Realty World Northern California & Nevada

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A good friend and business associate recently turned me onto a new source of powerful information I thought was very interesting and fun to use.  It is a computational knowledge engine that is in its early but exciting stages of development.  This application is based upon natural language processing, which simply means you can compute massive mathematical computations by using simple language.  The site is http://www.wolframalpha.com/ .  However, I recommend watching the short presentation before using the application.

What can it do for us in real estate?  Well, it will calculate debt payments; give you the estimated value distribution of properties in an area; display histories of prices and medians with interactive graphs and just about anything you can verbalize into a mathematical sequence including internal rates, etc. Why would you not want cool stuff like that, especially if it’s that easy to use?

I thought it was interesting and certainly a different perspective to learn that I’ve been alive 18,244 hours.  Put your birthday in; your LDL level; find nutrient levels, etc…

I’ll wrap up by asking to watch this presentation. Even if you don’t use the site you should know about it.

And I always thought natural language processing was something humans did since the dawn of time…

A few weeks ago, we held our first Realty World conference of the year and the turnout was awesome, but I only wish our entire company had come because the speaker lineup was some of the best we’ve had in years, and the content couldn’t have been more important for today’s market. In particular, we were honored to have David Gibbons from Zillow come speak to us about how they operate and what their goal is within our industry. All I can say is that the conversation was lively between David and our members, and the real estate industry certainly has very mixed opinions about Zillow and what they do. However, the simple fact is, Zillow isn’t going anywhere, so how you handle the inevitable objection from your seller – “Zillow says my house is worth way more than your quoting” or this from a potential buyer – “Zillow says this house is worth way less than what your asking for it” will determine whether you close the deal. Here are two approaches you could take to overcome these objections… you decide which is best!

Approach One: Well Mr. Buyer/Seller, I have been a REALTOR for 20 years and know this market better than some Internet company from Seattle. I’m an expert in real estate, I’ve sold hundreds of homes during my career and Zillow doesn’t know anything about real estate, my market, or what this home is worth. There information is highly inaccurate, they don’t have access to my MLS, they’ve never set foot in this town, and don’t believe anything you see on that website.

Approach Two: Mr. Buyer/Seller, this is a great question you ask, in fact, here is a copy of the “Zestimate” that Zillow provides for your property so that we can review it together. In addition, I have some material that Zillow provides on their website, to help better understand what a “Zestimate” is, the accuracy of their information, and more importantly how they arrive at the valuation they provided for this particular property. BTW, Mr. Buyer/Seller, I’m glad your doing your own research and I think Zillow is a great starting point, but its important to note that Zillow is just a starting point as they state right here on their own documentation – “The Zestimate” (pronounced ZEST-ti-met, rhymes with estimate) home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is pulled from data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account. Variations in price also occur because of negotiating factors, closing costs, and timing of closing. We encourage buyers, sellers, and homeowners to supplement Zillow’s information by doing other research such as:

• Getting a Comparative Market Analysis (CMA) from a real estate agent
• Getting an appraisal from a professional appraiser
• Visiting the house (whenever possible)
• Creating your own estimate using the My Estimator home valuation tool

Personally speaking, I think the second approach will get you a lot farther, as it shows you’re an expert, because your also factoring in something that the buyer or seller did on their own and was important to them. You’re not afraid to confront the issue and more importantly, you’re not badmouthing someone, but simply “logically” overcoming an objection by using Zillow’s own documentation. This will help satisfy the buyer/seller because it’s coming from the very company that gave them the “Zestimate” to begin with, versus your own material.

Here is the link to Zillow’s documentation to help you overcome these objections in the future – http://www.zillow.com/wikipages/What-is-a-Zestimate/

I would love to hear your thoughts and feedback on this subject as well.

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Since I was a kid, or as long as I can recall, I followed the airline and oil business because I was interested in the way they worked.  Those dynamics are not any different than any other business I learned as I grew older.  Eventually, the bastion of profitability wait on the many efficiencies software developers invented to fill a specific need. Airlines eliminated travel agents by bringing the ticket directly to you via software.  When was the last time you called a travel agent for a round trip ticket to Orange County?

