Who knows if it will stick, but business is picking up

The real estate market here has been slow, like other areas, but recently I've been busy with very good prospects that it appears are actually going to buy real estate. I attribute this to the internet, totally. The increase in internet business is astounding when I think back to just four years ago when I was lucky to get 3-4 deals a year through internet marketing.

If this year continues to follow the present trend, 90% of my business will have come from the internet. This is a combination of Google search and referrals from agents met over the internet. Google search results are fueled by blogs, a photo site and information pages regarding neighborhoods.

The actual conversion from lead to closing has been a systematic response and follow-up set-up. IDX and email have been the core of the response and followup, but lately buyers have been calling in with personal requests that are descriptive enough to manually go into the MLS and set up the home-search program and automatic notifier -- then using Google Docs for task management purposes.

The point is that this process is inexpensive. Now I'm trying Homegain and still the cost of doing business is being decreased significantly from 4 years ago. No more print ads, no more billboards, no more postage costs, no more office expense -- I've moved my office to my home and Blackberry. I have also let the assistant go because the system doesn't actually require another person at this point. I have agents I can feed leads to who have their system in place.

In a slow market I decided to cut everything to the bone, squeeze as much as I can out of the existing demand here,and it appears I've been forced to create a model that can be used in good times as well -- so the slowdown has had the positive effect of getting lean and mean.

The difference in overhead is truly amazing, especially when I consider that the cuts backs have not negatively affected quality. I've actually only had three slow months so far -being forced to respond may be the best thing that has happened to me. So much money has been wasted on marketing efforts that don't produce results, I could kick myself for not seeing this during the good times. The lesson: Minimize expenses to what produces results during good markets and bad markets -- stay lean and nimble.

Brilliant!

Update on Saturday, May 3, 2008 at 01:53PM by Mike Farmer

As an afterthought, it might be the Fed's signal that the latest cut will most likely be the last for quite awhile precipitating the increased activity among homebuyers.

Why the old media's complicity in the Obama sham is backfiring

It should have been obvious. By now the old media should realize the strength of the new media -- nothing gets by. The old media kept quiet in the beginning about Obama's problems and it enabled a set-up that may be a disaster to undo.

As more and more bad news for Obama and his past associations pounds out from the new media and forces the old media to respond and report, the more nervous the super delegates become. What was a rising star may now be a burnout -- it's late in the game and choices have to be made.

There will no doubt be rioting in the streets if Obama is not crowned by the super delegates now that he has succeeded this far -- all with the help of the old media. If the old media wasn't delusional and didn't still believe it makes kings, the realization would have struck them that Obama is no king (in more ways than one) and the truth would come out sooner or later -- sooner would've have been much better, because the Democrats are now in a quandary.

The coronation was premature and to reverse the movement at this point is going to look like Hillary stole the nomination with the help of Democrat insiders undermining the first viable African-American presidential candidate -- it will look racist -- it will look dishonest -- it will look and be very, very bad. They have no choice but to stick with their would-be king who's on a downward slope that could be greased at any moment. Oh what a tangled web we weave.....

Zowie! A page rank from Google

My little site which is months old has received a page rank of 3!

Thanks to my partners in crime, no doubt. You all know who you are and you rank far ahead, so you don't need me bragging on you.

I think the real strength in real estate is our networking -- I foresee these connections becoming stronger and stronger. The next step I'd like to see is the broadening of  influence to embrace consumer input.

It would be great if consumers are attracted to give their input and if they have a need, to feel safe to express the need and know they won't be spammed and bamboozled, but rather receive what they need in a real, honest fashion -- break down the barriers of distrust so we can expand the conversation.

Second level search terms -- Bouncing off Zillow/Trulia etc.

Why has Zillow/Trulia not negatively affected my business too much in relation to search results? Because even if it's true that real buyers are going to these sites in droves, these sites don't offer the buyer personalization and context. Anyone reading here will be sick of these terms by now, but I believe in the real estate industry the web 2.0 model is going past the buzz, pretty pictures and inaccurate information to personaliztion and context.

If Zillow/Trulia etc. manages to get good placement on broad terms such city/state/real estate, there is no service to provide direct, accurate local information or to address the personal needs of the buyer. These Listing Sites are made of rubber and I suspect serious buyers bounce off them to a more focused search -- they are in the way of direct access, yet the buyers find their way around them. In a sense Google unwittingly makes it more difficult for it's users to get direct results, but that's understandable because the Listing Sites SEEM important. However, if a human being with real estate experience was manually pulling up pertinent, local real estate results to provide to serious buyers, they would choose differently.

The second level search is more focused once the buyer has more information and knows the right search terms to use -- and this is where I get good placement. The specific areas, the specific neighborhoods, the questions that are locally pertinent in a home search -- even terms relating to relocation and photos of the area.

