Iggys House is an interesting concept. Sign up as a seller and you can list your home on the MLS for free. There is really no catch. You are not obligated to sell through their agency.

This service is currently available in Oregon, but not in some other States. Specifically, Midwestern and Mountain States. States that apparently nobody wants to move to…Woops, I didn’t mean that Heartland. We love you!

They also put your home on Realtor.com, Wall Street Journal, etc. Isn’t that the result of listing with MLS? Iggy, please correct me if I’m wrong..

Basically, IggysHouse is a lead generation tool for BuySideRealty, an innovative realtor that operates in a similar fashion to Redfin. The primary difference being that Redfin refunds 2/3 of the 3% buyer’s agent traditional commission to the buyer. That amounts to 2% of the final sale price. BuySideRealty will refund you 3/4 of the buyers’ agent commission that they receive, so the BuySideRealty offer is slightly better.

Redfin requires a minimum $3000 comission payout, so the home you buy needs to cost at least $300k. The advantage to BuySideRealty is that you receive the comission as a check, within 14 days. You can apply it to closing costs, but since most buyers will have a lender lined up in advance, the majority of buyers will opt for the cash rebate option.

IggysHouse.com is a brilliant lead generation tactic that provides a valuable service to sellers. Their buyer’s side business isn’t a new concept, but they clearly know who their competitors are, and how they plan to differentiate.

Agents need to move faster to adopt new ways to compete with this kind of efficiency. The human touch will always be necessary, so I doubt that commissions will disappear altogether, but the cost of buying and selling a $400k home through a traditional agency is over $24,000. The paperwork, legal process, and due diligence are practically the same whether the home is $400k or $200k. The stakes are higher for sure, but if the homeowner took the original risk in buying the home, so why should that risk be transferred to the agent as a % of the home price rather than as a flat rate or negotiated rate?

I’d like to get comments from agents. How can a seller create a contract with agents that provides the agent with a fair reward for service, above-and-beyond? Possibly finding the right buyer at a max price, and keeping 50% of the difference between sale price and “walk away” price? Are there other options there?

Traditional agents’ pricing model is facing significant risk. How do realtors adapt without selling out their fellow agents? How does an entire industry shift at once? Some tough challenges for an industry that clearly prefers to ignore or protest the future, rather than lead it.

Popularity: 15% [?]

Joel Burslem brought up this point a couple of weeks ago. In his post, he mentioned two services, Incredibleagents.com and Homethinking.com.

Oddly, Incredibleagents offered only three agents reviews for the entire State of Oregon. I don’t know if that’s an indictment of Oregon agents’ lack of technology experience, or because agents are too busy buying and selling in a “relatively” stable real estate market.

Homethinking offered no agent reviews, but an impressive list of agents. They show current sales statistics for each agent, but oddly enough, the agents themselves don’t care. Well, most don’t. Two agents are listed as sponsors in Eugene. At the time of this post, no buyer or seller had reviewed these agents. In fact, out of 1013 agents listed for Eugene, zero have reviews. Not very helpful to buyers..yet…

Joel raises the question - why aren’t there more services like this? I don’t know either, but I have my suspicions. Agents either get the internet or they don’t. If they don’t, they probably fear the very technology that can help them maintain an edge in an increasingly challenging real estate market. So sites that cater to tech savvy agents (other than social networks) are few and far between. I believe that many agents don’t want to contribute to (or legitimize) sites like homethinking because those sites take away agents’ innate advantage with clients - controlling and managing information. There’s nothing inherently wrong with this assumption, except that it’s completely wrong. The market already opened that box. There’s no going back.

Technology is not what is hurting agents the most. What’s hurting them is the sheer number of agents battling it out as low-cost seller alternatives slowly erode the pool of available homes. 1013 agents in Eugene (according to homethinking.com), in a city that turns over, at best, about 800-900 homes per quarter. That’s > 1 home per agent, per quarter. You don’t need a degree in economics to see that supply far outstrips demand, and as with most markets, it will seek equilibrium one way or another.

Popularity: 9% [?]

I like to see technology companies in Oregon thrive, so here’s a little plug for a company in Fall Creek Oregon called Insite Virtual Tours

Here’s what they did for the Campbell House. Obviously the Cambpell House isn’t for sale, so not entirely focused on the buying and selling homes, but that’s ok. They claim to limit the fish-eye factor, something that the market can definitely use, although I noticed a little fish-eye business going on. It’s probably the nature of 360′ views to give you a little of that no matter how flat the lens.

