This is a pretty cool public art display.
What could REALTORS do to make people stop and look?
1. Shut off all public websites for property search. This would direct all consumers to work with REALTORS
2. Stop all print advertising. This would direct all consumers to REALTOR websites or REALTOR offices.
Have any other ideas?
If my friends were to vote on sentences that I would never write, "Thank You Microsoft." would surely make the top 10 - until now.
The wonderful thing about abundance of capital is the opportunity for exploration and whimsy. When companies stop trying to stretch every dollar, their employees begin to bump into great ideas. These ideas may not have a straight line to revenue, but moreover may have a dotted line to doing things that make your customers feel good about your company, its products, its people, and its vision for the the future.
Case in point.
As my opening remarks connote, I am not a big Microsoft fan. I will not bore you with the reasons why. If you use a MAC, you already know. If you use a PC, you are living with the daily pain. But today, Microsoft made me say "Thank you Microsoft!"
In the spring of 2008, Microsoft is launching the World Wide Telescope. It is a website that will allow anyone, anywhere to access any point in space any time with pan, tilt and zoom. As a father of a 5 year old, I cannot wait to explore space with Alexandra.
To learn more about the World Wide Telescope, visit the intro site.
Ed missed the trophy ceremony, as he was in England.
Special thanks to stand in crew, Barry Rossum for sailing in the 25 mph breeze to complete the series.
Thanks to many of you who have asked about my sailing exploits.
After buying the boat in June, Ed Stevens and I have been on a steep learning curve and are improving. After fininshing 36th in the Nationals in Newport, CA this year, we improved to 12th in the Mid-Winter regatta held in Long Beach, CA. Yesterday, the Morro Bay Yacht Club awarded us with the Founders Cup for winning the Winter racing series.
The internet can sometimes be very profound. I am running low on illy coffee and went online today to illy.com to order more. Sadly I learned that Ernesto Illy died today. In reverence, the company took down their website today and simply put up a photo of their founder.
Does the agent participate in the real estate transaction as a matter of free will?
Some scientists (and Albert Einstein with them) have argued that consciousness must be fabricated by reality, that what we feel is simply an unavoidable consequence of the state of the universe, that we are simply machines programmed by the rest of the universe.
Other scientists believe the opposite, that consciousness fabricates reality, that we have the power to alter the course of the events. They believe in free will.
Do real estate agents think or are they thought?
The question, while popular, is misleading. The question is, in a sense, already an answer: the moment we separate the "real estate agent" and the real estate industry, we have subscribed to dualism, to the view that spirit and matter are separate and spirit can control matter.
A free will grounded in matter is not easy to picture because we tend to believe in a "real estate agent" external to our real estate industry that controls our real estate industry.
But, in a materialist scenario, the "real estate agent" is supposed to be only the expression of brain processes. If that is the case, then "free will" is not about the "real estate agent" making a decision: the "real estate agent" will simply reflect that decision. What makes the decision is the transaction process.
This does not mean that free will can't exist. It just needs to be redefined: can a transaction process occur that is not completely caused by other physical processes?
In a materialist scenario, free will does not require consciousness: consciousness is an aspect of the transaction process that "thinks". The question is whether that transaction process has free will.
If consciousness is indeed due to a physical process, if consciousness is ultimately material, does this preclude free will? For centuries we have considered free will an exclusive property of the soul, mainly because 1. we deemed the soul to be made of spirit and not matter, and 2. nothing in Physics allows for free will of matter.
If we now recognize that consciousness is a property of matter(possibly one that occurs only in some special form and configuration of matter, but nonetheless ultimately matter), the second statement must be examined carefully because the possibility of free will depends on its truth: if motion of matter is controlled only by deterministic real estate laws, then free will is an illusion; if matter has a degree of control over its own motion, then free will is a fact.
The question is not whether real estate agents have free will, but whether the real estate laws of our universe allow for free will.
Interesting comments from Alex Perriello on the real estate market on this morning's inman video.
Alex is the CEO of Realogy, representing 313,000 agents in 83 countries (40% outside the United States).
He observes the 4 and 2 cycle of real estate whereby there are 4 years of expansion followed by 2 years of contraction - and sees that the 10 years of expansion that we are just coming out of had to end. We are in our second year of contraction.
He has his people focused on winning locally - grabbing market share when competitors are weak.
Gadget Girl, my pal, asked me about Linkedin and other social networks today "How do you like them." Here is my reply.....
Business networks are positive social networks. Take Linkedin, for example. I can meet with a potential client and tell them all kinds of crap about who I know and relationships that I have which provide value to my consulting clients. The client will need to believe me and trust that what I say is true, or contact a few references that I provide which are obviously only going to say great things.
With Linkedin, they can review all of my links - they do not need to "trust me." They can trust the crowd or find someone that they already trust who we mutually know, and ask them.
