Can You Separate Fact From Fiction?
December 15th, 2009 categories: Market Trends, Real Estate News, Relocating
As I was skimming this morning’s New York Times headlines, when a piece on “Mega Content” sites caught my eye. The article’s emphasis centered on the the quality, or lack thereof, of ”Content Sites” like Answers.com The bottom line is, that while these sites are rich with content, and are quickly attracting viewers, maybe we need to consider what the quality of the material found there is? In other words, there’s mounds of information, but is it any good? Is it worthwhile? Is it TRUE?
During the past year or so, I’ve had the opportunity to teach a reoccurring Real Estate Technology class. The class briefly reviews the shift we’ve seen in the methods, tools and practices in our profession during the past few years, and examines how Realtors, by leveraging these recent tools, and social media platforms, can improve productivity and their business. One point of emphasis we touch on during the class is the use of Real Estate blogs as a means of learning the business. Blogs, and their collaborative structure, are a free classroom. And an interactive one at that. And there are loads of them. Whether it’s foreclosures, luxury homes, mortgage issues, best ways to showcase a property, or just about any other subject related to the business of real estate, or homes, there’s a blog for it. Best of all, as I say again and again during class, they are FREE. Classes we used to pay for are now on the web, and at our fingertips, for FREE. So, we really have no excuse for being uninformed, right? But, having said that, what about the content? How much substance is there in the information we’re taking in. What credibility does the particular author, and real estate subject “expert” have?
When absorbing information, it’s a good idea to check your sources, don’t you think? Have you ever wondered why the Federal Drug Administration (FDA) requires certain labels or notices on food and drug containers? Do you think it’s important to know a drug is poisonous BEFORE you take it? Have you ever looked on the label to see what’s in that jar of jelly you’re about to open? Well, what about Real Estate information you’re consuming? Is that article on Short Sales written by a practitioner who is a qualified expert in that transaction? Does that individual teaching you Ethics actually have any background in the practice, or is their “expertise” a matter of having been convicted in court of lying or something worse? Who knew?
One the painful truths of growing up is that most of us have to learn from our own mistakes since we fail to learn from the mistakes of others. Another is that, the older we get, the smarter our parents seem to be. I don’t know about you, but my parents tugged on my ear a few times in my youth telling me not to believe everything I hear. And, you know what, they were right. With today’s abundance of online information, let’s try and be as discriminating with what we read, as well.
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Please Read the Real Estate Fine Print
December 13th, 2009 categories: Market Trends, Real Estate News
”IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS”
Unknown
This morning’s Boston Globe ran a story of a real estate investment venture gone bad. Sound familiar?
In this case, a young Virginia Beach couple, among others, were sold “a bill of goods”, left high and dry, broke, and are facing a lengthy legal battle to simply try and reclaim their good name. If there ever was a real estate swindle that exemplifies the worst aspects of the buying and selling of real estate, for profit or not, it’s this one. It has all the necessary elements:
1. The Promise of Easy Money
2. The Smooth Talker
3. Fraudulent Loans
4. Fabricated Appraisal Figures
5. A Gross Lack of Due Diligence
This is but one of the many tragedies left as a result of the housing market run amok. Kind of like teenage boy on steriods driving a school bus without a governor (you know, the device that restricts their speed). Before you invest your time, effort, and your money into any venture – especially one that sounds too good to be true – please take the time to do a risk analysis, and ensure that the road ahead isn’t full of quicksand!
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Fredericksburg’s First Snow
December 6th, 2009 categories: Real Estate News, Relocating
Well, we knew it was coming sooner or later. Yesterday was our area’s first Winter’s first snow. According to the Weather Channel, we’re due for a bit more over the next 24-48 hours. And, as most of us that live here know, the roads in Northern Virginia aren’t the friendliest in good weather. Can you imagine the craziness with snow and ice on the roadways? It isn’t pretty!
What about you? Any snow in your part of the country? If not, how are the temperatures? Years ago, while stationed in Tucson, we spent Thanksgiving evening on the community swimming pool. That was….different, and enjoyable.
There’s certainly the Christmas spirit in the air. And, the snow helps complete the holiday setting. In the days leading to this special time of year, enjoy the sights and sounds, and be careful on the roads!
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Are The 5 W’s Important in Real Estate?
December 4th, 2009 categories: Market Trends, Real Estate News
We’ve seen lots written about the latest “du jour” method of communication, advertising…..and marketing. It’s called Social Media. If you aren’t there yet, they say you should be, and ultimately, will be. I know, sometimes we just don’t have much choice.
