DJ's Blog - Real Estate Wiki

The Changing Face of Real Estate Franchise Brands

DJ Swanepoel (Real Estate Wiki) — Tue, 30 Jun 2009 15:55:15 -0700

Great post by my Dad. Sure this is going to lead to lots of discussion.

DJ

Via Stefan Swanepoel (Author, Speaker & Trends Guru):

There is always a debate going on in the real estate industry about which company is the largest. As some don't disclose financials and others use different measuring criteria (offices, agents, sales volume, profitability, brand recognition, etc.) we have many potential "winners".

This article is however not about who is #1 or #2 but rather what has happened to real estate franchise brands over the course of the last 20 years, and does that information in any way provide us with a trend line that may afford likely scenario's going forward.

To start off, we need to look at the most prominent brands 20 years ago; 1989. I revisited many "old" publications of those years, the REAL Trends Report and the leading Real Estate Report of the time; the Roulac Report by Deloitte, Haskins and Sells (1988). Combining all that intel I have compiled a list of what were, in probable order, the most likely candidates for the most prominent Residential Real Estate Franchise brand of 1989.

Century 21

Coldwell Banker

ERA

RE/MAX

Realty World

Merrill Lynch

Red Carpet

Help-U-Sell

Gallery of Homes

Better Homes and Gardens

I have followed the same criteria and researched the REAL Trends Report again and the leading Real Estate Report of today, my Swanepoel TRENDS Report. The most likely candidates for the most prominent Residential Real Estate Franchise brands of 2009 are:

RE/MAX

Coldwell Banker

Century 21

Keller Williams Realty

Prudential Real Estate

ERA

Realty Executives

Sotheby's International Realty

GMAC Real Estate

EXIT Realty

Analysis:

So here is where the interesting part comes in. Although not based on any scientific hard facts, the following has occurred during the past 20 years:

40% have remained a Top 10 national real estate brand (C21, CB, ERA & RE/MAX).

20% exchanged their brand for a new brand and were still able to hold on; remaining a Top 10 brand (Merrill Lynch became Prudential and BH&G became GMAC Real Estate).

10% dropped off the Top 10 list but still operate as a national franchise (Realty World).

30% fell on even more difficult times and went through different types of trouble including bankruptcy. (Gallery of Homes, Help-U-Sell and Red Carpet). It is interesting that one or two of the brands are staging a comeback.

10% of the brands on the 2009 list had improved their rankings (Realty Executives).

30% of the brands on the 2009 list were not even in real estate franchising back in 1989 (Keller Williams Realty, Sotheby's International Realty and EXIT Realty).

Probing Questions:

There are of course many different deductions that can be made using above information resulting in hours of interesting discussion. Due to the brevity of this article I am going to list just five observations that I think are worth consideration:

Will the three brands that have dominated for the past 20+ years maintain their stronghold; RE/MAX, Coldwell Banker and Century 21?

Will newcomer Keller Williams Realty that surged into the top 5 be able to continue its rise and unseat one of the top 3 established brands? If yes, who will be the one to loose its top 3 ranking?

Twenty year plus top 5 brand ERA has for the first time dropped out of the top 5. Is this a sign that they will continue a downward slide; ultimately out of the top 10?

Brand changers (Merrill Lynch became Prudential and BH&G became GMAC Real Estate) have shown that brands are not always that important as both survived and held on to similar top 10 rankings in 20 years. GMAC is however scheduled for another name change within the next year. Will they still be able to hold on to their top 10 ranking after a second name change?

Will companies such as Realty World, Red Carpet and Help-U-Sell that dropped off the top 10 and are staging a comeback be able to regain their former top 10 status?

Closing comments:

There and numerous new franchise brands bubbling under the radar such as Weichert Realty, Assist-to-Sell, ZipRealty and even Better Homes & Gardens (not same company as before but the same brand) that could very well be a top 10 real estate brand within the next five years.

Although this exercise was more one of fun rather than trying to predict the future, it does show us that even in the "big picture" of large national brands the world is ever changing and that anything can happen.

Love to hear your thoughts on the value of real estate brands for a brokerage and/or agent.

As always you can also follow me on www.Twitter.com/Swanepoel and www.Facebook.com/Swanepoel

The Benefits of Investing in a Down Real Estate Market

DJ Swanepoel (Real Estate Wiki) — Mon, 02 Feb 2009 14:17:13 -0800

Here are some of the benefitsof investing in a down real estate market from an addition to the wiki by Peter Vekselman - he has an interesting take on the market.

The real estate market being down is not necessarily a bad thing. Sure the credit worthiness of investment banks and even the general public is being questioned, but all is not lost.

In fact, the silver lining is, oddly enough, real estate itself. Real estate is still worth something, though not at the hyper inflated values you may have been seeing a year (or even half a year) ago.

That’s good news; people with liquid assets can purchase many of these properties without having to go through the much-tougher practice of getting a loan. Or, if you are able to get a loan, you are in a much, much better position than the majority of the country.

But other than money, here’s a quick run down of the other benefits of investing in a down real estate market.

1) Real estate has become a long-term investment. There are some idiots out there who think they can flip in a down market, but the handful that do are really, really lucky.

Real estate will bounce back; it will not reach the levels it did but at least you will get a return on your investment. The old saw in investment was to purchase while the stock was low and sit on it until you saw it grow. You need to do the same in this market.

2) If you become a landlord through real estate investment, you will find that your money is returning on you at a better rate than purchasing highly volatile stocks, bonds, or even commodities would right now. The overall return for a year will be about 6% or so; much better than bank accounts or even certificates of deposit.

3) Renters are plentiful. In this market, people are losing their homes but are not becoming “homeless.” They are turning to landlords to find a place to live while they recuperate and try to regain the losses they have suffered.

Many of these people are unfortunate enough to have been caught in the mortgage meltdown without any mis-steps of their own.

4) Others, even if they were in a house they could not afford, are still hard-working people who were sold a bill of goods by mortgage lenders. Finally, because housing is a crashing market, new housing starts are at a record low. In fact, they are at the lowest in decades so there will be no real competition from new home sales to hamper your purchases.

