The real cost of social media

Landing prospects through social media requires an investment of time

BY DAVID FLETCHER, WEDNESDAY, AUGUST 29, 2012 Inman News®

Infinite time image via Shutterstock.

With the help of a marketing professional with a doctorate in psychology, I am gradually overcoming what I thought was an incurable disease: socialmediaphobia.

I fear what I don't understand, and I have not understood exactly what social media I needed, why I needed it or what it would cost.

Fortunately, thanks to LinkedIn, a social media site known for its business contacts, I met someone who could help.

Barbara Lemaire, owner of Social Media Made Simple.info, invited me to connect with her on LinkedIn. When I saw that she was a Ph.D. with a website that said she was "first and foremost a marketing professional," I practically blurted out my concern about social media and its cost to operate.

The gathering storm

Commentary: US may be alone in capacity to tackle debt and budget gap

BY LOU BARNES, FRIDAY, AUGUST 24, 2012 Inman News®

Western meadowlark image via Shutterstock.

"It's quiet out there -- too quiet."

That line appeared again and again in 1950s horse operas, and we Western kids practiced daily the eye-squinted and growled delivery. We also worked at whistling the call of the meadowlark, the way the Native Americans in those oaters signaled each other before their attacks. In our games, the short straws were the cowboys; our Sioux and Cheyenne always won in thrilling slaughter.

It is August, traditionally void of news, but this is really quiet. Eerie quiet.

Europe has fallen silent. Even the European Union no-content boys in Brussels have paused posturing. Monti, Rajoy, Hollande ... so quiet you could hear a euro drop in the Rhine.

How my MLS levels the playing field

Realtor Notebook

BY TERESA BOARDMAN, THURSDAY, AUGUST 23, 2012 Inman News®

topten22photo / Shutterstock.com

I am a raving fan of my multiple listing service, Northstar MLS. But because I talk to agents around the country, I know that not all MLSs are equal.

Over the years, Northstar MLS has added many features, and now offers several services that I used to pay for separately. For a mere $450 a year, I not only get access to a sophisticated database of local real estate, I also get most of the basic software that I need for my business.

Northstar MLS levels the playing field between the big brokerages and the small ones, and makes it possible for agents and brokers to stay focused on clients and selling real estate instead of technology. The products and services are high-quality and affordable, with accurate and up-to-date data in a system that has very little down time. Most of it is very easy to use, and there are classes and instructions available to all agents.

5 ways seasonal marketing is good for business

Sell real estate clients on listings, lifestyle

BY BERNICE ROSS, THURSDAY, AUGUST 23, 2012 Inman News®

Oak tree in autumn image via Shutterstock.

It's hot and muggy, lots of folks are on vacation, and it's tempting to head to the beach or the pool instead of work. But fall is only four weeks away, and with it, fall selling season begins in earnest. This is your last chance to meet the production goals you set for yourself at the beginning of the year.

If you want to kick up your production now and throughout the fall, here are five ways to capitalize on this great time of year.

How to buy a home like it's a car

Questions to ask before signing on the bottom line

BY ALISHA ALWAY BRAATZ, WEDNESDAY, AUGUST 22, 2012 Inman News®

Gary Whitton / Shutterstock.com

Everyone who knows me knows how much I love cars. I told my roommates in college that I would be driving a '69 Camaro by the time I was 30 -- a really hot one with a great sound system.

I bettered that. I married a man with classic cars. Besides the fact that he's my best friend, I must say, it was a great car decision. Why? I've got the best of both worlds.

During the work week I drive a very conservative four-door sedan. And then, in my free time I do burn-outs in the '63 Impala.

This is a very good compromise because if something goes wrong with my muscle car I must choose one of the three following options: call Husband, call Dad, call AAA. I don't even know where the oil pan is, and I don't care to find out.

5 reasons to make the leap to Mountain Lion

Realtors using Macs will appreciate features of new Apple OS

BY TOM FLANAGAN, TUESDAY, AUGUST 21, 2012 Inman News®

Mountain lion image via Shutterstock.

Apple Inc. has equipped its newly released OS X Mountain Lion operating system with features from the company's mobile platform, including some that are popular with real estate agents. But before rushing to the App Store to upgrade your Mac, it's important to make sure the critical software you're using today is compatible.

