As you watch Tobey and I fall further down the local standings here at Active Rain, the natural question is whether we have disappeared from the real estate scene. The answer is a resounding NO!

We've been writing our own blog for the past year-plus, first in RealTown Communities and now on our own server. And since the start of the year, I've been writing almost exclusively on the Dalton's Arizona Homes Blog.

I'll try and excerpt an article here once in a while (then watch people read the full article on my server before coming back here to comment and pick up 25 points) but the effort of keeping two separate blogs full with unique content is just too much.

So if you're looking for the very latest in real estate commentary on the Phoenix real estate market and other pressing issues in the real estate industry, come see us at http://www.daltonsazhomes.com/blog.

I can't award you any points but I can tell you it'll be worth your while. 

Here’s one of the dirty little secrets of Real Estate 2.0. In many ways, we’ve done a terrible job of taking clients along for the ride.

Buyers have adapted to the changes as technology has simplified their end of the bargain. They can search for homes whenever they choose just by opening a web browser. But for most sellers, it seems real estate technology is an excuse not to work hard on a sale.

So what have we taught our clients, particularly our sellers? Consider this a Realtor’s list of sins, al chait shechatanu levanecha …

We have taught our clients that open houses matter, that open houses sell homes, when in reality 99% of all open houses are staged by agents looking either to pick up some buyers or some neighborhood listings. And we predicate this myth with “I just sold a house at an open house a couple of weeks ago.” Sure you did.

We have taught our clients that extra frills such as property books inside the home will be the deciding factor in selling a home. Property books, with a copy of the Sellers Property Disclosure Statement and information on local schools, can be invaluable. But you have to get buyers in the door first, and in focusing on the in-house extras many agents skip past how they’ll get buyers into the home in the first place.

FOR THE FULL ARTICLE, PLEASE VISIT DALTON'S ARIZONA HOMES BLOG

 

Sixteen years ago this fall, I was at Sun Devil Stadium when Arizona State’s football team beat the University of Arizona for the first time in nine years. Students (and alumni, such as myself) stormed the field.

After wandering aimlessly, I went over to the stands in front of the band and had a friend lift me to the top rung of the bleachers’ guardrail. There, looking out upon hundreds of people on the field, I took my free gold pom-pom provided at the gate, waved it three times and watched as everyone erupted in an A-S-U cheer. It was pretty cool, watching the reaction to a random act in front of the band and feeling a sense of power because of it.

Redfin’s much the same way. Glenn says something or the company issues a press release and the real estate blogs jump too, reporting whatever happened with varying degrees of cynicism or admiration, depending on one’s point of view. Sometimes it’s tempting to think we, the real estate blogging community, aid Redfin’s struggle for existence in that all that we right adds to the company’s public relations monster.

Why do we as a group spend so much time writing about Redfin? Maybe it’s an effort to reverse the spin and present the truth to those willing to look at the company with a critical eye.

Make no mistake. Despite the hype, Redfin is struggling by nearly any measure. For all the bold talk of expansion into additional markets, progress has been extremely slow. Greg compared the total sales for Redfin to those of local real estate god Russell Shaw. It’s no contest. True, Russell has been doing this longer than Redfin but he also hasn’t had the benefit of $20 million in venture capital (though his ever-present face on my television makes me think he does have a printing press stowed away.)

FOR THE FULL ARTICLE, PLEASE VISIT DALTON'S ARIZONA HOMES BLOG

 

Sales dipped slightly and inventory rose by a net of approximately 200 homes, leading to a slightly higher absorption rate for the preceeding 30 days.

Keep in mind these numbers only reflect single-family detached inventory and sales in the resale market - nothing from the builders is included, primarily because those numbers aren’t readily available. But builders remain the largest “x” factor in the Phoenix real estate market.

In discussing my theory on the builders with a formal builder - that either they’re too far in to stop or that they may know something the rest of us don’t - he suggested the builders aren’t concerned with current market conditions because they are not only willing but also able to drop their prices as far as necessary to clear our inventory, an option your average resale buyer doesn’t have.

