Seattle Bubble

News & discussion about real estate & the housing bubble in the Seattle area.

Seattle Bubble - News & discussion about real estate & the housing bubble in the Seattle area.

Entries Tagged as 'advertising'

Localism: Still a Wasteland | KOMO: We Want Some of that Action

By The Tim on August 20th, 2009 at 8:10 AM · 19 Comments

A little over a year ago ActiveRain (basically a social network for real estate professionals) launched
Localism, an attempt at leveraging their nationwide network of real estate salespeople to generate content for thousands of “hyperlocal” city and neighborhood portals, presumably in order to create an attractive platform on which small businesses would spend their advertising dollars. Our review of Localism’s Seattle-area offerings concluded that the site amounted to little more than sales pitches from “hyperlocal” agents.

Checking in on Localism a year later reveals that not much has changed. The four local pages we reviewed are nearly as empty as they were, with none of the so-called “hyperlocal” blogs even managing to average more than about two posts per month. The contributors are all still all real estate salespeople, and the registration page still says “we’re not taking new accounts right now.”

With the rousing success of Localism in their first year, it’s no wonder that other corporations would be dying to jump onto the “let’s create a bunch of ‘hyperlocal’ blogs on templates” bandwagon—wait, what? No, that doesn’t make any sense. And yet, that’s exactly what KOMO News decided to do this week, launching their very own “community” pages.

KOMO’s new pages are definitely a few steps above the bland failure that is Localism. From day one they are allowing and encouraging people to register and contribute. The layout is more inviting and looks like it has more going on. Plus, at least as at the corporate level KOMO is local to the “hyperlocal” markets they are attempting to attract.

I do notice that advertising takes up quite a bit of “above the fold” space, and their right sidebar has a dedicated section for “Local Real Estate Agents,” so it is fairly obvious what KOMO’s motivation is here. I certainly don’t begrudge them the chance to try to make money, but I still don’t see what they’re offering that local blogs are not.

Just like Localism, many of the communities with shiny new KOMO pages already have popular, well-established blogs, run by dedicated locals. KOMO says they’re not attempting to compete with these sites, but in reality I doubt there are really two separate markets in the neighborhood blogging scene—one for authentic, community-driven blogs, and another for template-ized, corporate profit vehicles.

[Update: See an (official?) response from KOMO below, describing their perspective.]

→ 19 CommentsCategories: Features
Tags: , , , , ,

Seattle Times Really Wants You to Buy a House (or a Condo)

By The Tim on March 25th, 2009 at 8:25 AM · 73 Comments

Is it just me, or has Seattle’s only remaining daily newspaper become even more of a blatant real estate advertisement since the P-I folded? Even without a dedicated real estate writer, they have managed to pump out two thinly-veiled real estate promotional pieces in less than a week.

This weekend we’ve got First-time buyers benefit from prices, choices, tax credits

“Right now is just a great time to buy a house,” said [first-time buyer Emily] Yturralde, who took advantage of a zero-down financing program offered by the U.S. Department of Veterans Affairs. “There’s just so much available, and the prices and the interest rates are really, really low.”

Besides the [$8,000 "stimulus"] tax credit, a wide selection of inventory and lower prices are also bringing out buyers who couldn’t have afforded entry-level homes in the Seattle area a few years ago.

“I think 2009 is going to be the year of the first-time homebuyers,” [John L. Scott Agent Ben] Hoefer said.

You get the idea. Then today we’ve got a special promotion! Lose your job? No worries, they’ll pay your mortgage (featured as the big above the fold, front page story).

Thornton Place, a big, new project near Northgate with cinemas and a creek, is offering prospective condo buyers a layoff-protection plan in hopes of spurring sales in this sour market.

Buy a condo, the developers say, and if you lose your job within a year they’ll make your mortgage payments for up to six months.

Thornton Place’s 109 condos have been on the market since last summer. None has sold, and now the complex is nearly finished.

“We were looking at what would get people off the fence,” said Jeff Cook, president and chief operating officer of Stellar Holdings, one of the companies building Thornton Place. “We think there’s a pretty big pent-up demand for housing.”

I think it’s interesting that developers and real estate professionals still don’t get the fact that there is little to no “pent-up demand.” During the bubble years, the industry borrowed demand from the future by offering ridiculous dangerous financing. Now the future has come, and that demand is gone because most everyone who may have qualified for a house in 2009 already bought one in 2006.

There’s plenty of fine print in the offer. It’s limited to 27 condos that are the targets of a new marketing campaign that launches this week. They start at $299,950 for a 595-square-foot one-bedroom unit.

Wow. Does this developer really not know why none of their 109 units have sold yet? $300k for 595 square feet? A cursory search of Redfin quickly reveals how ridiculously overpriced these are. For example, just six blocks north you can find five different comparably-sized units on the market at $170-$180k in the Forte Condos building. Dozens of similar examples can be found sprinkled throughout the surrounding neighborhood.

Yikes. I think it’s going to take more than a $15,000 backstop incentive and some free advertising in the Seattle Times to move these pads. Good luck with that.

(Seattle Times, 03.21.2009)
(Eric Pryne, Seattle Times, 03.25.2009)

[Edited to point out the front-page position of the condo story. Thanks for the heads up, Kary.]

→ 73 CommentsCategories: News
Tags: , , , , ,

Localism – Hyper Local Real Estate Sales Pitches

By The Tim on July 9th, 2008 at 8:25 AM · 26 Comments

ActiveRain, a site that describes itself as “a free online community for real estate professionals designed to help them promote and grow their business,” has launched a new site called Localism. Localism describes itself as the “world’s most complete neighborpedia,” and the front page invites users to “Go Hyper Local!”

