I want to be a better listener.

It’s not just technology — it’s a cultural shift in how Realtors work. Technology is easy; how this and the next generation of Realtors accept and implement it is often the deal-killer.

The past few weeks have brought more technologically-savvy clients my way. Not unsurprisingly, both have used Google tools to help themselves (and me) Here’s what I want -

First - why Google? Because it’s free and accessible. Did my clients both seek out Realtors to help them relocate to my area? Yes.

The first buyers interviewed a couple of Buyers Agents and ended up selecting me. As part of the process, they emailed me a published Google Doc with their already-trimmed-down list of specifications - preferred location, what they want to be close to, what their needs and wants are and their “would like to haves.”

The second buyers, through the process of our working together and narrowing down their search area/criteria, emailed me a link one day to a Google My Map with the things that are important to them. Schools, gym, grocery store, specialty grocery store, kids’ activities - and oh, yeah - houses pulled from Google Base - were all on the map.

I want the consumer’s search to be as powerful as mine, while keeping all the protected information necessarily behind “Realtor” lines (lockbox codes for generic lockboxes, alarm codes, “seller is out of town,” etc.)

I want background checks on Realtors to validate their ability to keep safe said private information.

I want the search to allow overlays of important data - crime, Walk Score, GIS information, neighborhood boundaries, and more, and I want to be able to share that search with my clients, readers, customers - and allow them to better narrow their searches, thereby allowing me to help them best - by listening and interpreting and advising.

Good Realtors do more than just search for homes - interpretation, guidance, advice, negotiation - client representation - is far more specialized than search.

(Posted here at request)

I’m getting an increasing number of calls to the VAR Legal Hotline about the legal and ethical issues REALTORS® face in increasingly-common short sales. In this brand new 29 minute webcast, I address some of the most frequently asked questions such as:

1. Is it legal or ethical to require the seller to state that the home is a short sale listing in the MLS?
2. What happens when a ratified contract with a third party approval clause fails because the third party rejects the offer?
3. What are my obligations when the bank asks me to reduce my commission on a short sale?
4. Why aren’t lenders be required to pre-approve the selling price before short sale listings are entered into the MLS?
5. Are “conditional commissions” permitted in the MLS?

One of the most controversial Standards of Practice to come from NAR in long time, would have to be the new Standard of Practice 12-12, which became effective January 1, 2008.  Just to refresh your memory, Article 12 is known as the “truth in advertising” article.  We have come a long way from the published newspaper ad.  Years ago, that was pretty much all that was available to REALTORS to spread the word about their new listing.  Now, advertising can be instantaneous thanks to the internet.  In addition to company web-sites, many agents have their own personal website.  Some of the URLs and domain names used can be either dull or attention getters, and sometimes down right misleading.  The new Standard of Practice 12-12 states:  REALTORS shall not:  (1) use URLs or domain names that present less than a true picture, or (2) register URLs or domain names which, if used, would present less than a true picture. 

The new NAR Case Interpretation 12-20 address this new Standard of Practice.  So, here it is–you be the judge–REALTOR A, a residential broker in a major metropolitan city, spent several weeks each year in his cabin in the north woods where he planned to retire one day.  Even while at home in the city, REALTOR A stayed abreast of local news, events, and especially the local real estate market by subscribing to the print and on-line editions of the local newspaper.  He also bookmarked a number of north woods brokers’ websites to stay current with the market and to watch for potential investment opportunities.

One evening while surfing the internet, REALTOR A came across a URL he was unfamiliar with–northwoodsandlakesmls.com.  REALTOR A was pleased to see the MLS serving the area where he vacationed for so many years had created a website accessible to the public.  Clicking on the link, he was surprised to find that the website connected with REALTOR Z’s company website, not an MLS website.  Having had prior dealings with REALTOR Z, REALTOR A spent time carefully scrutinizing the site.  He noted, among other things, that the name of REALTOR Z’s firm did not include the letters MLS.  REALTOR A sent a letter to the association’s EO asking whether REALTOR Z had been authorized to use the name northwoodsandlakesmls.com and whether it presented a true picture as required by Article 12 of the Code of Ethics.  REALTOR Z filed a complaint alleging that when he clicked on what appeared to be a real estate-related URL that included the letteres “MLS” he expected to be connected with a website operated with a multile listing service.  He stated he felt that REALTOR Z’s URL was deceptive and did not meet the true picture test.

At the hearing, REALTOR Z defended his URL on a number of grounds including the fact that he was a participant in good standing in the MLS and he was authroized to display other participants’ listings  on his website under MLS rules.  “If I used `MLS’ in the name of my firm, I could see how that might be perceived as something less than a true picture,” he argued, “but by simply  using MLS in my URL I am telling consumers that they can get MLS-provided information about properties in the north woods from me.  What could be truer than that?”

