory here. This is so true in divorce cases. The attorney says to the client, “If you do X, then bad things will happen.” So the client runs right out and does X. Let’s see, you pay for good advice, and you run out and do exactly what should not be done?

People do similar things in finance. If you go do this, bad things will happen. For example, if you go buy a car that has a value equal to your annual income, it will not be good for your financial health. So what happens? A more expensive car is purchased.

And the beat goes on…

Oh, and like real estate agents, accountants are not typically attorneys.

Once again I must admit, 99%+ transactions go on without a problem. Could they have been better? Maybe.

I had a friend who paid some hefty income taxes that could have been avoided. He didn’t seek the right advice before the deals were done. Did his transaction happen without a problem? Yes, I suppose. Could he have done better? Definitely.

This gets back to your comments on the “do it yourself” bankruptcy. Yes, maybe you can get through the system, but an attorney has the harpoon and knows when and how to use it in the event that whale of an issue is present.

This sort of reminds me of the line, “You cannot get pregnant the first time.” For most it is not a problem, but for the others, I must ask if it was worth the risk.

Greg your comment here illustrates the problem most buyers have with a Real Estate transaction. They do go to seminars to get “educated,” or they listen to any number of sales pitches.

Real Estate has a value as a housing unit and some intrinsic values. An agent should know the value. People should buy based on price rather than terms. You only need to read the news paper to know prices are going down.

The problem with the chart and all those people who were sold properties this year by agents is that they will lose between 10% to 30% in value between now and 2011. Those that went to the foreclosure sales seminar may be the most gullible, but hey, they got professional advice.

Professional means you get paid. A man or women who will sleep with any one they meet in a bar is a….., but once they get paid they are a professional.

By now you all know my formula for making Real Estate offers. Potential rental income is the value. What you may not know is that every Real Estate professional does know the true value of a property but wants to sell that property to you for a price much higher than the value.

Real Estate agents claim there is no crystal ball, but they sure as heck should know the value.

What’s going to happen is that one day in the next two years the consumer, the public, will ask for service and remember the big companies didn’t provide that. Big companies like granite counter tops in the office.

Now the internet may be a great thing but look at the graph in the post. Yes price per square foot came down from $320 to $260 but that isn’t telling you anything about value. If the price per square foot drops back to $230 is that a buy signal?

The internet is a lead generator. People get swindled by the internet as much if not much more than dealing with an agent. We have not found a solution here.

greg, how did you end up on your prediction for sales in July, I can’t recall.

Well, earlier I predicted 2000 closings, but if you go back and research, you’ll find that well before July numbers came out I realized that because the increase in pendings started so late in the year in 2009, I backed off the July deadline.

I did say for the record that we should have 2000 in a month in 2009 and said somewhat tongue in cheek the month will be NOVEMBER. (patient loved that one)

The week before last we had the 2nd highest pending count since July 2007 and the pending counts have been strong for several weeks. Buyers won’t be jumping on the short sales so they can get the homes closed before the end of the tax credit so better inventory will be going under contract. Appraisal issues are starting to level out and I’m seeing examples of homes going through the lending process easier.

Yes, I still think we will see 2000 in 2009. July is traditionally the biggest month for closings, but will it be this year?

They also think that arranging a trip to Disneyland is somehow the same as buying a piece of real property. That’s the funniest argument anyone here makes.

RE: Kary L. Krismer @ 6 – This is where you completely lose me. Yes, experts are very important in the transaction. For me, this means

1. RE Attorney
2. Home Inspector
3. Appraiser
4. Escrow/Title Agent

Real estate agents never brought much to the table in my past transactions, yet with their limited training and licensing, they were skimming a lion’s share of the transaction fees..

None of the people you mention there help you with the most important thing. Helping you select the proper house, or can give you the slightest idea what to offer before you make an offer. Also, the agent does much of what the attorney would do, although I’ll admit most don’t know that area as well as an attorney.

RE: Greg Perry @ 29 – So your logic is, lots of people are doing it, so it must be a good time to buy?

No not all. Volume is better, but that’s not a reason to buy.

I think there are many unique advantages to buying right now The lowest interest rates in history. Homes that ave backed off close to 25% form the peak. And an unprecedented tax credit from the government. I believe that real estate is an important cornerstone in building a high personal net worth over time.

I heard some great perspectives from Jim Hebert, founder of Hebert research last weekend. At the end of the month, our office is hosting a private evening with Matthew Gardner (local economist) for our clients.

Yes, I think we have some unique opportunities. Everyone needs to evaluate opportunities for themselves, so I won’t be offended if you don’t agree.

Yup. I agree. That’s what we did at our seminar. Present the facts. Brought in a neutral party to talk about the economy (Jim Hebert, Hebert research) and let people make their minds up for themselves!

