Newsroom

A 'Great Conspiracy' or a Demand for More Visible Value

By Mike Parker

RISMEDIA, March 22, 2007-In a dynamic and stimulating presentation given at the Association Executives Institute Conference February 19 in San Diego, Blanche Evans, editor of Realty Times, woke up many in the audience with her call to action. Evans presentation, titled: "The Conspiracy to Put You Out of Business and How You Can Help Your Agents & Brokers Win The Commission Game" pointed out the daunting list of challenges facing NAR and the real estate business.

Evans also successfully communicated her view that the real estate business is in the throes of change, and she presented her action plan for the industry. She also pointed out that the public perception of real estate professionals is disheartening, and urged a proactive effort by every broker and agent to educate the public about the benefits of using a professional and tech savvy agent.

I started thinking about it all: how the Internet has been a major agent of change; how third parties perceive openings for leaner and more feature-laden competitors; how the public misperception is that all Realtors make gazillions (while being ignorant of the average Realtor income of $48,000), and how the only true reality in life is that change is constant.

The question for each of us is: Are we going to sit here and quiver in fear while change happens, or are we going to be an agent of positive change and take the best that third parties have to offer and use our superior knowledge of the business to make us stronger and more successful?

Can an online home-valuing service ever be as accurate as a local on-the-ground agent who knows the town, market and the property? No. Can an online brokerage ever replace a professional real estate agent? No. Is the growth of social networking (My Space, YouTube, Zillow, Trulia, Craig's list, Point2 NLS) a bad thing? No. Why? Because all these things present opportunities for agents and brokers who are committed to adapting. Nothing has changed at its core, only the methods of delivery of services and of managing information have changed.

No matter how good the run was, it is time to get with the 21st Century and change business models. No longer can the fees to run a huge bureaucracy simply accrue without competition; no longer can exclusionary policies be relied upon to protect our business. It's about information and in this age, anyone and everyone has it. Now it's about taking back your intellectual property: your listings, your connections, your knowledge and using it and technology to out-perform your competitors.

For a long time, any reasonably competent person could make money in real estate, and almost any one with a license could sell real estate.

Those days are over. The market is still subject to further challenges. There is about 30+% of our population for whom homeownership is becoming out of reach.

The reality is that with technology and fabulous tools that challenge how it has been done for the past 60 years, agents and brokers are now better equipped and qualified to profit and prosper. Some business models and conventions are going to need to change. But they will change and those who change with them will still be on top regardless of how the business model changes.

"Some people skate to where the puck is. I skate to where the puck will be", Wayne Gretzky famously said. Learn from the past but focus on how to win the future.

Mike Parker can be reached at mparker@TheBlackwaterCG.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Niche Web Sites: A Success Story

BY MICHAEL RUSSER
Broker Agent News
It’s advice you often hear in the real estate business: To be successful, you must find a profitable niche and gear your marketing to that specific audience. However, when it comes to online marketing, few practitioners take that advice to heart.

Here, I hope to show you why it’s worth it to transform your Web site into a tool that actively serves the needs of your niche customers. I’ll make my case by highlighting a practitioner’s newly remodeled site that’s going way beyond generating business to help her build a more fulfilling career.

An Extreme Makeover Begins

Linda Jefferson, broker-owner of Jefferson Bentley Real Estate in Lawton, Okla., is at the center of the story. Several months ago, Jefferson realized she needed to bolster her Web marketing efforts to better serve her niche: Military families living near Fort Sill, about 80 miles southwest of Oklahoma City.

But her first attempt at redesigning the site didn’t go so well; the proposed site redesign was disorganized, hard to read, and didn’t come close to reflecting her passion for her niche market. In her words: “It was the ugliest thing I’ve ever seen.” She realized that a fresh approach was necessary.

Seeing a well of untapped potential, I put Jefferson in touch with two Internet marketing specialists who were looking for a makeover subject. Cherie Young, of Internet Marketing Strategies, and Web designer Suzanne Stephens wanted to demonstrate how they could turn a simple template site into a customized, targeted site. The best part — they would do it for free. Their cost for Web design overhaul usually ranges from $5,000 to $7,500.

A Military Passion

Jefferson’s dedication to her niche made her an ideal Web makeover subject. Not only are her neighbors in the military, but her son is currently serving in Iraq and her daughter-in-law just returned from there. “I feel personally connected,” she says.

Last fall, after her son was deployed for Iraq, she began volunteering for the Adopt a Soldier Now program. Jefferson ended up launching a local chapter of the organization, which provides care packages, letters, and other support to U.S. soldiers abroad.

With her passion brewing, she decided to gear her real estate business to the newfound niche. “Before, I was trying to be everything to everyone,” she says. “I didn’t want to risk losing business by targeting a niche.”

Over the next couple of months, Jefferson worked in concert with the design team to launch a drastically improved Web site, www.GoArmyHomes.com (pictured on right). The site went live on Feb. 1.