5) The only other competition is other foreclosed homes or homes where people are up side down and in need of at least some quick cash via a short sale. Down real estate markets should be no barrier to your investment in the market, especially if you are smart and do your homework before hand.

Pick the right location, the right tenants, and the house and you will be glad you invested in real estate during this down market period.

If you enjoyed this article, please consider becoming a contributor to The Real Estate Wiki today! You're not only helping out consumers and other real estate potentials, you're helping yourself wih a great link and authoritatibe exposure. So please, check out the wiki today if you have a little time and become our newest volunteer!

Is it Worth Negotiating for a New Construction?

DJ Swanepoel (Real Estate Wiki) — Tue, 27 Jan 2009 22:53:53 -0800

I saw a new post on The Real Estate Wiki and thought I'd share the idea and see what you think - its about making an offer on a new construction, which IS different than making an offer on a home that's been sold before.

The question is if:

1) Negotiating a new contruction is really effective and

2) If its worth it.

It seems to me like the difference between buying an old car and buying a new car - since its devalued the moment you set foot in it, I think its defintely worth trying to negotiate it down. The question is if it works.

The wiki states that typically, the margin for profit with new construction homes is so small (per unit) that there is basically little or no negotiating. You can try, of course, because "everything in real estate is negotiable," but do not expect too much.

Having said so, in a buyer’s market such as in 2007, builders and their lenders usually are very motivated to sell their homes and are coming up with very creative incentives, including in some cases, offering to cover 6 months or more of property taxes, assuming several months of mortgage payments, assuming all closing costs, etc.

The reason why builders cannot easily drop the price of their homes is because they put so much money into it, they have to at least make it back. If you have a client interested in a new construction vs. a resale, there are lots of websites with lists of development properties along side agent listings.

What do you think? Have you negotiated a new construction successfully before and has it worked out? Please feel free to add to the article at the Real Estate Wiki.

If you have a chance, please check out the Real Estate Wiki and contribute - together we can make an awesome real estate resource and help eachother out in the bargain. You also get a free link and profile, so please come on by:)

Top 10 Real Estate Reality TV Shows and What We Can Learn From Them

DJ Swanepoel (Real Estate Wiki) — Wed, 21 Jan 2009 19:08:15 -0800

Here are the top 10 reality TV shows to date that are real estate oriented. Top 10 lists are often subjective, so I know some of you will like others better, but that's the fun of it;p

Here are the top ten real estate TV shows going into 2009 and just a few of the many lessons we can learn from them:

10. Get It Sold (HGTV)"

Small changes often yield greater results. Yup, sweeping that walkway, vacuuming that carpet, replacing that worn old chair - even the little things make a difference when selling and staging a house.

9. Weekend Warriors (HGTV)

Fixing up a home to make it easier to sell doesn't have to cost an arm and a leg. Many things we think are hard just take some common sense and the right directions.

8. Secrets That Sell (HGTV)

Don't be afraid to ask for help from professionals if you're a seller - they can save you a lot of time and headaches. Do set a reasonable budget and stick to it. Looks can make the difference between a sale and a fail.

7. Extreme Makeover: Home Edition (ABC)

The amount of work that's put into each and every home is a true reminder of the gift every family on this show gets. When a community gets involved, things happen.

6. My House is Worth What? (HGTV)

Sellers may not like to hear the truth about what their homes are worth, but if you get them to listen you can help them more than they know.

5. Designed to Sell (HGTV)

Design a home the right way to begin with and it will sell much faster.

4. Bought & Sold (HGTV)

Sometimes you have to go extraordinary lengths to close a deal, but it can be well worth it in the end.

3. Moving Up (TLC)

Moving out and selling the tiny home a growing family has been in for years can be hard - so many memories, not enough money, etc. - but the right agent can make it happen.

2. House Hunters (HGTV)

Building a home is HARD and INVOLVED. Just buy one - you have so many options!;p

1. Flip That House (TLC)

Yes, even you can make money off flipping a home, but it takes work, skill, pull-through and sound professional advice to make it happen.

Feel free to add to this list and remember to check out the Real Estate Wiki for more great top 10 lists and tons of other real estate information!

If you have a chance, please consider contributing some post or articles to the wiki - we're really looking to gear up for 2009 and any help is greatly appreciated, plus you get a free link and profile:)

If you like this post, please Twitter it:))

How Important Are Referrals for New Real Estate Agents?

DJ Swanepoel (Real Estate Wiki) — Mon, 19 Jan 2009 10:24:36 -0800

Referrals are one of the best ways to develop new business. A new agent can invite referrals by contacting his or her “sphere of influence” (people you are intimately familiar with, such as friends and relatives) and asking, “do you know anyone in your subdivision, gym, at work, interested in buying or selling a home?”

This question will prompt the memory of a specific individual and a reply providing the name and contact information of a prospect.

Open-ended questions, such as “do you happen to know of anyone,” will lead to open ended answers, such as “not off the top of my head, let me get back to you on that” (which will never happen).

When you get a referral from a friend or relative, make sure they give tiy all the contact information of the prospect and ask for permission to use your friend or relative’s name when takling to the prospect.

Contact the referral as soon as possible and inform your friend or relative of the outcome of the call. A new agent must prospect for referrals with the same efficiency he or she prospects for new sales leads.

For more excellent information, please visit The Real Estate Wiki. We'd love for you to consider contributing as we're trying to really make it huge in 2009. So please, think about checking it out and maybe adding some entries - you've got nothing to lose and at the very least, a great free link to gain!

Twitter-a-thon, anyone? If You Like Someone's Blog Post on Active Rain, Twitter It!

DJ Swanepoel (Real Estate Wiki) — Thu, 15 Jan 2009 16:52:09 -0800

Really, please Twitter people's posts you like from AR. Its a great way to thank them for taking the time to post something for you and the community - if we all cross-promoted a little more, what a great environment of good will we could create.

So I'd like to give a call-out for a Twitter-a-thon.

