It Ain't All Big Hair and Cadillacs

So - how many outstanding parking tickets do you have? Well, if it's more than 2, pay up or get the boot! The Chicago SunTimes this morning had it all in black and white.

In order to close the widening $400M budget gap in Chicago, Mayor Daley's rather unpopular plan is to subject any person with more than two outstanding parking tickets or two redlight violations the distinct pleasure of having their car incapacitated with the device called the Denver Boot. History has shown that the plan has actually brought in the dough. In 2002, the city reduced the penalty from 5violations to 3 which generated $8.2M smackeroos - that ain't chump change.

City Alderman aren't finding the plan bootylicious - many are concerned that any additional financial burden on their constituents will only worsen the financial strains due to the current economic downturn.


Speaking from personal experience, getting the boot ain't no Rocky Mountain High. It is FAR cheaper to pay the tickets. If you dare to play Russian Roulette with the City's Department of Revenue, just know - according to the SunTimes article, last year, Chicago booted 58,886 vehicles. The booting rate is up slightly this year -- to 29,719 through June 30 -- thanks to vans equipped with automated license plate readers. They stalk the streets at all hours.

Come to think of it - make sure you have your new city sticker too. Um - when I got the boot, I didn't have the new sticker either - again - fun? Not so much.

Ya know - I’ve decided that I want run for Congress - my dilemma: overcoming the paradigm that one aspires to move up and not - um - down. BUT! Just think of all the fun I’d have riding the train under The Capitol - sitting in convertibles waving at my constituents in parades, playing golf with my lobbiest “buddies” - Ahhhh - what a LIFE!

Honestly, though - I think the best part would be sitting in commitees and writing legislation. Imagine sitting in a big room covered in mahogany wainscoting, sitting in a cordovan leather highback chair behind the massive, hand carved desk with my BIG brass name tag in front of me -I might even have a microphone in front of me. My voice would boom while speaking down to the little peop - er - constituents - um - not MY constituents, but constituents nonetheless.

My esteemed colleague would be standing behind me whispering where the guys were going to meet up for drinks after the hearing while the pathetic homeowner in front of me goes on and ON AND ON about how some slick mortgage broker sold him a bill of goods and now he can’t make his mortgage payment. But I feign to listen because it’s only for a few hours and then I get to ride the under ground train with my buds ‘cuz tonight I’m drinkin’ and schmoozing with da bankers!

Just think about it! I’d get to drink single malt scotch while Jimbo Biggidy Big Banker throws his arm around my shoulder, pulls me aside - walks me out on the patio at The Capital Grille, hands me a cigar and tells me that those wacky Wall Street boys - ha ha - you know the type - custom shirts and suits from Hong Kong - well they really blew it. Look at ALL that hell they’ve caused.

Jimbo likes to talk in the third person.

Tommy - Jimbo’s bank is losing money. How was Jimbo supposed to know that people weren’t going to be able to pay for all of those mortgages? I mean housing always goes up - ha ha *slap on the back* right?

I mean - if I have to write down the value of all those assets - well -um - you see Tom, Jimbo and Marge won’t be able to host that ski junket in Vail this year - and we all know how much Tommy LOVES to ski.

Dammit! There is no way in hell I am NOT going skiing in Vail this year.

So Jimbo - let’s just say I get a few of my esteemed colleagues together - write a few rules and regs - make sure my boss covers your ass. You won’t lose a penny more on those declining assets - I mean, if you have to write them down to say - 85%, will that keep Vail in the running? Let’s face it - you can always foreclose - I mean who wouldn’t want to find a bargain?

Not sure if you’ve visited TruliaVoices lately - there is an active thread currently running, at last count, 1,599 responses. I believe that is the longest running thread in Trulia’s fledgling history. The poster has since updated the question with more information qualifying the question due to the overwhelming number of responses, however, the basic question is, “Why should someone buy in this market?”

When initially posted, the question was a legitimate query into an expert’s view as to why someone in the poster’s circumstances should buy in Chicago. Personally, I had a problem with the question - should the response be a multiple choice response?

a. buy low, sell high
b. interest rates are at historically low levels
c. Jill is half as tall as Bill and 3/4 tall as Sally
d. Vicodine
e. There is insufficent data to answer to this question

I like “e” - and for the first time in almost 30 years, I can now fully appreciate the significance of that answer on the SATs. For those of you who found Vicodine to be the logical choice, may I suggest an intervention?