It is also a nice way to back up your address book whereby everyone keeps their contact information and career information up to date for you.
I also think that it is random fun to see the people who we know in common - for example - one of my good friends in high school went to Harvard. At a Harvard mixer in NYC, they met and became friends with the only other Harvard alum that I know who lives in New York. Neither of them were aware that Marilyn and I were friends with both of them - now they are and we get together as a group in NYC now - and that is random fun.
What is intelligence, anyway? When I was in the college, I received the kind of philosophy aptitude test that all students took and, against a normal of 100, scored 160. No one at the school had ever seen a figure like that, and for two hours they made a big fuss over me. (It didn't mean anything. The next day I was still a freshman.)
All my life I've been registering scores like that, so that I have the complacent feeling that I'm highly intelligent, and I expect other people to think so too. Actually, though, don't such scores simply mean that I am very good at answering the type of academic questions that are considered worthy of answers by people who make up the intelligence tests - people with intellectual bents similar to mine?
For instance, I had an auto-repair man once, who, on these intelligence tests, could not possibly have scored more than 80, by my estimate. I always took it for granted that I was far more intelligent than he was. Yet, when anything went wrong with my car I hastened to him with it, watched him anxiously as he explored its vitals, and listened to his pronouncements as though they were divine oracles - and he always fixed my car.
Well, then, suppose my auto-repair man devised questions for an intelligence test. Or suppose a carpenter did, or a farmer, or, indeed, almost anyone but an academician. By every one of those tests, I'd prove myself a moron, and I'd be a moron, too. In a world where I could not use my academic training and my verbal talents but had to do something intricate or hard, working with my hands, I would do poorly. My intelligence, then, is not absolute but is a function of the society I live in and of the fact that a small subsection of that society has managed to foist itself on the rest as an arbiter of such matters.
Consider my auto-repair man, again. He had a habit of telling me jokes whenever he saw me. One time he raised his head from under the automobile hood to say: "Doc, a deaf-and-mute guy went into a hardware store to ask for some nails. He put two fingers together on the counter and made hammering motions with the other hand. The clerk brought him a hammer. He shook his head and pointed to the two fingers he was hammering. The clerk brought him nails. He picked out the sizes he wanted, and left. Well, doc, the next guy who came in was a blind man. He wanted scissors. How do you suppose he asked for them?"
Indulgently, I lifted by right hand and made scissoring motions with my first two fingers. Whereupon my auto-repair man laughed raucously and said, "Why, you dumb jerk, He used his voice and asked for them." Then he said smugly, "I've been trying that on all my customers today." "Did you catch many?" I asked. "Quite a few," he said, "but I knew for sure I'd catch you." "Why is that?" I asked. "Because you're so goddamned educated, doc, I knew you couldn't be very smart."
And I have an uneasy feeling he had something there.
I was asked to fill out this questioneer by Susie Hale to be published in her award winning Real Estate newsletter - Frogpond.If you did not catch it, you can read it below
Visionary’s Questions:
1. As an "industry visionary", what do you see as the major changes occurring in the real estate industry.
The real estate industry has been paralyzed by some cognitive biases that will be addressed now that the market has shifted. When the market was in bonus mode, business was at ease to just plod along doing what they have always done.
The consumer changed while our industry was basking in the rich glory of the highest run-up in the history of real estate. In Y2K, the consumer was 72% traditional buyer and 28% internet buyer. Now the internet buyer is 72% and the traditional buyer is 28%.
With the development of web 2.0 applications, the industry should be poised to make a shift to put the consumer in the center of our thinking, providing them the information they require and providing them outstanding responsiveness and respect. We also need to hold ourselves accountable to higher levels of service than ever before. We need to use benchmarking systems like QSC and others to constantly ask for feedback on our performance from our clients. Importantly, we also need to have the courage to share the feedback we receive from our clients with other potential clients. It will be a slow process, but I think that the market is putting pressure on brokers and MLSs to start moving in that direction.
2. What major "corporate players" are driving change and what may be their impact?
Coldwell Banker Real Estate – They see and understands the consumer (agent and consumer) well. Their vision coupled with the support of her NRT development team put them in a great position to drive change if they choose to go for it. If CB takes a lead, everyone will need to follow or get swallowed.
Real Living – They are making moves in Brokerage Management ahead of the industry. They have built a strong brand and have great leadership who embraces new ideas. They are already leading but their influence needs to grow beyond their regional footprint.
Google Real Estate – Brokers seem poised to give Google their listings. As such, once the data is there, enterprising non-brokers and non-agents can repurpose the data with no rules or regulations and pull an end-around on the real estate industry. The impact will be a pull-back by brokers providing their listings to third party websites, and an enlightenment period by MLS that will give brokers more flexibility with listing and sold data.
