CEO’s Introduction

The Inman Real Estate Connect event held in New York last month turned up a wealth of commentary, opinion and forecasts on real estate for 2007. Every possible subject matter was covered, providing speakers and attendees with the opportunity to contribute openly on old problems and ones yet to surface. Brad Inman said that consumers are participating in real estate in a way we never thought imaginable – I couldn’t agree more.

Keynote speaker Seth Godin provided extraordinarily clear commentary that challenges traditional marketing methods. In focusing on the common and much followed process of the individual (Realtor) marketing to the many (buyers/sellers), Seth presented a far more effective model; have the many market to the many – ultimately leading to the individual. This was met with considerable applause, and I have to admit, I smiled as I realized that our own clients have known about this for a long time. Every time an AgencyLogic client builds a PowerSite they allow the seller to tell friends, family, neighbors and work colleagues about “their” Website. Then, in turn, these people look at the PowerSite and see the photo, email address and telephone number of the agent selling the home. As a viral marketing tool, a PowerSite personifies Seth’s advice: “Build something that people will talk about. Make it easy for them to tell their friends about you.”

Video was highlighted as the boom technology for the year. With the very public immergence of companies like YouTube, the ability for individuals to create a property specific video suggests progress and a trend toward imagery of substantially greater quality, clarity, and most importantly, usefulness.

Lloyd Frink of Zillow stated “[There is an] insatiable appetite for consumers to get more information about their most valuable asset.” With most of 2007 still ahead of us, we will all move towards providing that information, solving the problems that go with it, and doing so with the aid of technology. Efficiency and effectiveness will be fundamental in that process. As Brad Inman suggests; “Participate. Technology is a way to advance your relationships with your consumer.”

As always feel free to contact me personally, at any time, for any reason.

Stephen Fells,
CEO

New PowerSite Features
We are pleased to announce that next week we will be unveiling some exciting upgrades based entirely upon your feedback and suggestions. The first thing you will notice is that we have added substantially easier and more intuitive navigation including a “quick menu” that gives you two-click access to any screen.

Above all, we know your time is valuable and these improvements will help you breeze through PowerSite creation like never before. Click here to learn more about our new features.

Free Publicity Teleclass – February 27th at 2pm Eastern – Limited Space – sign up today!

Kim Ades, MBA and President of Opening Doors, is a publicity mastermind who will be delivering the top methods to gaining free publicity and media buzz for your real estate practice. Her tips and tricks are invaluable and can be employed instantly to help position yourself as a media darling – and for FREE! Click here to learn more…

PowerSite of the Month

It is our pleasure to announce that February’s PowerSite of the Month has been awarded to Drew & Linda Hartanov and The Hartanov Team in San Clemente, CA. Their PowerSite www.avenidagranada.com is outstanding.

Customers visiting their site get a complete picture of not only the property, but of the community as well because they utilized our custom links feature to link everything from an online community guide to relocation information. Additional custom links bring the potential buyers to their personal blog and featured property listings, all of which add depth, keep customers engaged and enhance the image of The Hartanovs as experts in the field. Click here to read more…

To Certify or not To Certify…
So, you’re sitting in your office wondering, how can I make my real estate business better? Suddenly you realize that you may not be taking full advantage of the latest real estate web-based technologies. After all, the traditional techniques just aren’t cutting it in the slow market, and you just don’t have that unique edge anymore. Or maybe you’re new to the business and you think that there just HAS to be a better way to reach a larger, diverse audience. Should you research the technologies your competition is using and try to decide which ones to pursue on your own? Or should you actually read one of those countless training advertisements your email account junks everyday? Click here to read more…

A four letter word beginning with “F”

I want to start off with a four letter word beginning with “F” that will offend most people reading this newsletter: “FSBO”. OK, I admit it’s not a word, but it’s used like one and with such venom, it seems to be a curse word in some circles. We should add in “Technology”, add a pinch of “Blogging”, stir it all up with “Commissions” and we have a start to my “Top 10 List of Hot Real Estate Topics for 2007”. But don’t think it will be all doom and gloom as we start this New Year. If you pardon my using the lyrics of a lesser known hit from the 80’s – “Reasons to be Cheerful – Part 1”. So, in no particular order:

1. FSBO
It seems there are more and more ‘For Sale by Owner’ signs in my neighborhood. Whether this is a trend or a fad, it will receive continued attention. Realtors will be discussing relationships, trust, and expertise: all things that ultimately lead to a unique value proposition. There has to be value. Buyers and Sellers are now savvier on ‘the process’ and that is definitely a trend and not a fad.

2. Technology
Following last month’s newsletter, I spoke to one of our clients, John Temple, CRS (www.johntemple.com). John is based in Danville, CA and has been in real estate long enough to have seen circles of repeating fads. During our discussion John mentioned that while he is an advocate of technology, he feels the future of real estate communication is Internet based, not the future of real estate. Of course John is right, and I expect Blogging to be at the heart of this.