$100-200 to “merchandise” a home worth $300k or more seems like a no-brainer. Provided the marketing costs don’t add up too quickly! A good enough reason to put together a Marketing Plan.

Popularity: 24% [?]

Reba Haas with Rain City Guide started an interesting thread It started with a post about photos and ends with a discussion about whether or not the public can trust such photos.

Home sellers would not fault an agent for removing a dumpster from a photo or using a little extra light to give the place more panache. What’s interesting about this debate though is that it’s happening at all, and in a public forum.

I feel compelled to point out that there are MUCH better products out there than paint, if you plan to edit or resize photos (ethically). Paint is especially bad at pixelating a photo after resizing it. I recommend IrfanView instead. It’s a solid shareware applications that’s nearly as good as photoshop, but without all the complex layers and tools.

True, this post is not really about dating. But the trackback is. It’s about putting your best foot forward (like you would on a date) using best practices and better tools. Also, cutting out the old fisheye pictures, or limiting their use. Do buyers really like those shots? I personally can’t stand them. Zillow and the Web2.0 real estate startups are proof that buyers want the best information they can get, not more fluff in the form of overworked camera angles.

Popularity: 33% [?]

IDX, a Eugene-based company, seems to be doing very well. They continue to expand into new regional and local MLS markets, and are doing a good job of working WITH the MLS and agents by offering agents a low cost (starting at $39/month) way to display MLS listings on their sites. This is especially helpful for smaller agencies and brokerages that up until recently have been forced to pay hundreds if not thousands of dollars to accomplish the same thing.

Biased about local companies?? You bet!!!

Popularity: 11% [?]

This post on Rain City Guide offers quality advice to agents. You could also call this the Jerry Maguire business plan. Why focus time on chasing leads when the best leads are your current clients?

And yet…anybody starting out in real estate will need to build some sort of client base first. It’s easy to be Jerry Maguire if the firm is giving you more leads than you can handle, it’s less easy if you’re trying to build a business from scratch in a market saturated with agents.

Here are some marketing tips:

* Setup some kind of web-based presence. Use a real estate agent site template, or create your own, but at least give people a place to go online to reach you.
* Market that site well. Choose keywords wisely. Optimize for search. Don’t overspend on high volume keywords, especially if you operate in a niche like rural properties, million$ homes, etc.
* Review and try all the innovative technology available to buyers and sellers. Don’t fear change, embrace it, and use it to your advantage.

Popularity: 7% [?]

Only in Eugene! And they seem to be doing something right - including a testimonial on the front page:

“Dear Dave,

We are absolutely and incredibly in love with our new home. It is very possible or probable that we wouldn’t be here if not for your tireless and thorough work on our behalf. Come see our new pad with us in it! You are an awesome Realtor and a dear, dear friend.

Love,
Amedee Smith”
–Head Chef, Ambrosia Restaurant, Eugene Oregon

See their “About Us” page for a reality check. Really great marketing here - they know their audience, they differentiate, they don’t publish an agency’s canned template for a website (more differentiation), and they’re just being themselves. Easy to make a connection with this group. Well done.

Popularity: 8% [?]

Joel over at The Future of Real Estate Marketing wrote a quality review of spotrunner, a new web 2.0 TV ad buying/creative service.

What’s interesting to me is how spotrunner focuses exclusively on TV. Don’t they know people are watching most short commercials and videos on their computers, while surfing? Or that Google and other networks are offering video ad buys? Or maybe spotrunner is designed specifically to take advantage of the commoditization of TV ads in the face of internet competition?

I agree with Joel’s assessment of TV advertising - Tivo has changed everything. If an ad isn’t original or create buzz, people don’t “see” it. That’s how agencies get people not to skip past them via Tivo, or to email them to their friends when they show up on a website. The creative agencies win out in this world. From what I can see of spotrunner, the service commoditizes ads to allow smaller agencies and companies into the space. On the creative side, with spotrunner it seems there’s nothing left to chance.

As for agents using this service, IMO most buyers are interested in seeing the “real” agent..which could be done via videoblog or some other media message that doesn’t relay on a template. I’m sure there a million creative ways a savvy agent could take this - think rocketboom!

Popularity: 8% [?]