Whitecomb's Blog

My Final Take On This Thing Called Real Estate...

Whitecomb Dot Com (Whitecomb.com, LLC) — Thu, 21 Jun 2007 00:28:47 -0500

Well, its all over. After nearly one year, my home selling/buying process has come to fruition. For those of you who have read my previous posts, you've heard some of the scenarios I went through as a home seller.

In short, we closed on both homes on June 7th. Both closings lasted 40 minutes each and from what I hear, that's pretty good. No issues, no complaints, and no last minute negotiations. Everyone just signed on the dotted line, waited for the wire transfer, and handed over the keys. That's it. Right now, we are just settling into our new home and I am learning what its like to cut the grass again, trim the hedges, and adjusting to higher gas/electric bills (we came from a townhouse).

I have to say that while real estate is in essence a business aspect, it also is a life-changing one as well. Many times we were stressed about the status of our unsold home and wondered if it would ever sell. It did. We thought we were magnets for bad and incompetent agents. We found a good one. We thought we lost the home of our dreams due to not being able to sell our home. We found a better one.

All in all, it was a lot of work on our part and at times, created a great deal some tense situations. I didn't know the first thing about selling a home and unfortunately, (and many times) thought I did. I thought selling a home was easy. I won't go into all the details, but I'm sure you as realtors deal with these type of people on a daily basis. I thought it was easy to price a home. Take the latest sales in your area and of the same type, add few thousand for upgrades you did and being a few months later and you have your price. When my realtor told me that my house probably would sell at about 15k less than "what I thought", I was appalled. It did. I also thought when a buyer put in a contract, everything was set and ready for the closing table. I never imagined the detailed and strategic negotiations that a realtor does to get to a middle ground between offers and get the seller the most on their return. I would have taken the first offer (just to sell the house and not lose the buyer). My realtor got me $4,000 more. I wouldn't have known how to negotiate issues (although minour in nature) from the home inspection. I probably would have said no to everything. My realtor advised me that it was in my best interest to address some of them and while they would cost me some money out of pocket, it would save me more money, time and stress in the end. He was right. When I wanted to put in an offer for our new home, I wanted to get as close to list price so we got the home without issue. My agent did better, $8000 better.

I like to think I helped the process along by doing research on the industry, being honest and open with my realtor, and learning to be humble about the process. I also don't know how I would have gotten through the tough times if it were not for ActiveRain and some of the nicest people who are members. The information I received from this site was priceless and for those who commented and provided advice, I am forever in your debt. I now know this is what made everything go as smoothly as possible.

I know the real estate industry has gotten a bad name in the past (as have mortgage brokers, appraisers, etc.), but I have to say my experience has provided me with a much different experience. I used to think that realtors were similar to Mary Kay agents and used car salesmen. After seeing this process first hand and being a part of it for the last year, I don't know how all of you do it everyday. I know I never could.

I have to say its a bit odd right now after being officially done. I don't have to worry about showings, viewing potential homes, or wondering if "that" home is something I can afford. Its all over. We love our home and are imagining what we can do to it to make it officially ours.

After the closing, my agent stopped me and said, "Whew, everything went well...you said you were not a big fan of real estate...I hope my services have helped change that.." I replied, "Your services sure did and I've learned alot about what you and other agents go through everyday, its not as easy as I thought and I'm just glad you were involved..you saved us a lot of time and money.."

As we were walking to our car, my agent said one more thing that caught my attention, "After all this, you should write a book about your experience.." I replied, "(Laughing) What for? The book would only have two sentences, 'Call a realtor. Its in your best interest'."

Once again, thanks to everyone on ActiveRain. My final take on your industry and what you do is a good one..

Consumers Trying to Get Technology...Right...

Whitecomb Dot Com (Whitecomb.com, LLC) — Tue, 05 Jun 2007 00:22:03 -0500

Well, for most of you that have read my posts in the past, I'm proud to say that my closing date is just around the corner (actually Thursday of this week). We're all packed and ready to go. While the process of packing and coordinating everything is quite tumultuous itself (when you have a husband like me who wants to throw out everything and a wife who still claims to be using it causes the most stress), it gets finished in the end.

I do have one "request" with a complaint that I hope all realtors can somehow streamline in the future. In short, I received a nice pamphlet in the mail after I received a sales contract and accepted it on my home. I am using a Coldwell Banker agent and the pamphlet came from Coldwell Banker. It described how all my needs could be handled via CB including homeowners insurance, moving, and setting up utilities at my new home. The documentation pointed me to this website at www.coldwellbankerconnect.com. I thought I would check it out.

After getting several phone calls from a company called NRT regarding homeowners insurance (sorry, I have my own agent) and looking at the various moving companies they offered (found one with a much lower cost and good reputation), I checked out the utility section.

Let me clarify all of this. I love technology and use anything and everything that allows me to avoid the endless waiting for a customer service rep from a utility company. Thus, I gave it a try. I was throughly impressed on how it could take my new address and display the availability of services at the location. A database, web-driven application at its finest. So, I figured why not give it a try.

In 30 minutes, I had Internet, Phone, cable, electric, and gas all set up. Well, at least I thought I did. I completed the setup back on May 2nd and got confirmations that these were all "accepted" by the carriers. I kept checking online and still everything said "accepted". Being a pessimistic person and one who always tries to be proactive, I called ColdwellBankerConnect.com's customer service line just to make sure I was ready to go. Quickly, I found out that the real company was one called WhiteFence.com. Whatever, just give me someone to talk to.