3. Blogging
So much change, but how do you keep on top of it? Let someone else do the work for you! Blogging already has a few mini-celebs and some of them are well known for a reason – they really are connected and know what they are talking about. As more people make reading their favorite blog(s) part of their daily routine, expect to see this method of communication becoming more prevalent. For those that are interested, my top blogs include:

www.activerain.com
www.futureofrealestatemarketing.com
realestatetomato.typepad.com

4. Commissions
Pressure continues on what is possibly the hottest topic of all. A friend of mine was recently selling his $500k home and discovered that his Realtor was also selling a family member’s home valued at around $250k. “Why should I pay $15k more than him when our Realtor is providing the same services?” I told him about some of the things covered in the great book, “Waging War on Real Estate’s Discounters” written by Bernice L. Ross, but the argument (and others) abound. With real estate being a transaction based upon relationships, and with an individual Realtor at the heart of it, value proposition will be up for discussion again.

5. The Market
I am not going to be so bold as to suggest a month when the property market(s) across the country will start to move in the ‘right’ direction, but in recent conversations with Realtors there is a feeling of optimism for 2007. Historically, we all know that the market will trend towards more activity, quicker transactions and less inventory, but expect to see more national discussion on this subject than any other.

6. SEO
This key area of online marketing (Search Engine Optimization) is about using the most effective techniques (notice that’s plural) for getting your Website to appear as high as possible in the search engines. My suggestions always include:

PPC – Pay Per Click
Reciprocal links (PowerSites, cough)
META Tags
7. Online Marketing vs. Traditional Marketing
The death of the newspaper has been a topic of conversation for years. I don’t expect it to happen anytime soon, but as more and more Realtors fully understand that over 80% of people start searching for property online, they will naturally move marketing dollars away from print to the Internet. The newspapers will be pitching their own value proposition, so expect to see new and more creative services through newspaper Websites. Also look for more discussion on the importance of “trackable” results.

8. MLS
I covered my thoughts on this last month, but expect to see even more discussion about the oxymoron of MLS organization. At the end of 2007, I expect integration to reduce the number of MLS’s in a trend that may last a few years, but could be shorter. And there will be lots of conversation about why that is wrong (or right).

9. NAR
The National Association of Realtors will need to move and do so efficiently – but more importantly ‘effectively’ as it attempts to maintain its current role. The real estate industry is slow to change – that is – until it is forced. Commentators will be seeing just how fast NAR changes.

10. The Web 2.0 Gang
Many are holding their breath to see when and how (rather than if) Google will enter the property vertical. Yes, we all know they are in it already, but there’s always new and better ways to do things. How will Zillow, Trulia and even Microsoft perform? When will Apple bring out an iPod shaped like a house for Realtors?!? New players will emerge and the world will hopefully be better for it.

I am off to Manhattan later today to speak at the Inman Conference where I hope to meet some of the most knowledgeable and interesting people in real estate. If you are going, please stop me and say “Hi”. If I don’t see you there, I’ll cover the event next month.

Let’s hope 2007 is a year of health, happiness and activity for all!

As always feel free to contact me personally, at any time, for any reason.

Stephen Fells,
CEO

In April of 1965, Electronics Magazine published an article by Gordon E. Moore that is now referred to globally as “Moore’s Law”. In it, Moore explained how he expected the number of transistors and their relative cost on a computer chip to change such that the chip’s power would double every 24 months. Over forty years later the “Law” arguably still holds true and is repeatedly referenced in technical and non-technical arenas as a demonstration of how the speed of progress continues to gather momentum.

In a little more than ten years, the real estate industry has gone from no Internet use to having its entire future defined by the Internet. Considering Moore’s law it’s hard, if not impossible, to disagree with the statement that we will see more change in the next ten years than we have seen in the last ten. More importantly, if you expect to be in the real estate industry for the next five years, you have an obligation to ask yourself a single question: “How am I going to adapt to this change?”

The first property-related Websites started the ball rolling. The content of those Websites isn’t important. What is important is that individuals could easily publish to an audience way beyond the reach of their local newspaper’s circulation. And in many instances they could do it far more cheaply. Thomas L. Friedman’s book, “The World is Flat” covers the global transition to a single market with amazing clarity. He candidly discusses the impact of technology on the general US economy allowing us to move naturally and correctly towards assumptions about the impact on the property market.

Today we have countless Websites covering an unlimited number of real estate specific topics. The result is inevitable – all information will eventually be available to all people. And that includes listing data. The fight has already begun with Realtor.com and every MLS in one corner, and Google, Microsoft, Yahoo and several new kids on the block (Trulia, Zillow and many other Web 2.0 members) in the other corner. It’s time to acknowledge a fact: the real estate industry no longer holds the key to that data.