Ingredients for a Successful Site

Here’s what went into Jefferson’s new site:

• User-centered content. Prove just how well you know your target audience. Create an outline of useful and relevant content for your prospects that will convince them to return to your site often. Among Jefferson’s great ideas: online forums, one for military wives (MilitaryWivesClub.org), and another for military kids (MilitaryBratsClub.org), that help families keep in touch with friends they met while living near different bases locations.
• A catchy domain name/brand. GoArmyHomes.com is easy to remember and speaks directly to Jefferson’s niche. It’s more than just a Web address; it’s a brand. Because GoArmyHomes.com is focused on the niche rather than on the practitioner, Jefferson could license the brand in other markets, and sell the brand with her business when she retires.
• Powerful marketing tagline. Jefferson came up with a Unique Positioning Statement, or UPS, that spoke to her niche audience — “When you’re ready to move, we’re proud to serve.”
• MLS listings. With an information feed from Jefferson’s local MLS, her Web site visitors can easily access home listings from around the metro area. Remember, real estate is the reason why most people will visit your site, so make it easy so conduct a comprehensive home search. If you want to step it up a notch, you can use software such as IDX Broker Pro, which Jefferson is using, to display listings and manage lead generation.
• Flexible template. Don’t think that just because you have a template Web site, it has to look just like every other site out there. Personalization is the key to your success. Jefferson’s Web site, created with a Point2Agent Premium template, goes well beyond any run-of-the-mill real estate site. You may have to hire a Web designer to help you, but a highly targeted end result is well worth it.
• Ties to the community. Jefferson has natural ties to the military, but she took it a step further by founding a local chapter of Adopt a Soldier Now. On her Web site, she also includes links to Operation C.A.R.E. (an acronym for Continued Appreciation, Respect, and Encouragement) and to stories about military families in the community.

How Do You Measure Success?

Although the revamped Web site has been live for only about a month, Jefferson says she’s getting about twice as many calls and high-quality Internet leads from prospects. “I’m capturing more of my target market because they see we have a similar passion.”

But the real sign that Jefferson picked the right niche happened when she recently received a call from the director of the Adopt a Soldier Now program. Jefferson learned that ABC’s “Extreme Makeover: Home Edition” was considering building a new home for a military family in her community.

Jefferson used her ties to her niche market to participate in a campaign to send ABC more than 27,000 letters and e-mails in support of the Westbrook family getting a new, wheelchair accessible home for the family of Gene Westbrook, who was injured in Iraq, and his son James, who was recently paralyzed in car accident. (You can read more about the Westbrook family on Jefferson's Web site.)

“ABC was very much on the fence between us and another community,” Jefferson says. “We really made a difference.”

The team from “Extreme Makeover: Home Edition” arrived in Lawton on Feb. 15 to begin work on the new home. “By targeting my market I’ve been able to do the things I love the most, which is helping those people that I feel the closest to,” Jefferson says. “I now enjoy my career so much more and feel truly fulfilled in my business. I’m proud of what I am doing.”

Note: Mr. Internet, Russer Communications, and its staff and officers receive no compensation from any third-party vendors and make no recommendations as to the suitability of the products or services mentioned in this article. Always thoroughly investigate any product or service before purchase.

How the Internet is Reshaping Real Estate

By Stefan Swanepoel

RISMEDIA, April 27, 2007-Last month, we highlighted some of the trends affecting today's home buying and selling consumer as reported in the recently released Swanepoel TRENDS Report. This month, we explore author Stefan Swanepoel's views on the impact of the Internet on our industry. Here, Swanepoel details how technology is changing the real estate business for the long haul.

Uncontrolled Explosion
In 1995 there were 23,500 Web sites of which 4,000 (17%) were real estate related.
According to the Netcraft Web Server Survey in February 2007 there were 108 million distinct Web sites. Academics estimate that approximately 6% of these Web sites are real estate related; approximately 6.5 million. It's no surprise that Google lists real estate as its top search category. So, with a ballpark growth of 80% per year, every year for the last 12 years, it comes as no surprise that real estate is big on the Internet.

The first generation of the Internet is widely accepted to be 1995 - 2004-Web 1.0. Web 1.0 was like going to the library just to get information. In that era the Internet was basically mimicking the traditional business model, merely trying to do it online.

Then in 2005, things changed. The entry of Web 2.0 gave us not only the ability to gain information instantaneously but also the ability to interact with anyone, anywhere at anytime via instant voice, video or messaging. Web 2.0 is all about sharing and collaboration-not just striving to inform but working to "get something done."

The Dynamic Web 2.0
Because of ubiquitous broadband, cheap hardware and open-source software, Web 2.0 has created an entirely new playing field. It provides a wider and much more robust platform for development than its predecessor. It makes access to and the sorting of vast amounts of information much faster and easier.

Yes, the real estate industry as a whole has "accepted" the Internet with most leading and large brokers embracing it to enhance their services. But, it isn't just a one-time concept to accept and embrace. Unfortunately competition in the world of technology doesn't stand still for even a moment; it is constantly moving ahead to the next big thing. Therefore, real estate professionals who are still 1.0 are "so yesterday." They need to seriously upgrade their mindset to 2.0.

Real estate is an information-based service industry. It used to be that real estate brokers and agents were the holders of information and consumers were dependent on them for it. But that has all changed with Web 2.0. Now it's all about the sharing of information and collaboration with others.

Web 2.0 has brought us a deluge of new concepts than could be passing fads, but most likely are not. Many have already been adopted into new real estate business models such as Trulia, Zillow, PropSmart, LiveDeal, Point2 and Oodle. Other large non-industry specific players such as Yahoo!, Craigslist and of course Google are ever present and only time will tell to what extent they will reshape the real estate industry.

The World According to Google
Google is an exceptional company in many respects and it has become the principal of Web 2.0. With every search, Google learns more about the world and what's out there. With every ad click on one of its 150,000 servers, Google adds more revenue to their $10 billion stockpile.

In March 2006 an article in Business Week stated that the Internet, with Google as its leader, is mutating into a radically different beast. It is being driven by ubiquitous broadband, cheap hardware and open-source software.