After 53 minutes being on hold (and listening to their phone system playing Pink Floyd's "The Wall"), I got a customer service representative. I told her I wanted to confirm my orders and she said, "Hold on, let me transfer you..". I get transferred to a guy asking me if I want to reset my username and password. I tell him I'm just trying to confirm my orders. He says, "Well, they must have mistakenly sent you to me, I'll transfer you back...". Knowing I would just start over in the waiting queue (just like starting over on an amoritization after a refinance), I quickly remark, "Sir, I've been waiting for 53 minutes...can you please transfer me directly to someone and not your phone system?" He says, "Sure...one second, I have an open representative waiting for you.."

After his comment, I get back in the queue (which is now on the song "The Show Must Go On" on "The Wall" soundtrack) and wait for another 40 minutes (yes, I was at work so I just kept on speaker phone waiting..and waiting..etc). Finally, I give up and decide to call the utility companies directly. Instead of "The Wall", I am greeted by some soothing Muzak.

I first called my gas company at my new address and inform them of placing an order on WhiteFence.com. I give them the order number and hear, "What? What number is that? We don't use that type of numbering for orders.." Okay, I tell them my name and my new address and eventually hear, "Sorry Sir, I do not show any order for that address." I tell them I need service and they establish service for the specified date. Unfortunately, the same thing happened with the electric company and continued with the phone/internet/cable company.

Had I not called to confirm, I would have gotten to my new home and nothing would have been set up. I would've had to call and start everything over. Thankfully, the utility companies (which I only waited for a total of 3 minutes for each call) got me all set up.

I think this type of service offered by realty companies is great. Unfortunately, agents and their offices have no control over this service and thus consumers, like me, are held in a waiting game (and phone queue). I think its a great service, but it once again clarifies that technology doesnt always work over a simple phone call and speaking with a real person.

In the end, everything is fine (at least I hope). At least I got refreshed on the "The Wall" lyrics and only threw my phone once...my work phone which I dont pay for...

This makes me ponder the idea of how sellers (and buyers) would even want to remotely work with an online company in selling/buying a home. I just hope that if anyone uses RedFin's services, at least they would be so kind to answer a call after a few minutes and play Tony Bennett...

Is ActiveRain the Best Advocate For Real Estate?

Whitecomb Dot Com (Whitecomb.com, LLC) — Mon, 14 May 2007 22:23:23 -0500

I apologize and know I mentioned that I wouldn't be posting here anymore as my "journey" in buying and selling a home is near completion, however the 60 Minutes segment last night really got some good "water cooler" discussion at work today and got me thinking. (See my previous post...).

Once again, let me clarify this...I am not a realtor. I am not an advocate for the real estate industry. I do not have any relatives, friends, etc who work in the real estate industry in any way, shape or form. I am simply a consumer who has recently been involved in the sale and purchase of a home. As I've said before, I've learned a lot about the industry during my tenure on AR and have dug deep to find the information I am looking for and thus have switched gears in regards to my opinions. I've always learned that what's fair is fair and this is a great conduit to speak your opinion. With that being said, I think the 60 Minutes segment brought to life a subject bigger than just commission percentages and/or discount brokers using the Internet to attract a new type of consumer.

As I said in my previous post, the segment was poorly done and way too one sided. However, with all that happened during the segment, RedFin did one thing right: They used the often misinformed and negative perception that a majority of consumers have about the real estate industry to their advantage. Besides getting huge attention to their business and website, they also may have used that negative perception to attract future clients and also continue to sway the consumers opinion's that selling/buying a home is as easy as baking a cake and you can save thousands of dollars not using a realtor. It also didn't help that the agent they used to provide a positive connotation to the industry was by far the worst person you could have chosen. From a consumer's point-of-view, I can just see how someone would watch the segment and walk away saying "I'm going to do this myself and save thousands of dollars."

Okay, I'm not going down that road. I think all realtors and knowledgeable consumers know this is hardly the fact. However, if you were to poll viewers, what would you think they'd say about the segment and how it reflected the industry? Personally, I would think it would closely match the last sentence in the paragraph above.

Where am I going with this? Well, in my opinion, maybe its time that the industry comes together to promote the positives regarding real estate. While the industry is primarily individual-based, maybe its time to unite and change the skepticism of the general public. Unions do this all the time. On a job site, if there is a non-union employee, the first thing the union does it put a 20 foot inflatable rat smoking a cigar outside the limits of the site. Union members begin to picket and march up and down the block stating their cause. While it may be tacky and bold, it's what non-construction people see everyday and wonder who is in the right. The union takes the time to promote their cause and thus gains (in some ways) the popularity vote. In order not to shut down the job, the contractor usually folds and the union wins (in some cases).

Today, you rarely see any real estate promotion (in a group manner) promoting the industry, its benefits in using a realtor, and its stance on morals. Instead, you commonly see ads on shopping carts, billboards, and flyers representing a brokerage office or an individual realtor. Why not come together and start a campaign that doesn't promote an individual or brokerage, but instead promotes the industry itself?

Driving around Chicago, you'll see a few billboards promoting a certain industry, group, coalition, society, association, etc. Unfortunately, I've never seen one regarding real estate.