Ok - so I’ve been following the thread from time to time, watching it morph from being a useful discussion to - lately - a discussion regarding the existence of nuclear weapons in Israel. Almost like a game of telephone gone bad. More disturbing to me however is how the question has evolved into a rhetorical question “WHY THE HELL would someone buy in this market? What are you, an idiot?”

If you’re familiar with the TruliaVoices rating scheme, you understand that comments are rated by either a thumbs up or thumbs down. Honestly, I think there’s a conspiracy brewing. As you read the responses of the many realtors who answered the question, “There is no better time to buy!”, many of those responses were met with a burrage of thrumbs down. You can almost hear the resounding “BOO!”, “LOSER!” - you know, while you’re at, why don’t you just poke me and call me fat.

On the flipside, the number of written responses as insults were flying back and forth, discrediting realtors who provided insightful responses to a fairly ambiguous question. Again - thumbs up to the responder who really stuck it to the realtor - thunderous applause - BRAVO!

I think the collective mindset - or groupthink has become, any agent who tells a consumer to buy in this market is nothing but a realtwhore. Of course you want to tell people to buy, otherwise you won’t make your ridiculous commissions.

Well, I don’t think NAR’s national campaign blanket statement, “There’s no better time to buy! Consult your local realtor” has gained us points in the credibility deparment. A good majority of consumers aren’t convinced. Honestly, I did whince at a few responses (some with big hair) - shiney, happy people providing generic responses to a very generic question. Interest rates are low, inventory is high, it’s a buyers market! Buy! Buy! Buy! Sorry - they do kinda sound like realtwhores.

It’s a tough crowd in there, many of whom are well armed - spouting out data statistics from Standard and Poors, the Case Shiller Index, weighted averages etc. Even Fortune magazine wrote an article about the state of the market. Astonishing that Fortune’s article had higher credibility that a broker of greater than 20 years experience who has shared her thoughtful, specific responses throughout the thread. Hmmm - I thought Fortune sold magazines, not real estate? Why is the Case Shiller Index the defacto standard instead of NAR’s market stats? … because NAR’s nothing but a bunch of realtwhores.

I will say I did find a great deal of humor by reading the responses. I’ve been following the thread and have noticed a good number of real estate professionals’ responses. Many continue to dent their armor, they stood their ground - they took a few for the team, but then again, they do this for a living.

I couldn’t help but be struck by one agent’s response who up until then had been fighting the good fight, but then sheepishly admitted, oh I don’t actually use this site as a prospecting tool, I just come here from time to time and “check-in”.

Excuse me?

Let me get this straight - you fill out a profile in detail, providing all of your contact information, designate yourself as a real estate professional, actively participate in discussions, follow a thread that has grown to almost 1,600 responses, share your knowledge and expertise, but you don’t want consumers to think you’re a realtwhore - is that was you mean?

Who are you kidding? After I read that - the groupthink just took a survey: *DING*DING*DING, survey says *REALTWHORE* Suffice it to say - when a potential client now calls said agent, it is their duty to say - oh, I’m sorry, while I appreciate the fact that you enjoyed my knowledge and experience, I was not seeking any potential business - I’m afraid I can’t help you - I’m a realtor, not a realtwhore.

Some how realtors who admit they use social networking sites as prospecting tools are looked upon as less credible. How far from the truth can that be? When you establish a web presence, you’re prospecting. Consumers are using these sites in exponentially increasing numbers. While some consumers enjoy the game of discrediting the experts and the realtwhores, a greater majority are seeking sage advice. They need expertise and knowledge and they are seeking out the experts. Groupthink tells that buying and selling is a do-it-yourself job. For some that very well may be the case - some are not seeking to be converted and you know, that’s ok. Where better to draw the distinction between a realtor and a realtwhore?

Regarding my own TruliaVoices involvement, in my own professional way, I would like to address the few of you who gave me thumbs down on my incredibly insightful responses. No - for you who choose to discredit me - I will not pick up my toys and leave the sandbox. Nope - instead I want you to follow these simple directions:

Apply lips firmly to my right buttock. Pucker and release. Repeat.