For the rest of this month, any post you think is worth commenting on, post it to Twitter real quick. All it takes is a moment and you've just helped your colleague out.

Now this idea could die before it really gets going, but I thought it was worth a try:) A blog post that's worth commenting on should be worth Twittering about. And if you're one of those people who just comments to get points, this is also a great way to make up for that;p

Please pass this around and lets see if we can get something really great rolling!

Thanks for reading and please check out The Real Estate Wiki if you have a chance - we're looking to really bulk it up more in 2009 and any and all entries are WELCOME. Its a true wiki, totally free to all, no advertising and you get a link out of it to boot;p

Gossiping With Your Real Estate Clients - Good Relationship Building or a Major No-No

DJ Swanepoel (Real Estate Wiki) — Fri, 09 Jan 2009 17:31:35 -0800

I've talked to a couple of people about this topic recently so I thought it would be interesting to bring up. Where do you draw the line between jsut visiting and building a relationship with a client into outright gossip about other agents, agencies, other buyers and more.

Is it ever ok to indulge in a little gossip or should it be avoided at all costs in your interactions with your real estate clients?

Although most of us enjoy listening to gossip, we are also prone to negatively judge those who engage in this practice to excess.

Real estate is a very competitive business and it is easy to “criticize” the competitors but this practice will only make you look bad in your clients’ eyes. Worse, it could come back and bite you if the person or subject gets around to the wrong people.

On the other hand, being complimentary about a competing agent or enterprise will show to the client the values and morals you live by. It will make you more trustworthy in their eyes.

I think the simplest solution is this: don't talk bad about anyone. If you can't help it, just don't talk bad about anyone in public. We all need to vent sometimes, but just make sure its to your spouse or a good friend who has nothing to do with real estate:)

For more great information or to find out more about best practice for dealing with clients, check out The Real Estate Wiki and consider adding an entry today!

Top 10 Most Memorable Real Estate Agent Roles in the Movies

DJ Swanepoel (Real Estate Wiki) — Fri, 02 Jan 2009 12:54:00 -0800

I thought this would be a fun list to post for everyone as a follow-up to my movie-themed post last time. Here are the top ten most memorable real estate agent roles in the movies:

1. Jack Lemmon, Glengarry Glen Ross

2. Annette Benning, American Beauty.

3. Al Pacino, Glenarry, Glen Ross

4. Gene Hackman as Lex Luthor, Superman

5. Kevin Spacey, Glengarry Glen Ross

6. Jerry Blake, The Stepfather

7. Michael Keaton, Clean and Sober

8. Adrienne Barbeau, Open House

9. Josh Mostel, The Money Pit

10. Poltergeist, Craig T. Nelson

I find it interesting that the majority of these roles portray real estate agents in a negative light (albeit great performances). I think its about time Realtors got a better rap in Hollywood!

Who would you add to this list or remove?

For more great top ten lists and tons of other great information, please check out The Real Estate Wiki and if you feel like it, consider adding an entry to help out:)

The Top Ten Real Estate Movies of All Time and What We Can Learn From Them

DJ Swanepoel (Real Estate Wiki) — Tue, 30 Dec 2008 11:03:34 -0800

Here's a fun look at some of the top ten real estate movies of all time following in the vein of my top ten countdown til 2009. Now, any lists are always subjective, these are just a few of the more amusing ones from Amy Hahn.

Which would you add to or take off the list?

10. Neighbors starring John Belushi and Dan Akroyd

Hehe always make sure you meet your neighbors and get a good feel for the neighborhood.

9. The Amityville Horror starring Josh Brolin

Follow your instincts. If you feel weird about a house, maybe there's a good reason.

8. Pacific Heights starring Michael Keaton

If you're renting, always make sure to do a good, thorough background check with references!

7. Open House starring Adrienne Barbeau

Open houses can be scary for new realtors, so make sure everything is planned well in advance and think about hosting a more experienced agent's open house first.

6. Mr. Blandings Builds His Dream House starring Cary Grant

Before investing in a house, make sure you get the proper inspections and reviews. Also, even the worst fixer upper can turn into the home of your dreams through hard work and determination, so don't discount that fixer-upper you saw.

5. Poltergeist starring JoBeth Williams and Craig T. Nelson

Always check into the history of the house you're buying or selling, otherwise something unwanted might pop up (or out at you!);p

4. Life As A House starring Kevin Kline

Reminds us of the important role a home can play in our lives and that the right house can make all the difference in our lives.

3. American Beauty starring Kevin Spacey and Annette Bening

In real estate, the better you are at promoting yourself and your services, the more business you'll get and the more authority you'll have. However, be sure to use this authority in a responsible way!

2. Duplex starring Drew Barrymore and Ben Stiller

Always make sure to double check everything and never take anything at face value. If you're a buyer, this means making sure you know all the relevant facts about the home you're buying. If you're a real estate agent, make sure the seller has disclosed absolutely everything and double check it yourself.

1. The Money Pit starring Tom Hanks and Shelley Long

This is a remake of "Mr. Blandings Builds His Dream House" and carries the same message: always make sure you know exactly what you're getting.

Note: due to the number of excellent comments, I've added additional real estate related movies below for you (and me!) to check out. Make sure to visit the Real Estate Wiki for some more great lists; after all, that's where I found this one:)

Glengarry Glen Ross
Moster House
Gone With the Wind
The Notebook
One Flew Over the Cuckoo's Nest
The FountainHead
Grapes of Wrath
Open House
Its A Wonderful Life

And from Stanley Fosha some great movies and quips:

Wall Street - Stocks, bonds, real estate. The art of the transaction as a movie. The Brutal, Blood Thirsty, Battle of the Transaction. I love this film. "What's worth doing is worth doing for money."

Blazing Saddles - Hedley Lamar and his henchman try to steal the land of Rock Ridge for a new railroad. The funniest real estate transaction ever filmed! "Unfortunately there is one thing standing between me and that property - the rightful owners."