For those keeping score at home, Mountain Lion is version 10.8 of Apple's operating system for laptops and desktops. The system is available via the App Store as an upgrade for $19.99. Most Macs made since 2008 and 2009 can be upgraded, and iMacs and MacBook Pros made as long ago as mid-2007 will also run Mountain Lion.

FHFA streamlines short sale standards for Fannie Mae and Freddie Mac

By Kerri Ann Panchuk

• August 21, 2012 • 1:45pm

New short sale requirements for servicers proposed by the Federal Housing Finance Agency are giving financial firms a battle strategy for dealing with reluctant subordinate-lien holders who attempt to delay short sales on points of negotiation.

Some parties in short sales are able to delay the process by objecting to certain conditions and attempting to negotiate higher prices.

Fannie Mae and Freddie Mac launched new short-sale guidelines for servicers to speed up and streamline the process of moving distressed borrowers through a short sale. The guidelines take effect Nov. 1.

3 Web tools that can make an agent's job easier

School your sellers on intricacies of moving, dangers of overpricing

BY BERNICE ROSS, MONDAY, AUGUST 20, 2012 Inman News®

Agent offers three real estate choices image via Shutterstock.

While everyone is wild about apps these days, some of the most useful tools for your real estate business continue to be ordinary websites. In fact, many older sites are still rich with resources to make your job easier.

Here are three resources that can help you with your business.

Monsterdaata.com
Monsterdaata.com is an old site that has a wealth of resources on it from the California Association of Realtors. While much of the data on this site hasn't been kept completely up to date (e.g., the census data is based on the 2000 census), there are numerous resources that are still quite useful. Here are three examples:

Why mortgage rates are rising

Commentary: To foster recovery, something has to give, but what?

BY LOU BARNES, FRIDAY, AUGUST 17, 2012 Inman News®

Dollar sign sinking image via Shutterstock.

Two things this week: Explain the sudden rise in Treasury and mortgage rates, and then provide a simple tool for understanding budget issues in the election. Nuthin' to it.

In the last two weeks the 10-year T-note has run up from 1.45 percent to 1.85 percent, taking many mortgages from below 3.5 percent to above 3.75 percent.

Explanations offered by sharpies: The economy has turned for the better, no longer sliding toward recession. Or because the Fed will not soon begin QE3, either because the economy is better, or because it won't do any good, or because of the election, or because of internal politics. Or rates have risen because Europe might save itself.

Trulia files for $75M IPO

Real estate pro subscriptions account for 68 percent of company's revenue

BY INMAN NEWS, FRIDAY, AUGUST 17, 2012 Inman News®

Stock exchange computer screen image via Shutterstock.

Online real estate search and marketing company Trulia Inc. today publicly filed for an initial public offering of shares in the company worth up to $75 million. Trulia's move follows in the footsteps of competitor Zillow, which filed for an IPO a year ago, raising $75.7 million, and today has a market capitalization rate of $1.09 billion.

Trulia's filing of an S-1 registration statement with the U.S. Securities and Exchange Commission comes on the heels of news reports that Trulia hadquietly filed for an IPO with the SEC at the end of July under the provisions of a new law, the U.S. Jumpstart Our Business Startups (JOBS) Act, that allows emerging companies with less than $1 billion in revenue to file confidentially. That's an attractive option for some companies, Reuters reported, because the filing can be withdrawn without publicizing it if regulatory issues come up.

3 secrets to getting buyers off the fence

Agent reveals tricks of the trade after closing $2 billion in single-family deals

BY STEVE BERGSMAN, FRIDAY, AUGUST 17, 2012 Inman News®

Excited homebuyers image via Shutterstock.

John Klemish is the "$2 billion man."

It's my nickname for Klemish ever since I met him earlier this year while researching my column on golf course communities. I decided to slap that appellation on him when I learned that in the course of his almost 30 years in the business Klemish estimates he has sold more than $2 billion worth of single-family residential properties.

That's a lot of hustling, especially for a guy who majored in leisure studies at college and whose first job was teaching croquet on Useppa Island, just off the western coast of Florida.

Deducting health expenses will become more difficult in 2013

Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, AUGUST 17, 2012 Inman News®

Coins and stethoscope image via Shutterstock.

Have you been thinking about going to the chiropractor or dentist, but been putting it off because it's not covered by insurance? If so, you should probably incur these and other uninsured health expenses before the end of the year. If you wait until 2013 or later, it will become much harder to deduct them from your income taxes.

