Drowing in a Sea of Data Looking for Some Knowledge? A Different Search Engine May Help

With all of what we are looking for on the internet today, it has been found that a larger percentage of us than ever are beginning that process at search engines, versus say those who find content on the internet by typing in a website address.

Real estate agents seem to use internet search much more than the general public, so having the ability to locate the "right" information desired quickly for us is key.

Of all of the places to do search on the web, Google has become ubiquitous and by far and away the category leader, with Yahoo being a fairly distant second. While there is no doubt that MSN.com is no slouch, Ask.com is making some inroads and AOL.com can’t be completely counted out, even those top search engines still don’t always serve my needs (or quite frankly-whims) in all cases.

By the way, I am NOT one of those people who overload on duplicate applications and have, for example, say 3 different web browsers, because it’s nice--you know--just in case. Nor do I use these other search sources just for the sake of it.

All 10 of the search engines I use have found me items that the others could not (or did not) locate...at least in about the first couple hundred matches. Here are some others I like to use instead of or in addition to Google.com and Yahoo.com for finding what I am looking for that may very well help locate something that you are looking for the next time you search:

http://www.hotbot.com/ - This search engine, like most, has morphed along the way, but I use it still from time-to-time today. I must confess though, that I do it mostly for sentimental purposes—it was my first. You always remember your first. HotBot is run by Lycos, who I also had my first email account through, way back when it was still Eudoramail. Decent enough search and a nice change of pace, if nothing else.

http://www.alltheweb.com/ – If you like Yahoo.com (and I would think most people who use it do; it IS really good), then you may like this one just as much or more, as it is has a simpler home page than the main Yahoo! one. At the same time, know that AlltheWeb is owned and operated by Yahoo, so you get the benefits of their search capabilities as well. Speaking of Yahoo’s search, I especially like the help it offers as you type in something you are searching, especially since I am sometimes still thinking of how to say what I want as I type and that I type pretty slowly. As an example of Yahoo.com’s, help, I only fairly recently learned of a long-format article I had not ever yet read which was published in Esquire magazine the year of my birth (1966) about Frank Sinatra, of whom I am a huge fan. The article was apparently not only exceptionally well done, but quite revolutionary for it’s time, especially in it’s style, blending elements typically only found in fiction (novels and the like) for the first time. Written by Gay Talese, it is titled “Frank Sinatra Has a Cold”…I read it and will read it again-fascinating!

Anyhow, where were we—oh, yeah—search engines—Yahoo has something called “Search Assist” and in the example I just used, I typed “Frank Sinatra H” and it suggested what I was likely looking for—you then just click on it…there it is--sweet.

AlltheWeb.com has a simple search only interface and I really like the ability it has from the home page to search for matches that are “Audio”, as well as images, video, and news...now Google has some added some of those too from the main page—but not the Audio. Also check out AlltheWeb’s newer “LiveSearch” feature.

http://www.mamma.com/ With a name just as cool as Google or Yahoo, Mamma is awesome. What can I say…it’s Mamma. She is something…”The Mother of all Search Engines” indeed. I often find things here that the other search engines alone don’t AND I find it ranked higher, so I am not usually on the 32nd page of matches still looking for what I want.

http://www.altavista.com/ When you learn that this one is owned by Overture, which is owned by Yahoo, you begin to see some of the overlap in search engines, but with Alta Vista's "Raging Search" (just one example of their 60+ search-engine related patents), you, like I, will likely find matches here not found elsewhere in the top results of the other search engines. Why that is I do not know, but I like it!

http://www.dogpile.com/ There are also numerous matches I locate here that simply are not found elsewhere and the matches I get are usually among the most accurate. But they are also less exhaustive with the junk that is NOT what I was looking for--now that's refreshing! This site is owned by infoSpace.com, which is also one of my favorite places for criss-cross, reverse directories designed for finding people's phone #'s or any other missing information you may want.

http://www.clusty.com/ Again, here we go with a hip name, but there is more to this one than that...if there was one search engine I would like really to see break from the search engine pack it's this one--because they deserve to. Clusty was started by 3 Carnegie Mellon University scientists who decided they wanted to streamline the "match overload" so common to internet search. As described at the website, in their research they found that by grouping results into topics, or "clustering," makes for better search. Clusty combines results & then generates an ordered list based on a meta-search that raises the probable best results to the top and pushes less likely what you are looking for to the bottom.

