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Trulia and RealtyTrac - Can't we improve this?

By
Real Estate Agent with Kimberly Howell Properties (210) 646-HOME

Foreclosure sign in California

photo courtesy of respres

I'm a big fan of Trulia.

I think Trulia has a good attitude about real estate and the online world.  With their blogging platform, Trulia Voices, their listings and the helpful nature of everyone I've come across that's involved - I just like them.  I think they provide value to the consumer and value to the agent.  I have never received any business from Trulia, but I have done my best to participate in the community (mostly Trulia Voices) as I think it can really be a great clearinghouse of information to a consumer.

We all have heard (or made) the complaints about Trulia Voices and how its become a free for all of people looking to run up their "point" totals by posting in non-local sections and answering questions with potential death traps of ethics and legality.  If you haven't I suggest you google "jonathan dalton trulia" and read for a few moments.  I'll wait.  Jonathan is one of the people I look up to in the real estate blogging community.  He's got a great voice, a sense of humor, and is never afraid to speak his mind.  We have spoken on the phone and shared emails over some of the more interesting things we've found on Trulia Voices.  Its become a fun game we play when we have a few seconds.

The consumer wants information.

We all know that the consumer loves the internet - that's why we're here, right?  They research homes, prices, agents - all of it in the safety of their homes and the comfort of their pajamas.  I encourage this behavior.  A well prepared client is easier to work with, more open to advice and opinions, and able to make the informed decisions that are required when making such a huge purchase.  I love to work with internet savvy clients who know what they're looking for.

And Trulia is there to help.  They have listings galore, the aforementioned Trulia Voices, blogs on every topic conceivable - its a clearinghouse of information about real estate.  I think Trulia is one of the better real estate sites out there.  I post my listings there and participate in Trulia Voices (I even wrote a blog post there once).

So what's this post about then?

Here's the thing.  I like Trulia a lot, but I disagree with them on one key issue.  This one issue drives me bonkers at times.  The issue?  RealtyTrac.  Because Trulia gets foreclosure listings from RealtyTrac, I hear about foreclosures all the time in Trulia Voices.  That's not a bad thing unto itself.  The more people ask questions and learn, the more happy I am.  What I dislike is that some of these listings wind up floating in cyberspace forever.  In the past few weeks I have answered 8 questions about foreclosed properties, none of which were available or in some cases, correct (a house for $3,40 - that's not even a number, unless you live in Europe in which case its $3.40).  Now I know the incorrect information is probably someone else's fault (whoever put it into the system), but here's my major gripe.  Almost all of the RealtyTrac listings that I have been questioned about are long gone.  There isn't any clear definitions of how it all works (there may be on their site, I won't sign up for it, because of my experience so far) and what the consumer should expect.  They don't explain that when a property is listed for $30,000 that doesn't mean that's the sales price, but rather what is owed on the property and where the bids will begin at the public auction.  There's just a bold price tag and no address info - so we as agents who care enough to spend time on Trulia Voices and help build the great compendium of real estate knowledge, wind up trying to do research on homes that probably aren't available anymore.

What does this have to do with the current housing market?

The consumer is being bombarded with the word "foreclosure" at every turn.  Its all they see, hear, and think about.  Its all around us 24 hours a day.  So they log on to Trulia and see bargain basement prices on homes that have been foreclosed upon and think that its possible to get a $1,000,000 home for $10,000.  They're now obsessed by bargain hunting (that in and of itself isn't a bad thing) and we are perpetuating our own problems.  Who's going to pay $150,000 for a house, when the perception is that it could be had for $100,000.  I'm happy to see the market equalize, but we're creating a nation of unrealistic expectations.  Sure, some communities truly do have bargain basement pricing on homes right now...the ones that were hard hit in all of this that has experienced huge price surges in the lead up.

I know nothing's perfect, but couldn't we at least try?