As for selling your brokerage model that’s up for you to do. You have your opinion. If I were not in the real estate industry, your model would not appeal to me Whenever I make a purchase for a product or a service, I look for a top professional and I pay them. The professional is absorbed within his/her industry and I generally know just enough about THEIR industry to get myself in trouble. You see, we don’t know what we don’t know. The complex title theory class I took on Thursday proved that one to me, yet again.

Some people just LOVE to jump over $100 bills to pick up nickels. Make one little mistake in real estate transaction (location, obsolescence, value, encroachment, defective product on home) and the $100 bill could turn into a $1000 bill. Personally, I think that most DIY or discount programs in real estate have a much greater chance to harm the consumer way beyond the small savings in the procurement commission.

That being said, I adamantly support the consumers right to CHOOSE. And I absolutely agree with you that the public votes with their actions. Redfin, hands down, has the best technology at this point for buyers on the internet. For all the money spent on this technology, they are losing market share ground to Windermere. My buyers use them all the time. At this point, none of my clients has one of your t shirts, yet.

So what are buyers looking for?

From NAR:
A few short years ago, Web marketers and real estate pundits declared that the Web would virtually eliminate the need for real estate agents. In fact, the opposite has occurred. In 2001, 69 percent of all buyer purchased their home through a real estate agent. In 2008, that number was 81 percent.

So, what are buyers looking for in a real estate agent? Interesting enough, only 48 percent indicated their top reason for working with an agent was to find the right home. The top three areas of what buyers perceived as beneficial were:

1. Helping the buyer to understand the purchase process.
2. Pointing out unnoticed faults or features.
3. Negotiating better terms.

(From 2008 NAR Profile of Home Buyers and Sellers)

If you study the top 10 puget sound brokers, you’ll find that positions 2-10 do not add up to Windermere’s volume and position #7 was a stand alone Windermere builder services office. The top 5 positions most likely account for over 80% of market share.

The bottom line is that when markets are hot and real estate is easier, more agents and more choices are created. When the markets roll back, the discounters are hurt the worst because the discount model totally relies on volume. No profit=no longevity in business. (By the way, we also lost a lot of big box retailers in this recession).

Again I emphasize. For those who want to do it yourself, or partially do it yourself to save money on commission, I say great! That is your right and privilege and you should have choices. We all have our individual dreams, wants, needs and experience levels. One size does not fit all. I wish your model well.

Imagine all those Buyers as you stated above from Windermere, JLS, ReMax, CBB, and Prudential gathered into one giant venue like the Key Arena.

Then the neutral speaker takes the stage with a giant chalk board televised over multiple large screens..

Then the Speaker explains the Conventional Model of Buying Real Estate as conducted in the top 5 Brokerages above and the Model of 500 Realty/Red Fin/Shop Prop/Findwell/Handspring………

Then the speaker concludes his neutral presentation.

The masses leave after having been educated.

What do you think will happen to the numbers listed above?

You see Greg, the public is not stupid. However, sometimes it takes a very long time for them to understand.

Greg, how many homes have you SOLD this year? For someone so busy working such long days I’m sure you have been making a killing.

Personally, I have only sold 10 in Washington State (and 4 pending) with nearly 40 Pre-Approved clients out looking and most deciding to wait until they find that GEM!

I would never EVER tell any of them its the perfect time to Buy because rates are low and there is 8000 to be had. Our Buyer will decide when the perfect time to Buy is.

Heck, if rates go up get the seller to Buy down our clients rate! I never use rates as any indicator of what people SHOULD do. As for hurry up the 8000 is ending………….Please Greg.

In all due respect, the Public is smarter then you think. They have seen the rhetoric before but the difference is…………. this time…………..they REMEMBER!

Well, quite a few buyers must think that it’s a pretty good time to buy. The week before was 2nd best pending sale count in King County since July 2007 (median peak).

Did you see where interest rates were Thursday and Friday?

I’ve been slacking with 1/2 days lately. Day starts at 7am to go to 8pm, and I get to work Saturday! Let me know when it’s football season.

Agent counts doubled between 2002 and 2007, now they’re on the way back down. I agree that the entry barrier needs to be higher At any rate the market is weeding out many of those looking for the quick buck.

I’ve always been in favor of consumer choice. That choice includes a top dollar full service agent.

I think we can agree that sometimes the market gives and sometimes it takes.

Greg, I agree with most if not all of what you say. But I think there are a couple of things that you’re not taking into account. From what I know about you, you are far from being the average agent. Your skills and knowledge base probably put you in at least the top few percent if not the top one percent. The business of being a real estate agent is a low barriers to entry business and the average agent doesn’t possess anywhere near the skills that you do. While I agree that you can’t be replaced by a one size fits all alternative (say perhaps a technology assisted FSBO alternative perhaps combining attorney’s with a low cost listing service like Craig’s list) it isn’t out of the relm of possibility that the average rank and file agent could be.

I’m not saying that it’s going to happen. But I’m also not sure that it won’t. I don’t think Redfin will overtake the larger full service brokerages. But I’m not so sure that there isn’t a better model that can reduce transaction costs while still providing a quality service on par with current full service brokerages.