Field of Dreams - An entire film devoted to coming up with a mortgage payment. Oh sure, there's some baseball tossed in there, and some land development tips, but this one is about raising the money to pay for the farm. "If You build it, they will come."

Joe's Apartment - Little known. Little seen. Joe's apartment building is going to be stolen by an evil land developer (aren't they all evil?) and Joe fights them off with cockroaches. I've been selling a lot of cash deal properties in questionable areas lately....this one strikes home. "We know where you live. We LIVE where you live!"

Thanks everyone for giving us all something to do over the weekend!

The Top 10 Titans of the Real Estate Industry in 2008

DJ Swanepoel (Real Estate Wiki) — Mon, 29 Dec 2008 11:17:15 -0800

Hello everyone! I hope you all had a great Christmas and have an excellent New Years. Before the New Year, I thought it would be appropriate to touch on some top 10 lists for 2008. The first of these is The Top 10 Titans of the Real Estate Industry in 2008.

Independent Brokerage Companies, Franchise Groups and Real Estate Networks are always ranked on separate lists as it is impossible to really, effectively compare these different kinds of organizations.

The following group of the “biggest of the biggest” (in alphabetical order) combines all residential real estate brokerage types into one list. They are aptly named “The Top 10 Titans of the Real Estate Industry in 2008.”

The criteria in the report was based on metrics such as scale, growth, innovation, internet strategies, industry profile and consumer awareness, among others.

1. Exit Realty

2. Home Services of America

3. Keller Williams Realty

4. Leading Real Estate Companies of the World

5. Long & Foster

6. NRT, Inc.

7. Prudential

8. Realogy

9. RE/MAX International

10. Weichert Realtors

What do you think? Do you agree with this list, compiled from the 2008 Swanepoel Trends Report?

Top 10 Red Flags for Home Buyers

DJ Swanepoel (Real Estate Wiki) — Tue, 16 Dec 2008 02:47:13 -0800

1) Everyone's moving away. Don’t let a home’s curb appeal keep you from glancing down the street. Are there several other homes for sale? Are nearby businesses boarded up or vandalized? Get the scoop from the neighbors. If everyone else wants to leave the street, maybe you should, too - before you’re stuck with a bad investment.

2) Mediocre maintenance. Three layers of roofing and gutters with plants growing in them are signs the owners aren’t big on maintaining their home. What else did they neglect?

3) Foundation failures. Check out the yard grading. If the yard slopes towards the house, it could cause water to run down the foundation walls or into the basement, which will be costly to repair. Scour the foundation for damage. Bulges or cracks bigger than 1/3 inch can mean the house has serious structural issues.

4) Bad odors outside or inside. Take a big whiff of the air inside and outside the house. Do you smell anything funky? If you can’t smell anything but the huge baskets of potpourri all over the house, this could be a red flag.

5) Old or faulty wiring. While you’re probably not an electrician, make sure all the switches and outlets in the house function properly. Flickering lights, circuits that don’t work and warm or hot outlets or faceplates are all symptoms of wiring problems.

6) Fresh new paint. New paint can really spruce up drab walls, but it can also hide bigger problems, like water damage, mildew or mold. If the room smells strange or if you see stains or saggy walls or ceilings, have an inspector look for mold and leaks.

7) Blockades and locked doors. Ask about any rooms that are “off limits” during your home tour, and arrange to see them later if you’re interested in the house.

8) Foggy or non-functioning windows. Check for water in between double-paned windows and make sure all the windows are functional.

9) Structural walls or floors have been removed. Sure you love the open floor plan, but was the house always open or did the homeowners renovate? If they removed a load-bearing wall without adjusting the framing, it can shift weight to other parts of the house. Hire a structural engineer if you think any renovations are questionable.

10) Bugs! No one wants a house with a pest problem - be it roaches, mice or worst of all, termites. Be on the lookout for unwelcome creatures as you tour the house. Even if no foes pop out while you’re there, consider a separate termite inspection if you’re thinking of purchasing the property.

Top 10 Kick Ass Real Estate Search Sites of 2008

DJ Swanepoel (Real Estate Wiki) — Tue, 16 Dec 2008 00:13:44 -0800

On February 18, 2008 Joel Burslem of the blog the Future of Real Estate Marketing shared his Top 10 Kick Ass Real Estate Search Sites of 2008.

Here are some of the best blogs on real estate search and we happen to agree with them. If you had to choose, which top real estate search sites would you choose as the best for 2008?

Here they are:

10. Windermere Property Point

9. Webdigs

8. Sawbuck Realty

7. Redfin

6. Movoto

5. John L Scott

4. HawaiiLife

3. Estately.com

2. Century 21 Canada Real Estate

1. BlueRoof

For more awesome top 10 lists check out The Real Estate Wiki!

Top 10 Most Expensive Cities to Live In 2008

DJ Swanepoel (Real Estate Wiki) — Tue, 25 Nov 2008 11:33:49 -0800

Mercer's Worldwide Cost of Living Survey 2008 was recently released. According to the Real Estate Wiki, Mercer surveyed 253 cities across six continents and measured the relative cost of over 200 items in each place, including housing, transport, food, clothing, household goods and entertainment.

Here are the top 10 most expensive cities to live in:

10. Milan, Italy

9. Zurich, Switzerland

8. Geneva, Switzerland

7. Copenhagen, Denmark

6. Hong Kong, China

5. Seoul, South Korea

4. Oslo, Norway

3. London, UK

2. Tokyo, Japan

1. Moscow, Russia

Top 10 Best Cities to Live, Work and Play in 2008

DJ Swanepoel (Real Estate Wiki) — Tue, 25 Nov 2008 11:28:13 -0800

In July 2008 Kiplinger Magazine picked the 10 best cities in which to live and work, researched by Ken Stolarick. They looked for places with strong economies and abundant jobs, then demand reasonable living costs and plenty of fun things to do.

When we ran the numbers, some of the names that popped up made us do a double take at first. So the team at Kiplinger Magazine hit the road to meet the movers, shakers and regular folks, experience the ambience and take in the sights.