http://www.ixquick.com/ Many unique items here, including a real treat for those concerned about privacy. This is not much of a big deal to me, but I know it is for many others. Ixquick honors your privacy, in part, because it deletes all users search terms that can be tied to them within 48 hours. As you probably already know, every time you visit a search engine, what you as them to look for is recorded based on your IP address. So the terms you choose, the time of your visit, the links you choose, etc. all get stored in those other search engine's databases...possibly much to the liking of hacker's, the government and just nosy people with the desire and the know-how to see what you've been doing search-wise.

Even if the privacy factor is not an issue for you, also know that in addition Ixquick has each match result noted with a star system. One star means that one other search engine is putting the match in its top 10. So a five stars means that five different search engines agreed on the result. This can be significant as different search engines choose results in different ways, and each approach works well in some cases and poorly in others. Plus, like me, I am sure you have had matches that are completely bogus as irrelevant web pages can be "optimized" to fool a single search engine's algorithms, but it's much more difficult to fool multiple search sites. So give Ixquick’s "Powersearch" a whirl- I think you'll like it!

So, what search engines or good web search tips do you have me and our readers?

Some of Why Purchasing Real Estate Through A Buyer's Agent (Not the Seller's Agent) Is Preferable

When working with buyers, some agents hesitate to explain to the consumer why they should work with them. In some cases it is a lack of "word ammunition" or "poor verbal agility" on the part of the agent. No more!

Begin by letting your contacts know that using a ‘Buyer’s Agent’ (one who has a legal duty to protect and promote the purchaser's positions) is preferred by the overwhelming majority of home buyers. Tell them that this has been confirmed by several studies, including a Gallup poll.

Continue sharing that because a Buyer’s Agent fully represents the best interests of the buyer, not the seller, and can likely negotiate a better price and uncover any hidden defects the home may have.

For just one beneficial example of this, tell them of the informal survey by Sprint, the large telecommunications company, which showed that their employees who used Buyer’s Agents when acquiring their next home saved an average of 9% off asking price, vs. 3% for all home buyers who purchased directly from the listing agent, homebuilder or unrepresented seller (i.e. a FSBO).

Let your buyer's also know that as their Buyer’s Agent, you are free to show them virtually all available homes for sale, regardless of which real estate company represents the seller, that you can prepare the paperwork, help find the right loan (if needed), negotiate the best terms on their behalf and manage the escrow/closing process.

And be certain you as their agent communicates this to them early (and often); that they can have you as their own agent at no direct out-of-pocket cost to them, because the seller pays the brokerage fee commission.

You might also want to let them about the following credible, non-real estate, sources have had to say about this...basically, they highly recommend that house-seeking consumers use a Buyer’s Agent!

Here are some quotes relating to why they should hire a Buyer's Agent like you:

∎Smart Money Magazine
“Confusion often arises because many buyers believe that the agent who shows them houses works on their behalf. In fact, subagents of the listing broker – often they are agents who work for another office – also act on behalf of the seller.”

∎U.S. News & World Report
“Many people don’t realize that, unless specifically stated otherwise, realty brokers are legal representatives of sellers. A buyer broker, representing only the buyer, may be able to secure a better price and better terms.”

∎The Wall Street Journal
“Most agents who show you homes don’t represent your interests. They work for the seller, and their object is to sell the house at the highest possible price.”

∎The Washington Post
“To Buyers: If you want representation, work with a buyer broker. They are legally obligated to represent your interests in any negotiations with sellers.”

∎Business Week Magazine
“Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price. The best buyer brokers are so-called exclusive agents – that is they represent only buyers, never sellers, and thus are not tempted to push a house on which they stand to earn a commission.”

∎Money Magazine
“When buyers do not use an exclusive buyer broker, they are generally dealing with a professional, trained selling agent who has pledged to get the best price and terms possible for the seller. The better option is to contact a buyer broker.”

This also all leads very nicely to the introduction of your Agency and Buyer Broker documents!

I'd love to hear your feedback, including your success stories using this information with your buyers!

