Card Sharks

Consider yourselves warned.

As The Wall Street Journal reports, that "professional card" offer you received in the mail last week may give your ego a boost, but not without first raiding your wallet.

With issuing offers of such cards up 256% from last year, you may be asking yourself: has everyone become a small-business owner over night?

Hardly. Thanks to the new CARD (Credit Card Accountability and Responsibility and Disclosure) Act of 2009, card issuers can no longer jack up your rates or ding you with inactivity fees.

Such consumer protections do are not covered for small-business cards, though. So, now, not only can your dog receive a credit card, he can also be a small business owner, too.

They keep finding the loopholes.

Chase spokeswoman Laura Rossi says that only small-business owners should be receiving these cards and that "mailings for small-business cards have not spiked but have remained relatively consistent."

Apparently, a 256% increase is not a spike. "Professional", huh?

So, if when they ask you 'what's in your wallet?' let them know: cash.

What Does Your Website Say About You?

If you're an agent working today, then you already know the importance of a good web presence.

What you may not know, however, is what constitutes 'good'.

If you have a website, take a look at this list to make sure you're not falling victim to technology. After all, having a megaphone is one thing; using it wisely is another.

1. I'm #1! I'm #1!

Does your website scream #1 anything? Stop it. Sure, you may be the number one agent in your market, and you may have famous clients. But your potential clients don't care. They want to make sure you will help them find a home or sell their existing home.

Who's the focus here anyway: your ego or the client?

2. Music.

Just...just don't play music in the background. The quickest way to lose a potential customer is to automatically play music when they log into your site.

3. Poor Picture Quality.

If you have listings on your site (which you should), be aware that the quality of the photos reflects the quality of the agent who took them (that is, you, even if an intern took them). If you have grainy images taken from your 2 mega pixel camera to show off a home, I will be clicking the red X on the top of my browser and will continue shopping for a competent agent.

4. Misspelled Words.

The descriptions are just as important as the pictures when listing a home. And glaring misspellings give a potential client the same vibe as grainy pictures - this agent doesn't care. With dictionary.com a free service, there should be no reason you should have misspelled words on your page.

5. Glamour Shot Photos.

If your picture is more than five years old, you need to replace it. And don't wear your blouse with shoulder pads in your new picture, either. Clients do not want to be surprised when they meet you. They want to be sure that you are genuine, not Photoshopped.

Of course, easy navigation, informative content, and an ability to contact you are all very important, too. And, if you're a DotLoop user, you can let them know that they will be able to negotiate more easily and quickly.

Websites, like a home, need to be maintained.

Are you maintaining yours?

How Many Clicks Does It Take?

Here at DotLoop, we're always tweaking our system to make it as efficient and stream-lined as possible.

But did you know how many clicks it takes to get to the finish line of a negotiation?

Mr. Owl knows.

To send a contract to a client, it takes 3 clicks.

For the client to sign the contract, it takes 2 clicks.

To add a new form to an offer, it takes 2 clicks.

To send a signed offer to the other agent, it takes 2 clicks.

And to get the bank to complete a short sale in under 60 days?

Well, I never made it without biting.

To see for yourself how many clicks it takes to create a paperless real estate transaction, visit DotLoop today and check out our Sample Contract to preview the system.

Charge Change

And finally...

...some good news!

No, the housing market has not returned to "normal" (if you can call the recent boom "normal") and unemployment is still dangerously high (unless you live in North Dakota).

But perhaps this recession has taught us a valuable lesson: live within your means.

For the first time since 2002, the average credit card debt per American citizen is now below $5,000 ($4,951 to be exact).

"Consumers continue to pay down their credit cards in response to economic uncertainty and high unemployment," Ezra Becker, a consulting strategist, says in the article.

Like a kid who ate too much Halloween candy, Americans gorged themselves on cheap and easy credit and are now taking a more healthy approach to spending and saving.

It took a global recession to make us realize our faulty ways, but the best lessons are always the hardest to learn.

Rethink, Regroup, and Reinvigorate

“Gentlemen, progress has never been a bargain. You've got to pay for it.”
--Henry Drummond, Inherit the Wind

It’s been a tumultuous few years to say the least.

With the economy still stuck in the mud, despite the turning of our wheels, a recovery appears to be a long, long way off and the good old days of 2006 are nothing more than a distant dream.

It seems like Pandora’s Box has been opened as the housing market continues to whimper on.