Most of us have realized, usually through trial and error, that success depends a great deal upon building a firm foundation to begin with. And, in Social Media, it’s no different. It begins by understanding who you audience is and what they want. In Social Media “speak”, it starts with the 5 W’s.
1. WHO
Who is saying things about your products and service?
2. WHAT
What are they saying about you and the product you provide? Is it good? Bad?
3. WHEN
When are they talking about you? If your business is cyclical, are you only being mentioned during the busy season? If you specialize in one area of your profession, does the discussion occur only when your specialty is hot?
4. WHERE
Where are these conversations taking place? On blogs related to your business? On other popular discussion platforms?
5. WHY
Why is anyone commenting, discussing, or examining you and what you have to offer.
There are a number of variations of the 5 Ws. Many, recently, have focused on web sites and blogs. Earlier this week, Inman News’ featured an article “The 5 W’s and your Web site“, by Robert Hahn. Other informative articles on the 5 Ws include, “Knowing What’s What and What’s Not the 5 W’s (and 1 H) of Cyberspace“, and The Five W’s of Web Site Evaluation.
Social Media platforms are useful marketing tools, and today, they’re all the rage. A careful analysis of any marketing devices and means is is not only useful, but a necessary factor in identifying what works and what doesn’t. The 5 W’s is another, and value added, method way of determining what we need to pay attention to, by identifying who may be listening, and what they’re interested in. And, if that’s the case, do you think it might be helpful for Realtors to pay attention?
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Is Permanent Relief Too Good To Be True?
November 30th, 2009 categories: Real Estate News, Relocating
Today’s announcement that the Obama Administration plans on forcing mortgage companies to permanently reduce monthly payments for troubled homeowners was met by a mixed reaction. While the action’s sponsor, the White House, said one thing, many others took a more realistic wait and see attitude.
The Department of Housing and Urban Development’s (HUD) new initiative is part of the Administration’s efforts to provide relief for homeowners who are laboring to pay their mortgages, and is another piece of the effort to stabilize the housing market. The initiative, according to HUD, wants to extend to those already receiving trial modifications to their home loan, a permanent modification to their mortgage. In simple language, what does that mean? A lower payment.
While borrowers have understandably embraced the new program, mortgage lenders aren’t nearly as willing. To ensure their participation, the Administration outlined steps to hold their feet to the fire.
Servicer Accountability
As part of the Administration’s ongoing efforts to hold servicers accountable for their commitment to the program and responsibility to borrowers, the following measures will be added:
- Top servicers will be required to submit a schedule demonstrating their plans to reach a decision on each loan for which they have documentation and to communicate either a modification agreement or denial letter to those borrowers. Treasury/Fannie Mae “account liaisons” are being assigned to these servicers and will follow up daily as necessary to monitor progress against the servicer’s plan. Daily progress will be aggregated by the end of each business day and reported to the Administration.
- Servicers failing to meet performance obligations under the Servicer Participation Agreement will be subject to consequences which could include monetary penalties and sanctions.
- The December MHA Servicer Performance Report will include the data on permanent modifications as well as the number of active trial period modifications that may convert by the end of the year if all borrower documents are successfully submitted, sorted by servicer and date.
- Servicers will be required to report to the Administration the status of each modification to provide additional transparency about situations where borrowers face obstacles to moving to the permanent phase.
While the new initiative is certainly welcome by homeowners whose mortgages have become a greater burden than they can bear, its viability is only as good as the rules it is guided by. The process is riddled by paperwork, and paperwork and the U.S. government sometimes don’t mix too well. Additionally, while the gov’t plans on using a carrot and stick approach when dealing with lenders, only time will tell how well their daily monitoring works in practice.
Former Chief Credit Officer for Fannie Mae, Edward Pinto, calls the new initiative’s goals “a pipe dream”. What do you think? Is it simply eyewash? Or, is the initiative good for homeowners and the economy?
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It’s The Simple Things
November 22nd, 2009 categories: Real Estate News, Relocating
Do you have a favorite season of the year? While many of us like something about each of the four seasons, Fall, or Autumn is probably the one I enjoy the most.
It’s cool mornings and evenings, beautiful natural colors, and inkling of the coming holidays, seems to invigorate a sense of better things yet to come. Around Stafford and Fredericksburg, for many, it’s jacket weather (for others, coats), and the stunning colors are second to none.
How about you, what is your favorite season?
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