How do you think the hearing panel ruled?  Do you think REALTOR Z  was found in violation of Article 12?  What do you think of the new Standard of Practice?   

It’s not even the “Gateway” anymore. What it is NOT is an MLS. It is not intended to be an MLS and is not designed to be an MLS. It is intended to be the one and only source of real estate information for Realtors to better do what they do.

Don’t be misled by the title “The Real Estate Channel” - it is a fill-in for what is a yet-to-be-determined name for what used to be the “Gateway.” Virginia was well-represented by Bob Blount and Tom Innes on the Presidential Advisory Group* that deliberated over and ultimately delivered the following report linked here (PDF).

Rather than explain what it “is” read the Questions and Answers document - I have omitted some of the questions to focus on those below that highlight the basics, MLS’ and cooperation and compensation. If you have further questions, please ask.

—————

“Q. 1 My MLS meets my needs. I don’t need information about property outside my market area. Why should I support TREC?

A. Comprehensive real estate information currently exists but that information is not always analyzed, categorized, or readily available in an easy-to-use, trusted format focused on the needs of REALTORS®. Consumer-focused real estate websites are gathering more and more information and REALTORS® will come increasingly to rely on those websites. Without convenient, immediate access to information to analyze/interpret for their clients and customers, REALTORS® will no longer be at the center of real estate transactions. TREC will also enable REALTORS® and MLS participants to access essential information about properties in their market area which may be “just outside” the area served by their MLS, and TREC information will be richer and deeper than what is available in MLS compilations.

Q. 3 How will TREC help me make money?

A. Time is money. TREC will ensure that REALTORS® and MLS participants have immediate access to the information they need to serve clients and customers in a “member-focused” format. Much of the information that TREC will deliver will not be otherwise available conveniently or economically.

Q. 4 How does TREC differ from Realtor.com?

A. TREC is not advertising and will not be publicly accessible; TREC will be revenue neutral and will not sell ads to its users.

Q. 6 What about cooperation and compensation?
A. Accessing TREC will not involve offers of cooperation or compensation. Cooperation is a Code of Ethics issue. All REALTORS® cooperate with other licensees except in those rare instances where cooperation is not in a client’s best interests. Cooperative compensation is an MLS issue. TREC is neither an MLS or an association of REALTORS®.

Q. 8 How will TREC impact current MLS vendors?
A. Data standardization may create a more competitive market for MLS.

Q. 10 Is TREC a national MLS?
A. No.

Q. 12 Will the public have access to property data through TREC?
A. No.

Q. 13 Can a property owner opt-out of having their property included in the TREC database?
A. No. TREC is not an MLS and is not an advertising vehicle. Information from the TREC database will not be publicly available on the Internet as are listings on MLS “public sites” or the Internet sites of third-party aggregators (e.g. realtor.com).

Q. 16 What control will individual MLSs have over the rules if they participate in TREC?
A. MLSs will retain complete control over their own rules and regulations, including the authority and responsibility of enforcing those rules.

Q. 18 Who is the “real estate community” that will be involved in TREC? Are they Zillow, Trulia, Google et al.?
A. No. The “real estate community” is MLSs and local and state associations of REALTORS.

Q. 20 How will the integrity of data in TREC be ensured?
A. TREC will rely on – and its success will depend on – quality data being provided
by MLSs and other information sources. Stringent technology safeguards will be
implemented to foreclose the possibility of unauthorized access.

Q. 23 How will duplication of property listings be avoided on TREC?

A. Every parcel of real property will be included on TREC – irrespective of whether it is currently available for sale or lease. Those available for sale or lease will be identified (“flagged”) accordingly.

Q. 24 How will NAR benefit?
A. TREC represents an opportunity for NAR to better serve its members and to facilitate a more efficient real estate marketplace. TREC will keep REALTORS® at the center of real estate transactions. TREC is revenue neutral and costs will be no more than what is necessary to develop and operate TREC. It will not be a revenue source for local associations, state associations or the National Association.
Copyright NATIONAL ASSOCIATION OF REALTORS®”

—————-

Know this - where we started with this project and where we are today is very, very different.
To get to where we are today, read some of the background on how we got where we are today.

FBS blog
RealCentralVA
BHB
Agentgenius

*The author of this post, Jim Duncan, was also a member of the PAG.

Technorati Tags: NAR, real-estate, realtor

I’ve heard some REALTORS & media say that REO/foreclosure sales are driving values down nationwide. I would argue it’s actually the short-sellers that are doing this, and it’s something we need to take immediate and decisive action to stop. Here’s why:

Let’s take a fictional seller, Bob. Bob bought his house using 100% financing, and he paid $500k for it. Now it’s worth $400k based on comps in the neighborhood. The banks have all priced their listings, say, at $395k to be on the lower end of the neighborhood price range (which tends to be their strategy).