Craigslist – They will kill the newspapers who have been bleeding the industry for years. Only 12% of home buyers look at the newspaper for real estate. Why is the industry investing so many marketing dollars there – until Craigslist, there was no better alternative.
Leaders of MLS alliances for statewide data sharing – MLS systems scale very well economically and functionally. State law governs the real estate license. As such, it only seems intuitive that one database of listings should be available to licensed agents and brokers within that state. Those accessing that data should have free market choices to the interface they prefer. The combined data should also be available to registered and licensed vendors. The members and the consumers win.
BlackBerry – their push email technology is by far the best solution for REALTORS® and home buyers who use smartphones. The United States has been lagging in mobile technology usage but that is changing rapidly. Everyone wants to stay in touch in real-time. If an agent wants to be really responsive to their clients, their technology allows it to happen.
3. Who are the "individual trendsetters" that are shaping the future real estate industry?
Bob Hale, CEO and President of Houston Association of Realtors – HAR.com is a benchmark for all MLS organizations that truly want to serve their members. He is steadfastly and unselfishly encouraging his MLS peers to adopt his positioning to support his membership with outstanding web presence. HAR.com has more than 90% share of voice to the consumer for property search in their market – and they are completely focused on introducing those consumers to their agent and broker members. The members and the consumers win in the best possible way.
Brokers like Shari Chase, Harley Rouda, Jr, and other brokers who have taken control of their brands. I expect Sherry Chris to do the same at Coldwell Banker – they are all on the right track. The broker and the consumer wins.
4. What are the expectations of the emerging real estate consumer?
Professionalism and full disclosure of information from their REALTOR®. They do not want to be treated as a lead, they want to be informed. Purchasing a home is the biggest investment of their lives and they want to be comfortable in the decisions they make. They want deep, trust relationships with their agents.
5. How should the Brokerage and Realtor Association / MLS respond to these real estate consumer expectations?
The MLS is responsible to the member needs, which in turn should be consumer focused. Brokers need to push their MLS for rule revision so they can better align themselves with the service levels that the consumer is requesting. MLSs need to respond to those needs in a progressive way, followed by membership training and research. There is an overwhelming level of confusion in the real estate ranks that is driven by opinion rather than fact. Perhaps brokers do not have the budget to measure consumer expectations, in which case, the MLS or Realtor Association should. This is happening at the national level with NAR research, but despite valiant efforts, the broker and agent are not getting the message. The local association and mls should measure the local consumer interest to demonstrate that what is happening nationally is, indeed, happening locally.
6. What changes should a Brokerage implement to ensure profitability in the future?
Take back your Brand and take control of marketing, hold your agents accountable. Agents are given far too much latitude in personal marketing at the expense of the broker brand, they do not come to the office, they to not participate. This is driven by brokers who are allowing each agent to disengage from the brokerage and make their own decisions. Personally, I think that this is dangerous.
7. What role do you see the Realtor Association / MLS playing to ensure Broker profitability?
The REALTOR® Associations and MLS are not responsible for broker profitability and should not mingle in the broker’s businesses unless the broker breaks rules. Rather, the Associations and MLS should provide great services and great information that allows their subscribers manage their own businesses effectively. May the best broker win.
8. Based upon your vision of the future of the real estate industry, what are you doing to help influence positive change?
I am outspoken, usually to a fault. WAV Group prides itself on partnering with its clients to drive positive, customer-centric change through quality research and planning. In this way we hope to clear up the distortion in the way our industry tends to see their customer. Business decisions need to be empirically verified. We do that.
9. What books would you recommend as a "must read" that have influenced your vision?
I was a literary neophyte when I was in high school and college. In the 80s and 90s I was addicted to business books. Today I look to “media sites with commenting” to learn what is going on and how people feel – I like the interaction that is happening in real time. When I read a book, I only get to learn from my impression – online I can share in hundreds of impressions around the same idea – its broad in the broadest of terms.
As such, I would suggest people read The Wisdom of the Crowds: Why the Many are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations by James Surowiecki, Doubleday. Surowiecki is a contemporary of mine, we grew up in the same era so I hear his voice. He writes for the New Yorker and his writing often appears in the NYTimes, WSJ, Wired and Slate. The topic is highly relevant to the real estate industry today.
10. What advice would you give Brokerages and Realtor Associations / MLSs to assure they stay relevant and successful in the future?
Stick with the basics.
• Research and Profile your customer every year and build a business plan around the services you offer.
• Find out what level of service the customer expects from you.
• Customize the service you deliver to meet your customers expectations and their needs. We are too “needs” focused today.
• Put in a fair margin that meets the value expectations of your customer and allows you to withstand the cyclical nature of this industry and invest in the future.
• Build a marketing plan to communicate your value with your customer in a way that your customer understands.
• Advertise and communicate with your client in their space.
• Deliver on your promise in the best possible way.
• Measure your efforts.
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