CITY	SOLD 5/18/07-6/18/07	ACTIVE 6/18	Absorption Rateas of 6/18/07	Change	Buyer/Seller
Ahwatukee	11	103	9.36	0.53	Buyer
Anthem	40	746	18.65	0.45	Buyer
Avondale	83	1,074	12.94	0.70	Buyer
Buckeye	57	1,018	17.86	-0.65	Buyer
Carefree	9	113	12.56	-9.04	Buyer
Cave Creek	39	611	15.67	2.05	Buyer
Chandler	321	2,331	7.26	-0.66	Buyer
Desert Hills	18	180	10.00	-0.53	Buyer
El Mirage	42	475	11.31	0.26	Buyer
Fountain Hills	32	414	12.94	0.12	Buyer
Gilbert	293	2,508	8.56	0.49	Buyer
Glendale	228	2,321	10.18	1.08	Buyer
Goodyear	93	1,258	13.53	-0.96	Buyer
Laveen	41	518	12.63	-1.69	Buyer
Litchfield Park	35	518	14.80	0.99	Buyer
Maricopa	65	958	14.74	-0.23	Buyer
Mesa	409	3,342	8.17	0.77	Buyer
Paradise Valley	29	301	10.38	1.44	Buyer
Peoria	177	2,006	11.33	-0.25	Buyer
Phoenix	986	9,209	9.34	0.12	Buyer
Queen Creek	140	1,992	14.23	-1.08	Buyer
Scottsdale	364	3,440	9.45	0.49	Buyer
Sun City	72	502	6.97	0.01	Buyer
Sun City West	63	444	7.05	0.59	Buyer
Surprise	215	2,159	10.04	-0.62	Buyer
Tempe	111	500	4.50	-0.08	Seller
Tolleson	31	469	15.13	-1.05	Buyer
Waddell	10	92	9.20	0.10	Buyer
TOTAL	3,903	38,422	9.78	0.23	Buyer

Data provided by ARMLS. Data deemed reliable but not guaranteed

Technorati tags: phoenix arizona, phoenix arizona real estate, real estate, market statistics, absorption rate

Pre-sale has begun at the Reserve at Eagle Heights, a new subdivision slated for the southwest corner of 75th Avenue and Deer Valley Road in Peoria.

According to an article last year in the Arizona Republic’s Glendale section, Eagle Heights represents the last of the large undeveloped parcels that make up the area of Glendale and Peoria known as Arrowhead Ranch.

Scottsdale-based Western Pacific Properties is looking to make a splash akin to the area’s higher-end subdivisions such as Top of the Ranch and Tuscany Shores with the 84-home Eagle Heights development.

Unlike Top of the Ranch, the topography at Eagle Heights is flat; the mountain views are a couple of miles in the distance rather than a few feet beyond your back fence. But a planned lake on the development’s western edge, inside the usually dry Skunk Creek bed, will add the lure of waterfront lots a la Tuscany.

All of the 84 homes will be single-story and will have Spanish architecture in its three floor plans. Each floor plan features three separate elevations, giving prospective buyers 12 homes from which to choose. Square footage will range from 2,700 to 3,700 square feet and the lots will be significantly larger than those in nearby Fletcher Heights, hovering close to the 1/4-acre mark.

Base prices for homes in Eagle Heights start in the high $780s and range into the low $800s. And the builder is asking for a $25,000 earnest deposit - if you use the builders’ preferred lender.

The models have not yet been completed, though one was in the drywall phase as of a week ago, so the sales trailer is the first and only stop.

For more information on Eagle Heights, call or e-mail me and I can send you floor plans and the initial price sheet. And if you’re thinking of visiting the Reserve at Eagle Heights or any other new build in the West Valley, I highly encourage you to contact a real estate professional to accompany you on your initial visit … even if it’s not me.

New build contracts generally are weighted heavily in the builders’ favor and it is to your benefit to have someone working in your best interest by your side not only when you’re writing your contract but when you’re visiting the design center.

Unless you bring your agent with you on your first visit, you will not have independent representation on your home purchase. And there is NO out-of-pocket cost to you for using a buyers’ agent at a new build community.

Last Friday, Redfin announced it was taking a two-week break from accepting new listings. According to Glenn's post on the company blog, this was done in part because many Redfin agents had been working long hours for weeks on end without any time off. In other words, they were working as real estate professionals.

My first reaction was that it seemed odd to cite one of the basics of the real estate profession as a reason not to accept new listings. But as I thought about it a little more, things seemed to become more clear.