For example, Google Base is no longer just a search site; it's more like a destination site. The difference is quite significant and the results are remarkable. Search engines are designed to quickly move consumers through to someone else's destination site. Destination sites are designed to keep consumers captive as long as possible, hence more sales time and/or advertising revenue. With its powerful search capability it has been suggested that Google Base may automatically develop into a destination site for every major industry category.

Google Earth exploded into the mainstream during 2006 on Web sites, PDAs and cell-phones. Based on "Keyhole" technology, Google Earth enables users to fly from space to street level views to find geographic information and explore places around the world. It has found itself becoming the foundation for "mashups" all across the Internet.

Mashup
Mashup is a Web site or application that seamlessly combines content from more than one source into an integrated experience. Thus through the combination of different features, previously not commonly found together, new companies are overlaying content from one onto another to create a higher value derivative solution. Examples in real estate would include Trulia that blends mapping with listing data and Zillow, which blends home property evaluations, maps and listing data.

RSS
RSS (Really Simple Syndication) is software that enables Web sites to come to you instead of you going to them. Visit a Web site and subscribe to its "RSS Feed" and as new content is added to that site you get it automatically. This can be helpful when building repeat "organic traffic" by automatically providing people you know with fresh content about your site.

Real-Time Collaboration
There is no question that e-mail did indeed become the "killer app" of the Internet. Early 2006 estimates by the Radicati Group placed the number of e-mails sent per day to be around 171 billion worldwide. However, the fast rise of unwanted spam is increasing the popularity of IM (Instant Messenger), SMS (Short Messaging Systems) and texting.

GPS
In the very near future, every cell phone will know where it is utilizing the GPS. This will provide customers and agents the ability to pull up in front of a house for sale and call up the appropriate data for display on their cell phone. As smart phones continue to emerge as standard equipment, in the very near future new rich media and more voice actuated features will be ideally suited for real estate.

Speech Recognition
Expect significant impact in the advancement of speech recognition in both audio and video. Podzinger is one company that is looking at the ubiquity of the iPod and the rapidly changing uses of the product. It has already developed a process that performs Internet searches of audio and video keywords using speech recognition. For the real estate agent this provides yet another avenue to reach the customer.

Online Valuations
Domania's Home Price Check became the first Web site to offer online valuations in 2000 but it was Zillow's launch in February 2006 that grabbed the media's attention with its free house valuations called "Zestimates." In December 2006, Zillow announced it would be permitting brokers, agents and consumers to directly list their homes on the site, a clear step towards changing the paradigm.

Vertical Search
Born out of the frustration resulting from the fact that general search engines don't often provide enough detailed information, a new type of real estate specific search emerged-the real estate vertical. Trulia is a residential real estate specific search engine that helps consumers find homes for sale, trends, neighborhood insights and other information directly from hundreds of thousands of real estate broker Web sites.

Point2 Technologies & InternetCrusade implement Single Sign On

VFlyer launches wireless tools

Users can send, view ads using mobile devices

Inman News

VFlyer, a company that builds marketing tools for real estate professionals to distribute and showcase property listings, today announced that it has entered the mobile realm with the rollout of wireless Internet and text-messaging tools.

With this latest innovation, vFlyer users can send or view property ads on mobile devices, view statistics on the traffic the ads are receiving, and manage their accounts.

The company launched last year as a platform to create property advertisements and automatically distribute these ads to a variety of Web sites, such as Google Base, Oodle, Trulia, Vast and Edgeio, among others. Postlets.com and Point2.com are among other Web sites that offer distribution tools for property ads.

VFlyer also allows users to distribute Web-based or Adobe Acrobat electronic versions of property fliers to customers via e-mail, or to print out hard copies of the fliers. Last month the company launched embeddable Web widgets that allow users to post a scrolling display of their active vFlyer property ads at a blog or Web site.

"We feel that when you put a listing into our service you should never have to put it anywhere else again," said Oliver Muoto, co-founder and vice president of business development for vFlyer. The development of mobile applications is "another point in the overall path," he said. "It's definitely about saving people time, and it's saving them money."

VFlyer offers a free basic subscription that supports up to five active and 10 total property ads, and paid subscriptions enable more ads and enhanced features. The mobile tools are free for vFlyer subscribers.

Users of the vFlyer mobile ads can view photos, maps and driving directions for selected properties. Muoto said that the company is already working on a new version of the mobile tools that will allow subscribers to create property ads using a mobile device.

Point2 Technologies And InternetCrusade® Implement Single Sign On Web Authentication Initiative

Advanced SSO Technology Enables RealTown.com and Point2 NLS Members to Login Just Once and Create a “Personalized Virtual Network”

Saskatoon, SK and San Diego, CA – April 25, 2007 – Point2 Technologies Inc. (“Point2”) and InternetCrusade’s RealTown (“IC”) today introduced Single Sign On, a web authentication initiative that will enable members of Point2 NLS (Point2 National Listing Service) and RealTown.com to access or sign up to either system directly from their respective Online Office, using their existing credentials, identity and pass codes.

SSO has been effectively integrated and is now live on both platforms. Simply stated, SSO allows entry into two or more systems or databases using one password.

“The concept of SSO can be applied across many industries,” said Saul Klein, President of InternetCrusade’s RealTown.com Internet portal. “Think about ATM cash withdrawals. Your identity is established by an ATM card and a password. Once your identity is established, you are provided convenient service irrespective of where you choose to withdraw funds. A person with a Wells Fargo account can withdraw funds from a Bank of America ATM, using their Wells Fargo ATM card and their Wells Fargo password. The concept is enabled through the ‘trust’ and processes the financial institutions have established between each other that guarantee both parties accurately identify the person requesting the withdrawal.”