For decades all taxpayers who itemize have been entitled to a tax deduction for medical and dental expenses for themselves, their spouses and their dependents. Eligible expenses include both health insurance premiums and out-of-pocket expenses not covered by insurance.

Unfortunately, there is a significant limitation on the deduction, which can make it useless for many taxpayers: You can deduct only the amount of your medical and dental expenses that are more than a specified percentage of your adjusted gross income (AGI). Your AGI is your total taxable income, minus deductions for retirement contributions and half of your self-employment taxes (if any), plus a few other items (as shown at the bottom of your Form 1040).

Fannie Mae CEO Uncertain Of Housing Bottom. (Video)

Fannie Mae isn’t sure that housing is out of the woods….and lets be 100% honest…FANNIE MAE would know.

Remember, almost 100% of ALL new mortgages are backed by Fannie or Freddie.

Why is Fannie Mae concerned that housing may not have hit bottom..and more depreciation could happen? Simple, 19,000,000 (according to our friends at Zillow) underwater mortgages.

Realistically we will bump along the ‘bottom’ for years. 3-5 years at least. Until homes regain their value (inflation) the 10s of millions of underwater homes simply won’t allow for a true housing recovery.

Consider this number: 20%. For an owner to be able to afford to SELL their home and then buy their next home they need to have 20% equity in their current home. Selling fees can easily eat up 10% of a sellers equity..and then they will need at least 10% down on their next home..thus, 20%.

Do YOU have 20% equity in your home?

Urgent Short Sale Notice: Must attend Short Sale industry update. New fast close, direct assignment short sales. Learn how to become a Lender Preferred Short Sale Agent. Grab your spot for the FREE Short Sale Industry Update Training Event. Warning: Limited space available for this industry wide event. Register now!

3 must-knows before taking out a reverse mortgage

Borrowers who select lump sum option must budget for the unexpected

BY BERNICE ROSS, THURSDAY, AUGUST 16, 2012 Inman News®

House made of bills image via Shutterstock.

Approximately one-third of all Americans own their homes free and clear. Nevertheless, many seniors can end up losing their homes because they don't have the money to pay their property taxes, or they get hit with high medical bills or encounter a situation in which they need the equity from their home but can't qualify for a loan.

For many, a reverse mortgage may be a great way to avoid losing their home.

Over the last few years, reverse mortgages have gained a somewhat negative reputation in the real estate community. In some circumstances, however, these can be a tremendous blessing to seniors who may be at risk of losing their homes.

How reverse mortgages work

There are many different types of reverse mortgages. Unfortunately, there are quite a few scams in this area, so seniors looking at this option need to tread carefully. Here's how the HUD/Federal Housing Administration program works:

"A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, HECM (home equity conversion mortgage) borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.

Don't fall prey to real estate mythology

Relevant data can help agents and brokers make evidence-based business decisions

BY TERESA BOARDMAN, THURSDAY, AUGUST 16, 2012 Inman News®

Old sky map image via Shutterstock.

Experience teaches us how and where to market homes and that there is no one-size-fits-all marketing plan for all housing types in all neighborhoods and price ranges, but there are some basic rules. It has always surprised me that there is so little data on how to market real estate. The pieces of data that we have become the cornerstone of real estate marketing legends and mythology.

Last week I watched a video that was advertising a marketing system for real estate agents. It used what I call a leap of logic based on one statistic: People like video and 72 percent of home sellers want agents to use video. Therefore, the agent who used video would attract crowds to an open house, while the agent who did not use video would sit in an open house all alone with no visitors at all.

Selling real estate on the $300 house

'Reverse innovation' is unique way to penetrate emerging markets

BY GAHLORD DEWALD, WEDNESDAY, AUGUST 15, 2012 Inman News®

Tree forming world map image via Shutterstock.

In the Harvard Business Review recently, Vijay Govindarajan and Christian Sarkar put forth the idea of designing and manufacturing a house for $300 in order to more adequately house the poor.

What is specifically interesting about the concept is that it is not to be a charity project. It is to be an actual business in an unfortunately large market.

Working through Dartmouth College, Enterprise for a Sustainable World, and International Fund for Africa, the team is planning to deploy a solution to India, Haiti and Indonesia, as well as working on an integrated model for Ethiopia.

One of the core principles of the work is "reverse innovation."

Reverse innovation is any innovation likely to be adopted first in the developing world. And though it may seem counterintuitive (How do developing countries get "innovation" if they don't have financial resources?), there is a lot of merit to the concept.