Search is a powerful tool and speaks to the success of Google. Searchers are becoming more sophisticated and discerning -- they no longer rely on one simple search -- it's a process of drilling down until they've found what they are looking for -- I specialize in local real estate information and that's what they are looking for and finding. Serious homebuyers aren't looking for games and gadgets, they are looking for pertinent information -- and many are looking for service, a human being who help guide them and clarify the information. It's a shame they are blocked somewhat from reaching specialization directly but the Listing Sites need eyes for ads so they battle for generalized placement -- no problem, the serious buyer will bypass them with more specific search terms, or bounce off them realizing they need more.

However, my goal is to beat the Listing Sites on the first level search so that I catch the searchers who might not be savvy enough to focus their search correctly -- through my own efforts to get Mike Farmer Realty at the top and by utilizing a player with search clout that I think is on the right track. I have talked Louis at Homegain and I'm going to try a couple of their products. I will be objective and report back any successes, failures, strengths or weaknesses I find.

I still believe there is a chance for partnerships between RE sites and agents that can work as a supplement to an agent's overall marketing strategy, and I think Homegain might be on track to create this. I haven't sold out, but if I don't try, I won't know. And for all those who are sceptical and haven't tried, I'll be a guinea pig for you.

How many homes are sold through Zillow and Trulia, etc.?

Is anyone keeping statistics? I don't know of one buyer that has told me they saw a listing on Trulia/ Zillow/ etc. and wanted more information about it.

How much of their traffic is made up voyuers, real estate agents and home owners checking their listings? It would be good to know before I tell a seller they HAVE to be on these sites. When I look at Trulia Voices or the discussion format on Zillow for my area, I have found only a very insignificant few interested in Savannah and I have never received an inquiry from my profiles or the EZ ad I tried on Zillow.

I suppose I created the wrong ad or I didn't participate long enough or often enough, but I don't buy that. The problem is that buyers aren't directed to agents -- there is no good connection. This is not the purpose of these sites -- they are  not concerned about connecting me with buyers. In Zillow's case they even have a format that discourages buyers from contacting me -- the discussion board. Ah, but this is transparency -- it's the web 2.0 market place. Voices and discussions in the real world brought to cyber-land at the low, low cost of $0.00.

All the while our pretty pictures of homes are used as bait to draw the voices and discussions and the dueling diggers and the celebrity freaks and the zestimate hounds and the looky-loos and traffic, traffic, traffic for ads, ads, ads. And what do I and my seller get out this -- $0.00. Zillow/Trulia etc gets web 2.0 buzz and we get inaccuracy, obscurity and no results.

RE web 2.0 considers realtors at best a necessary evil (this is my opinion). We are unreasonable and selfish and out of contact with the new market place -- we don't understand how Gen X rolls. We must flow with the new wave and then we'll understand -- just give the listings and you will see, dear realtor -- become one with transparency and you will blend into the cosmic forces at work and then you will be enlightened -- there will be light and song -- the old will die and the new will rise in a harmonic balance where the marketplace will erase distinctions and all will be good. And advertiseres will love it! Why? Well, because it's cool and stuff.

RE web 2.0 Listing Sites had a good chance of taking real estate services to a new level, but that won't happen -- purposes are at odds. The actual people working in the real esate industry will need to take it to the next level and Zillow/Trulia etc. will be only a small part of that. I quit using print ads because they are no longer a viable tool for homes sales -- I'm not sure they were ever very effective -- everyone just thought they had to be in the magazines. Farming and local relationship building was far more effective.

I know this seems like Zillow/Trulia etc. bashing, and I have had some fun with concepts, but I'm making a point that was brought up by Galen and discussed at length on Bloodhound -- Rudy seems to imply that agents need to be on Trulia/Zillow etc. because they are all growing, and in order to do what's best for the seller it's less important to criticize the players as it is to go along and just do it -- give 'em the listings and do what's right.

I don't buy it. I think we as real estate agents need to strengthen our websites and direct web presence, utilize the best  offline markeing methods and create networks among ourselves in order to do what's best for our clients -- and if all the Listing Sites folded tomorrow it wouldn't put a dent in our businesses. The Listing Sites are in a totally different business -- use them if it's free, or decide to not feed them because it strengthens them, pushes us off the search results and leads buyers to places like Zillow's discussions where agents are bashed -- either way, the industry is ours to make of it what we will.

I personally don't care what they do, I'm going about my business with a plan in mind and it doesn't include Listing Sites - I don't feel captive to them because they haven't proved effective in being a viable marketing tool, at least not in Savannah. I personally think the buzz is over and the time has come to re-evaluate where the whole industry is headed -- what's useful, what's not. For me, they are not useful -- technologically interesting, but not useful.

Update on Friday, May 2, 2008 at 10:43AM by Mike Farmer

My business website has a statistics function called Ultra Stats and it lets me know weere all my traffic is coming from.

Almost 60% is referred from Google.

Other referrals are from Yahoo, Msn, a few from Bloodhound, Bigger Pockets, Homegain and a sprinkling of others.

From Zillow/Trulia etc. --- Zero.