First, if a company is experiencing higher-than-normal demand, it would seem logical to staff to meet that demand. If the company doesn't increase staff, that normally would indicate the demand is expected to be only a short-term phenomenon. Or that the demand doesn't exist.

Second, no one takes two weeks off and still expects prospective clients to be waiting when they return. Most people don't have sufficient patience to wait any more than an hour for a return phone call (and they probably shouldn't have to wait that long, to be honest). Expecting them to wait two weeks at the height of the summer to list their homes is more than a little optimistic.

Third, why would a company continue to plan expansion when they can't manage the business they already have?

In the comments below Redfin's posts, Glenn said it wasn't "good news" they had to do this. I only can imagine.

Redfin's ideas clearly have some resonance with the general public, as evidenced by those defending Redfin on my blog and theirs - even if the defense has little to do with the announcement. One reader even went so far as to imply Redfin is doing this so as not to add to the inventory in the areas they serve. Um, sure.

At some point, though, critical questions should be asked ... if not by the VC folks throwing cash Redfin's way then at least by the public. 60 Minutes' fawning advertisement did nothing to answer what is so unique about flat-rate listings and rebates to buyers (the short answer: nothing. One even posted a comment to Redfin's original post.)

Imagine going to the supermarket and seeing a sign telling you no new customers were allowed for two weeks in the interest of providing excellent service to those inside the store. Would you wait outside for two weeks to buy your groceries? Or would you go to one of the dozens of other stores capable of providing excellent customer service at higher capacity?

Seems like a simple choice to me.

Yesterday I received an e-mail which revealed both the potential and the pitfalls of purchasing real estate online. Here was the e-mail in full, sent by a Zillow user regarding one of my Phoenix homes for sale:

my offer 247k

Putting aside the fact this came without a name, with only an e-mail address, there are a number of missing pieces connected with this “offer.”

1. Closing date
2. Financing details, including pre-approval
3. Inclusion of any personal property
4. Who would pay for the appraisal, any discount points and the ALTA title policy
5. Does the buyer want a home warranty? Who will pay for it?
6. Escrow company
7. Response period for the offer
8. Inspection period deadlines and negotiation of repairs
9. Inclusion of Sellers Property Disclosures and CLUE reports
10. Inclusion of any other reports the buyer may need to determine the suitability of this particular property
11. Buyer contingencies to allow for offer cancellation

That’s the short list off the top of my head. And this is one of the areas in which the notion of disintermediation falls flat. A purchase contract can be written on a cocktail napkin. It even can be completed and enforced based on e-mail. In Arizona, even this three-word e-mail constitutes an offer that must be presented.

But without the above details, the offer is virtually useless … and legally dangerous.

TO READ THE FULL ARTICLE, PLEASE VISIT DALTON'S ARIZONA HOMES BLOG 

Much has been said about the realities of real estate licensing - the relatively low hurdles involved and the relative paucity of knowledge that one possesses when they’ve completed real estate school and/or passed the state exam.

(Note: paucity is only a $2.50 word. And never fear. Pictures are coming.)

Once you leave the testing facility, select a broker and file your paperwork with the state of Arizona, you’re basically here:

Someone likely will tell you to select a farm area in which to specialize, which represents only the smallest slice of the overall real estate market. With a little luck, you can walk right into those homes and maybe even manage a sale or two. Of course, in doing so, you likely are ignoring a larger reality …

This is the true road to success. A slow, steady climb where you continue expanding your real estate knowledge base as well as your selling skills. No one forces you to begin this climb. And on the way up it’s unbelievably easy to give in to that little voice telling you that you can quit, that no one will notice if you decide to go back down the hill and find the path of least resistance.

Should you decide to invest the time and the money and the effort and the gray matter to learn what real estate really is about, to learn the nuances of the contract and to learn the inventory and to develop some semblance of people skills, you’ll find a new world has been opened to you …

(Not so coincidentally, that’s a portion of Arrowhead Ranch … one of my main farm areas.)

No one hands this to you. There’s no elevator. Not even a friendly passing burro. With luck, you’ll have a broker or peer or spouse who will negate the quitters’ call and stay by your side until you’ve reached this point. You can do it solo, naturally. Many agents do so every day, walking into 100%, split-free brokerages and managing to survive without any training or assistance. But a little help definitely increases the odds in your favor.