Here’s the issue - since Bob is already taking a loss on the property (and often it’s the bank eating it), when he tries to sell it as a short-sale, Bob has no real motivation to list it at the current market price of $400k. And since it’s so hard to get REALTORS to make offers on short-sales, he’ll probably have to list it at $350k or even lower just to get someone to make an offer. Bob might even list it at $300k just to get out of the mortgage payments, after all, what does he care if the bank takes a $100k loss vs. $200k loss?

And so the vicious cycle begins. Since the banks try to price their properties at the low end of the comps, and do BPO’s every 60 to 90 days, Bob’s $350k listing all of a sudden means the banks lower their prices to $345k to be just below the short-seller.

But I could make an argument that the short-sale listings aren’t even “real” listings because it’s very unlikely they’ll sell… unlikely that the bank will even accept the price at which Bob has listed his property (let alone a lower offer).

Do you agree that short-sales are driving values down at a precipitous pace? And if so, what should be done?

One agent I discussed this with had a great suggestion - have the MLS’ require the bank to sign off on a listing when it’s a short-sale. This would at least provide some amount of verification that the listing is reasonable from the bank’s perspective.

Other suggestions? I’d love to hear your thoughts. I think short sales are a major issue nationwide and I’d love to see VAR and even NAR take a leadership role on this issue that’s affecting all of us.

In all likelihood, most of us have used sites like Craigslist before, whether we were looking for a place for a customer or a sweet Members Only jacket - wait, is it just me that wants a Members Only jacket? My bad. The one in this picture sure looks nice, especially with the blue hoodie underneath.

A staff member in my office this morning sent out an email warning of a housing scam she had uncovered while searching for a place for her and her family to rent. She had uncovered a single-family house for rent here in Blacksburg, at a great monthly rate, but she also knew the house was for sale in our local MLS for $300,000+. When she contacted the email address listed on the posting, the person responded by asking questions that violated all sorts of Fair Housing rules, including asking her age and her religion, among others. The emailer claimed to be the owner of the house, and that they would be requiring two months rent with the application.

So what, right? Just a scam? Sure, just a scam, but the reason I bring it up here on VARbuzz is because the posting had MLS pictures of the house right there in the ad - both interior and exterior photos were used. The exact street address was used. And it’s likely that this staff member wasn’t the first person to contact about such a low rent for such a great house.

The point - be careful. The TRUE owners of this home were not aware their home was getting unwanted attention based on this scam ad. They had no idea someone was advertising their home and location for sale, or who might have been driving by. It’s no indictment against their listing agent, who immediately notified them so that they could have the ad removed from Craigslist. Instead, it’s a reminder to constantly be aware that the distribution of listing information is a benefit to all of us, but we also need to monitor our listings as well. You never know who’s watching.

Photo credit: Bradley J.

At today’s MLS Forum, Michael Wurzer, of FBS (FlexML) characterizes the future of MLS as a “Perfect Storm” — with three storm fronts that are potentially shaping this future: Broker Consolidation, Web 2.0, and NAR vs DOJ.

(1) Broker Consolidation: Brokers are growing and consolidating, which is causing MLS’s to grow. Some MLS’s are consolidating, some are sharing data.

(2) Web 2.0: Key components of this movement include:

• universal accessibility of information
• open access to technology
• consumer choice and particpation
• independence, freedom and respect

Some companies that are involved (in varying degrees) in the Web 2.0 world are zillow, redfin, craigslist, google, point2, trulia, yahoo, and roost.

(3) NAR vs. DOJ: The basic accusation is that NAR is anti-consumer. Since NAR is Realtors, the syllogism is that Realtors are anti-consumer (fees are too high). Lawsuits create a status quo — no changes are made to make sure that the lawsuit isn’t complicated. This vacuum of innovation is being filled by many of Web 2.0 companies.

Is It Too Late?

Will the web run over the MLS? According to Michael, no. We define the web . . . and yet, at the same time, the web defines us. So . . . as Michael says, “The Future Is Now. ” We are defining our future today, by our decisions and actions — and the foundations are just being built. Some of the current trends include . . .

• Standards: Standards are being defined (in real estate and other areas) to provide broad and deep definitions. The Real Estate Transaction Standard (RETS) is defining a listing in these ways, to allow for data portability. Data portability provides power and choice.
• Syndication: Entering the data (listings) into one location, which then sends out out to many different web sites. RETS has created a syndication work group to try to standardize syndication. This standard will ideally be used by MLS vendors

Thinking Points . . .

Licensing Our Syndicated Data

What happens to the real estate content we provide to third parties via syndication? From Google’s terms of use, when content is submitted to Google, the submitting party is granting Google a “…worldwide, non-exclusive, royalty-free license to reproduce, modify, adapt, publish, and otherwise use, with or without attribution such Content on Google services.” However, it goes on to state that the “…license terminates when such Content is deleted from the Google service to which you originally submitted.” We need to consider developing standard ways to license our data. (ex. Creative Commons) Standards are just now being developed for all that matters. We have the opportunity to participate in that process.