Later today, NAR will release what is predicted to be a decline in July home sales, and foreclosures continue to rise in certain areas in the country. It seems we're continuously mired in bad real estate news.

But it's not all doom and gloom. This weakened economy may just be the reprieve we need to buckle down, tighten up, and condition ourselves for a post-recession economy. Sure, the sales may be down right now, but never before have agents had so many advanced tools at their disposal. Never before have agents been able to openly and actively communicate with their clients.

We will most likely come out of this Great Recession a bit worn, but also a bit wiser. The proverbial cream will rise to the top and the best agents will shine through. After all, the only way to turn a lump of coal into a diamond is with time and pressure.

The question is, are you bettering yourself in this downtime, or are you still waiting next to the fax machine for the latest offer? Are you talking to your clients on Facebook to see what they feel about the local real estate market? Are you polishing your HTML skills or updating your website?

Because now's the time to regroup, rethink, and reinvigorate your business. This recession, after all, won't last forever.

So, when times are difficult in the midst of all of this bad news, don't forget what was at the bottom of Pandora's Box: hope.

Is The American Dream Changing?

It turns out that America might just be big enough to have differing versions of the American Dream.

With housing prices still plummeting and unemployment still rising, the old stigma of renting is starting to wear off.

As NPR points out, renting is now being re-examines, with a less-weary eye.

Another article in the series discusses how some renters have found "forced simplicity, [which] keeps [their] overhead very low and lifestyle very flexible."

In a world where the stock market can wipe out an entire life's work and a home's value can plummet to the point where you end up owing more than what it's worth, the younger generation is starting to question the American Dream as it was created in the 1950s.

Indeed, as Raj Date points out in the article, "The world we live in today is not quite the world that existed in 1950", referring to the transient nature of work and suggesting that a middle class American should not "stake themselves" with a house.

With the mercurial nature of today's economy, home ownership may not end up being the ultimate fruition of the American Dream.

After all, as The New York Times points out, one-third of twenty-somethings move to a new residence every year and go through an average of seven jobs within the decade.

With such drastic statistics, it's no wonder that renting, as Joanne Cleaver pointed out in the article, "[isn't] being rootless, [it's] being free."

And isn't being free ultimately what American Dream is all about?

Could You Go Unplugged?

"Real sacrifice lightens the mind of the doer and gives him a sense of peace and joy."

So says Mahatma Gandhi.

But then again, he never had to give up his cell phone.

In a fascinating little experiment, The New York Times threw down the gauntlet to its readers and challenged them to give up their internet and phone connections. The results are interesting, if not scary - it seems that for some, being connected is as addictive as any drug out there.

Others, however, found solace in the silence, even remarking how they were "less stressed, much calmer, and less distracted."

It's interesting to hear some of the stories of those who took a breather from being connected and either reconnected with the rest of the world or were frustrated to tears.

Here at DotLoop, we encourage you to take a step away from the screen and get some fresh air after you quickly complete your contracts online and easily send them off to your client.

There's no Farmville to distract you here.

A Dim Idea

Last night, I unplugged my TV after watching a show.

I also drove to the grocery store across the street from me because it was a bit too hot out to walk.

I am such an environmentalist.

As another sign of good intentions, but poor execution, a new survey found that Americans don't really know how to save energy.

As if daily traffic jams were not enough of an indication.

It turns out that just turning off your lights before leaving a room and buying that new ENERGY STAR laptop don't really add up to much in a big-picture sense.

And what's more, the green movement may be partially to blame, with erroneous information leading people into thinking that buying green products is the key to environmental utopia.

The lead researcher from the study, Shahzeen Attari, says that, rather than doing the small, easy things to curb your carbon output, you're probably better off "switching to efficient technologies [which] generally allow you to maintain your behavior and save a great deal more energy."

The idea is to change how you do things, and not necessarily what you do. I mean, sure, you could buy soy ink cartridges for your fax machine and use 100% post-recycled paper to print off your 50 or so pages of documents and drive your new hybrid car over to your client's home for their signature (using a soy-based, recycled pen of course), but wouldn't it be easier, more efficient, and more environmentally-friendly to simply use DotLoop and have everything done online, without wasted paper, ink, or gas?

After all, sometimes being green simply means doing things better.

*Results Not Typical

Reading this blog post is guaranteed to make you twice as effective within your profession and will also make you up to ten times more attractive to the opposite sex. And, by bookmarking this blog now, you will be able to triple your income and quadruple your tax write-offs!