Here are the Top 10:

10. Provo, Utah

9. Des Moines, Iowa

8. Sacramento, California

7. Fayetteville, Arkansas

6. Austin, Texas

5. Colorado Springs, Colorado

4. Boise, Idaho

3. Omaha, Nebraska

2. Raleigh, North Carolina

1. Houston, Texas

Top 10 Real Estate Newsmakers of 2007

DJ Swanepoel (Real Estate Wiki) — Fri, 14 Nov 2008 15:41:07 -0800

Newsmakers are defined as those people that during the previous calendar year 2007 made headlines as individuals, as a result of their actions and leadership of the companies or associations they are involved with.

The Top 10 Newsmakers are selected every year and published in the Swanepoel TRENDS Report.

10. Walter Forbes

Exposed in April 1998, the Walter Forbes white-collar criminal saga came to a close in 2007 when Walter Forbes, former CEO of Comp-U-Card International, was convicted in a $252 million earnings overstatement that caused investors to lose $14 billion. The HFS merger with CUC in 1997 to create Cendant never really recovered from the fraud fallout scandal and during 2007 it actually separated into four separate public companies. In October 2007 the Second U.S. Circuit Court of Appeals in New York upheld Forbes’ 12 years and seven months prison sentence for his conviction of conspiracy to commit securities fraud and two counts of making false statements. He is also required to pay more than $3 billion in restitutions.

9. Allan Dalton & David Lereah

As the former President of Realtor.com, Dalton was seen at most important real estate conventions and events, always championing the “cause” until he suddenly disappeared from the public eye to take up the position of President and CEO of a new business entity under for Move, Inc. The “secret project” that will apparently be transformational for both consumers and real estate professionals is due to be launched early 2008. Joining him in this venture is Dr. David Lereah, who until recently was NAR Chief Economist and had the job of “spin doctor,” making the housing bubble appear smaller and less serious than it really was.

8. Errol Samuelson In 2007 Move, Inc. announced that Errol Samuelson was being promoted to President of Realtor.com. He succeeded Allan Dalton, who has been asked to lead a dedicated team developing a new business venture for Move, Inc. Samuelson will continue to serve as the president of Top Producer, a Move, Inc. company he has been overseeing for the past three and a half years. Soon after his appointment he announced various new initiatives and is rapidly converting Realtor.com – a Web 1.0 technology – to a newer Web 2.0 company.

7. Sherry Chris

Few men (Steve Ozonian comes to mind) and no women have moved so many times in leadership during the last decade as Sherry Chris - from Royal LePage, to Real Living, to Prudential Northern California, to Coldwell Banker and now to the newly revived Better Homes and Gardens brand. And she still remains a highly sought after “leader.” With the last two moves both taking place in 2007 Sherry will now have to show that she is able to build something out of this potentially strong “women focused” brand - BH&G. She has a chance to make real estate history but Real Living (Harley and Kaira discussed above) already have a strong presence in this arena and certainly won’t make it easy for her.

6. Harley and Kaira Sturdivant Rouda

This husband and wife team makes a powerful couple. Barely 12 months ago REALTOR® Magazine named Rouda one of Real Estate’s Top 25 Most Influential Thought Leaders, while Inman News named him one of the Most Influential People in Real Estate. And a few months ago they both received the Corporate Value Award for their ability to continue to create the greatest corporate value for their company through economic, financial, job, organic and acquisition growth. Quietly, yet not quite so slowly, this Ohio based company has moved from a local independent in five years to 200+ offices with 4,000 agents in 20 states. Kaira has also just finished writing a book titled Real You Incorporated: 8 Essentials for Women Entrepreneurs, which is due out in February 2008

5. Steve Morris

Driven, outspoken, bold and immensely focused - the characteristics of most good entrepreneurs – are qualities seen when speaking with Steve Morris. His passion for growing EXIT Realty has no bounds. Like earlier industry entrepreneurs such as David Liniger, Morris believes he can and will change the real estate industry; forever. From the cover of Real Estate Magazine to an in-house produced 60 minutes interview nationally distributed to the industry on DVD, both Steve and EXIT were often in the news this past year.

4. David Charron

Dave has been the driving force in managing and growing Metropolitan Regional Information Systems, Inc. (MRIS). With 65,000 agents MRIS is the largest MLS Boards in the country. In July 2007 he facilitated the merger of the two largest multiple listing services on the East Coast covering 61 counties and more than 30,000 square miles. The region extends north of Richmond, Va., including Maryland, the Greater Washington/Baltimore metro region and into the Greater Philadelphia region encompassing counties in Pennsylvania, Delaware and New Jersey. What makes this even more unique is that under the agreement, MRIS Cornerstone Universal RETS Exchange, known as MRIS CURE, will combine listings from the two MLSs into a single database. MRIS CURE utilizes the Real Estate Transaction Standard (RETS), which allows participating MLS operators to combine their listing content into a single database and still retain full distribution control of their respective content. With this move Charron has shown, at least theoretically, that MRIS has no boundaries and could very well become a major MLS player and influencer as the industry struggles in finding a national solution.

3. Dale Stinton

Although he has only been NAR CEO for a short time, Stinton has harnessed his approximately 27 years with NAR to present one of the most forward looking initiatives in the Association’s history. At a time when the real estate profession is reeling with sliding market corrections he presented a plan to raise annual dues significantly and utilize the funds on programs that will result in significant changes in the real estate landscape. Three segments in particular could result in major changes. 1) Homeowners Data Base - Most legislative positions taken by NAR deal with real property owners’ ability to improve, transfer, market and finance their properties. The proposal to enlist homeowners in the Association’s lobbying and legislative process provides them the opportunity to become involved. This is a clever and potentially far reaching political move. 2) Credit Union - A NAR operated credit union with all members having an automatic membership has many and interesting possibilities. 3) MLS Gateway - The formal proposal of a National MLS database of sorts is very forward thinking and whether or not it will ever materialize its contemplation will spark and accelerate the process of consolidation of MLS’s vendors and boards across the country.