MLS is More Than Technology

The MLS is essentially a social network, with (strangely), competitors cooperating. It is, to some extent, a representative democracy. This cooperation allows an aggregation of data. Without this cooperation, listings will not all be in one place. Thus, the question (again) is who is serving consumers? The aggregation of listings (via the MLS) is a service to consumers.

Moving Forward

• IDX is a fantastic tool, but it lacks the standardization and full features necessary for moving forward. Perhaps IDX needs to be revisited, within the Web 2.0 context.
• How should we cooperate on the web?
• Which parts of the listing we want to share?
• Are listings are advertising, or information?
• Who are the members of the MLS?
• Should the consumer be a “member” of the MLS? What if they agreed to our terms of use?

As leaders in the industry, we need to determine whether these trends, questions and ideas are just noise, or whether they are an indication of a major industry change on the horizon. The future is being formed right now . . . the question is who will determine this future.
—

Some of Michael’s recommended readings:

• Only The Paranoid Survive
• Cluetrain Manifesto
• Code 2.0
• The Summer of 1787

Looking for more insights from Michael Wurzer? Check out his blog: http://www.flexmls.com/blog.

Thirty-five years ago when I entered the real estate profession, things were very different and in many ways, easier. Contracts were one page long, financing was done by and handshake at the local banks, we had the very modern Polaroid camera to take our instant photos, and, if you can imagine, no MLS. Today everything is different about the business and the advancement in technology has been incredible. For people like me who are still trying to figure out how fax machines work, it is sometimes overwhelming.

Enter the age of the digital camera and Photoshop. How wonderful! We can do our own photo editing and enhancements right at our own computer. We can create a House Beautiful magazine cover out of a handyman special with just a few mouse clicks. After all, isn’t this what we are supposed to do to help your clients sell their houses? Article 1 of the NAR Code of Ethics clearly states that we are to promote the best interests of our clients. So what if we improve the look of the their rather tired looking home? Aren’t we promoting their interest? Doesn’t the seller want a fast sale?

Let’s take a look at Article 12, which states we must present a true picture in our advertising. So, where do we draw the line? Do you think it is okay to photoshop into our listing photos a “new driveway” so the house looks better? Is it okay to “patch the grass?” Remove a mailbox and a telephone pole and stains from the driveway? Is it okay to remove the trash cans the owner forgot to put in the garage?

When have we gone beyond helping our clients and deceiving the public?

As real estate agents, the MLS is our constant go-to source for information. Number of bedrooms? Go to the MLS. Square footage? Check MLS. Types of floors? It’s right there on MLS. The MLS is one of the most utilized tools in our real estate toolbox., and also one of the most abused. Just last week, I was at a listing appointment where the owner asked me whether withdrawing her home from MLS and then reentering it would reset the Days On Market Counter (thankfully, it does not). We’ve all seen the “2000 square foot charmer” that looks more like a 1300 square foot dump with a leaky roof. It happens all the time - incomplete listing information, manipulation of Days On Market, even homes entered into the wrong areas to garner more traffic.

For years, agents have had “private” use of the MLS, and were the gatekeepers for buyers wishing to get more information regarding a particular home. If a buyer wanted information on a home, they called their agent who searched the MLS for more information. Agents held the key, literally and figuratively, and the information provided went to the consumer THROUGH the agent. This position has changed, with the rise of real estate websites offering the promise of free – or slightly free – information on neighborhoods and even particular homes. The MLS is no longer the go-to resource for real estate information, it’s now just one of many consumer marketplaces for home buyers and sellers.

Why then, if the information we enter into MLS is made available to consumers throughout the Web, aren’t we making sure we’re using accurate data? Complete and accurate data in the MLS means that our listings are going to be “hits” with more buyers and agents than if we just enter the bare minimum. Having a listing without room dimensions might just push the perfect buyer on to another property, just as failing to include descriptive text might eliminate those agents and their buyers using search terms to find your listing. Sure, some of the fields can be tedious and redundant, but the more information we can provide on our seller clients’ listings, the more likely that buyer will see it. Michael Wurzer, president of FBS Data Systems, has written extensively on his blog about it and it’ll be interesting to see if he addresses it further at February’s Legislative & Education Conference. Don’t forget you can register online and save money, by the way! MLS accuracy has been covered for years, in every market, and it’s something we all still struggle with.

The MLS is a tool for agents and consumers alike, and just as with any tool it needs maintenance and care. We all get busy and distracted, but don’t overlook taking the time to make sure your listings are complete and thorough. We’ll ALL benefit if we each take the time to make sure our tools are sharp and ready for action.