“There are many situations in the real estate industry where Single Sign On will be of benefit to real estate professionals,” Klein continued. “InternetCrusade's RealTown is excited to partner with Point2 and to be among the first to bring the concept of SSO to real estate. Over the next few years, SSO will be the subject of much discussion and application in the industry, as the benefits and advantages of the technology become more apparent, adopted and implemented by trusted partners across the sector.”

“Effective immediately, Point2 and RealTown customers will have the advantage of experiencing the benefits of SSO, with ease, providing convenience and speed to their daily online tasks. Imagine being able to access all your online options and applications from a single point of entry. RealTown members have now, for example, gained the ability to create free world-class websites as well as access to upload listings for syndication and advertising, through Point2 NLS, using the same online ID,” Klein said. “This will be even more of a benefit for those using wireless technology as they can make changes while in the field through a single interface.”

RealTown.com is the Internet portal that features everything real estate. The community is one of the oldest and most respected in the real estate industry and the leader in community created content with more than 50,000 opt-in subscribers. It is the home to RealTalk and other online communities that have recorded nearly one million posts made over the past decade plus. It is the number one source for real estate related information from experienced real estate professionals.

“We are extremely pleased to partner with InternetCrusade’s RealTown.com portal to bring the benefits of SSO to give both our communities easier, more convenient access to the critical knowledge and technology they rely on for their business,” said Brendan King, chief operating officer, Point2 Technologies. “SSO will undoubtedly become increasingly relevant and important in real estate, and we’re very excited that Point2 NLS members will be among the early adopters to apply and benefit from the technology.

“RealTown provides its members with access to an unparalleled real estate knowledge base and support. Now with Single Sign On to Point2 NLS, brokers and agents on RealTown.com will also have direct, free access to Point2 NLS, a solution that is giving to tens of thousands of real estate professionals the ability to regain complete control of their listing assets - and with that, their future,” concluded King.

The collaboration between Point2 and InternetCrusade will now also bring to Point2 NLS members a free real-time RSS feed containing custom content from RealTown’s numerous communities and RealTown Blogs, with additional features being added each week.

Exclusive to licensed real estate professionals, Point2 NLS is a free cooperative marketing and advertising platform that allows real estate brokers, agents, builders and property managers to repurpose their listing content for all key marketing tasks, including listing syndication, advertising, website and blog. Point2 NLS also incorporates advanced lead incubation technology, which provides users with the most scientific approach available today, for managing and monetizing both web-based and traditional real estate leads. Point2 NLS is the world’s most widely used real estate marketing platform and currently boasts over 123,000 members in 85 countries, with more than 1,000 new members joining each week. More information can be obtained at www.Point2NLS.com.

About InternetCrusade®
InternetCrusade® is a San Diego-based company that was founded in 1995. Specializing in online publishing, InternetCrusade provides tools and systems for real estate professionals including domains, domain hosting, e-mail systems and hosting, online communities, blogs, online voting and surveys. The firm is the exclusive provider of the National Association of REALTORS’ e-PRO® certification course and a member of the NAR REALTOR Benefits Program. InternetCrusade’s principals have more than 100 years of combined real estate industry experience. The RealTown.com portal is the embodiment of a vision created more than a decade ago, a real estate portal with concentration on Content, Context, Collaboration and Community.

About Point2 Technologies Inc.
Point2 Technologies provides online marketing and eBusiness software solutions for the real estate and heavy equipment industries. Leveraging Point2 proprietary and patented technology, Point2 develops and markets software solutions that enable organizations to conduct business over the Internet more easily and more profitably. The company is the largest provider of online marketing and lead management software for real estate professionals, with over 123,000 brokers and agents subscribing to Point2 NLS, in 85 countries. Point2 is also one of the largest providers of e-commerce solutions to the heavy equipment industry, powers Caterpillar Inc.’s global heavy equipment dealer network and owns and operates UsedIron.com, one of the largest used equipment venues online.

Founded in 1996, Point2 Technologies is privately held and employs a staff of 100 at its headquarters in Saskatoon, SK and its Vancouver, BC offices. More information can be obtained at www.Point2.com.

Point2® is a trademark of Point2 Technologies Inc. All other company and product names may be trademarks of the respective companies with which they are associated. InternetCrusade® and RealTownTM are trademarks of the Real Estate Electronic Publishing Company.

Media contacts:

InternetCrusade®
Rich Hudson
Director of PR/Marketing
Tel: 619-283-7302 Ext. 602
Rich@InternetCrusade.com

Point2 Technologies Inc.
Roger Noujeim
Public Relations Director
Toll Free: 1-888-955-7900 Ext. 224 (U.S. and Canada)
Tel: 1-604-675-9393 Ext. 224
rnoujeim@point2.com

Is a National MLS the Way To Go?

By Stefan Swanepoel

RISMEDIA, April 13, 2007-Many think that the notion of a national MLS is a good one. According to Jim Sherry, technically there is no reason a national MLS would not work. He says it's more about getting the egos out of the way first.

The consolidation of MLSs into super-regional ones or even one national MLS has already taken its first steps with the consolidation of MLS service providers over the past six years. Today three major players, MarketLinx, a division of First American, Fidelity National Real Estate Solutions and Rapattoni Corporation collectively manage 1,200,000 MLS desktops; approximately 90% of the market. So that is the quickest and easiest way to go, right?