This week, the Northwest MLS (which represents “about 27,000 sales associates”) decided they will stop uploading listing data to realtor.com. Jack Johnson, the MLS President and CEO, stated “We’ve always had as our focus the distribution of data to our members, and not to third parties”. This is a stunning move. Although initially seeming to be a well-intended decision, it essentially means listing data is less available. With more than 900 MLS’s countrywide, duplicity in geographic coverage and coming at a cost of a few to several hundred dollars a year, it’s clear that substantial change is needed and will happen. I seriously doubt that Northwest MLS members will see the actions of their association as a step forward.

Sellers and buyers don’t care about Realtor.com or your local MLS as much as you do. Their needs are simple: Sellers want as much money as possible using the quickest, most cost effective method available. Buyers want to spend as little as possible using the quickest, most cost effective method available. If a buyer cannot find what they are looking for at Realtor.com, nothing will stop them from finding it somewhere else. This is where I usually hear “But they won’t have access to all of the listings in their area!” Why should a buyer care when they do have access to enough listing data? They only want to buy one house. Finding it amongst 200 listings rather than 2,000 means they just saved themselves the time of looking through the other 1,800 listings. Loyalty does not exist, it’s important to understand that.

With the vast majority of buyers starting their research online, I struggle to understand why so many Realtors still aren’t spending more (or most) of their marketing dollars online. “The sellers expect to see their homes in the newspaper” is a common response, but ask the same seller where they will start their own search for the home to replace the one they are selling and I bet they will list a bunch of Websites. The “past” for real estate technology already covers a relatively long time, and yet there are still Realtors who have a problem understanding that their marketing focus needs to be online.

Albert Einstein defined insanity as “Doing the same thing over and over again and expecting different results”. Does continuing to spend most of your marketing dollars in the local newspaper sound like that?

AgencyLogic also needs to change and you will see that happen in 2007. To better serve our own clients we will further leverage our relationships with Trulia, Oodle and many other outlets (to be announced soon) to provide a choice on where PowerSites appear. We are also talking to any MLS that is prepared to listen and doesn’t want to use what I call “The Three Monkeys” approach to data circulation (they don’t want to see, hear or speak about it). PowerSites will be seen by the people that count. The definition of “people that count” currently includes buyers and to a far lesser extent sellers, but soon it will include Realtors. When Realtors find themselves going to Google or Trulia before they go to their local MLS, the message will finally have been heard. Simply put, the future of real estate is Internet based.

If you know a Realtor who still does not see the value, the absolute necessity even, of moving to a more Web based marketing strategy in 2007 please get them to call me, I have a bridge I want to sell them.

I wish you a very healthy and happy holiday season and a even more successful 2007.

As always feel free to contact me personally, at any time, for any reason.

Stephen Fells,
CEO

PowerSite Marketing Enhancements

Free uploads to Trulia.com and Oodle.com
We are very excited to offer our clients the option to upload their PowerSites to Trulia.com and Oodle.com’s real estate search pages. Our new Lighthouse Marketing System includes these options, and more are on the way – stay tuned! Learn more by clicking here.

Frequently Asked Questions about PowerSites 4.0

Meta Tags (Lighthouse Marketing)

What are Meta Tags?
Meta tags are information inserted into the “head” area of your Web pages. Other than the title tag (explained below), information in the head area of your Web pages is not seen by those viewing your pages in browsers. Instead, meta information in this area is used to communicate information that a human visitor may not be concerned with. Meta tags, for example, can tell a browser what “character set” to use or whether a Web page has self-rated itself in terms of adult content.

The Title Tag
The text you place in the title tag will appear as the name of the browser window when they view the Web page.

The Meta Description Tag
The meta description tag allows you to influence the description of your page in the search engine “crawlers” that support the tag.

The Meta Keywords Tag
The meta keywords tag allows you to provide additional text for crawler-based search engines to index along with your body copy.

How to Change Mapping Services

PowerSites 4.0 offers you a choice of mapping services. Here’s how to change this for all of the PowerSites in your account:

• Sign in to your account and then select the ‘Tools’ tab
• The sixth choice down is ‘Mapping Provider’
• Select that, and you may choose between Google, MapQuest, Microsoft, and Yahoo
• The choice you make in this area will be applied to all of the PowerSites in your account

Should you wish to override that choice for one individual PowerSite, you may, by:

• Selecting the PowerSite
• Clicking on the ‘Configuration’ tab
• Selecting ‘Settings’
• And choosing whichever mapping provider you wish.

Photo Sizes

The photos you upload in PowerSites 4.0 will be larger than those that were converted over from PowerSites 3.0.

If you want your older photos to appear larger, try this:

• Re-upload the photos.
• Arrange them next to their smaller mates
• Go to titles and descriptions
• Copy the titles and descriptions from the smaller photos to the larger ones
• Delete the smaller photos.

We hope that answers some of your questions. Please do not hesitate to contact us if you have any questions about PowerSites 4.0!