The successful real estate agent today needs a systematic solution-based program that functions as the central nervous system of the marketing, sales and communication process.  To make selections of tasks based on data that is already uploaded for multipurpose uses is increasingly the central need and more agents are demanding that kind of power in real estate specific applications.  The trend turned movement and there is no sign of slowing down.

Every broker and associate in our company should make assessment of this business dynamic and how it can positively impact your bottom line.  I’m grateful to work with talented people that craft and create these types of applications for your benefit.  Sometimes we forget what we have invested in and we just need reminding.  We have easy to use tools for you to compete in the new world and the additional advantage you have is access to millions of dollars in software for a sub-fraction of the cost.

If you’re wondering why some of the associates you know are doing more business, chances are they are involved in these online systems.  They take advantage of online video training, integrated applications and web driven tools that are easy to use and make practical sense.  So, do yourself a favor and log on or call the corporate office and ask what we offer.  You’ll be amazed.

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Following up on the recent door knocking blog post, there are some other benefits of burning some shoe leather that I thought I’d mention:

• Exercise – which has a multitude of benefits to all of us
• Fresh air – In spite of recent allergy threats, a bit of time outdoors is proven to boost your mood
• A sense of daily accomplishment – Rest easier at night knowing you got out and got to know your community
• Positioning yourself way ahead of the herd!

I was talking to an agent at one of the larger independent real estate firms in the South Bay (who’s now seriously considering acquiring his own RW franchise) who went on to tell me his approach to his current successes in his real estate business. Shoe leather and a big smile… coupled with some technology! He knocks on doors in a very specific 500 home neighborhood for 2-3 hours per day, three days per week. He DOES NOT take short-sale listings! He said they are too time consuming; produce marginal results; are mentally negative and provide inadequate compensation for time spent (ROI). He said very specifically that he picks and chooses only those sellers/properties that he can help successfully. In other words, he has very clear standards for his business, which actually attracts customers to him. He’s doing extremely well [financially] in what many would say is a tough market. I have to say… I haven’t heard an agent speak with such a great sense of optimism about the real estate business and his future in it, in quite awhile.

I closing, while we should always look forward, I think looking in the rearview mirror every once in awhile at some of the “old things” that use to work, might just be back in vogue if we’re willing to bring them to the fore. Think about it!

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There is no question there have been hundreds of tantrums regarding the control of inventory REO agents have had in the past couple of years. Many who had those tantrums failed to create the relationships early enough to get a foothold on any meaningful accounts is the main reason. Other reasons follow – many discovered that being a rock and roll REO agent requires a lot of patient capital; extremely disciplined work standards and the fact REO agents resign themselves to server side applications that keep them at the keyboard for hours on end.

Well, times are changing and I’m going to make a short explanation of why door knocking is vogue…

Lenders statistically net more money on a Short Sale than on a REO. That is the shift that is taking place and the key to capitalizing on this requires an effort similar to what successful REO agents did; simply create the relationship before anyone else!

The only way you are going to find out who these sellers are is to find them prior to the Notice of Default (NOD) being filed. Once that happens, they are open and fair game for everyone and a new target for a litany of mail. Good old fashioned shoe leather will beat out direct mail on this one. Why? Because nothing beats a face to face call on a prospect and especially on this subject. Also, direct mail cannot ask and receive referrals like you can in person. Pretty simple.

Count on NOD’s rising too. There will still be an REO market of sorts, as a result of poor documentation of liens, uncooperative subordinate lien holders, high income sellers that don’t fit guidelines and poor yield spreads that will cause the lender to elect foreclosure over a short sale.

I mention this because rock and roll Realty World REO agents should diversify the marketing effort to accommodate short sales and polish up on using our new listing presentation materials and commence a canvassing plan without delay.

As recently as yesterday, two agents from Realty World – Delta Country in Byron, CA spent the afternoon cold calling and returned to the office with two listings! That is why door knocking is back in fashion.

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I am truly stepping out on this one, however in my many years, and believe me there have been many, I have learned that the best way to control your life is to understand and have a working knowledge of those things that will allow you to meet everyday prepared with a sword of defense.