Here's an example: My parents bought their first home in 1984 (in Chicago's Edison Park neighborhood) for a modest $52,000. Back then, they needed 20 percent down and I believe the interest rates were around 10 percent or so. The one thing I remember about the whole transaction was the realtor my parents used. Her name was Barb and she wore the gold Century 21 jacket on several occasions. I don't remember much, but I remember how kind, professional and cordial she was anytime she was around. She brought coffee and juice anytime she came over before taking us on showings and often "kept an eye" on us when my parents wanted to really focus on looking at a certain house. Everyone in the neighborhood knew, trusted, and referred her for any real estate transaction. I don't remember (on any occasion) my parents ever having a negative perception regarding real estate. Everything went fine and we were in our new house in no time.

Today though, it seems as if there are a slew of realtors out there and finding one is as easy typing a query in Google or looking down in your shopping cart at the grocery store. In time, you'll have about 20 agents calling you trying to tell you that they are simply the best agent out there and you'd be a fool not to go with them. You sign with them and then things start to go downhill. Of course, there are always a few bad apples in the bushel of good ones; however, this has seemingly been the premise consumers have used to give the industry a bad name.

It's just my opinion, but maybe its time this industry unites and starts a campaign to overhaul this negative perception and get more consumers to understand the true facets and positive results a realtor can bring to the equation.

In my research about real estate, I was bombarded with about a million individual realtor websites all promoting themselves, what they do and why they are the best. I completely understand this, however, nothing exemplifying the benefits of using a realtor from a group consensus. Then I found ActiveRain, did a couple blog posts, communicated with a few realtors and wow, my opinion changed overnight. I thought it was odd that the number of members were so low considering the amount of realtors in the profession. What better place to unite and provide knowledgeable insight to other professionals AND consumers?

I'm not saying that realtors need to spend MORE money on marketing than they already do, but maybe its time to get together as a group and force associations such as NAR to focus on public perceptions and marketing instead of just serving paying members. Besides, isn't this what you pay for?

While writing this, I thought of something that could possibly be used in every major city market. A billboard with the following:

"And you thought real estate was just about a sign, MLS, and commissions...Go to http://www.activerain.com/ for more information and see what's real about real estate..."

Tacky, hokey (use any adjective you wish) and expensive, however, it might be just the right formula for giving a good business a better name in today's era. Besides, how much does the CEO of NAR make anyways? I'm sure they could find funds to generate such a campaign to better serve their members in terms of public interest.

Just my two cents, would love to hear your feed back (sorry for the long post:)

60 Minutes from a Consumer

Whitecomb Dot Com (Whitecomb.com, LLC) — Mon, 14 May 2007 11:09:00 -0500

After seeing last night's segment on CBS' "60 Minutes", I thought I would post something about what I (and possibly other consumers) took away from it. While the segment may have been good timing in terms of technology utilization in the real estate industry, it also was poorly done. Here are few things I, as a consumer, got out of the segment:

1. The headline title and image were completely inaccurate: You mean to tell me the only thing 60 Minutes could up with is an image of a gold "6%"? As most consumers and realtors know, commissions are completely negotiable on both fronts and often are revised to meet the needs of the seller and the realtor. To be honest, the image and opening banter from Leslie Stahl seemed to detract away from the real story. Unfortunately, many consumers could have been easily swayed by simply watching 1 minute of this segment. The case study regarding eRealty hurt the segment in my opinion and would make me as a consumer think twice before using such an online service. The person they interviewed seemed to only have a bitter response in going defunct. I hate to think that there are laws to avoid fair competition in some states, but I hope they are there to protect the consumers.

2. Could 60 Minutes have picked a worse spokesperson?: Just like all media, segments are usually swayed to one side and this was simply the best example. If they were going to pick that one agent, they should have also interviewed a few others. The woman they interviewed was very "uppity" in my opinion and simply disregarded anything less than 6%. That only fueled the rest of the segment to go in one direction. Simply stating that "If it's less than 6%, I'm not your agent" is rude and one of the poorest decisions ever made by this person. I'm sure she was put under the gun and being interviewed on national television is nerve-wracking in itself, but she should done her homework and been ready for the questions asked. I'm sure she is a hard-worker and puts in more than she receives per transaction, but once again, from a consumer point-of-view, it only favored the rest of the segment. All you heard was "6%" the whole time and nothing was really mentioned about negotiating commissions. I've heard this phrase before and it is really a true aspect a consumer must think of during the process: "It's not what you save, its what you net.."

3. Where was your Association?: I hope realtors who belong to NAR do not pay that much to be a member or are now wondering what the benefits are for joining. Everything that consumers hear in the media about real estate is bad news. Houses on the market forever, foreclosures at an all time high, and grim predictions for the future. The industry gets a headline spot on one of the highest-viewed television programs in the nation and the leading association representing the industry is nowhere to be found, except for a picture of their headquarters and a copy of the lawsuit being filed against them. Not one spokesperson was interviewed. I'm not sure if any contact was made to NAR for their side of the story, however, you would think someone at NAR would make some sort of emphasis to be interviewed. I went to their website today to see if they had anything on it regarding the segment and there was nothing. No response or comment from any executive level person at the association. Funny, but the first thing you see on the site is an image regarding "How technology can help your business." You would think they would take at least 10 minutes to address the 15 minute segment.