Yes, ladies and gentlemen, I’m a fat guy. I wish I cut as lovely a figure as the Housechick when she’s demolishing stuff, but I’m nowhere close. One anonymous mouse who lurks around the Seattle-area blogs suggested I have my thyroid checked. No need. I earned the gut, to be perfectly honest. Fourteen-hour days and fast-food lunches between appointments will do it to you every time.

And still, there I was, on top of the mountain last night at sunset. All it took was a little perseverance and a supportive voice or two.

Those who succeed in this business are the ones who take the long and winding road to success. The fast-buck artists and “everything I needed to learn about real estate I learned in kindergarten” folks are the ones at the bottom, looking for the escalator.

P.S. To any future thyroid queries, please let me know if you know any Yiddish. If not, I have a few phrases I can teach you.

Technorati Tags: Phoenix real estate, Phoenix Arizona real estate, real estate marketing

The mainstream media’s unpaid advertisements for various real estate models continued today when the Arizona Republic ran an article … wait, an article Special to the Republic … on a Mesa company offering Internet listings to unrepresented sellers.

This isn’t going to be a standard re-hash of the usual Realtor arguments in favor of using a real estate professional to market your home versus going it alone. Rather, I thought it might be worth looking at the company the Republic felt was worth its own story.

We can find the first misstatement of fact on the company’s banner: #1 Real Estate Website in Phoenix, ranked by Alexa.com. Hmmm. According to Alexa’s traffic rankings, the company’s site ranks 4,795,956th in traffic:

Dalton’s Arizona Homes, meanwhile, ranks 438,279th:

Maybe the problem is that I live in Glendale, not Phoenix. I’ll leave that distinction to the Arizona Department of Real Estate, which is charged with monitoring the accuracy of advertising claims.

FOR THE FULL ARTICLE, PLEASE VISIT DALTON'S ARIZONA HOMES BLOG 

If you've got a profile on Trulia and have been answering questions in the Trulia voices section, this probably will look more than a little familiar. Hopefully ... just hopefully ... your responses don't resemble this shining example ...

    Dear Mr. North Dakota homeseller,

    First of all, thanks for taking the time to write in. I know you probably were hoping to hear from an agent in your area. I mean, I couldn’t find the town you’re talking about with a flashlight and a compass even if you dropped me in downtown. Is it near Wahpeton High?

    To be honest, you receiving an answer from a qualified agent is less important than my quest to lead Trulia Voices in “most first answers.” I’m like what the UPI guys used to say about the AP, back when there was a UPI … “AP’s motto: get it first, get it fast, get it corrected.”

    But I digress.

    I see you’re asking why your home hasn’t sold. Since you have it listed currently, the person you should be asking is your agent. I’m really not supposed to get in the middle. But this is on the Internet so rules don’t really matter do they?

    Clearly the problem is with your living room. If you have a living room. I can’t be certain. I’ve never seen your house. Heck, I’ve never seen your city. But that’s not important right now.

    I also think there’s a problem with your price, at least according to what I’m seeing on Zillow. (By the way, if you’re home is one of the unzillowables, please blink twice.)

    What I would do if I were you is demand your agent spend as much money as possible advertising in homes magazines. This really doesn’t work, but that’s not important. It’s not my money I’m trying to spend. I’m just trying to answer quick and make sure everyone knows I’m a national expert, not just your area specialist. That’s very important. I think.

    If that doesn’t work, make sure to give me a call so I can refer you back to someone else in your city. Again, this really isn’t going to benefit you all that much but this way I can ask for a nifty referral fee for all the hard work I’ve put into this answer.

    Oh, and if nothing else works, make sure the lights are on when someone comes to look. And bake some cookies. Maybe even send some to my office. I like cookies.

    Well, thanks again for the e-mail. Best of luck with that sale.  I have to run and see how far I moved on the scoreboard with this first answer.

    See ya!

The point? Put a scoreboard on something and it's amazing how quickly people will adapt and do whatever they must to see their name rise on that scoreboard. Even if it involves giving generic answers to questions about real estate markets halfway across the country.

Maybe ... just maybe ... a consumer looking for agents online might dig one click deeper and wonder why it is someone in Arizona feels compelled to explain why homes in Maine are slow to sell. Or vice versa.

Do the right thing. Answer questions about your market. Leave the local experts to handle their own. Everyone will look much better for the effort. 

Technorati Tags: Trulia, real estate marketing, real estate technology