In raising six children, who are all gone from home now, I have always wanted to arm them with information so that they can have a great life and enjoy within reason those things that they need, not want. At the present time I caution them on unneeded purchases, watch out for any debt, yet invest wisely as we live in very unstable times.

I was emailed an article that gave me some great understanding of where the economy truly stands today.  A major concern pertaining to the economy and any hopes of a recovery is the unemployment figures. I learned more in depth about the degrees of the “U” (Unemployment) factor released by the Bureau of Labor Statistics.  Did you know that the U-3 rate is 9.7%?  Of course you do as it is on the news and in front of us constantly.  Here is my new area of knowledge:  “U-6.”

The U-6 figure of unemployment is as close to the true realistic unemployment figure as you can get.  This figure contains the official unemployment rate, and then includes discouraged workers, who are people that are available for work but have stopped actively seeking work.  It also includes the marginally attached workers who are able and willing to work but is not actively seeking work.  Now, the last additive to the number are those that are forced to work part-time because they are not able to find a full time job.

My concern in educating my children and attempting to stay on the leading edge knowledge wise in order to keep my sword of defense as sharp as possible is driven from many things, however, more so being that the U-6 figure presently sits at 17.9%, a far cry from the 9.7% that we are told on a daily basis.

Be sure you are keeping up with this, and other statistics, that affect your world and those around you. This will help you make informed decisions and help you inform others who rely on you to make theirs.

Now that we’re a few months into 2010 and moving ahead with great new products and services, we wanted to take a look back and thank all of the hard-working real estate professionals that make up Realty World NCA, including those who chose to renew with us in 2009, and to those who joined the franchise, putting their trust in us during tumultuous times.

Please join us welcoming these new offices and congratulating those that chose to renew!

New Realty World NCA Offices for 2009

Office Name Broker/Owner Location

More than ever, due to dramatic changes in the economy over the past two years, the principles of credibility and trust are essential in building, or in many instances rebuilding, relationships. No matter what profession you are in, there are many people you reach in the business world who are struggling during these times.

Realizing that the pendulum is constantly swinging, the time has come to re-evaluate our professional model. Honestly, no one knows which direction the pendulum is moving. It is time to adjust from traditional relationship building processes and move toward building long-term relationships that are not pressure-based on one hand and taken for granted on another.

The economy of today needs to be understood fully by all in society through continuous study. With this, you will be ready to transfer hope to those you service, build relationships through educating and enlightening individuals to give them the direction and confidence they need to make home buying and selling decisions. From this, you build trust, loyalty and credibility, and become the source of direction and confidence in this interesting time.

Build confidence in those around you and be in front of people, in all forms of media, so they can grow from your knowledge and offerings. People want direction from people they can trust – make that person you.

Google Buzz was released 2 days ago. 2 days later nets over 9 million posts according to the Google Gmail blog.

Wow. That is a lot faster growth than I had anticipated. Additionally Google is stating it is seeing over 200 posts per minute from mobile devices. Very exciting news for sure.

Google officially announced Google Buzz, the Google push into the social media irruption. Google Buzz is kind of a combination of Twitter, Facebook, and Yelp and integrated directly with your Gmail and Google Talk. That certainly sounds like a mouthful. In other words, Google has updated your Gmail email to allow you to share with those that you email and chat with most, all of your online updates, photos, and videos. Your Gmail contacts and Google Talk friends are automatically added as people you are following and allows you to share your items publicly to the world or privately with users you email and chat with.

Google Buzz integrates with your inbox and sends updates to your email and allows the conversation to continue with responses directly from within the email making comments updating in real time. @replies are also supported so you can send responses directly to someone’s email sending a buzz to their inbox.

One of the most compelling aspects to Google Buzz is that it can utilize your phones GPS location (or nearby location) to share with others where your Buzz was started. You can also go to the “Nearby” tab to see what others nearby are Buzzing about.

Most of you might be thinking, is this the new social media to take over Facebook and Twitter? It’s hard to say, especially with Facebook surpassing the 400 million user mark. Facebook is undoubtably the dominant player and additionally announced that Facebook will be eventually be launching its own webmail service. It will be interesting to see how many people will be ok with Buzzing while providing their whereabouts.

You can make your voice be heard by voting in the poll below and joining in the debate.