4. Is it really that easy?: While Redfin and the selected consumers made it sound like a 1-2-3 deal, they should have interviewed other consumers, especially FSBO consumers, who've been through very different situations. Correct me if I am wrong, but isn't it true that only about 12 percent of consumers actually sell their home via FSBO? That's a low number if you ask me and quite a risk in selling your biggest investment. The people they interviewed at Redfin seemed to be a bit shady if you ask me. Just seeing the woman they interviewed who seemed to be reading off a cue card would make a consumer like me nervous in dealing with such a service. Not to mention that the agents working in the office looked like day traders vs. real estate agents out and about doing actual work. It might just be me, but there is a HUGE intangible factor in working hand and hand with someone in such a transaction. Every realtor I have worked with (good or bad) has always been present in all facets of the transaction and onsite at the home to give their feedback regarding the sale or purchase. It would make me a tad nervous conducting everything over the phone or over email.

5. Math is always easy and sometimes heavily swayed: Thanks for the drawing on the dry erase board, but it's much more than what it appeared to be. Let's face it, realtor commissions are expensive and something no consumer wants to pay and is often the first negative vibe used against the industry. People pay commission's everyday, but it always seems that when it comes to real estate, it's like a bloody rugby game. People are providing a service and should be paid accordingly for their time. There are so many intangibles involved that consumers often overlook the facts and feel as if they are having their wallets/purses taken away from them right under their nose. Believe me, I used to feel this way and have totally changed my opinion on the issue. Unfortunately, 60 Minutes used the "simple" math equation and a bad agent example to prove their desired point. If you're a consumer and hate paying commissions think of it this way: Imagine being a baseball fan and always seeing that dreaded player that hits .215 on the season and rides the bench all year only to be paid a whopping $1 million dollars a year. Then the guy comes into a big game and gets the winning hit to win the World Series. People quickly forget and change their opinions in all of 2 minutes. I'm not trying to compare real estate to professional baseball, but many good realtors do tons of things on the backend that most consumers never see on a day-to-day basis and quickly disregard. No one ever speaks about a seamless and quick buy or sell process, you only hear about the bad ones. Go ahead and try to sell your house on your own, but make sure you keep that business card of the agent you spoke to in case you need to get them on board after it's too late.

While the segment was heavily one-sided, it did interlude into a good discussion about the future of the industry (at least in my opinion). Twenty years ago, consumers dearly depended on an agent to handle the buying or selling of a home. Today though, consumers (like me) are using the Internet to gain information and knowledge and are doing their own research. A good example of this is Zillow (although hotly debated) and Craigslist. Even eBay allows for conducting real estate transactions online. Consumers are gaining more insight about the industry and are using that knowledge before they even get involved in selling/buying a home. Besides the Internet, just watch HGTV for a few hours. There is tons of information out there for consumers to retrieve and unfortunately, it makes it seem very easy to conduct a transaction. Realtors need to use such conduits to provide the general public with their own side of the story regarding the actual services and intangibles they provide to a consumer.

Fifteen years ago, people were afraid to use email. The thought of everyone using a cell phone was simply ridiculous. Today we depend on these items. Same goes for online banking and any other ecommerce transaction done online, but consumers have adjusted and made use of these ideas to be more efficient in their everyday lives.

Hopefully, realtors and the industry can effectively use the Internet and communicate to the general public about the services they provide and make the industry have a better appearance. More education for consumers would simply stress the importance of using a realtor for making the biggest investment in their lives. Hopefully the segment by 60 Minutes didn't do too much damage from the consumer's point-of-view.

While it may be the road the industry is headed down, I would hate to think that my next realtor would be in an office, behind a computer, and wearing a phone head set when conducting the biggest transaction in my life.

Home Seller Website

Whitecomb Dot Com (Whitecomb.com, LLC) — Fri, 23 Feb 2007 01:23:07 -0600

Are you a home seller? Looking for more information about selling a home, need information, or just have a story to share? If so, check out HomeSellerExperience.com. Its a great site dedicated for home sellers.

For Sale By Owner...Part 2

Whitecomb Dot Com (Whitecomb.com, LLC) — Fri, 12 Jan 2007 00:12:59 -0600

As I mentioned in a previous post, one of my co-workers is heavily contemplating listing his home via for sale by owner. As I stated, I tried to give him some points of using a realtor, but he is still doing the research on doing it by himself.

This morning, I saw him after a meeting and asked him what he was going to do. He was still bright-eyed about doing the listing by himself, but said he had done more research at home and had another idea as my statements left him wondering about utilizing for sale by owner websites. In short, he had found an array (and I mean an array) of companies/people who will list your home on MLS for a flat fee. The fee ranges, but he said it averaged anywhere from $250 to $1,000 which was somewhat lower than the other for sale by owner sites charged (these are his findings, not mine). He liked the idea, but each and every company/person he called said that its best to provide the buying agent with a commission so the home is shown no different than other homes listed with agents. Still, he mentioned, that he was saving money.

I asked him what the fee included. Basically, and from what I took away from the conversation, the home gets listed on MLS just as it would with utilizing an agent and it costs minimal expenses. Yes, he has to pay a commission to the buyer's agent, but still he considers he's ahead. I asked him about how he was going to market his home. Pamphlets? Website? Word-of-mouth? etc. Well, he tells me that he bought a domain name with the address of his house. Let's say its 123mainstreet.com. He's a great web developer and will get it up and running by the end of the weekend (so he says). He's already had a discussion with a graphic designer who will develop a brochure for him and he's buying a sign holder tomorrow so that he has somewhere to put the brochures. His comment was, "Besides, how else do you market a house? The house will be on MLS and realtor.com and I'll have a website and brochures with more detailed information....so what, I have a cellphone and will handle the showing phone calls myself and have someone that can let them in the home at any time of the day if I'm not there..most people look for houses on the Internet so I'm all set..."