I know it can't be fixed the way I wished it could (automatic download of all foreclosure knowledge into everyone's head along with a perfect internet where non-available houses are erased immediately), but I just wish we could help stem the tide of unrealistic expectations.  Knowledge and information are key to this (and I am a one man show trying to do what I can), but RealtyTrac could step up its game to bring about some change within their site.  Let's dump the old listings, let's explain what the difference between an auction and an REO property are - in the properties description - tell the consumer how to go about purchasing this one.  Help them understand what they need to do next - call a Realtor?  Appear at the courthouse steps?  Look for another property?  Information is a great thing and the internet has brought with it more access than ever conceived imaginable.  Just because the information is there, doesn't mean it can't be improved.

Let's rid the world of the negative onsalught and move to a new chapter of positive thinking combined with solid knowledge and information.  I'm not one who believes the all "sunshine and roses" approach is the way to go either, don't get me wrong.  I think when you take that approach you come out the other side looking like some slick snake oil salesman.  I think you have to discuss the good and the bad, but you need to discuss both responsibly and with the facts and information behind it.  By educating the consumer (the whole idea behind Trulia Voices) we can improve their lives and our relationships with them.  Its the best of both worlds; educated clients working with knowledgeable and experienced agents.

Sorry for the mini-rant that wasn't so brief.  I just think there must be a better way.  Perhaps it will be my invention and contribution to the online real estate world some day.

Comments (18)

Patrick Schutte
Flex Realty - Prescott, AZ
REALTOR

Nice brain dump, Matt. ;)

Seriously, the quicker everyone gets up to speed on foreclosures, the better it will be for consumers and agents alike.  I think the problem with any of the data agregators is that they are struggling to find good data sources that will compete with REALTOR.com.

:) PS

Mar 05, 2009 06:58 AM
Brian Lee Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Kenna Luxury Real Estate

Matt - you and me both. I 110% agree and do exactly as you do. Answer questions about houses that are not on the market nor did they ever sell for $3,40 - yes, I can say that I'm from Europe :). It's unbelievable how the houses are "floating" around for months or more. Don't even get me started... oh, I think you already did :) ~Rita

Mar 05, 2009 07:01 AM
Shirley Parks
Sands Realty 210-414-0966 - San Antonio, TX
Broker, 210-414-0966, San Antonio TX Real Estate

Hello my prolific friend, I'm with you on this: "let's...move to a new chapter of positive thinking." Excellent post as always.

Mar 05, 2009 07:02 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Patrick - I think you're right, getting everyone (agents included) up to speed would help the process.  I think that sometimes the availability of information can muddle things up a bit though - too much isn't always better.  That's why I think the sites need to take the lead.  I answer every question I can in my local area of Trulia Voices, but I don't answer them elsewhere as I am not licensed in that state and don't know the particulars of how that state's process works.  I feel bad that some consumers probably walk away feeling misled (whether they were or not has little to do with it - perception is the biggest stumbling block when it comes to real estate) - if the big sites step up to the plate; they could improve their standing with the public and agents, help create a more informed public, and help remove the (unintentional) false expectations.  The data is part of the problem - I can see what you mean about that.  That's a big stumbling block for something of this nature I guess.

Mar 05, 2009 07:04 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Rita - Sorry I got you going.  What makes me even more frustrated is that one of my listings has disappeared off of Trulia and now re-appeared (as a farm/ranch no less...in an area that has no farms or ranches) and isn't branded to me (so now I have to fix it).  Yet there are houses that were sold early last year floating about (non-foreclosure) that I just received questions about the other day.  I guess you would understand $3,40, but in Finnish don't they write that as $3,AAIUUIIUOOIUUIIUA40?  Haha.  I love the Finnish use of vowels, now if I could only pronounce them.

Shirley - That's what gets me too.  I know I'm not the only one that sees it as a problem and a brick wall that we all need to pass through.  Its hard to educate clients on things, when they educate themselves with semi-solid information.  I don't blame the consumer for it, I just wish there was a better way.

Mar 05, 2009 07:09 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Shirley - Who knows if you will see this or not.  i just received an email that you asked "What happened to Rita" in the comments....yet its not appearing.  I guess you don't see Rita's comment, so that's why you're asking.  However I still see her comment, but not your new one.  Weird.