Just ask DotLoop Blog reader Donnie Ewing.

"Since I began reading the DotLoop Blog, I have been making $5,000 a day in extra income. Plus, I lost ten pounds in three minutes!"*

*Results not typical. Side effects may include nausea, dry-mouth, and headaches. Always consult your doctor before reading the DotLoop Blog.

If you've watched any TV within the last decade, you've seen the small type. As a real estate agent, you know all about small type and the importance of reading it.

And it's not just the "results not typical" variety, either. The infamous "up to" and "as low as" are just as misleading. I especially like car commercials, where they show the most posh, leather-clad car winding through the freshly-paved blacktop of some scenic mountain road. The announcer then comes on and proclaims that you too can get this car starting at $15999. The small type, of course, always says "Price as Shown, $38999."

Car companies are not the only ones over-promising and under-delivering, though. As reported yesterday, broadband "up to" speeds are as bogus as men with sprayed-on hair getting bikini models for a girlfriends.

As it turns out, what's being advertised is not at all what's being delivered.

This of course lends itself to an interesting discussion. In an attempt to stay afloat through this difficult housing market, are you over-inflating your numbers and abilities? Are you only advertising atypical results? Most likely, you're not, but it's something to think about next time a seller is demanding their house be listed at a 2006 price point and you guarantee that you can deliver such results.

As we all know, the devil is in the details and the deception is in the small type.

Free Parking Is Anything But

Being the first to arrive in the office today, my car was the first to arrive in the parking lot (boy, I really hope my boss reads today's post).

I didn't think much of it, and you probably don't either, but my car is now just sitting there, taking up precious land space outside of the office. And I am not paying a single dime for it.

Or so I think. But the truth is, like freedom, parking is never "free".

That's where subsidies come into play.

But do these subsidies make sense anymore? In an era where people are concerned about their carbon footprint, why do we still subsidize parking, which only allows for more congestion and pollution? Indeed, a full third of all NYC traffic is simply cars looking for a place to park.

That's a lot of wasted time and energy. As The New York Times points out this week, "we end up overusing land for cars — and overusing cars too. You don’t have to hate sprawl, or automobiles, to want to stop subsidizing that way of life."

A more sensible approach would to be to allow parking rates to fluctuate depending on demand at the time, an idea that is being piloted in San Francisco. You simply pay for what you use, like any other commodity.

Designing neighborhoods and cities for people instead of cars will only happen if people think wisely about when they use their cars. Free parking may seem nice, but like free ice cream, it has its consequences.

After all, we're trying to be careful with our resources (going paperless with DotLoop, for example). Isn't it time we start being careful with our land use, too?

"It's Not About Real Estate, It's About Consumer Behavior Changing"

If you didn't catch it yesterday, Chris from TechSavvyAgent presented a fascinating interview with The Goodlife Team CEO Krisstina Wise and CTO Jack Miller.

This video is a must see, although most likely you'll be pausing and replaying it over and over again to catch all of the gems of wisdom presented.

For example, on the ROI of social media and online connectedness, Krisstina says that "the ROI of all of this is you will be in business in five years. We don't have a choice to do it or not to do it - it is the way the future is going."

Jack has this to say about web design and why it's probably not a good idea to outsource your web presence to an $8/hour college kid: "[Great results] are not accidents and it takes a good designer to produce that."

Chris himself offered the titular quote. Of course, here at DotLoop, we understand how technology will continue to adjust the way home buyers and sellers interact with their agents. The future of successful real estate belongs to those agents that can engage their clients on their terms. That is, online.

Chris, Krisstina, and Jack all offer some amazing insight into what it takes to make that happen. Be sure not to miss it!

You're Suspect, Google & Verizon

Your desktop computer is safe for now, but watch out for your smart phone.

Yesterday, the much-anticipated Google-Verizon "deal" was announced.

And, as it turned out, the rumors of a Google-Verizon collusion deal to kill net neutrality were much ado about nothing.

Instead, Google CEO Eric Schmidt and Verizon CEO Ivan Seidenberg made what they referred to as a "joint policy announcement" that was to be a "suggested legislative framework for consideration by lawmakers."

Interestingly enough, though, it only applies to wireline internet connections, and not the wireless internet connections linked to so many handheld devices.

Still, it seems a bit odd that two corporations are giving the government "suggested legislative framework" in the very industry they do business in. It would be like BP giving suggestions to the MMS.

For their story on the announcement, NPR spoke with Siva Vaidhyanathan, a professor of law and media studies at the University of Virginia.