Now see? It’s all in the delivery.

Ok - I have to admit it - I am finding that I have more idle time in my day - clearly my time blogging has not yet resulted in the deluge of qualified buyers and sellers that are promised by the "experts". So, as a social experiment, I have decided to blog more in the attempt to attract more buyers and sellers -

here goes...

Aside from being a self-subscribed caffiene addict, I also realize that I have become unhealthily (is that a word?) addicted to LinkedIn, Twitter, PropertyQube and Trulia - as well as additional social networking sites that serve the real estate community. Facinating! I continue to be drawn into the discussions and quite honestly, I am learning some really great stuff.

In my idle boredom, I decided to throw out my own questions because I am excited about the prospect of learning from my peers as well as possible clients.

I threw out a few questions - what sites do consumers like most when searching for property? - what's the most creative marketing you've done / come across in marketing a property?

and - what I felt was a fairly innoquious question, "What are a real estate agent's core competencies?" I wanted to hear what other agents had to share regarding their skill sets - what ultimately creates value and makes them money. Many of the responses were great. I was surprised, however, that I received so many responses that I honestly felt simply missed the mark. I received one response telling me my question was "odd".

Disclaimer: I do not know everything about buying and selling real estate and I do not profess to be the source of all information. Ok - now that I have that out of the way - people - core competencies are the value-added activities we do - many of which are intangible - that justify getting paid for what we do as real estate practioners. Cha-ching.


I am a practitioner - I continue to practice until I get really, really good at what I do. But practicing is an appropriate word, because as the landscape of the real estate environment changes, we must continue to hone our skills and knowledge. But key to all of that is - finding the intersection between our core competencies and meeting our clients needs.

I referenced the changing landscape of real estate because there are an onslaught of technology solutions hell-bent on eating our lunch. Many of these solutions are meeting the needs of the consumer because we have either failed to understand the need or have neglected to tell the consumer how/why we're valuable.

If a client wants to search for their own property - let them - or perhaps we may be able to do a better job sifting through the rift. If a client wants to do the analysis of the comps - let them - or perhaps we need to expertly assimilate the data in a way that imparts our specific knowledge of the property types, the neighborhood and the specifics regarding where the market is headed.

Sometimes experience and intuition is worth something.

If a client wants to negotiate their own contract - let them - or perhaps we should share with them the skills required to provide a win-win for both parties - so after the ink has dried, the deal still sticks.

Maybe the commission based model isn't in our best interests as real estate practitioners because it fails to articulate the real value-add of the many things we do to get the job done.

Ask yourself - what is at your core? Anyone? Buehler?

If the housing turmoil isn't enough, caffiene addicts have more to worry about - the closing of Starbucks locations. While the closings aren't necessarily unexpected, collapsing coffee coffers may be due to Starbucks departure from their discplined approach regarding the selection of locations. Starbucks was considered the master in real estate selection, grinding over demographics, traffic patterns, VPH statistics etc. Growth expectations may have gotten the best of them.

I guess we learn time and time again - stick to the fundamentals - seems they work.

From a realtor's perspective, the advent of a new Starbucks location was a telltale sign of a "hot spot" or an up and coming area - not so much anymore. Many a buyer has told me, "If I can't walk to a Starbucks, I ain't buyin' it." How's that for loyalty?

I am a self-confessed caffiene addict - I like it simple: a venti black-eye. When hearing of the 600 store closures, I was rangled - concerned that my daily routine would be seriously altered - however, I was happy to find out that Chicago and its suburbs dodge the major bullet, Chicago only 5 locales, collectively - Chicago and suburbs 24 locales.

Now - I feel for those now afflicted - let's just say I'm glad I'm not selling real estate in Florida. It's hard enough living in a state where property values are dropping 30%+ in value. Take the Starbucks location away - it may as well be worthless.

I just read the recent posting to Joel Burslem's blog, Future of Real Estate Marketing, Millions of Listing Oh My regarding the lastest statistics regarding the total number of listings now available online from the real estate search portals.