2. Alex Perriello

A 25 year veteran of the real estate industry, Perriello has worked himself up through the ranks at Coldwell Banker to become the company’s CEO and now also President and CEO of the Realogy Franchise Group (formerly Cendant Real Estate Franchise Group). Balancing franchisee needs against shareholder needs is tough, but Perriello together with Richard Smith, Chairman of Realogy, seems to have mastered the art as they continue to expand the largest real estate group in the world. Perriello's leadership during the past year included forming a strategic alliance with the National Association of Hispanic Real Estate Professionals (NAHREP), a non-profit 501(c)(6) trade association with nearly 15,000 members, and the re-introduction of the former defunct real estate brand Better Homes & Gardens through a 50-year licensing agreement with Meredith Corporation – publishers of the Better Homes & Garden magazine.

1. Thomas O. Barnett

Confirmed on February 10, 2006, by the Senate as Assistant Attorney General of the Antitrust Division for the United States Department of Justice, Thomas O. Barnett, a Harvard Law Graduate, has decided that the real estate industry needs his help. According to the Antitrust Division the estimated median commission paid by home sellers in 2006 was $11,672, in light of which Barnett plans on removing the barriers to competition that in his opinion will save consumers thousands of dollars in real estate commissions. He even launched a new website in 2007 to educate consumers and policymakers. The website includes maps identifying states with real estate laws that can inhibit competition, a calculator to help consumers tally their potential savings when brokers pursuing new business models compete for their business and links to additional government resources. So is this the first step in Government officially telling an industry what to do?

Top 10 Events in 2007 Impacting the Real Estate Industry

DJ Swanepoel (Real Estate Wiki) — Fri, 14 Nov 2008 15:22:10 -0800

As we come closer to the end of 2007, I thought it might be appropriate to list the top 10 events that have impacted the real estate industry the most. These events are defined as those occurrences that transpired during the calendar year 2007 that made headlines and captured the attention of the real estate industry.

The Top 10 events are selected and published in the Swanepoel TRENDS Report every year and based upon their potential future impact on the industry rather than only their 2007 impact:

10. Closing Down of Foxtons

Born in the Web 1.0 era, lasting through the crash and surviving with a name change from Your Home Direct (YHD) to Foxtons (foxtons.com), the discount real estate brokerage company filed for bankruptcy in 2007 listing $40.9 million in total liabilities and $488,000 in assets. For many this was an affirmation that the discount model isn’t viable yet, many others see it as just a precursor to a declining real estate market that will still claim the “lives” of many real estate companies, irrespective of the model. But further research uncovered the fact that the closing of Foxtons USA was prompted by the sale of Foxtons UK to BC Partners, a private equity firm, for around £370m ($751m). This transaction specifically excluded the non-profitable U.S. based operations and thus triggered its subsequent closing.

9. CBS’ 60 Minutes Debates Real Estate

The segment on 60 Minutes by Lesley Stahl titled Chipping Away at Realtors' Six Percent became one of the most controversial TV shows about real estate in recent times. She tagged Realtors® 6% commission as “sacrosanct” and gave new business model Redfin a huge amount of free publicity. It was surprising that after pursuing the story for so many months and even discussing the show with the National Association of Realtors® that CBS ended up with such an unbalanced program - even featuring an outdated clip on long-ago-defunct eRealty. However, further research uncovered that numerous hours of recorded interviews with NAR ended up on the editing floor.

8. Guthy-Renker Buys RealtyTrac

Established in 1988 Guthy-Renker, one of the world's largest direct response television companies with sales of more than $1.5 billion per year, surprised the real estate industry in early 2007 with the acquisition of RealtyTrac.com, the leading For Sale by Owner (FSBO) and foreclosure website. Since that date no significant major announcement or strategy has been made. Meanwhile RealtyTrac, already a very large website, continues to enjoy the spoils of the growing foreclosure and FSBO market and is often listed as one of the five largest real estate websites in the U.S.

7. Fidelity Reboots Cyberhomes

With Fidelity National Real Estate Solutions (FNRES) allocating $50 million to the establishment of a consumer portal through previously acquired Cyberhomes.com, it has become the first title company to reach out directly to serve home buyers and sellers. FNRES also announced in 2007 that it would replace Realtor.com in its longstanding relationship with AOL to become the exclusive listings content provider in AOL’s revamped home-valuation and real estate center.

6. MLS Consolidation Heats Up

Consolidation isn’t new but with the strong pressure toward larger and larger MLSs, the DOJ breathing heavily and the growing pressure and ability to create single seat sign-on access, consolidation discussions have multiplied exponentially as MLS talks about mergers and consolidations picked up momentum and statewide MLS systems became the flavor of the year.

5. DOJ Releases Study on Real Estate Brokerage

The industry is taking note as a report by the U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) stated that they have decided to participate in the transformation of the industry by deciding that certain existing laws, rules and regulations need to be repealed. Their feeling is that as commission fees “do not vary in proportion to changing home prices,” they are considered to be “relatively inflexible” and therefore have in real terms become too high. The FTC is recommending that state legislators and industry regulators should consider repealing existing laws, rules and regulations like minimum-service and anti-rebate provisions that limit choice and reduce the ability of new brokerage models to compete.

4. Google and WEB 2.0

The Web isn’t new to real estate, but after the crash of 2000 some wondered when it would return. Well, 2007 saw its reintroduction as it roared back with vengeance, renewed vigor, new VC funding, new ideas as well as retooled and rebranded pre-2000 companies. And the leader of the pack, Google, is the epitome of the quintessential personification of WEB 2.0. It has become the nexus of all information. With each Google search more data is refined and with each website more information is being stored. This time around the Web is more knowledge, more information and much more power and Google has its hand on the steering wheel. Some have labeled it an average garden variety monopoly while its vast network of servers, now an integral part of the Internet itself, is rapidly becoming a national security infrastructure. Being a techie or nerd is cool again as we are seduced with iPods, iPhones, online digital communities and wikis.