The Top 10 Steps for Your Meeting with Buyers

The following "Top 10" list of steps is designed to ensure that your initial face-to-face meeting with buyers (the one before you go and look at homes) is a productive one:

1. Meet and greet them by name. If you won't be there yourself when they walk in the door, prepare your staff that a "VIP" is coming soon! Be warm; generous. You are so EXCITED to see them; to have them as a guest! Build Rapport. Get them comfortable!

2. Seat them in a quiet office or conference room and offer them something to drink.

3. Offer them some written information about you, your company, items to consider when purchasing real estate and perhaps some agency related items. Leave the room for 2-5 minutes, to get them & yourself something to drink and so they can briefly look over the materials.

4. Return to room. Explain how this buyer counseling process works. A sample dialogue:

“Thank you for taking the time to meet with me to discuss how I can help you find and acquire the home that best meets your needs. My role is not to try to sell you a home. I am here to begin to understand your home search objectives and, if appropriate, meaning you want me to assist, to help find the right property for you.”

5. Get them to describe their “dream home.” Ask them lots of probing questions. This should easily take at least a good 10-15 minutes. You will listen to them like no Realtor ever has! When you have covered it all with them paraphrase what you heard confirming that you "get it".

6. Start with the financial pre-qualification. You may begin by asking "So, when you are fortunate enough to have found the one home you want to have me make an offer for on your behalf, would you be paying all or cash or prefer, perhaps need, to instead get financing?" If they will be interested in financing, preferably have a loan officer there or available to speak with them over telephone. Be prepared to do a pre-qual yourself if needed.

7. While they are speaking with the loan officer, search your data sources for properties that match what they are looking for OR go live with them present. Some agents even like to have the buyer(s) sit at the keyboard and have them experience this part first-hand to see how it works.

8. Return to the room and bring the list of properties with. Finish with loan officer. If buyer is financially o.k., proceed. (If not, the lender can counsel on their options at this point).

9. Exclaim “I (or ‘we’ if they looked at the properties with you) have found some really great homes that closely match what you want! Before we go out to look at those, I need to first explain something called agency and speak with you at least a little bit about how I work and get paid. It’s really quite simple and I can probably end up saving you a lot of time and money..AND then we can leave to go see some of these homes right afterwards if you'd like!”

10. Use visual aids to demystify the process. Once complete (you've demonstrated the related items as well as having addressed any of their questions or concerns), present your agency disclosure, buyer-broker agreement and collect a retainer fee, if you choose to do so as part of your process. And, of course, be sure to give them their copies of any documents they have signed!

11. P.S. Now it is time for the “fun part”. Go help them buy a house! :-)

Active Agents--when you hold a Buyer Consulatation, what do you like to do instead that you have found is successful more often than not? I'd love to hear your tips and/or questions!

Agency- Dual or No Dual?

Ah, good 'ol Agency. I tell you, it is always a surefire topic to get a discussion going. I love it!

Recently I had an agent (and not just any agent-a designated broker of a local brokerage affiliated with larger national realty franchise, no less) suggest that “no agency could be ever be ‘implied’ AND then went on to assert that "if you're sitting an open house where a potential buyer enters and the buyer asks what the Days On Market 'DOM' are of the house, that to answer that question as the agent there, that a Dual Agency is the only relationship possible from that point on".

"Dual agency is the only relationship possible" and "it can never be implied"?

They were kidding, right?

Apparently not.

Absolutes are always dangerous; i.e. Always, Never, etc. In this case #1, the problem is "can never"...of course an agency could be created with a seller even if they don't list with you. Not likely, but possible. This person was incorrect if they left it as an absolute.

On the second part about answering the DOM question at an open house, I disagree that it in of itself would automatically create an agency with the buyer.

They were asserting that in today's residential resale environment when a buyer comes to an open house (or in some other type of circumstance where the buyer wants to purchase a property directly from the same firm that is the listing brokerage) that there would be an assumption that if that buyer makes an offer, there would be an implied agency to the buyer because this practice has become so common, resulting in that we just default to a dual agency, sort of a virtually "automatic" limited representation.

I hope we have not "evolved" to that point. If so, I might suggest that that is devolution, not evolution.