Mar 05, 2009 07:43 AM
South Austin Real Estate Blog
Sky Realty South Austin - Austin, TX

Matt, thanks for bringing up the RealtyTrac site as non information.  Last month I had a client call me about a house on there that we had tried to put an offer on, the listing agent said we were too late, it had sold.  The Realty Trac site stated the house was for sale as a foreclosure and that house had Sold on the courthouse steps in NOV 2009.  ALmost 2 months before it showed up on Realty Trac!!  That is misleading to consumers and somehow it should be stopped.  We as Realtors can speak about it and blog about it and shout if from the rooftops ..  some of these Internet sites are very misleading (zillow) or misinformation is spouted regularly.

I heard this morning that 80% OF ALL FORECLOSURES ARE HAPPENING IN 4 STATES: FLORIDA, NEVADA, ARIZONA AND CALIFORNIA.  Other states have some foreclosures but not to the extent and the housing markets in many areas of the country are not unstable. ( that was from the Larry Cudlow show on CNBC report last night).

Thanks for the post Matt, sorry for such a long comment.

Mar 05, 2009 07:49 AM
Steve Shatsky
Dallas, TX

Hi Matt... I have had an account with Realty Trac for several months now and receive leads from RealtyTrac.com for certain areas of Dallas.  I have to say that in nearly 6 months, I have had no greater incident of unavailable listing than I have found in MLS with agents who fail to update the status of their listings there.  Maybe what you are seeing with Trulia has something to do with a data feed issue?

That having been said, I agreee with you.  I do think there that there is a significant need for greater consumer (and in some cases, agent) education in this area.

Mar 05, 2009 07:49 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Hey Matt, I was thinking the same thing. I was answering a bunch of Voice Questions last night ONLY for my area. The consumer kept asking when will this one be available.

Nope not going to go look and see when the Sheriffs Sale occurred. We have a 6 mo redemption period in Mi so I just tell them to email me and I will send it when it comes on open market.

Mar 05, 2009 08:06 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The biggest problem I see from Trulia's feed from realty Trac are the prices on the lis-pendens listings that are either not active listings or only represent the outstanding mortgage balance and have no relationship to what the house will be on the market for.

Mar 05, 2009 08:14 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Gail - As you might guess from my post, I welcome long comments.  I also like to see links in them, even if its to your own stuff (as long as its relevant - I'm different like that).  I've had the same questions asked of me about properties that were long gone.  Its sad, because people are being (and I say this again, unintentionally (I hope)) misled by sites with outdated info.  Its hard to keep control of it and I guess its a programming/feed issue...something I probably don't comprehend, but the fact of the matter is that it is confusing to the consumer, so someone should be thinking about ways to fix and/or prevent it.

Steve - My only real trouble in our MLS has been with rentals.  Those play second-fiddle in many agent's minds around here it seems, so they're often inaccurate (and because of the nature of rentals - first come, first serve), even after checking that its still available, the rental can be gone.  As for education, I am all for greater education for consumers and agents.

Missy - I like how you capitalized "ONLY."  You know Johnathan's love of that one.  He taught me that one well (I actually had him look at some of mine to give me his opinion).  The redemption period makes it even harder.

Gabe - Yeah, that can be a real trouble maker.  That's what I mean about giving everyone this false sense of price and unrealistic expectations.  How are we bettering the market (today) and real estate (now into the future), if we're setting people up with these thoughts?

Mar 05, 2009 10:42 AM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

I love it when you raise hell, Matt!  If Mohamed won't come to the mountain, then maybe we can take the mountain to Mohamed?  You're really hit on two touchy issues here, neither of which Trulia wants to hear. 

RealtyTrac is accountable to nobody, and IMHO, that's a travesty.  The public is confused WAY too often, if not defrauded.  But since the burden of "protecting the public" falls on the shoulders of our state real estate departments/commissions, my guess is that none of them want to take on a national entity like that.