Many say probably not.

Some think the solution will come from one of the industry's aggregators. The logical player is of course Realtor.com, but media favorite Zillow is often mentioned. Point2 says they already are one. Others such as Oodle, Edgeio, Propsmart, BackPage or Live Deal say they could easily be one.

Many say probably not.

Some think one should go directly to the brokers instead, like vertical search engine Trulia. Having already signed contracts with powerhouses Realogy, RE/MAX, HomeServices and numerous other large brokers they could already be well on their way.

Many say probably not.

If vertical searching is the winning strategy then no one will beat the deep base searching power of Google. Who could beat the powerful Google search ability to sort through millions of listings and find the right answer in a split second? Walt Baczkowski, MCAR CEO, says Google may very well replace the MLS as we now know it today.

Many say probably not.

Google is an online marketing avenue, it's not an MLS. There is a huge difference between a search engine, a consumer site and a broker MLS. Realtors don't understand the value of the MLS says Mike Long, CEO of Move.com, the managers of Realtor.com. Giving the listing information away to others will result in a de facto MLS … with no MLS rules.

Many say probably not.

Some like Glenn Kelman, CEO of Redfin feel that MLS rules are like a thousand tiny shackles on Internet business, which limit the free flow of information to the consumer.

And so the debate continues. It is not clear exactly where we are heading. What does appear certain at this stage is that that consolidation into larger MLSs is inevitable. As a matter of fact it is already happening on a regular basis. Larger MLSs will inevitably lead to increased standardization, which in turn will fuel further consolidation and open the door for the creation of one national MLS.

The drive toward one national MLS seems to be born out of frustration by regional brokers but it is being fueled by consumer demand for more real estate information with listing data. MRIS CEO, David Charron says a national MLS is a great idea, but the creation thereof is complex as it will have to take into consideration local licensing laws, nomenclature, customs, governance and compliance management. Whoever decides to carry the torch will quickly discover that this is by no means an easy or straightforward initiative. There are also many other sticky issues that will need to be addressed before a national, quasi-public utility becomes a reality - items such as data ownership, data security, data standardization, data integration, third party participation, and so on.

So while the industry grapples with its parochial issues - both practical and legal - existing MLS systems will have to re-engineer themselves into standardized mega regional systems or a national system. Whichever direction is taken they will have to be relevant and meaningful for brokers, agents and consumers alike, or face the consequences of competition and possible obsolescence.

Online Marketing: Is There a Conspiracy or Is It Evolution?

by Michael E. Parker

In a dynamic and stimulating presentation given at the Association Executives Institute Conference February 19 in San Diego , Blanche Evans, Editor of Realty Times, woke up many in the audience with her call to action. Ms. Evans presentation, entitled: The Conspiracy to Put You Out of Business and How You Can Help Your Agents & Brokers Win The Commission Game pointed out the daunting list of challenges facing NAR® and the real estate business.

Ms. Evans also successfully communicated her view that the real estate business is in the throes of change, and she presented her action plan for the industry. She also pointed out that the public perception of real estate professionals is disheartening, and urged a proactive effort by every broker and agent to educate the public about the benefits of using a professional and tech savvy agent. No arguments on any of that from me.

I started thinking about it all: about how the Internet has been a major agent of change, about how third parties perceive openings for leaner and more feature-laden competitors,

about how the public misperception is that all realtors make gazillions (while being ignorant of the average realtor income; $48,000), and how the only true reality in life is that change is constant. I then lit a joss stick and began chanting. (Just kidding!)

The question for each of us is: Are we going to sit here and quiver in fear while change happens, or are we going to be an agent of positive change and take the best that third parties have to offer and use our superior knowledge of the business to make us stronger and more successful?

Can an online home-valuing service ever be as accurate as a local on-the-ground agent who knows the town, the market, and the property? No. Can an online brokerage ever replace a professional real estate agent? No. Is the growth of social networking (My Space, YouTube, Zillow, Trulia, Craig's list, Point2 NLS) a bad thing? No. Why? Because all these things present opportunities for agents and brokers committed to adapt. Isn't that the very essence of the promise that brought our families to North America in the first place? Hasn't the North American business model always been about efficiency and merit (vs. the European model of connections and blood line)? Nothing has changed at its core, only the methods of delivery of services and of managing information have changed.

One of the points Ms. Evans stressed was governmental action against MLS and the business as a whole. This doesn't look to be going away for the simple reason that someone in government has decided that the model should change, probably prompted by lobbyists for certain companies who would benefit from that. There is no doubt that—as our President might say—"mistakes have been made" when it comes to trying to keep out �discount brokers" "Online brokerages" or combinations of the two. The DOJ is all over the NAR®/MLS because the industry has tried to cling to an ancient exclusionary model as a way of dong business and plenty of people complained. Refusing to show properties listed by a discounter is probably one of the single biggest things that got government to even look at this industry. Trying to exclude anyone from the marketplace by improper conduct will always cause government scrutiny, when it is as widespread and in a industry that is so universal to all consumers.

The banks want in because of the MONEY. As banks have lost one formerly safe portion of their business after another, they seek new sources of reliable revenue. The last time this was tried, the S & L crisis destroyed a good portion of the thrift industry. Back then, Savings and Loans, Commercial Banks and Savings Banks couldn't wait to develop property in partnership with others. There was too much money chasing too few solid opportunities and a glut ensued that kept the country in the tank for years. The government agency charged with fixing that problem then compounded it by closing institutions and putting vast amounts of property on the market all at once. This is what happens when government enters a business: nothing good results. Open and fair competition is the way to deter government intrusion, not by excluding or demeaning competitors.