By the way, O.K.-yes it (dual agency) is usually referred to to as Limited Representation in today's more popular descriptive term. But for now, I'll use continue to use "dual agency" in this discussion...

The most common urban myth of agency is one we still hear from agents all the time; that being that if you as an agent sell your own listing (or another listing of a different salesperson with the same designated broker), that you ARE (Period. End of issue.) in a dual agency. But that simply is not the case.

As an agent you CAN, in many cases, sell your own listing to a buyer (customer) and still collect both sides of the commission...that last part is the REAL concern for most agents; i.e. "If we don't (or can't) do dual agency, we can't double dip the deal." Of course those that think that are myth-informed.

Now if a brokerage has a policy that requires limited representation in the open house scenario or one similar, then that is the rule for that agent and agency.

But it certainly is not the ONLY way.

There are so many otherwise very capable licensees who just don't "get" this and many other key points of agency. I recommend John Reilly's book on Agency...I still use things from that book--it concepts, examples and visuals--in my agency classes to this day. And Don Harlan's and Gail Lyons book "Buyer Agency Today: Keeping Your Competitive Edge in Real Estate", which is now in it's 4th Edition, is also an excellent and more recent treatise on the subject that I'd recommend to all of you.

I'll always remember Jim Sexton, the designated broker and owner of John Hall & Associates, saying that the more he thinks he understands Agency, the more he knows that he doesn't fully understand it. I find that pretty profound. Here is one of the brightest guys around and he (and I don't think with false modesty) says he still is at least sometimes confounded by it. Wow! Where would that put most of the rest of us?

In the interest of full disclosure, I must state here that I was a member of a now defunct alliance known as S.A.R.A.--the Single Agency Realty Association-- and I still have the personal bias that in most cases one should avoid dual agency at virtually all costs...but SARA no longer exists because there just were not enough realty licensees that felt strongly enough about single agency to keep the movement going.

At the same time, I have softened a bit in my old age on my stance against dual agency and feel I can now at least better sympathize with those who like dual agency's potentially better qualities.

However, I still am of the belief that when ever humanly possible, that when the practitioner has a choice between doing a single or a dual-CHOOSE SINGLE! I see this as good risk reduction technique for the fact most attorneys dealing with real estate matters say that there is a disproportionate amount of their litigation that involves dual agency transactions.

So what do you think? Do dual...or no?

Referrals and Limited Referral Organizations

Is joining or owning a referral group or company a waste of time?

I would not go as far as to say that efforts to systematize broker referrals is a waste of time. Certainly it can be. Some of these referral networks are at least reasonably profitable. There are just so many variables.

I do know that the stronger the affinity (i.e. in a paid network, be it referral specific or in a franchise) AND the higher the productivity of the agents of those in the referral network, the better it's chances of success are.

We here in the Phoenix area are so uniquely positioned to both SEND & receive referrals. This is because have such HUGE volumes of people coming in, but also (I've heard it said--maybe looking at the gross in-migration #'s & comparing it to the net in-migration #'s?) that approx. 2 out of 3 people who move here will move back out (the out-migration #'s)...usually to where they came here from... within 5 years of coming to Arizona.

Let's face it, as great as I and most of us already here think it is, it's not to the liking of all!

(Warning: What follows is NOT brought to you by the Chamber Of Commerce).

So, what's not to like about Phoenix and Arizona? Well, for starters, EXTREME heat for 5-6 months of the year in many parts of the state, and, where most of the population is; traffic congestion, poor air quality, comparatively low wages, a lack of strong national corporate headquarters, higher priced housing for most...alright that part is changing..;-> ). Pun: Agent to Buyer "You want to buy a less expensive home?...Well, just wait on this one".

In what is commonly referred to as a Limited Referral Organization "LRO", which is a business entity for real estate agents who only want to earn income by referring buyers and sellers to other active agents, agents who then receive the referred consumers and assist them in a real estate deal. Then at the closing of a transaction, the agent who got the referral can lawfully pay a referral fee (a portion of the total commission) to the LRO on behalf of the referral agent.