Greg, I was going to go into my lecture in an attempt to educate you but instead I went to your website and your video says it all………………..

http://www.425realty.com/realestate/2009/08/introducing-the-million-dollar-challenge.html

I truly thought I would not hear the phrase “Now is the perfect time to buy a home” for at least a another year but I was mistaken.

Can’t we agents PLEASE think of another catch phrase! Millions of Americans who were told that very phrase not 3 years ago have lost their homes, are in foreclosure, short sale, or somewhere in the bankruptcy process.

GOOD LORD!~

When markets heat up, the discounters come. When markets cool, they go away. It’s easier for me to get a higher commission right now than any time in 2005 or 2006.

I don’t see where technology will replace expertise in real estate. I just spent 3 hours in an advanced title theory class on many issues including waterfront. There has been may changes in title policies in the last 3-4 years. Also, technology will never be able to explain functional or economic obsolescence problems for a specific property to buyer wanting to make a good decision.

The bottom line is that those who think the real estate markets will remain “bearish”, will also find that alternative and discount brokerages will not likely thrive. Here’s a hint…..profit = survival.

Some will “do it yourself”. I say go for it. Others simply don’t have the time to study and research and will pay for service. No worries here.

What kind of drop bids are you seeing right now and where? King, Snohomish, Pierce and what percentage?

Is it all lenders across the board or are Fannie and Freddie still setting the opening bid at the payoff?

Thanks.

RE: Greg Perry @ 18 – What the heck is a “blogging company” and how is it used by real estate salespeople?

The “blogging” company in the above example was Redfin. The “not a fixer” properties were being represented as “fixers”.

Residential Sales Volume 2008

Top 10

1. Windermere – $20,945.95M
2. John L Scott – $5,182.68M
3. Coldwell Banker Bain – $3,615.01M
4. Re/Max International – $3,573.17M
5. Prudential Real Estate – $1,183.79M
6. Ewing & Clark, Inc. – $765.4M
7. Solution Partners NW-Windermere – $356.62M
8. Redfin – $282.93M
9. Better Homes and Gardens Real Estate Executive – $227.80
10. Lake & Company – $217.12M

Volume drops dramatically after the top 10 with Gerrard Beattie & Knapp coming in 11th place with $99.88M

FWIW, Windermere’s volume in 2006 (a bubble year) was 23,709.00M). In 2008, Windermere’s market share increased.

This clearly hurts the Seller’s position AND wastes the buyers time. The way the new rule works now is the agent can opt in or out of third party blogging, thus maintaining some marketing control. I also think the blogging company must assume responsibility for accuracy. Misrepresentations should be fined. Blogging companies should be the ones assuming the risk.

This is an opt in, opt out program. This is not mandatory. The listing company/agent should have this control of thier marketing.

I like Tina!

When the market started heating up any moron off the street could write up a deal, have a sale, it would close and the moron would get paid. Brokerages loved it because they didn’t have to deal with people like me. I’m a prima donna.

So we have been stuck with escalating prices and morons writing deals. Every body got hurt in the process.

Now the internet says we can replace the morons with lower paid morons and that will fix it.

This past selling season is a good indication that the internet isn’t going to fix anything. Domestic travel and the higher prices we pay for that should be an example.

The future will be more consultants. People will pay a fee for services. Real Estate is a service industry.

Covering the portholes will not change anything.

The information revolution is destroying the old information “priesthoods”, useless middlemen, and transaction parasites.

Good riddance!!!

You should look into Drop Bids on Foreclosures right now!! Some of these bids are staggering…if they are an indication of where the market is headed, we have a long way to go to reach bottom.

1. RE Attorney
2. Home Inspector
3. Appraiser
4. Escrow/Title Agent

Real estate agents never brought much to the table in my past transactions, yet with their limited training and licensing, they were skimming a lion’s share of the transaction fees.

I don’t think I would use one again unless it is in a vastly diminished role.

Lastly, I find it fair to say that “costly mistakes” has indeed been the main business of real estate agents recently.

Like I have been saying over the past few months — once virtual tour technologies get good enough (and cheap enough) to where potential buyers only need to visit the 2-3 homes that they actually want, the world of real estate is going to be vastly different.

Realtors literally buy you access to: 1) MLS and 2) The physical structure and 3) their experience/knowledge.

People who list their home on our site (FSBO) still get good exposure without the MLS. Our listings are heavily dispersed and even show up on Redfin. The internet is great for dispersing information. The only time it gets blocked is when organizations like the NWMLS try to stop it. For example, Zillow doesn’t consume our listing feed b/c of who pays their bills.

Once people can get virtual-access to a home, that actually represents the home, then the 2nd thing that Realtors buy you becomes less valuable.

For the third leg of knowledge, a real estate lawyer is a pretty good deal compared to 2-3%.