He is weary as well.

"All of these companies have short-term invested interest in maintaining their power," he said. "Fundamentally, Google doesn't work for you and me, and Verizon certainly doesn't work for you and me."

Which is true, despite what Verizon's tag-line may say.

It will be interesting to see how this all pans out, but my gut is telling me to be careful when two corporate giants want to address public policy out of the goodness of their stocks, er, hearts.

Bye Bye Free Wi-Fi?

A few years back, I stopped going to my local coffee shop to write and started going to the Starbucks across the street from me.

It wasn't because the coffee was better, or the people friendlier at the coffee conglomerate.

It was because there was no internet access at Starbucks.

Those days are now long gone, thanks to Starbucks' decision last month to offer free wi-fi, so I'm back to ordering the local cup of joe, but for a while there, it was nice to know that all I had to do (and could do) when I sat down in my seat was write.

As it turned out, free wi-fi wasn't a "perk"; it was a distraction.

No checking e-mail. No "researching" new ideas. And no excuses.

As the LA Times reported this week, it turns out I wasn't alone. What used to be a staple of the coffee house scene - free internet access - has now become a selling point if it's missing.

"People still desire and need actual interaction," states the article. "That dynamism is part of what makes us human."

Indeed, technology can be a double-edged sword, yielding fantastic amounts of productivity, yet making people feel isolated behind their screens. Something that should be used a tool becomes just another distraction, a topic that was touched upon here in May.

DotLoop, of course, prides itself on being a tool and not a toy. Our system never replaces an agent; it only allows them another channel to communicate with their colleagues and clients.

Personally, I can see the draw for a web-free cup of coffee; a sort of safe haven from the lightening-fast pace of the outside world. How about you? Do you think being disconnected every once in a while has its benefits?

If You Build It...Do It Elsewhere

The economy does some strange things to people.

Sometimes, it makes them a bit more practical, if not confused.

In a new study, 68% of people are now “more likely to support new projects in their hometown in light of the current economic situation,” a 10% increase from 2006.

Agent Genius discusses the flux of NIMBY (Not In My Back Yard) attitudes within this recession.

Of course, not all development is created equal and not all NIMBYS are just Negative Nancies wanting to halt progress. What some see as progress (a new Wal-Mart), others see as decline (boarded up main street shops thanks to said Wal-Mart).

What's interesting, though is that, while the overall population is more receptive to large commercial projects, "three out of four Americans...believe their city or town is already over-developed or fine the way it is", according to Patrick Fox, president of The Saint Consulting Group who did the study.

So, most are okay with building new projects, but more still think that their towns are perfect just the way they are. How...ambiguous.

Still, for a nation currently breaking up roads due to budget cuts, it seems that perhaps new commercial development isn't what we need so much as new infrastructure developments.

Better roads, along with more transportation options, could go a long way in improving streets, neighborhoods, cities and our country as a whole, as long as the NIMBYS understand that their backyards may have to change for such progress to take place.

Progress, of course, is tricky, and some don't see the benefits of it until they experience it for themselves (very much like DotLoop).

It will be interesting to see where our priorities go once the economy gets its strength back. Let's home that when the next development boom happens, we develop for our sidewalks as well as our new retail stores.

Leica iPhone 4, It's Not Built to Last

When the iPhone 4 was unveiled (at its official launch, not the Gizmodo leaks), Steve Jobs compared it to "a beautiful old Leica camera."

You know, one that's prone to breakage and antenna issues.

Not to sound like an old man, but, well, they just don't make 'em like they used to.

I'm not alone in my thinking, though. Nick Bilton's brilliant blog post today talks about this very notion, one that came about from a cracked iPhone 4.

But it's not just electronics. Cars, furniture, even homes are being built not to last, but to be replaced by newer models a few years (or even months!) down the line. It makes you wonder why anyone would spend top dollar on a device that will be obsolete in eight months, like the new Motorola Droid is now.

After all, I'd be more than willing to spend extra money on a car or phone that will be guaranteed to last longer than the milk in my fridge.

“Electronics today are not built with permanence in mind," says Jason Bruch, from branding design agency Schematic.“If you purchased a Leica Camera a hundred years ago it would still work today. It was bullet proof."

Unlike the iPhone 4. Luckily, the iPhone 5 is coming out in just a few months.

Probably followed by the iPhone 6 a week later.

Maybe that one will live up to the Leica camera analogy Steve Jobs had in mind.