Now LRO's use marketing to attract agents who are doing little to no business, stating things such as--"Keep your r.e. license active, but pay no fees to Boards of Realtors, the MLS, etc...to you as the agent there is income upside, because you can earn money when you know others who end up buying or selling and tell us about them...you can only send referrals" type firms.

These LRO's have very little (if any) liability associated with them. I know of no such case filed, let alone one won (Juan? ;-> ) against an LRO because of their actions. That of course, does not mean that there is no case law, but I know of none where either a sending LRO or the brokerage receiving the lead was held liable in any regard as a result of the particulars of that entity.

I would say that of all of the things that might keep a broker/owner type up at night with worry, that the risk from their LRO is incredibly low on the list of such potential problems.

Now, to be clear I am talking about broker-to-broker referrals in the sense of referrals coming from mostly resale company to another, not those designed to funnel business to new home developments or timeshares from other brokerages, as I have no first-hand experience or even second-hand knowledge about these.

On a related note though--why bother having one? I say this as I have yet to see one that is even modestly profitable when one is calculating the true and total related costs to the meager income they generate. And I have worked with a few of these and have networked pretty extensively with others (regionally and nationally) that have associations with or own one of these LRO's.

I know profitable ones exist, but they are few and far between.

I have found with the majority of LRO's, that the 80/20 rule is not even a 90/10 or a 93/7, but usually is about a 98/2 rule...that around 2% of the referral agents send about 98% of the referrals.

And much of the referral activity from most LRO's is those referral agents selling/buying their own primary residence house(s) is where most of the action comes from.

Those LRO's that charge some upfront sign up/membership or other reoccurring fees, usually paid once or twice per year, at least get that income from the majority of those in their license holding system who will rarely, if ever, generate any income at closings from referrals they provide.

I've discovered that LRO's are more of a public (and agent) relations program, but that they are anything resembling a profit center... i.e. "Maybe that agent will go to our LRO and then come back some day more full-time" type of mindset or "Here's a way to get rid of low-to-no producing agents, but leave it on a nice note." Sort of "Hey, how 'bout you join our referral company which is designed for 'special' people like you?" and this way, the brokerage can let agents down gently and/or gradually instead of instantly totally and truly severing them.

We have several LRO's here locally. A few more new ones have popped up lately, but many have been around for years. For example, I believe that Russ Lyon operates one. Both of the local Prudential Real Estate Affiliates have 'em. Keller Williams (or at least one of the area KW franchisees) operates the P.S. Referral Company. The local NRT-owned Coldwell Banker has one of the biggest in the Phoenix area, if not THE biggest.

Bob Reichard's Realty Referral Network is probably the most successful LRO I know of here locally. Bob is a BIG cheerleader for this LRO business model and just LOVES it! See www.kfnn.com/Host.asp?PersonId=95 to learn more about Bob or visit his website at http://www.dreimaz.com/ Bob is a good guy & fellow instructor who keeps VERY busy & offers some other pretty unique things. Contact him if interested.

So what is your experience with referral companies...LRO's?

New MLS- Many Lasting Scars? Phoenix MLS to Soon Change

Alright, "MLS" does not stand for Many Lasting Scars, but, at least in the eyes of some, it could soon be representative of how some will feel.

Why?

As you have probably heard by now, we are changing the system for our local REALTORS MLS here in the greater Phoenix, Arizona area, what we refer to as the Arizona Regional Multiple Listing Service, or "ARMLS".

Last week, I heard Barb Hoffman (from the support services side of ARMLS) talk to a group of we real estate trainers about the upcoming changes to our local MLS. Here is a video with her speaking briefly of this: www.ArizonaHometv.com

Myself having been through 6 versions of the AAR Resale Purchase Contract, 3 Keybox Systems and 5 different forms of the MLS databases (hey-I used MLS books--that's how long I've been doing this), I know that these MLS database switch-over's can be really frustrating events, but it IS a necessary one to bring us up-to-date.

The new system is vastly superior. And, since MLS users here will be paying about $100 more per year (about a 160% increase over the current amount) to use it, it should be!

As the ARMLS CEO Bob Bemis said, "There are hundreds of moving parts to an MLS conversion. They are pretty much an ugly, protracted nightmare, (one) where you hope and expect the best, but need to plan for the worst."

