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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