Has Google Turned On Us?

It's 13 years too late, but Judgment Day is upon us.

Anyone familiar with the Terminator movie series knows that the day the machines become aware was to occur on August 29,1997.

Turns out, it might just be on August 9, 2010.

That may be the day, as The New York Times reports, that Google and Verizon sell out Internet users across the world, when the two announce their partnership allowing Verizon to speed "some online content to Internet users more quickly if the content’s creators are willing to pay for the privilege." Content such as Google's YouTube.

Basically, it means that the idea of net neutrality - that no one person, entity or corporation owns the Internet, an idea once backed by Google - could be dead in the water.

Since the backbone of the Internet - the optic cables and wires that were laid in the 1990s - was paid for by tax dollars, it would be akin to selling off our national highways to private companies and allowing them to charge whatever they want to use the lanes. Those with deep pockets would have sole access to the fast lanes.

It basically privatizes a public utility.

A neutral Internet allows anyone with a bold idea the ability to communicate with the world and provide value and service (like DotLoop). A closed Internet allows a few companies to control what message gets prioritized (like cable) and severely limits users' experience.

Now is the time to act to help save the Internet as we know it.

Before it's terminated.

Surf's Up For Innovation

Sometimes, what seems bad can actually be good, if you dig down deep enough and ride the wave long enough. Chinese surfboards, for example, only help the industry as a whole.

Confused yet? Let me explain.

With the economy still reeling and jobs as scarce as an Arizona avalanche in August, the outsourcing of jobs and the influx of cheap labor is probably a bad thing, most would agree.

But it all depends on perception.

Case in point: in today's story about the surfboard industry, the rise of cheap, Chinese-made surfboards, made by low-wage workers, who "have no idea what a surfboard is used for" seems like a bad thing for the industry.

But what was initially a scourge to the surfboard industry has turned into a blossoming on innovation from domestic producers. Indeed, as the article points out, the cheap imports have only increased the value of what domestic board shapers do.

“'The shapers out there … view themselves as craftsman and artisans rather than producers of composite material products,' says Sean Smith, the executive director of the Surfboard Industry Manufacturers Association."

DotLoop understands such home-grown innovation. Our products and services are all produced in-house, by a tight, dedicated team of experts. Quality trumps quantity and cheap knock-offs are nowhere to be found.

After all, shouldn't we all be craftsmen and artisans with our work?

New Study Confirms What We Already Knew

In a new study funded by the Captain Obvious Foundation, home buyers' satisfaction with real estate companies improved while home sellers had a less than favorable view.

The J.D. Power and Associates 2010 Home Buyer/Seller Study™ was released yesterday and it found that for home buyers had a 12 point increase in satisfaction (803 on a 1000 point scale) from 2009 while home sellers had a 40 point decrease (742 on a 1000 point scale).

Of course, this only makes sense. With the housing market still reeling from its burst bubble, and with interest rates still historically low, buyers with the cash and ability to buy have the pick of the litter when it comes to homes, and sellers have to compete with short sales and foreclosed properties when trying to recoup their equity.

The good news, however, is that regardless of which side of the contract a client's interests are, the need and importance for a good agent has substantially increased. It's almost as if the housing crisis has really shed light on the best agents out there, with the cream rising to the top.

Indeed, for the third consecutive year, DotLoop partner Keller Williams was ranked the highest in customer satisfaction for home buyers and Prudential - another DotLoop partner - was ranked the highest for home sellers.

After all, even Captain Obvious knows that great customer service always leads to greater satisfaction, regardless which side of the contract you are on.

The New Abnormal

Mr. Homeowner, now that you've just finished your strategic default, what are you going to do?

"I'm going to Disney World!"

We just don't know what to do with ourselves.

As Bloomberg reported late last week, Americans are being schizophrenic in their spending habits throughout this recession, buying cheap toothpaste at the dollar store so that they can continue to buy $3 lattes at Starbucks.

In a nation where a giant shopping mall is a vacation destination and 70% of our GDP is made up of people buying things, it's easy to see why we are so desperate to spend. After all, it's how we're programmed to function.

The phenomenal sales of the iPad - a product that created a brand new need upon its release - is a perfect example. As the article showed, a gentleman who had just foreclosed on his condo purchased the new Apple product even though he had just lost thousands of dollars in wealth.

Of course, in a time of record profits coupled with crushing unemployment, all of these strange economic stories only verify what DotLoop already knows: the world is rapidly changing.