Third party providers are chipping away because they perceive that they can better help the individual agent and broker market themselves and their property, and in many cases, they are right! Every business evolves and that includes the business of selling real estate. As information management continues to open broad opportunities for every business, so too it opens opportunities to creative minds and businesses. That is natural business evolution and we all know it is inevitable. Trying to protect our position through rules and policies will never be as effective as protecting our positions because we are the best purveyor of services. No matter how good the run was, it is time to get with the 21 st Century and change business models. No longer can the fees to run a huge bureaucracy simply accrue without competition; no longer can exclusionary policies be relied upon to protect our business. It's about information, folks, and in this age, anyone and everyone has it. Now it's about taking back your intellectual property: your listings, your connections, your knowledge and using it and technology to out perform your competitors.

The more I considered Ms. Evans call to action, the more I wondered if any of these developments (save government intervention) were as scary as they might first appear. Not being a lawyer or a banker, I did not inquire of them what their view was. Not being a member or a Board of Realtors, I didn't go there, either. Because I am somewhat knowledgeable about online marketing, I decided to inquire as to what the third party marketing movers and shakers thought. After some thinking, I called Point2 Technologies, one of the third party providers developments cited in Ms. Evans presentation and one of the largest purveyors of marketing platforms and websites to real estate professionals, with over 110,000 customers. I asked a lot of questions and I learned about their NLS system,. Were they a competitor to be feared, or an ally to be embraced?

After talking to many people in the management chain, it was Brendan King, COO of Point2 Technologies Real Estate business, who put the company's philosophy into the following bullet points for me:

• "Point2 NLS is for real estate professionals only;
• We created it to promote and enhance the value of 'organized real estate'
• We designed NLS as a device that gives back to agents and brokers 'complete control and choice' of their most important marketing asset (the listing) by the assets owners (Broker/Agent). Choice with respect to whom with, when, and where they advertise these assets;
• NLS is strictly an advertising and marketing platform. It is not designed to compete with the MLS, but to provide complementary services;
• Through NLS, we can also offer services to a large set of MLS that cannot afford them while working along side the MLS that can afford to provide them; and,
• Point2 NLS is not consumer-facing; it allows professionals to efficiently advertise their listings on other member sites of their choice, and to syndicate their listings to 15 popular third party consumer search sites, also if they choose to, with no intermediaries, and to receive all leads directly from those postings. Consumers cannot search directly in Point2 NLS, only licensed real estate professionals can."

I must admit that after researching these points and carefully thinking about them, I see no threat, only a great opportunity for agents and brokers. That perception was reinforced when I learned Point2's mission statement: � �We create innovative technologies that empower our customers to lead their field.� . Hmmm. I found nothing scary or undefeatable in that or in any cited third parties arsenals, either. I think it's s simple case of the cheese being moved. Whenever the cheese is moved or when the �game� changes, we all go through the cognitive dissonance that comes with adaptation, but we all manage to adapt, somehow, and that is true now, too..

For a long time, any reasonably competent person could make money in real estate, and almost any one with a license could sell real estate. I personally think that's one reason we have too many agents: this is a business with too many part-timers who are either inactive or maintain very little activity, yet compete with full time professionals for listings and sales—usually with family or friends. I once wrote a column about a California county with 5500 homes sales last year and 5500 realtors licensed. Currently, there is one licensed realtor for every 125 Americans. Do we really need that many realtors? I personally think some kind of performance standard should be a condition of maintaining a license, but that is another column, entirely

The market is still subject to further bad things. Where is it written that the Federal Reserve will keep interest rates artificially low indefinitely? Where is it written that we won't have a repeat of the 1970's oil crisis? Heaven knows the Mideast is not the most stable place in the world—isn't another mess likely there3? What effect will that have on home prices? The collapse of the sub-prime mortgage business was faster than its rise. It's going to be a lot harder to sell homes with 80-20 financing and no money down. Whenever a segment of the financing business takes a hit, it is customary to see a rise in costs to earn the hit back. From all accounts, this is one heck of a hit. Where is it written that just as prices are undergoing a correction, financing won't also? There are about 30+% of our population for whom home ownership is becoming out of reach. When do we get worried? When that percentage hits 50%?

All business is dynamic; that is, constantly in a state of flux and changing. Real estate is no exception. In boom times, the needle sways toward large profits, huge incomes and more buyers than homes for sale. Reality is different The Law of Supply and Demand is as valid today as when Adam Smith first coined the phrase. When it comes to buyers, there's more demand than supply; when it comes to realtors, there's more supply than demand. Correction is inevitable and it is also permanent: craziness is always supplanted by reality; just think of your college days!

You can either fruitlessly look for NAR® to protect the status quo or you can stop being in denial and face reality: with technology and fabulous tools that challenge the way that the real estate business has been done for the past 60 years. Agents and brokers are now better equipped and qualified to profit and prosper. Some business models and conventions are going to need to change. But they will change and those who change with them will still be on top regardless of how the business model changes.

There are all kinds of profound statements that have been made concerning the need to adapt or die. One doesn't need a Ph. D. to know what the situation is today. In trying to cope with it, I always fall back on this statement by professional Hockey's greatest scorer: "Some people skate to where the puck is. I skate to where the puck will be", Wayne Gretzky famously said. Learn from the past but focus on how to win the future.

Go to where the business is going to be.