Using third-party AVMs to price your listings Tips for arriving at a realistic value

BY BERNICE ROSS, MONDAY, AUGUST 13, 2012 Inman News®

Magnifying glass on housing image via Shutterstock.

Let's face it, home sellers are often skeptical about prices, market conditions or the necessity to stage a property to get it sold. While they may not be willing to believe you, many younger clients are willing to believe the information they see online.

Recently I was speaking to a young woman whose family was facing foreclosure for failure to pay their condominium association fees. They had two severely disabled kids. Even though they had medical insurance, the bills had overwhelmed them. They were under the mistaken impression that if they continued to keep up their mortgage payments they could keep their home. Sadly, the homeowners association was enforcing its right to foreclose. The question is whether they could stay in their home possibly through a loan modification?

The family's existing loan was at Chase with the initial loan amount being $290,000. The family had paid the loan down to $275,000. The question was whether Chase would agree to take a principal reduction under the Home Affordable Refinance Program (HARP).

Big data is here to stay Analytics can help predict which website visitors will close

BY ANDREA V. BRAMBILA, MONDAY, AUGUST 13, 2012 Inman News®

Gauges image via Shutterstock.

SAN FRANCISCO -- Real-time data of human behavior is an increasingly valuable resource real estate professionals should take advantage of, according to panelists at the Real Estate Connect conference in San Francisco.

The ability to track consumer habits both online and offline keeps advancing with technology -- a boon to marketers who want to find and engage with a target audience.

"You've got to embrace it because it's not going anywhere," said Jed Katz, managing director of Javelin Venture Partners. "The concept of putting the right ad on the right device for the right person in a way that's not creepy" is more and more important, Katz said.

Michael Chui, a principal at McKinsey Global Institute, noted that since the advent of the multiple listing service, data has continued to increase at an exponential rate.

"We're seeing a diversity of sources of data: social media, all kinds of sensors out there. (And of an) increasingly real-time nature," Chui said. Data is also being used in new ways, particularly for marketing and forecasting or "now-casting" purposes, he said.

LORE Magazine - Lives of Real Estate Fall 2012

Open publication - Free publishing - More lore

Welcome to the second issue of the new LORE magazine! If you liked the amazing stories of the lives of real estate (LORE) professionals in our first issue, you'll love the stories of the hard-earned success of those featured in this Fall 2012 issue.

Are you an Olympic-level Realtor? Wow your audience with skill, preparation and professional imaging

BY ALISHA ALWAY BRAATZ, WEDNESDAY, AUGUST 8, 2012 Inman News®

Realtor Olympics image via Shutterstock.

I can still remember my first Summer Olympic Games -- as in, the first games that made any impression on me.

It was 1988, and I was away from home at a weeklong overnight camp. Every afternoon during free time the counselors would roll a dining cart with a humongous TV outside, trailed by a 30-foot extension cord. In between soccer games and pool cannonballs we would collapse in front of the TV and see who was making history.

Carl Lewis and Ben Johnson made all the headlines, world records and scandal -- a lot to take in for a 9-year-old. Ever since those games, I have been in love with the Summer Olympics: the spectacle, the athletic prowess, and the idea that if only my parents had tried harder and encouraged me more, I, too, could have triumphed on the uneven bars. Parents.

How millennials shop for homes Yelp, Craigslist, paperless are key factors in recent transactions

BY ANDREA V. BRAMBILA, TUESDAY, AUGUST 7, 2012 Inman News®

Millennials image via Shutterstock.

SAN FRANCISCO -- When 30-year-old prospective homebuyer Greg Pasquali and his significant other went in search of a real estate agent to represent them, they chose a site well-known to anyone searching for a good restaurant: Yelp.

"We used Redfin for open houses, but we didn't get a good feel for agents there, so we used Yelp," Pasquali told attendees at the Real Estate Connect conference Friday. He was part of a panel of millennials who answered questions from Inman News Publisher Bradley Inman on stage about their recent home searches. The other panelists were Brittany Ashlock, 32, and Martin Ringlein, 30.

"I think there's a general publicity problem for real estate agents," Pasquali said, noting that a turn-off for him was agents who were "trying to sell us something" and didn't listen to what they wanted. The couple walked away from one agent who would send them online listings that didn't match the criteria they had told the agent they were looking for.

Use analytics to grow your business Data can reveal best strategies

BY TOM FLANAGAN, TUESDAY, AUGUST 7, 2012 Inman News®

Gears image via Shutterstock.