"If the planning is up to the expectations, then the results usually fall somewhere in the middle." he continued. "The technical side for the MLS people on a conversion is usually the easy part (if there is an easy part). Mapping data, converting fields, duplicating business rules, and getting the forms (both input and output) to look somewhat like you’re used to is fairly mechanical. Luckily, databases don’t argue with you." stated Mr. Bemis.

By the way, here is a blog about the MLS changeover that has been going on for 9 months or so: www.PhoenixRealEstateTechnologyExchange.com --between this and all of the other communications, no one should be caught be surprise by this when the change over begins.

Right now, ARMLS is sending out numerous notices this month and next to MLS users. The notices that are going out are addressing a lot of common questions and concerns MLS REALTOR users have now & will have once they get more involved with the new database.

I am sure there will be MANY more in-classroom training sessions for MLS users in July (and beyond) once new MLS goes "live" on July 28th.

Plus, very intelligently so, the "old" MLS will be running concurrently for 30 days or so after the new MLS goes "live".

That is very important. Some agents will fight the change. Consider this..."Agents can be told how the new MLS works and instead of doing what they’re told – they argue. They question the judgment of the MLS operators. The (bad agents) just start to offer multiple opinions about how they think ARMLS should have done something – either better, sooner, later, more in-depth, not so deep, and occasionally not at all.", Bemis continued.

And man, is he EVER right, continuing "If experience has taught me anything it’s that communication is the key to success in a conversion. It’s not sufficient to provide a top-notch system that meets the needs of the agent population. We must teach them, show them, guide them, lead them, help them, and support them. And then the hard part – we have to DO it. And do it well."

Having recently been doing some demonstrations to our HomeSmart and Dan Schwartz Realty agents of a web-based agent support application myself lately, I also know this next statement (and the last one here today) from CEO Bemis to be INCREDIBLY TRUE--"The best system in the world fails in the eyes of agents if we can’t teach them to use it and then support them throughout the transition process. But it stands a bigger chance to fail if the ARMLS folks don’t know the answers before they are asked the questions. A great communications plan anticipates the questions and stands ready to provide the answers, preferably before the questions are asked."

Soooooooooooo...the MLS folks are also getting out a newsletter, email updates, posts on the current MLS website, and eventually a DVD complete with a "Quick Start" guide for all paid users.

All of the around 35,000 users of the MLS will have the opportunity (in demonstrations) over a two week period coming in June and July. ARMLS is also supplementing those events with virtual training (with live/interactive and recorded/self-paced video-based learning modules).

So, to say that there will be lots of training available on the new MLS is an understatement!

See www.NewARMLS.com for more details!

It's Almost Time to Go and Grow--Your Real Estate Investment Portfolio, That Is.

This month, specifically May 17 - 18, 2008 at the Phoenix Convention Center, is the 4th Annual Real Estate "Investing - Making it Work for You!" Conference & Expo for Investors and Rental Property Owners.

What a neat opportunity for you to learn more about buying your first investment property or expanding on your existing ones.

This is a tremendous event headed up by the Arizona Real Estate Investors Association (AZREIA) and is sponsored in part by some of the best vendors and affiliates around.

For a full schedule and complete details go to: http://azreia.org/conference_expo/home.asp

When you'll go to the website, you'll see some of the sponsor’s logos/links on the left side of the page, including the always outstanding www.PersonalRealEstateInvestorMag.com , of which I was a charter subscriber. Yes, I have heard that many people get it for free, but I pay to have it mailed to me...it's that good!

If you'd like to go to the Conference and Expo, but your funds are a bit lean right now to afford the about $250 to attend (maybe the money tree in your back yard isn't blooming like it used too), know that those sponsors get free tickets to distribute and you might be able to go as their guest.

For example, I am not sure if he still has any left, but if you'd like a chance to go for FREE, courtesy of one of those partners of the conference, email Chris@SellWholesaleHouses.com for complimentary tickets. I am not sure if the tickets he has are for admittance only, to see just the keynote speakers & the expo, or for the whole event. Either way, it's a deal! Chris started with 100 tickets, and placed a fair two-per-request limit. See if he has any left.

Regardless-get there and learn, grow, and act to become a r.e. investor!