Online Buying and Selling Via the Internet Attracts Users of Construction Equipment and Heavy Trucks

Online opportunities abound in today's market for buying and selling construction equipment — but old-fashioned due diligence is still required

April 1, 2007

By Walt Moore, Senior Editor

Eight years ago, René Bates, owner of René Bates Auctioneers in McKinney, Texas, casually wondered if he could use the Internet to dispose of vehicles left over from a live auction. To test the idea, he developed an easy-to-use online bidding system. It worked. Last year he conducted 475 online auctions for municipalities, utility companies and governmental agencies that were disposing of used equipment. Early this year, Bates handled an online auction for Dallas-Fort Worth Airport, and at the time, he told us that visits (lookers and bidders) to the auction website were averaging an amazing 900,000 per day.

No denying that the phenomenon of online buying — and selling — via the Internet is attracting more and more attention. For some individuals and businesses, buying and selling online is a practice as natural as breathing. Others, however, are somewhat skeptical of the process — distrustful, perhaps, of the electronics involved or the unseen humans at the other end of the electronics.

No matter which camp you might be in as a buyer of construction equipment and heavy trucks, you have ample online opportunities these days — if you choose to use them — for investigating and purchasing everything from welders, air compressors and light towers, to skid-steers, pavers and gooseneck trailers. And increasingly, it seems, potential buyers are using these online sources.

For example, according to Nakkia Gray, general manager of EquipmentTraderOnline.com, a website used by both dealers and private sellers to advertise equipment, the site averages 200,000 visitors per month, and these potential buyers conduct some 760,000 product searches among the more than 40,000 items typically available. Because the sale of equipment advertised on the website is handled privately between buyers and sellers, no actual sales figures are available, but the number of traceable e-mail and phone inquiries from potential buyers to dealers is significant, says Gray.

In some instances, though, sales of equipment from online sources can be tracked, and the numbers are impressive. For instance, according to Rob Alleger, chief executive officer of IronPlanet, an online auction company specializing in construction equipment and heavy trucks, sales range from 600 to 1,200 units per month (depending on the time of year), and dollar volume on those sales may range from $12 to $20 million.

Contractors increasingly are using the Internet to research and purchase equipment, says Chester Hagen, vice president of sales for Point2 Technologies, which created on "online marketplace" (UsedIron.com) in 1996. Much of the research is done in the evenings or on weekends, says Hagen, either directly on dealer websites or via listing-aggregation sites, which collect listings from multiple websites. UsedIron.com, says Hagen, each day generates around 10,000 detailed views, each representing a potential buyer who has viewed information for a specific machine.

"Contractors are demanding rich content in the form of more photos, descriptions, conditions and details," says Hagen. "And sellers who provide this content can expect to receive more inquiries than those who use fewer photos and less information. The ease of use, speed and accessibility [of online research and buying] have changed this business forever."

So, if you're interested in buying (or just investigating) construction equipment and heavy trucks online, you can go at it in a number of ways. We contacted a selection of online buying resources (some responded, others didn't) and assembled a sample of available services. The list is not intended to be all-inclusive, nor does mention of a particular service indicate endorsement by CE.

And we'll take the liberty up front of passing on a bit of advice offered by nearly everyone we contacted: Use good judgment when buying and selling machines online. Perhaps Point2 Technologies' Hagen says it best: "Buying equipment online should be done with the same due diligence as buying offline."

BuyerZone.com

If you want to do comparison-shopping and, at the same time, potentially encourage competition among possible suppliers, you might try BuyerZone.com. Owned by Construction Equipment's parent company, Reed Business Information, BuyerZone.com is a free service designed to connect the buyer with a number of qualified suppliers.

For example, by clicking the Industrial heading on BuyerZone's home page, and then on Backhoe-Loaders, you bring up a short questionnaire that helps detail the machine you're considering — for example, New or Used? Application? Dig Depth? Financing Preferences?

When you submit the questionnaire, you create a Request For Quote (RFQ) in the Buyer-Zone system, which immediately matches your information with as many as six backhoe-loader suppliers within a practical distance of your zip-code area. Since these suppliers are paying BuyerZone to receive your RFQ, and since they know they're competing with other suppliers, they typically respond quickly by phone or e-mail. From that point on, you evaluate what you hear and do business with your chosen supplier.

eBay

On the other hand, if you like the prospect of landing a deal at an auction, plenty of online action is available.

For example, Tony Quarrick, president of Quarrick Equipment & Auctioneers in Uniontown, Penn., conducts live auctions for his clients, many of whom are construction-equipment dealers. But for selling his own inventory, he relies increasingly on an electronic auction service, eBay. During the past five years, Quarrick has sold nearly 500 pieces on eBay, and he now has one employee whose full-time job is to answer questions from prospective online buyers, arrange for buyers to inspect equipment, and assist with shipping.

Quarrick sets no reserve on the items he places on eBay, that is, he doesn't require that a minimum price be met before he sells, agreeing instead to sell to the highest bidder. In fact, he sets ridiculously low opening bids, for example, $99 for a recently offered Toro Dingomini-skid loader. Low initial bids and the lack of a reserve, he says, stimulate aggressive bidding.

"I won't deny that we've lost money on a few deals," he says, "but the bottom line is that we make money."

IronPlanet

But, if you're hesitant to buy from an auction website that sells everything from tubas to trenchers, other online auctions specialize in equipment.