To me, and at this point, it already sounds like more work than I would personally like to deal with if it were my property. His property has increased in value (based on recent sales) quite significantly over the last 2 years and he has a lot of upgrades. To make things more interesting, our CEO of the company we work for full-time hears about all this and says, "Great idea...I did the same thing 2 years ago and was fortunate enough that the people who bought it called and came to see it without an agent....in total, all I paid was $500..." Hearing this, he became even more excited. I mentioned that the key words here were "two years ago". Didn't phase him one bit.

It sounds as if this is the route he is going to take. Seems a bit optimisitic, but I wonder how it will turn out for him. I'll keep you posted, but what are realtors thoughts on this type of objective? Does this actually work or is it a scam? It must as these companies are in business, but just inquiring on how realtors deal with these types of listings.

Realtor Tours? Do they work?

Whitecomb Dot Com (Whitecomb.com, LLC) — Thu, 11 Jan 2007 23:50:18 -0600

I was just wondering about Realtor Tours. When I had my house for sale some time ago, my agent recommended having a realtor tour that was open to area agents on a specific date/time. I wasn't there to see the results, but I was told about 13 realtors attended. My realtor was present and actually cooked a quick meal for those who stopped by (I was glad as I got the left overs and she was a great cook..).

So, I thought about this today and gave her a call to ask and to see how she was doing. I asked her if the buyer who bought my home came from an agent who attended the tour. She didn't remember, but didn't think it was the case. What I thought was going to be a quick phone call turned out to be a 45 minute conversation.

In either case, how effective are realtor tours? Are they used by most realtors or only as needed or dependent on the actual realtor's marketing strategy? Do realtor tours end up bringing in the buyer or are they typically just social gatherings? Just wondering.

For Sale By Owner?

Whitecomb Dot Com (Whitecomb.com, LLC) — Tue, 09 Jan 2007 23:50:48 -0600

With the new year amongst us, it means a salary increase for many of the people I work with at my company. With that, some of them are looking to upgrade to a new home this spring and are just starting the leg work in getting pre-approved to determine what they can afford.

This morning a co-worker of mine (who spoke to me in the Fall about selling his townhome in the city (Chicago)) asked me if I knew anything about selling a home by owner. I told him that I have never sold a home this way (or bought one for that matter) but was intrigued as to how the process worked. (Why he asked me about this, I have no idea, maybe because I've bought and sold a home before..I dont know...).

So, I basically told him that if it were me, I would consult with a realtor to handle the transaction taking into mind that he is new to the selling process (from a home owners end) and its a tougher market these days (not to mention other factors). Thus, he began his research on selling by owner and scoured the internet for resources and made a few phone calls (while he should have been working on a custom web application that needs to be rolled out ASAP..)

Of course, he went to buyowner.com and someone contacted him shortly. He was pitched, and soon thought the idea was the greatest thing since sliced bread. Having a been involved with selling and buying a home, I began to give him a little caution before he just "jumped" into the idea (once again, Im not a realtor..).

His first response was, "Well, you dont pay commission on the sale of your home...that could be approximately 5 percent of the sale price...thus, I get more revenue..all I have to do is show the house." (I think he's spotted the increase of these commercials in the Chicagoland area on TV..)

My response was, "Well, in so many words, thats somewhat true; however, do you want to be dealing with handling showings, dialogue with clients, the possibility of clients just browsing and not pre-approved, marketing that needs to be done, doing the comps and getting the right price set, and the eventual negotiation and sale processes, etc.?"

Being excited, he was still on the "for sale by owner" train and wanted to get started right away. I just told him that if it were my home, I would contact a few realtors (referrals, agents in the area, research, etc.) and interview them before making such a committment. This way, you'll see both sides and be able to draw your own conclusions, but at least you'll be more informed. I also told him, from what I heard, that a lot of home sellers eventually obtain a realtor as the for sale by owner process goes bust and thus time and money are wasted. Not to mention the experience a realtor has in identifying what needs to be completed before the house goes on the market so no time is wasted (staging, etc.).

So to my questions, as I know nothing about this...

What are realtors feelings about sellers that sell by owner? Obviously, and I am assuming, realtors probably dislike this as it takes them out of the process, but is it a good option, in some cases, for sellers to consider?
Will realtors show a home to clients that are buying if it is for sale by owner? If not, will they show it if the seller offers an appropriate commission to the buying agent?
What actually differs in the process in terms of selling by owner vs using a realtor (I'm simply asking..)? Does the process go the same regarding showings (besides the seller handling the calls and scheduling)? How does the process work once a bid is submitted (I assume its seller vs. buyer?)?
By using for sale by owner websites, does the home still get listed on the MLS system or is that an added fee? Basically, is the home seller betting on the fact that buyers will directly contact them or do realtors still consider a home for sale by owner as a regular listing?
How does the closing aspect work once a bid is put in? Do the buyer and sellers need to work out the details (title, etc.) or do the attorney's still handle all that?

Just trying to get realtors thoughts on this...

Market Change?