When Realtors hear the term analytics, many think of website metrics. But analytics "are everywhere, not just on the Web," says Adam Wiener, Redfin's vice president of analytics and new business.

Utilizing analytics can help improve offline marketing efforts, for example.

"Think about just listed and just sold cards," Wiener says. "Imagine you sent out 100 of these for every listing and it cost you $200 and a bunch of your time. You want to know how many transactions and referrals called you from the postcard to see if it is worth doing. Just use a pen and paper and break down the stages, no fancy tools required."

Wiener was one of several fantastic analytics experts sharing their insights on a panel I had the pleasure of moderating at the Real Estate Connect conference in San Francisco entitled, "Analyze This: Developing the Right Digital Analytics Strategy."

Headlines that get properties sold Tap into emotional benefits to sell even the toughest listing

BY BERNICE ROSS, MONDAY, AUGUST 6, 2012 Inman News®

Martin Haas / Shutterstock.com

You have just taken a terrific listing, but there's a major problem -- it has the steepest driveway you have ever seen. How would you go about marketing this terrific house with a horrific driveway? Rather than trying to downplay the driveway, the secret is to turn it into a positive that will attract buyers.

Julie Ryan, a leading real estate speaker from Australia, recently was a guest on our RealEstateCoachRadio show. Julie had some excellent suggestions on how to market difficult listings with creative headlines. Her most powerful example involved a property that had been on the market for 11.5 months. It was a great house with a fantastic view, but the steep driveway was a turnoff for most buyers.

If you were marketing this property, how would you have dealt with the driveway issue?

Agents normally downplay the negatives. But the most creative marketers can turn a negative into a positive.

There's still time to break into REOs Experts advise agents to tailor services to investors and asset managers

BY ANDREA V. BRAMBILA, MONDAY, AUGUST 6, 2012 Inman News®

Blue skies image via Shutterstock.

SAN FRANCISCO -- With the vast majority of bank-owned properties not yet listed for sale, there is plenty of opportunity left for real estate agents and brokers to break into or delve deeper into distressed properties, according to panelists at the Real Estate Connect conference in San Francisco.

Estimates of real estate-owned properties (REOs) held off the market by lenders after repossession -- sometimes called "shadow inventory" -- varied somewhat among the panelists. Foreclosure data site RealtyTrac estimates there are about 600,000 REO properties total nationwide and about 85 percent of these are currently off the market. RealtyTrac vice president Daren Blomquist noted that only about 22 percent of Fannie Mae REOs are on the market.

10 expenses you can deduct when renting out a room Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, AUGUST 3, 2012 Inman News®

Tax forms image via Shutterstock.

Lots of people are trying to earn a few extra bucks by renting out a room in their home. This can not only be a good source of income, but result in tax deductions.

If you rent out a room in your home, the tax rules apply to you in the same way as they do for landlords who rent out entire properties. This means you get to deduct the expenses arising from your rental activity.

There is one big difference, however: You must divide certain expenses between the part of the property you rent out and the part you live in, just as though you actually had two separate pieces of property.

You can fully deduct (or, where applicable, depreciate) any expenses just for the room you rent; for example, repairing a window in the room, installing carpet or drapes, painting the room, or providing your tenant with furniture (such as a bed).

Announcing: 2012 Innovator Awards winners DotLoop CEO Austin Allison named Innovator of the Year

BY INMAN NEWS, FRIDAY, AUGUST 3, 2012 Inman News®

SAN FRANCISCO -- Inman News today named Austin Allison, co-founder and CEO of DotLoop, the 2012 Innovator of the Year, and also announced winners in seven other categories during the Real Estate Connect conference.
The awards, created in 1997, honor real estate companies, technologies, services and individuals who have pushed the real estate industry forward by improving the real estate transaction process for both consumers and real estate professionals.
Winners are selected by an Inman News review team after a reader nominations process. The review team considers the full list of nominees and may also consider other additions to this list. This year there were 56 finalists in seven categories.

Health Care Reform Real Estate Tax

The facts from NAR:

The most important takeaways for REALTORS® when it comes to the 3.8% tax that’s part of health care reform:

1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will not be subject to this tax.
2. The 3.8% tax will never be collected as a transfer tax on real estate of any type, so you’ll never pay this tax at the time that you purchase a home or other investment property.
3. You’ll never pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.