3. Revival of Better Homes & Gardens

Once a popular real estate franchise, this well established brand disappeared off the industry’s radar after being sold by former owner Meredith Corporation to GMAC in the 1997 and the subsequent required phasing out of the BH&G brand. In 2007 Realogy announced the re-introduction of the brand by signing a 50-year licensing agreement with Meredith, which apparently has reconsidered the use of its brand in real estate again; by a company it doesn’t own

2. The Break Up of Cendant and the Creation of Realogy

Now we know what the ballpark price tag could be should someone aspire to buy themselves a major chunk of the real estate brokerage industry. In a transaction valued at $7.75 billion, Realogy was created (as a spin off from Cendant) and sold to an affiliate of Apollo Management, L.P., a leading private equity and capital markets investor. If anyone is still in doubt, rest assured that real estate brokerage is officially on its way to become corporatized and is no longer the last remaining bastion of small entrepreneurship.

1. The Collapse of the Sub Prime Market

If anything dominated 2007 it was the velocity with which the mortgage market came to a grinding halt, pulling down everyone heavily involved with subprime lending. Few were spared with even the 10th largest mortgage lender, American Home Mortgage, filing bankruptcy. When the largest mortgage lender in the U.S., Countrywide, experienced severe cash flow problems it had to be bailed out by Bank of America to the tune of $2 billion. In addition, the company further agreed to refinance or modify up to $16 billion of its loans. The ripples continued throughout the year with companies like Bank of America themselves writing off $3 billion, Merrill Lynch & Co. writing down nearly $5.5 billion and Citibank posting losses of $11 billion.

How Does An Eviction Proceeding Work?

DJ Swanepoel (Real Estate Wiki) — Sat, 08 Nov 2008 08:01:21 -0800

Eviction procedures will vary by state, but the proper procedure must be followed by the property manager or owner.

A tenant is usually evicted or ejected because of nonpayment of rent, unlawful use of the premises or noncompliance with health and safety codes.

Actual eviction is when the landlord files a suit for possession because the tenant has breached the lease.

Constructive eviction is when the landlord breaches the lease and the tenant must leave the premises because they have become uninhabitable.

Real Estate Acronyms Revealed Part 1 - Real Estate Designations You Need to Know

DJ Swanepoel (Real Estate Wiki) — Sat, 08 Nov 2008 00:04:17 -0800

Accredited Agricultural Consultant (AAC)

You must meet specific skill and experience levels, take and pass all required coursework, and meet all other requirements established by the ASFMRA. Managed by American Society of Farm Managers and Rural Appraisers.

Accredited Buyer Representative (ABR)

This real estate designation is geared to Realtors® who wish to incorporate buyer representation into their daily practice. Managed by the Real Estate Agent Buyer's Council in association with NAR

Accredited Buyer Representative Manager (ABRM)

This real estate designation is geared to Realtors®, owners and managers that have or wish to incorporate buyer representation into their daily practice. Managed by the Real Estate Agent Buyer's Council in association with NAR.

Accredited Farm Manager (AFM)

Accredited Home Staging Specialist (AHS)

he Accredited Home Staging Specialist (AHS) designation enables real estate agents to gain a quick grasp and basic knowledge of the most important elements involving the staging of a property and home for sale. The AHS designation is managed by the Home Staging Council.

Accredited Land Consultant (ALC)

This real estate designation is geared to REALTORS® that specialize in land brokerage transactions such as farms and ranches; undeveloped tracts of land; transitional and development land; subdivision and wholesaling of lots; and site selection and assemblage of land parcels. Managed by REALTORS® Land Institute in association with NAR.

Accredited Luxury Home Specialist (ALHS)

This real estate designation is awarded to agents that have completed advanced training and work in the field of selling luxury homes. Managed by The Luxury Home Council in association with the RealtyU Group.

Accredited Mortgage Professional (AMP)

Accredited Real Estate PrRecognizes the achievements for pursuit of educational excellence by completing all three levels at the School of Mortgage Banking. Managed by CampusMBA's School of Mortgage Banking.ofessional (AREP)

Accredited Residential Manager (ARM)

This real estate certification reflects today's management practices and new ideas. This certification is coordinated by The Institute of Real Estate Management.

Accredited Rural Appraiser (ARA)

Accredited Senior Appraiser (ASA)

Accreditation is based on appraisal education, experience, intensive written examinations and submission of acceptable appraisal reports. Managed by The American Society of Appraisers.

Accredited Staging Professional (ASP)

This is the first educational program that was developed to assist home owners and real esate agents to present homes for sale in the best possible way.

This designation has a special course for agents (ASPRE) and an advanced master level (ASPM). The courses and designations are managed by the International Association of Home Staging Professionals.

American Institute of Certified Planners (AICP)

AICP is the American Planning Association's professional institute, providing recognized leadership nationwide in the certification of professional planners, ethics, professional development, planning education, and the standards of planning practice.

Certified planners use their skills to find solutions to community problems in ways that will carry the community toward its desired long-term goals

At Home With Diversity (AHWD)

This certification is geared toward increasing an agent's sensitivity towards a wide range of cultural issues, thus inviting a wider volume of business from a greater variety of cultures. Coordinated by NAR.

Stay tuned for many more definitions to come, courtesy of The Real Estate Wiki!

Does Florida's New Foreclosure Rescue Fraud Prevention Act Prohibit Real Estate Licensees From Being Involved in Short Sales?

DJ Swanepoel (Real Estate Wiki) — Fri, 07 Nov 2008 23:48:14 -0800

According to the Real Estate Wiki, Florida Attorney General Bill McCollum wrote in letter to FAR President Chuck Bonfiglio that the answer is no, provided the only compensation sought by the licensees is the commission on the sale.

The new law, which took effect Oct. 1, 2008, seeks to protect homeowners who face the threat of foreclosure from individuals who would prey on them.

McCollum's interpretation is based on the following scenario: A licensee secures a listing agreement on a home for sale, ascertains that the fair market value of the home is less than the loan amount, and lists the property at the lower amount.

If a buyer agrees to pay less than the loan amount, the licensee then asks the lender to accept the lesser amount in order to avoid foreclosure.

