What's In and What's Out For 2008

What's In and What's Out For 2008
January 23, 2008

I have to say that every once in a while I find myself picking up one of those magazines you see on the rack just as you are about to checkout in the grocery lines. Whether it be the one about another Elvis sighting, or the one about which celebrity is fat now, or the one that's always talking about Britney spears, it does not really matter. I am just biding my time until the gum crackling glue head scanning my groceries tells me how much I have to pay for my items.

But today, one of these check-out stand rags kind of stood out, it's title said what's in and what's out for 2008. I was intrigued, I was wondering if their was a poll or governmental edict telling us what we now must do in our lives. I must have missed a memo. In any event, as I was perusing the list of ins and outs, it struck me, besides Paris Hilton being an out and the I-Phone being an obvious in, how did this apply to my business? Was there a section on real estate? So I quickly fanned the pages and much to my surprise, there was not any relevant information that I could see relative to what the culturally-correct gods had deemed cool or not cool in regards to real estate.

So, being the "in-tune" guy that I am, I have scoured the web, interviewed thousands of real estate professionals, attended multiple conferences, reviewed hundreds of thousands of emails, and here is the most comprehensive list of what is in and out for real estate for 2008. What's In for Real Estate in 2008:

1. Trulia, Zillow, Scripps Network Interactive, REA Group...and more. Real Estate as a business model is evolving into a media driven business. We here at Real Estate Radio USA firmly believe this as well. The industry is proven to have the necessary requirements to thrive in this vein. Tremendous media coverage, a bit of scandal, strong public interest, and most important, when all of the other components are in place, increasing advertiser focus.The financial outlook for the aforementioned companies is very good. Real estate as a media enterprise will allow for a new business model directed at the advertising dollars and supported by the content beyond listings that the consumer finds informative AND entertaining.

By the way, if you do not recognize the companies mentioned above you are so not in for 2008.

2. REO's, Auctions, and Short Sales.Unless you have been living under a rock, you are most assuredly aware of the foreclosure crisis affecting millions of homeowners across the Country. As we progress through this "crisis" many astute real estate agents and investors are learning to capitalize on the abundant opportunities that are being presented as a result of this so called clamity.

3. Permission Marketing.If you do not know who Seth Godin is then you are not a marketer. If you are not a marketer then you should not be involved in sales. Rea estate or otherwise. There is no better way to sell to someone than for them to be requesting your goods or services. Are consumers giving you the permission to market them?

4. Video.From my desk in my home I can see many properties. I can view neighborhoods. i do not need to take the time and drive around wasting time looking for that one property in a sea of listings. Video marketing will be crucial to capture the Web 2.0 consumer who will be looking for a property. With the advent of YouTube there is no reason why every listing can't be broadcast. Warning, a picture is worth a thousand words.

5. Blogging.Here are some keywords about blogging. Dynamic, engaging, interactive, informative, evolving content...these are some of the buzzwords describing blogging. A blog, different from a website, is an ever-changing window into your business. It can make you an expert or expose you as incompetent. it's a wonderful medium if you can handle the demands. FYI...almost 505 of all blogs die within just a few months. The authors simply do not have the perseverance to continue. It's amazing how little you have to say when pressed to say it every day. It's not easy but can be highly profitable.

6. Article Marketing. Syndicating articles can label you as an expert. Do you know how to film a listing for proper presentation? That's an article. Do you know how to stage a property for an open house? That's an article. Get the point, be the expert in your market and then tell the world.

7. Social Commentary & Expert Analysis.Beyond your own blog, spend time commenting on others daily. Offer your two cents and make it relevant. Your two cents is worth a lot more than two cents. All of those comments all over the Internet drive traffic back to your website or blog. But let's be real, you actually have to provide valuable commentary. "Good Article, Joe" does not cut it and may even get you deleted.

8. Virtual Real Estate Investing.Investors and buyers are out there. Just because they are not buying what you have to offer does not mean there are no buyers. The Internet allows any buyer, any where to view and purchase any property. We are in Fort Lauderdale, Florida and are looking to purchase property in Cleveland due to the numbers allowing us a cash flow opportunity. More and more savvy buyers a re looking nationwide and foreign investors due to currency fluctuations can buy remotely as well. Want to be that local expert? Make sure you provide the remote or virtual buyer with a reason to call you. Respect the virtual buyer and remember there is no such thing as a low ball offer. It's all about the numbers when investing virtually.

9. Syndicated Listings.Maximum exposure and maximum profit are not coincidental. You MLS listing is for the most part open only to other agents. By syndicating you expose your product to millions. It does not make sense to pocket a listing or to keep it on your local board's MLS. Besides, with some of the restrictions we have seen lately it may make better sense to place the listing on a syndicated basis anyway. Lastly, why confine yourself to the MLS when you know 80% of those interested in real estate start their search on the Internet...and 0% start their search on your local MLS!

10. Non-Traditional Revenue. Earning a commission is not the only source of revenue in this Web 2.0 world. If you are driving enough traffic to your blog or website there will be a market for advertisers and affiliate revenue. How would you like to make an extra $500.00- $1,000.00 each month just by simply managing your blog?

What's Out for Real Estate in 2008?

1. Unrealistic Expectations. We all have been guilty of it. No finger pointing here. Let's agree to say good bye for the time being to 20%+ annual appreciation on residential properties. Sellers need to understand and accept they are not going to see it and buyers should not walk into a deal expecting appreciation to pay the bills. The art of negotiation will become just that in 2008.

2. Stated No-Documentation "liar" loans. I think we also can all agree that the coffin has been nailed and this product is off the shelf for most every borrower. Now most buyers will actually have to take a novel approach to obtaining a home loan by qualifying and proving their credit and financial worthiness.

3. Big Money Commissions.Real estate agents have to realize the ride has ended and long gone are the easy commissions. No simple stick the sign in the ground and waiting for multiple offers. "Fuhgettaboutit!" Commissions that aren't justified on a dollar basis for the amount of work that's performed or the value of the services that are provided will be continually challenged. Also, as I stated above in #5 regarding Blogging, if you are not prepared to do the right thing, take down that dormant non-sensical, outdated blog attempt you did 18 months ago. Do you think that endears you to a prospect? Remember what they say about first impressions.

4. MLS Monopoly.Those rules that restrict competition will be the end of the MLS. Maybe not in 2008 but the demise is on the horizon. Too many people, with too much money and power are looking to tear down the wall. It's just a matter of time. Even Lawrence Yun won't be able to stop the wheels of progress in today's 2.0 world. Thou Does Protest too Much!

5. Yield Spreads Enticements. Mortgage brokers, like real estate agents can continue to be viable to real estate transactions if they let go of business practices that prey on the ignorant that they are being paid to advise and counsel.

6. Condo Board Craziness.No one wants live in a community or building wherein a few can decide to arbitrarily assess you tens of thousands of dollars. Once all those buildings become empty, who will they assess then? We know of condo communities where even the banks are walking away from the units. What about your nutso, unyielding assessment crazed boards boards now?

And finally, the single most issue to be on its way out in 2008, in my opinion, is the untrained, uneducated, unprepared real estate agent. We all know this real estate agent. He or she is the one who took the class hoping to become rich and does not want to make ANY investment in their business. They don't want to make any personal investment in their education. [These are the ones who think a free class is an investment] They don't want to make any investment in marketing their client's properties. They don't even want to answer their phones.

In my opinion, 2008 will spell the doom for many, many, agents not willing to be a "Professional" in a Web 2.0 world and whom do not practice or believe in the value and necessity of personal and business development and investment.