It is the latest entrant into what seems to be an already over-served online market. For people that want so-called “hyper local” content, there are already a ton of choices out there including sites like Yelp, StreetAdvisor, and outside.in. Also, because it’s so trivially simple to set up a free blog, many neighborhoods have dedicated blogs that are just a simple Google search away.

John Cook put out a pair of stories about Localism today, one on the P-I and one on his P-I blog. Here’s a brief excerpt:

Of course, since real estate professionals are doing most of the writing there will also be a fair share of stories about buying and selling homes.

Initially, the site — segmented into various communities by state, county, city and neighborhood — will be authored by some of the 90,000 real estate professionals on ActiveRain. But over time, ActiveRain founder Jonathan Washburn said it plans to open the platform to everyone. He also envisions people creating new online communities around schools, subdivisions or churches.

Since John Cook covered the basics of Localism’s press release in his stories, I thought I’d take a different approach. Let’s compare Localism to what I think is their toughest competition: local blogs. For this contest, I picked three (update: four) Seattle-area neighborhoods: two three are currently served by local blogs, and one is not. Let’s see how Localism compares…

[Read more →]

→ 26 CommentsCategories: News
Tags: , , , , ,

Your down payment could cost less than your latte

By deejayoh on November 30th, 2007 at 4:48 PM · 38 Comments

I got this in the mail earlier this week, and just had to share. Houses are still cheaper than latte’s, apparently…
Deejayoh

STOP renting!

Renter's Myth

addendum:
I clicked through to the site that the postcard directs you to. The “bonuses” are pretty significant relative to the starting prices, it seems to me

Buyer Bonuses at Select Communities
For purchases on October 1, 2007 and beyond, get up to…

  • $25,000 at Autumn Woods in Spanaway (homes from the low $200s)
  • $20,000 at Berrywoods in Marysville (homes from the mid $200s)
  • $30,000 at Brookside in Bonney Lake (homes from the mid $200s)
  • $22,000 at Deschutes River Highlands in Olympia (homes from the mid $200s)
  • $30,000 at Fern Crest in Kent (homes from the low $300s)
  • $45,000 at Foxglove Meadow in Bothell (homes from the high $300s)
  • $30,000 at Kentlake Highlands in Lake Sawyer area (homes from the low $300s)
  • $30,000 at Northwest Landing in DuPont (homes from the mid $200s)
  • $15,000 at Pasadera in Lake Stevens (homes from the mid $200s)
  • $40,000 at Pasadera Heights in Lake Stevens (homes from the high $200s)
  • $18,000 at Ridge at McCormick Woods in Port Orchard area (homes from the mid $200s)
  • $17,000 at Skagit Highlands in Mount Vernon (homes from the high $100s)
  • $15,000 at Stendahl Ridge in Poulsbo (homes from the mid $200s)
  • $22,000 at Ridge at Suncrest in Tumwater (homes from the low $200s)
  • $20,000 at Tahoma Meadow in Yelm (homes from the high $100s)

→ 38 CommentsCategories: Features
Tags: , ,

“New levels of creativity” in listings

By The Tim on November 21st, 2007 at 8:57 AM · 50 Comments

Aubrey Cohen comes at us today with a frank and sometimes amusing look at real estate agents’ habit of massaging the English language to attempt to make their listings stand out in an increasingly larger sea of properties for sale. Of special note in today’s article is the copious quoting of local agent Ira Sacharoff, a regular commenter here on Seattle Bubble. Congrats, Ira!

It’s harder to lure buyers these days thanks to an increasing number of listings and a smaller pool of buyers — five homes listed for every pending sale last month in Seattle, up from three listings per sale a year earlier.

So in addition to lowering prices, throwing in TVs and cars, and doing their best to spiff up homes before putting them on the market, sellers and their agents are reaching new levels of creativity with the first thing agents and potential buyers usually see — the listing blurb.

…agents tend to emphasize the positive. Another Central District listing, for instance, leads with its location, proclaiming: “Here’s the opportunity to live in one of the most sought-after neighborhoods in the Seattle area.”

Then, a spin on the less-than-stunning interior: “Seller has left you to your own imagination!”

Another listing promises an “excellent location” close to shopping, schools, a bus line and Interstate 5. They’re not kidding: I-5 is 50 yards away.

Skyline Properties agent Ira Sacharoff is blunt in his assessment of listing descriptions: “They’re mostly lies.”

Less-than-truthful assertions can include a “Ballard” neighborhood home that’s really in Crown Hill, a basement “bedroom” that’s just big enough for a cot and has no exit window, and “gleaming hardwood floors” that are actually fir (a softwood) or laminate.

You know what they say, though. You can put lipstick on a pig, but it’s still a crappy little dump on a tiny plot in a bland neighborhood with a half-million-dollar asking price. Er, well, the saying is something like that, anyway.

If the subject of this article, and the “listing language decoder” at the end of the piece sound familiar, it may be because we’ve discussed this subject before, almost exactly one year ago. Be sure to check out Eleua’s Real Estate Agent Rosetta Stone.

(Aubrey Cohen, Seattle P-I, 11.21.2007)

→ 50 CommentsCategories: News
Tags: , , , ,

Absolutely Hilarious!

By The Tim on November 16th, 2007 at 12:16 AM · 27 Comments

Except of course that some people will actually believe it. Not many, but certainly some.

From the Washington Realtors’ “Get The Facts Straight” ad campaign. I’m sure I will post more on these over the weekend, they’re just too hilarious to ignore. Thanks to Doug for pointing out the link to these.

→ 27 CommentsCategories: Features
Tags: , ,