"As long as there is no upfront or other fee for the negotiating service other than the normal real estate fee charged for the sale of the property, that activity [participating in a short sale] would not appear to fall under the provisions of F.S. 501.1377," according to McCollum.

Questions? Contact FAR's Legal Hotline at (407) 438-1409.

Does The Amount Of The Real Estate Commission Increase The Asking Price Of The Property?

DJ Swanepoel (Real Estate Wiki) — Tue, 04 Nov 2008 22:54:32 -0800

The commission a seller agrees to pay to a real estate broker is typically not “added” to the fair market value of the home because, in order to be sold, the home must be competitively priced within the area it is located.

The total fee (including both the seller’s agent and the buyer’s agent side) is negotiated prior to signing the listing agreement and following all research conducted to determine the asking price of the property.

The first consideration in pricing a home should be the comparable market analysis which the agent completes by identifying the active (or presently listed), sold and expired properties in the area. The active listings indicate the present competition in the market.

The recently sold comparable properties provide an excellent guideline as to the price the market is willing to pay, for this type of home, at this point in time. Expired listings show the range at which a property might be over priced (unless other circumstances make the property undesirable) and ignored by the market.

Naturally, it could be argued that every price considered in the market might historically include the value of a real estate commission, if the property was sold through an agency, which is overwhelmingly the case.

However, it would be an error to assume that the amount of a commission in any way “drives” the value of a property over market demand and market conditions.

A seller having lived in the same home for a long period of time will typically own substantial equity in the home because of its appreciation over the years, unless the seller has consistently refinanced and withdrawn funds from the equity.

On the other side, a home owner selling a property after a short time of having lived in the home, will not have built enough equity in the home and may see his/her proceeds shrink.

The proceeds a seller stands to gain by selling the home often will influence the amount of commission he/she is willing or able to pay. In addition to the asking price, the commission negotiation is probably the most important aspect a seller enters into when making a decision to list.

But, the service the broker or agent provides, successfully marketing and selling the home, most often makes the difference on whether the home is sold or not.

This fact is driven by the increased exposure a home enjoys when professionally listed.

Because the commission has been negotiated by, the seller prior to listing the home, the buyer’s offer is not affected by the commission paid and such fee is deducted from the proceeds of the seller at the time of closing.

If the Buyer Changes His/Her Mind, Can They Terminate The Purchase Contract?

DJ Swanepoel (Real Estate Wiki) — Tue, 04 Nov 2008 22:44:22 -0800

Buyers have been known to change their mind or get cold feet after they negotiate a purchase contract. Often, the buyer will use an excuse to terminate by not responding to a counteroffer or refusing to buy due to an inspection finding.

In real estate, this is known as “walking”.

If a contract has been negotiated and all parties have agreed to all terms, a binding agreement exists and the inspection contingency has been satisfied, the seller does have legal options to enforce the contract.

However, enforcing the contract can become expensive and tie the home up in litigation.

Therefore, the seller might prefer to retain the earnest money paid by the buyer and place the home back on the marke

Is it Always Good to Pursue a Sale?

DJ Swanepoel (Real Estate Wiki) — Wed, 29 Oct 2008 23:59:48 -0700

Excellent sales agents learn to tell when it is ok to pursue a sale and when they should wait.

There will be times when you come across an opportunity to enter into someone else’s life due to special circumstances and form a relationship with that particular individual, who, at some point may become an excellent prospect.

By taking a personal interest in someone elses’ life, say an elderly neighbor, you could not only develop a beautiful personal friendship but also be “prospecting” long term.

Your personal value must always remain pure and your actions true.

What do you think?

What is an LLC, or Limited Liability Company?

DJ Swanepoel (Real Estate Wiki) — Wed, 29 Oct 2008 23:58:43 -0700

A Limited Liability Company or LLC, is a hybrid entity bringing together some of the best features of partnerships and corporations.

An LLC is often a better entity for tax purposes.

LLCs provide the liability protection of corporations without the double taxation.

Profits and losses pass through the shareholders and are reported on their personal tax returns.

Although very similar to an S Corporation, the LLC also can have any number of shareholders, where the S Corporation can only have 75 shareholders.

The tax treatment for an LLC varies by state.

If you decide on an LLC, be sure to involve an experienced accountant who is familiar with the various rules covering an LLC and make sure to do your own research on top of it.

The more you know, the better. What do you think?

What Are the Benefits of An S Corporation?

DJ Swanepoel (Real Estate Wiki) — Mon, 27 Oct 2008 23:56:42 -0700

S Corporations are often more attractive to small business owners than the corporation is. The S Corporation has some appealing tax benefits and still provides business owners with the liability protection of a corporation.

With an S Corporation, income and losses are passed to shareholders and included on their individual tax returns.

As a result, there is just one level of federal tax to pay. S Corporations can have up to 75 shareholders, which makes it possible to have more investors and thus attract more capital.

S Corporations are subject to the same requirements as corporations, which means higher legal and tax service costs.

They also must file articles of incorporation, hold directors and shareholders meetings keep corporate minutes and allow shareholders to vote on major corporate decisions.

An S Corporation can only issue common stock, which can hamper its access to raise capital.

What is An Accredited Land Consultant as Opposed to An Accredited Agricultural Consultant?

DJ Swanepoel (Real Estate Wiki) — Mon, 27 Oct 2008 23:44:10 -0700

An Accredited Land Consultant is a real estate designation geared towards REALTORS® that specialize in land brokerage transactions such as: farms and ranches, undeveloped tracts of land, transitional and development land, subdivision and wholesaling of lots and site selection and assemblage of land parcels.

Accredited Land Consultants are managed by the REALTORS® Land Institute in association with NAR.

Accredited Agricultural Consultants simply require higher levels of specialization. If you want to become an Agricultural Consultant, as opposed to just a Land Consultant, you have to take and pass all required coursework for the license and meet all other requirements of the ASFMRA (American Society of Farm Managers and Rural Appraisers).

What advice would you offer those looking to specialize in either of these fields?