Whitecomb Dot Com (Whitecomb.com, LLC) — Thu, 04 Jan 2007 23:10:47 -0600

I've heard a lot of talk about when the real estate market will return to back to normal and level itself out. With that, I've heard an assortment of timelines such as (Spring 2007, Summer 2007, Fall 2007, sometime in 2008, etc.). What are your thoughts regarding the market and when will it change (or is it changing already)? I know the word "change" is very open-ended in terms of the topic, but figured I would ask.

Personally, I've contemplated listing my home in March of 2007 (I told myself I would never move again..yeah right). Right now, I am a little hesitant based on the market (from what I've heard) , but wonder if things will change in the Spring or if I should stick it out and just wait. Specifically, I am wondering about the Chicagoland market, but would like to hear about other markets as well.

Real Estate Websites and SEO

Whitecomb Dot Com (Whitecomb.com, LLC) — Thu, 04 Jan 2007 02:28:41 -0600

About 2 months ago I attended one of those "How to Increase Your Website Search Ranking" seminars hoping to increase my own knowledge regarding SEO (Search Engine Optimization) techniques from a well-respected authority on the topic. Unfortunately, just like many of these seminars, the information was pretty much the same as I've heard for some time. With that, I did meet a real estate professional who maintained his own website and other realtor websites as well. I introduced myself, him the same, and we began talking about web development, especially Web 2.0 (blogs/podcasts). The first thing this person said to me was, "Im one of the leading edge real estate pro's utilizing SEO trends that you'll meet." Being an IT person, I was astounded that this term had made its way into the real estate sector. So I asked this person what methods he was using to generate higher page ranks for his site(s) and was then disappointed. Why? The response was, "Did you know by adding some words, known as keywords, to these things called meta tags, that you can have your site indexed higher by search engines?" This coming just after we had the seminar...I figured I'd ask this person a few "techie" questions since he said he was "leading edge". Not surprised, but the person looked like a deer in headlights.

So, I asked this person what his URL was (they didnt know what that meant) and they gave me the website address(es). I looked up on Google and it took me about 8 pages deep in searching to find any nomenclature regarding his sites. I sent the person an email back indicating my results and got the "oh, well a month ago it was on the first page for a search".

SEO is much more than just a few keywords per se, but then again, if you know this much, its a good start. Also keep in mind that browsers are much more capable of searching for sites or content in the address bar instead of knowing what the actual URL is. Also, search engine standards are constantly changing in terms of the technologies they use to index websites. (a tad techie)

We posted a brief synopsis about SEO on our blog (a bit techie), but hopefully it helps those looking to increase page ranking on search engines and those that administer their own sites. Once again, its a brief synopsis and quick primer, but a great overview...

http://blog.whitecomb.com/2006/12/21/seo-is-more-than-meta-tags/

If you have a site in question in terms of page ranking, let us know, we may be able to help...

From a member...

Whitecomb Dot Com (Whitecomb.com, LLC) — Thu, 04 Jan 2007 01:53:54 -0600

Okay, so I thought this blog would be a great idea regarding real estate (buying and selling) from an "outsiders" point-of-view. With any idea, there is always a negative connotation and thus I received an email from an Active Rain member asking if the purpose of my blog was to be deragatory against real estate agents and the business itself. At first, I was a little stunned, but after reading into it, I can completely understand why someone would question our purpose.

To be honest, this blog has nothing to do with being deragatory or inflammatory to agents or the real estate sector. In fact, our only purpose is to give insight to those considering selling/buying a home that are not agents themselves and to pose questions and inquiries to actual agents about the business. From our experience, real estate is a simple process, but when you are actually involved in conducting a transaction, it can be quite a convoluted and complicated process. Also, a lot of information is common and often repeated on the Web. This information is dedicated for non-real estate agents, but often is very open-ended and a summary of what actually takes place. In our opinion, you only learn about what actually happens when you are actually involved in a transaction.

The person asked us if we were "former, disgruntled agents" (which we are not) , if we are speaking are using this blog as a conduit from negative transactions we were involved in (which is not true), or if we were trying to sell something (no, but we do actually specialize in blog/podcast developement). Here is a short-list of why we started this:

Web 2.0 (more specifically blogs): There is no other industry grasping the Web 2.0 phenomenon like real estate. Not only do most agents have their own website, but more and more agents are utilizing blogs and podcasts to drive interaction and share knowledge to people not involved in the real estate business. Active Rain is one of the leading networks utilizing blogs for professionals instead of listservs and forums.
We believe in Web 2.0: Have you ever tried to explain what a blog is? What's been your experience with answers? If your like us, most people have no idea what they are and do not understand their power in terms of usage and receiving feedback besides a cut-and-dry "info@xyz.com" email address. Most people feel that blogs and podcasts (Web 2.0) is buzzword that will fizzle out in short and a technology used by children and adolescents. Really? I'd love to talk to those same people when websites are replaced by blogs in a few years. We've set up blogs for a few real estate agents and they love them and use them now more than email.
We're just hungry for knowledge and sharing our information: What better way to get information than from actual people who this everyday. You can read articles, ask friends, etc., but the best way to get information is from the people who know the business. Plus, blogs allow you to comment on information real-time and get others involved to your inquiry.

In our opinion, real estate is an intriguing business with a lot of questions from consumers. Hopefully our blog will ask those questions and get the real answers real estate professionals can answer.

Just our two cents...