As for agents giving comments and advice in areas and states in which they are not qualified, I think the agents AND Trulia area often guilty of misrepresentation, practicing law and breaching ethics.  I'm betting that one day in the near future, some unsuspecting consumer is going to follow the flippant/errant "advice" of an agent from another state, end up in a mess, and then here comes a law suit the size of Texas!

Great post, Matt!

Mar 05, 2009 04:22 PM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Randy - When I write something like this, my focus is twofold.  One I hope someone from these companies reads what I say and reads the comments and think, "hmmm, perhaps we should..."  The other is that I hope the the public reads it and realizes that we get frustrated by the things that they do too and that we want change as much as they do.  We want things to work for them, because then it works for us and allows us to better help them.  The theory behind RealtyTrac is actually a great concept, I just think the execution is flawed and it winds up hurting the consumer.  I don't know the ins and outs of their system and how to fix/improve it, but I do know that its not quite working right (in my eyes).  As for Voices and the local agent thing - you know my opinions on that and I know you are one of those out there with the same feeling.  I've actually noticed a slight decline in it lately in my area, so I'm wondering if people are on vacation or starting to "get it."  I think there's a time and a place for national discussions or out of area discussions, I just don't think fishing for referrals (what I like to call "money for nothing") is a great way to build a business.

Mar 06, 2009 04:20 AM
Anonymous
Jack

The issue is not getting people to understand the all the different steps in the foreclosure process and dollar amounts attributed to Lis Pendens, Final Judgement, Asking Price, etc. The issue is that RealtyTrac as well as most foreclosure reporting services sell memberships. The more information you report that more robust your database looks. The more robust your database looks the more memberships you sell. Foreclosure reporting services like Realtytrac regularly inflate their inventories to push memberships.

Jul 06, 2009 01:27 PM
#15
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Jack - No doubt about it, the size of the database is what sells the memberships and RealtyTrac needs to keep those databases full.  The big problem occurs when Trulia is importing this data, data that can change rapidly (many homes hit the foreclosure list, but don't hit foreclosure) and at times homes that are set for auction in the past get listed after the auction date.  It confuses the consumer and wastes their time.  Foreclosures are a big issue to me, because they've become such a buzzword without most people understanding what is happening with a property as it moves through the foreclosure cycle.

Jul 07, 2009 02:01 AM
Anonymous
Scott

I have been using Realty Trac, Zillow, Trulia, and Tauriello sites for the Delray Beach area in Florida. All (except Reaty Trac) have little basis in reality: nothing but bait and switch tactics and outdated information. What a waste of consumer's time to promote these sites that represent the worst in Real Estate business practices just short of fraud. Over time the public will find out, and these sites and others that are created by unprofessional, unethical agents, will go away.

 

Sep 12, 2010 06:13 AM
#17
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Scott - Zillow doesn't carry a ton of weight in Texas as we're a non-disclosure state (although consumers still use it).  Trulia typically has decent data, but the big problems I have had with it is the data it pulls from RealtyTrac.  That's been the biggest stumbling block in my experience.  It is often incorrect and out-fo-date - even when it's brand new data (on Trulia).

Since the consumers are already using these sites, I think it's up to agents and others in the industry to call these sites out when they make mistakes and applaud them when they do well.  I could wish they would go away all I want, but that's not going to happen (and even if some go away, new ones will crop up) - so it's all about making the best of them and trying to make them better by open discourse and conversation.

Sep 14, 2010 06:01 AM
J. "Diego" Marin
World Wide Realty - Irving, TX
Real Estate Solutions

Matt -  I have to say that I'm equally frustrated with the data I receive from RealtyTrac... I had renewed my subscription because of the great pricing I get though the CDPE membership... However, of what value is it really... if the property someone calls on shows to be bank owned (although still occupied).... and they have no additional  information other than what we see?

I mean... has it in fact sold? Is there an eviction of some sort taking place? And, if it has already been bought by someone... why is it still showing as an active reo? Drives me bananas! And forget asking my sales rep... won't return my calls or emails...

In spite of all this... my phone does ring with potential buyers...

Aug 25, 2016 06:58 AM