Jeff's Blog

Redux: Zillow and the Arizona Board of Appraisers.

2007-04-21T00:16:05Z

When I first wrote about this it seemed obvious: Dumb, really dumb idea, going nowhere.

I still think it's going nowhere - the C&D letters were sent last July, then November; I believe Zillow's still active in Arizona - and I still think it's dumb. However, I have to admit: I'm drop dead astounded that so many otherwise rational people think it's a dandy idea to legislate Zillow out of existence. Here's the local thread; this and this, Rain City. Greg Swann brings sanity to the debate at Bloodhound Blog here, here, here, and especially here. Count them: as of now those are posts with 306 tagged comments. Apparently the Arizona Board of Appraisers touched a nerve.

This is absolutely nuts. Consider: there are fatuous ideas posted on Active Rain on a daily basis. If someone takes one of those ideas to heart and assumes a loss because of it, would anyone here mind if a priggish board decided closing AR down is in the best interest of the consumer?

Me, too.

Thoughts:

•1. Stipulated: Zillow's zestimates are unreliable. Please note that's Zillow doing the stipulating.

•2. Any relatively sane human being can, in twenty five words, explain why Zillow's zestimates are unreliable.

•3. That would include real estate agents.

•4. Anecdotally: I'm smarter than an algorithm.

•5. Trust me here: Zillow is responsible for an infinitely more positive impact - "Honey! Look how much our house is worth! Maybe it's time to sell!" - than anything that may cost an acceptable offer.

•6. Most importantly: The public perceives us as bottom feeders. Does anyone honestly think our support of restricting access to a popular site - "You're too stupid to see this. Sorry." - is going to improve that image?

As noted: we're in a rapidly changing industry. Good ideas will thrive, and we must embrace them; bad ideas will wither.

Zilliow has over four million hits a month, somewhat more than my blog or, even, Active Rain.

Perhaps it's a good idea?

Green, Green?

2007-03-01T17:22:23Z

Our local Portland area MLS added a new search filter Tuesday that allows searches on 'green' designated homes, those specifically certified by Energy Star, Earth Advantage, etc. Now, that's nice, and our area has a reputation for being particularly environmentally friendly, but The Oregonian trumpeted it like Christ had returned. Others are gushing about our pioneering effort, an effort that will sweep other areas. But I wonder.

Some of what I wrote this morning on my own blog:

Dylan Rivera wrote a piece in yesterday's Oregonian that begs perspective. A third of the front page of the Business section, above the fold, overshadowing news that covered a 416 point drop in the DOW. The breathless headline: "Local homes database turns ‘green'" and the sub head, "Environmentally friendly information for Realtors signals good news for some buyers and sellers and starts a trend."

Well.

Let's start here. Yes, the RMLS did introduce a new search mechanism for ‘green' properties, and did so without fanfare. As of today, of the 8125 active listings in the Portland Metro area, those that carry the ‘green' label number: 17. These are split between four builders in four developments, all new construction. So far, at least, it appears ‘green' buyers don't have much choice.

Green marketing - please just assume the quotes - has a very spotty history. Back when the ozone layer was the crisis du jour, Advertising Age found that over 70% of those asked said they would definitely purchase more expensive dispensers over aerosol to save the environment; six months later AA went into the homes of the same people and found over 80% still using aerosol.

So if I were to speculate - and it's just speculation because I've never had a buyer ask for green properties nor had a seller suggest green as a marketing strategy - is that green will have a marginal effect, making a difference only when all other things - including price, or at least savings offsets - are equal. Whatever the case, the only determining factor will be: buyers. If it's important, they'll let us know.

[The rest, including response to the gratuitous swipes at Realtors, can be seen here.]

My questions: Are other areas seeing a demand for a 'green' designation? I certainly understand buyers wanting to save on energy costs, but at what price? Energy Star's been around since 1992, so this is clearly capitalization on the current angst; good or bad?

Tiiiiiime Is On My Side? (Yes it is...)

2007-01-16T15:19:18Z

I went to a time management seminar not long after I changed my career to real estate (now beginning my third year). Excellent speaker, good suggestions, except: "Successful agents spend 90% of their time prospecting for new clients."

Waidaminute. If I'm spending 90% of my time selling myself to new clients, what, exactly, am I selling?? Granted the value of marketing, differentiation, and contacts, if I include the time I'm spending typing this and all other posts I still wouldn't hit 30%. 90%????? Would I go to a surgeon who spends 10% of his time practicing his specialty?

[Unfortunately, I've met some who take this axiom to heart. Enormous effort is spent on perfecting listing presentations, overcoming objections, learning to say what people want to hear. But they're like the car-chasing dog: excellent at the chase, no idea what to do with the catch. Listing in hand, they move on to the next presentation.]

Noting I cut my business teeth with thirteen years at Nordstrom in the late sixties and seventies, my approach has always been simple: Take very, very, very good care of the customer. All else follows.

So how do I take good care of customers if I'm busy looking for new customers?

But I've remembered a Phil Knight quote:

"Yes, of course Nike is a marketing company, but our product is our number one marketing tool."

The realtor's product is service. If we can put the time we service our customer into the prospecting column, voila! 90% seems reasonable!

I feel soooo much better...

Global Cooling! Global Cooling!

2007-01-16T12:27:16Z

The best laid plans...

Tuesday is realtor tour day in the Portland area, usually preceded by an office meeting. Ours this morning was - is? - on condo conversions. In any event, four wheel drive notwithstanding, I won't be there since I live on a hill in West Linn, the access road to which tracks at roughly 90º and closes when it rains. Brokers' Opens will be tough with the kids home, Portland Public Schools cautiously waiting to close until after the students were already in class, the timing largely influenced by last week's decision to cancel exactly a minute and a half before the sun came out with just under a trace already on the ground. (Note to PPS: "Weather Report.")

And I'm thinking: there are agents out there so precise on their scheduling that they leave voicemail messages like "Your call is very important to me. Please leave a message. I'll be returning calls between 4:00pm and 5:00pm on Tuesday, Wednesday and Friday. Please be available."

Would not want to be them today.

So I'll just stay here and write about the value of time management.

After another cup of coffee...