How to search and conduct an agent interview

Whitecomb Dot Com (Whitecomb.com, LLC) — Wed, 03 Jan 2007 23:08:49 -0600

Anyone ever wonder who you should interview and how many interviews a consumer should complete before choosing an agent? In the Chicagoland area, there are a plethora of agents looking for business and each appearing to be qualified to complete the task of selling a home or taking consumers out to find a new home.

In my experience, it seems as if the interview with an agent is quite simple, yet the decision-making process is quite a task (especially if there is a co-owner/co-buyer in the process). At face value, every agent is nice and usually comes with a manual or documentation of what services they provide (bio, services, committment/mission/values, and marketing plan, etc.). From a consumer stand-point, how can you really be sure that you are choosing the right agent per your objective and needs?

The easy answer is "go with who you feel more comfortable with..". True, but what else should consumers be asking in an interview, not to mention what are realistic demands that a consumer should ask an agent to adhere to? Does it matter if the agent is part of large subsidiary (Remax, Coldwell Banker, B&W, etc.) or is it specific to the agent themselves?

Real Estate like NASCAR????

Whitecomb Dot Com (Whitecomb.com, LLC) — Mon, 01 Jan 2007 01:54:08 -0600

So, I was watching "Days of Thunder" this weekend and heard a quote that made me think of real estate. The quote was by Tom Cruise and Robert Duvall....

"I wont be beaten by a car...stock cars are built to be equal, isn't that right?" - Tom Cruise

"A car won't beat you, but a driver will..." - Robert Duvall

Where am I going with this? Well, what does make one real estate agent different from others? Agents all use the MLS system, do marketing and open houses, etc. So what does make an agent different good question...

In short, non-real estate agents are unable to answer this question. Think about it...what made you pick your agent? Was it their glossy business cards or website? Or, was it a referral? Who actually knows?

Just keep in mind that houses sell themselves and no matter what anyone does, its the house that will sell it itself, not because of an agent or anything else...

In fact, all it takes is a buyer who loves and wants your house in order for a bid to become real. An agent can have "realtor tours", open houses, etc., but its the individual buyer(s) who will make that decision.

What to look for in a selling agent

Whitecomb Dot Com (Whitecomb.com, LLC) — Wed, 27 Dec 2006 02:36:44 -0600

If your looking to sell or buy a home, then you probably have heard that you need a real estate agent to do so. If your not a "for sale by owner" person, then you'll need to find an agent that suits your needs. How do you find an agent that meets your needs? Well, in short, it takes homework and interviews with agents to find out how they will handle your specific transaction. Here's a good primer:

Do your homework: Look for agents in your locale that specialize in selling homes in your market. Don't just select agents that have heavy advertising campaigns or have glitzy expertise write-ups. Look for agents that specialize in homes of your type and area. Contact your local real estate agent office if you have difficulty. In most cases, they are more than happy to help.
Ask your neighbors and friends: This sometimes is your best bet. Real Estate Agents heavily rely on "word of mouth" marketing. No matter how much agents spend on marketing, their best advertising is in past references. If you have a new neighbor, a past neighbor, or a friend who sold a house in your area, ask them for who they used to sell their home.
Make a list: Once you have a good list of reputable realtors (about 5-7), contact them to arrange an interview.
The interview: For each agent that you interview, make sure you develop a list of questions regarding their expertise, knowledge, and overall prognosis of their services. There is no science to this, but be sure to ask questions that are important to you in getting the most value for your home and getting it sold quickly. Be sure to also gauge how they conduct themselves and how they respond to your questions. Are you just another listing or are you the most important client they have?
Q/A: When you ask questions, be precise and document their responses. By documenting their responses, you'll have a laundry list of items to present to them in case they fail to meet the needs you requested in the interview. Also ask them questions regarding how your home will sell in any market and what they do differently than other agents.
Don't get fooled on statistics: Really, what are statistics? Just because an agent presents you with how many listings there are and how many have sold, etc. in your area doesnt mean they can sell your house. Also keep in mind that the house sells it itself. Whether its the best agent in the world or God, it takes a buyer who wants your house in order to sell it. Make sure you ask them questions as how they will go about selling your home (specifically) in any real estate market.
The Post Interview: After you have met with all the agents you wish to interview, assess the results. Read between the lines and determine the agent that best meets your needs (commission, past sales, overall personality, and professionalism). Once you are sure who the best agent is, make a final decision and sleep on it to be sure. Keep your list to 3 possible agents.
REFERENCES: Now that you have your top 3 list of agents, contact them for a list of references. But be careful, anyone that is asked for references will give you "sure bet" clients that will always vouch for them. This is misleading. Instead, ask the agent(s) for a list of references of their last 3 or 5 past transactions, REGARDLESS of positive or negative transactions. By asking for their last 3 or 5 transactions, you'll get clients who had a positive and negative experience with the agent. We also recommend asking agents for one reference who cancelled the listing regardless of the reason. Be sure to also ask for proof from their MLS system that these were in fact there last 3 to 5 transactions or listings.
Make a final decision: Once you have done your legwork, hopefully the list will be narrowed down to one person. If thats the case, contact them to begin the paperwork.
Start the listing contract: Now that you have your agent, get the contract done. Be sure to have them explain EVERY line item in the contract and request termination clauses be added where YOU see fit. Also, compile a list of your requests and needs and have them sign it and get it notarized. If things go poorly, you'll have this to go back on. If they won't agree to it, ask the the managing broker to sign it or just disqualify them. By the way, this is YOUR home!
Conclusion: Once its listed, regroup with your agent to ensure that you are getting the most of your comission money. Make sure the agent is getting feedback and advising you on what can and should be changed in order to make the process go quicker.