IronPlanet, for example, is an online auction service that conducts "featured auctions" every other Thursday. Machines in featured auctions are offered on an unreserved basis (Iron Planet does, however, set the opening bid) and are typically "on the block" for five to 10 minutes. You're advised of the auction date and time when you preview an item. If buyers can't be online at the time of the auction, they can submit an online PriorityBid, which allows IronPlanet to bid on their behalf.

IronPlanet has achieved a measure of distinction in the online marketplace with its inspection reports, which detail the condition of machines for sale. The reports, available well in advance of the auction date, are compiled, says the company, by a team of more than 350 experienced inspectors who use standard evaluation forms to assess machine condition at the seller's location.

If buyers find machine condition to be other than represented in the inspection report, the company's IronClad Assurance program provides recourse. IronPlanet also handles the transfer of funds and machine title between buyer and seller.

Ritchie Bros.

While some online auctions are electronic only, those conducted by Ritchie Bros. are adjuncts to selected live auctions, meaning that online bidders are competing with bidders at the live auction. Items are offered on an unreserved basis ("as is, where is, on sale day"), and all potential buyers are welcome to inspect items at the live-auction site prior to sale day.

The company's rbauctionBid-Live system allows online participants "to see an image of the machine on the block, to hear the auctioneer call out bids and to place bids." When online bidders have activated the "Bid" button on their computer screen, the dollar amount displayed is the current asking price for the selected item, and clicking the button submits the bid. If the bid is the first to reach the central servers, it is forwarded to the auctioneer. By submitting an online "proxy bid" prior to the auction, buyers allow Ritchie Bros. to bid on their behalf. Winning bidders must abide by the company's terms and conditions regarding payment.

AssetLine.com

Although we couldn't find a North American contact for AssetLine.com, an online auction service, we include the company here, because it seems to have a significant international presence. If you're a contractor needing to secure and place equipment in various parts of the world, this website and its online bidding system might be worth investigating. Registered bidders have access to detailed machine-condition reports.

UsedIron.com

Among the listing-aggregation websites, which bring buyers and sellers together to transact business on their own, is Point2 Technologies' UsedIron.com. According to vice president of sales, Chester Hagen, machine listings on UsedIron.com originate from a number of sources, including dealers using the company's Point2 MANAGER inventory-management system; contractors (who may advertise up to five machines free of charge on the site); and syndication partners, such as online auction services and other listing-aggregation sites looking for additional exposure.

"UsedIron employs a proprietary monitoring system for all Free UsedIron Premium Ads [those placed by end-users] to eliminate fraudulent sellers," says Hagen, "and to keep data accurate and reputable for buyers on the site."

MachineMart

MachineMart presents an inventory of used machines available in the inventories of North American equipment dealers who are members of the Associated Equipment Dealers (AED). The website's home page presents a list of the top 10 machine categories (by frequency of search), and clicking on a category brings up a complete list of machines available, noting make, model, price, year of manufacture and state location. Subsequently clicking on Details presents a general description of the machine's condition (often with photos) and contact information.

Or, the site visitor can browse by manufacturer and, again, the home page presents a list of the top 10 manufacturers by frequency of search. Statistics recently presented on the site advertised that 97 AED distributors, doing business in 350 locations, were offering nearly 8,300 machines for sale.

EquipmentTraderOnline.com

EquipmentTraderOnline.com lists items in such categories as earthmoving, lifting, concrete, attachments and trailers. Visitors to the site can search by machine type, manufacturer, state or zip code/specified distance criteria, and an advanced-search feature narrows selections by such categories as specific model and price range. Once the potential buyer pulls up the listing for a specific machine, complete seller contact information is available.

According to general manager, Nakkia Gray, the company uses an advertisement-verification process to help protect both buyers and sellers from fraudulent activity, plus it maintains a security center (www.traderonlinesecurity.com) to address potential seller (and buyer) scams.

CatUsed.com

The inventory on the CatUsed.com website is primarily used equipment, parts and attachments available from Caterpillar dealers. The prospective buyer can search generally by product type or manufacturer, but can potentially narrow the search by specifying exact models and geographical locations, as well as selecting a range for year of manufacture, hour-meter reading and price.

The listing provides a summary that details the unit's features and notes its price, general location, hour-meter reading, and a rating of its overall condition. If potential buyers want to further investigate a machine, they are encouraged to first select a Caterpillar dealer close to their location. Cat's logic is apparently to help the buyer establish a relationship with a nearby dealer, who can work with the machine-owning dealer to arrange the sale and who can provide product support after the sale. Caterpillar promotes the integrity of the Cat Used.com system by saying it is based on the stellar reputation of Cat Dealers.

MachineryTrader.com

According to MachineryTrader.com, its website features a continuously updated database of equipment, parts and attachments for sale directly from dealer inventories. The site also allows investigating rental sources and auction results. Machine listings typically include serial number, hour-meter reading, price, name and location of the selling dealer and a general description of the machine and its condition.

MachineryTrader.com is international in scope, but according to the company's Chuck Lewis, North America is its core market. The company's website listings are extensive, having, for example, more than 40,000 units in just seven major earthmoving categories. Activity on the site continues to increase, says Lewis, but he cautions (as do most online services bringing buyers and sellers together) that buyers must do their homework, including, if the situation warrants, traveling to inspect the machine.

Crane Network

Crane Network was created in 1998 and specializes in online crane sales, in which buyers deal directly with sellers. The number of units listed typically is around 2,000, ranging from small truck-mounted units to rough terrains to towers. According to the company, the site has an estimated 30,000 visitors per month. Listings typically include photos, basic machine information, and seller contact information.