Are we missing something? Let us know.

Selling a home: A horror story

Whitecomb Dot Com (Whitecomb.com, LLC) — Wed, 27 Dec 2006 01:47:13 -0600

Okay, so why did we start this? Well, in short, one of our staff members recently engaged in selling his home (for the first time) and we have been filled with daily and weekly updates on the process since July of 2006. He had such a horrific and tiresome dilemma that we figured we had to dedicate some sort of information for consumers so they wouldn't have the same scenario happen to them. We also have gone through this process (on both ends) and figured that we all could shed some light and informative tips on what consumer's need to know.

So what happened? Well, our staff member decided to list his first home for sale (a townhome in the West Suburbs of Chicago) back in July of 2006. Actually, it all started on a Saturday just before he and his wife went on vacation. They were just getting packed and ready to go when he heard his wife say, "Look, I just found this house online...lets see if we can go see it..". Being a time-conscious person, he uttered "No", but eventually saw the online listing and figured he would let his wife call the listing agent for a showing. To their surprise, the agent asked if they could come and see the property in one hour. They decided that they could fit the showing into their schedule before departing on vacation. Well, they went and saw the property and loved it. In two short hours, they had decided to put a bid in on the home. At this point, they figured that going on vacation was not such a good idea now as they had to put their property up for sale to begin the process.

The listing agent of the property they put a bid on was "one man shop". He was the realtor, the broker, and the owner of the agency. At first glance, he seemed to be just another real estate agent trying to sell a property to excited buyers. After he and his wife put in the bid, they were now unsure of what they had to do next, but figured they had to put their home up for sale. The listing agent began to tell them that this needed to be done ASAP and they should consult with a real estate agent to do so. Since all this happened so fast, they asked the agent who he recommended and of course, he recommended himself. They were still unsure about this person as they had just met him, but after learning that he only charged 1 percent commission, they figured they would give him a try. At this point, everything was going great: They put their bid in on the property, they decided to list their home ASAP, and found an agent who was going to sell it for them.

Due to the fact that the bid was entered under a dual-agent contract (because they contacted him directly and had no previous real estate agent they were working with), the listing agent felt it was best to have the sellers and buyers directly work out the intangibles regarding price and closing dates. Eventually, the bid was accepted by the sellers and the home inspection passed with flying colours.

On the same day they put the bid in, they signed a listing contract with the listing agent of the seller's property. He put the sign out front of their home, took pictures, put the property on MLS, and arranged for a virtual tour. Everything was going great and they started to get a lot of showings...a lot of showings with no interest. They asked the agent why they had gotten no bids (after 15 showings) and his response was, "Well, its a bad market..". So they pressed on and thats when things got really weird. They asked the agent to obtain feedback from the agents who brought in clients. Everything checked out good. No poor responses and nothing was noted as what needed to be changed from an arbitrary opinion. During this timeframe, another bid came in. They were both a bit suspicious and asked for some sort of proof. To their surprise, the agent faxed them the ENTIRE bid of the other buyers (including a copy of their earnest money check). Unfortunately, their agent began to increase the number of calls to them, often at late hours of the night. After the 20th showing, it appeared he began to panic and began worrying if they would be able to sell their home before the closing date on the other property. His phone calls began to become harrassing in nature and once swore to them about not doing a showing (with a 4 hour time window when they had other committments). After having just about enough of this agent, they contacted the sellers of the other property about terminating him due to his lack of professionalism. The sellers said to get rid of him and they did and hired a new agent (just as Fall hit).

After hiring the new agent, they found glaring holes in the marketability of their home. The new agent had experience in staging a home and told them to remove the "clutter". They were shocked about the ideas, but figured they had to do something in order to get the house sold and make it more presentable to potential buyers. The house was always immaculate, super clean, and in great shape (only 5 years old), but did have a lot items in the house that made it appear busy.

To make a long story short, they never did sell their home..with either agent and decided to cancel the listing just before Christmas to get a break. Fortunatley, they were able to recoup their earnest money on the other property and will relist their home in the Spring of 2007.

What did they do wrong in this process? Do you see anything in this story that could have been circumvented or changed in order to come to a better outcome?

Welcome to our blog!

Whitecomb Dot Com (Whitecomb.com, LLC) — Wed, 27 Dec 2006 01:12:24 -0600

Are you a consumer looking to sell your home or buy a new one? If you're like us, then you probably have a million questions or inquiries as to what needs to be done on both fronts in order for you to accomplish your goal of buying or selling a home.

There is a lot of information that buyers and sellers need in order to make the process smooth and painless, but most do not know exactly how it all comes together.

As a primer, our blog is NOT intended to offend or mock the real estate profession in any way, shape, or form. Instead, we hope that it assists the general public in what is needed in order to buy/sell a home. We understand that there are good and bad with everything and we are not here to judge the industry or any of its professionals.

If you feel that any of our information is inaccurate or untrue, please respond with your comments as it will help us to know where we are misinformed and guide consumers in the right direction.

Our company, Whitecomb.com, specializes in Web 2.0 technologies such as blogs and podcasts. If you would like to know more about how these technologies can increase awareness about your services, please let us know by emailing us at info@whitecomb.com.