I read the numbers and I can't help but yawn. So what. So now consumers can have access to all the available properties online - there's plenty of data now available online. But is Web 2.0 solutions for real estate really all about the data?

1000Watt consulting has developed a Real Estate Web 2.0 mindshare map which classifies the players in the real estate technology space and where they play. As a real estate practitioner, I come across both buyers and sellers who are actively engaged on many of the sites on the map searching for their new home - doing the comparisons and grinding out the data. Why do I need a real estate agent when I can do my own search? I can do my own comps - all real estate agents do is look up property on the MLS and drive me around to look at houses I have already found.

Wait one cotton-pickin' minute Guggliomi! Do consumers really think real estate agents just look for property - property listings already available through many of the players on the Web 2.0 map? I think someone with the experience who does the analysis on a day to day basis has a better basis for assimilating the data personally, but that's my opinion.

Regardless, I still don't think the Web 2.0 data driven solutions are the answer. As I scour the map of players, I am struck by the scope of the playing field - and the categories. It simply hit me that there really is no comprehensive solution which is addresses the real estate landscape. No current offering provides an intuitive process approach that follows the natural progression of a real estate transaction.

While many sites such as Trulia allow users to interact and share knowledge and expertise in TruliaVoices, it is generally disjointed and lacks the context within the natural progression of the process of buying or selling real estate.

Why is this important? Because consumer still don't know what they don't know. They think the process is all about the data. Who's fault is that?

Walk Score just ranked Chicago the 4th most walkable city in the US of A. San Fran took numero uno, The Big Apple #2, and Bean Town #3.

The most walkable neighborhoods in Chitown you ask? Why they're The Loop, Near North Side and beautiful Lincoln Park. For those who like to do a walk-about in the city of big shoulders, check out City Walks: Chicago: 50 Adventures On Foot The deck is also available at Climate Home - 2462 N. Clark, 1971 N. Fremont or 1702 N. Damen.

Even for the born and bred Chicagoan, this deck of cards has recommended city walks in 50 neighborhoods throughout the city. I suggest them for dog walkers too.



The cards provide the route in a map format - the flip-side provides points of interest and historical information regarding the area - honestly, one of the best investments for learning more about the Windy City

I just added a new badge on my blog to allow viewers to click to my new profile on PropertyQube - again, a great find due to my twitter trolling. I really love the fact that I was able to syndicate my blog to PropertyQube.

There are many social networking sites that - ActiveRain for example, however, I can't syndicate my entries - i.e. post once, distribute many. I want one and only one place to blog - thank you PropertyQube.

The benefits or Twitter are endless! I found a really great blog written by Joel Burslem - a fellow Twitterer. His recent post refers to the mindscape for technology players for Web 2.0 for real estate - clearly there is no shortage of solutions in real estate - yet, as a real estate professional, I still feel that the solutions seem to be so disjointed.

As I look at the players in the social media space - and from my experience working with clients - time and time again, I am struck by the consumers lack of knowledge of the process of buying and selling - and the basic facts that consumers lack eduction in the process.

There are many tools which address opening the floodgates to the data trapped deep inside the MLS - analytical and search tools abound, however there is again a lack of general knowledge of the process of buying and selling. As I like to say, the consumer simply doesn't know what they don't know - this is the value that realtors provide, yet as a realtor I can say that we don't do the best job in educating the consumer.

I think a void that needs to be filled - and I believe it is a possible social media solution - is a collaborative environment - a wiki - where consumers gain process knowledge.

I have found my new addiction - TWITTER. As first, I wasn't sure what value it provided until I started to stalk - er...follow a few people in real estate and the social media space.

Needless to say, I am an addict. Not only do I have direct access to individuals and leaders who have tremendous mindshare in the social media space, I can TWEET with fellow colleagues about real estate, technology, my dogs - ah, the possibilities are ENDLESS!

This is more than a vehicle for marketing my clients' properties etc, it allows me to learn more about the exponential evolution of technology and its impact on my industry/business, plus I get to connect with some really smart people.

With the significant downturn in the real estate market, where will the real opportunities be?

From a seller of real estate - one who has the equity but needs to sell, perhaps the way to sell is to provide seller financing. The concept of a land contract has not been common during the times of easy money, however, it appears to be a new way for sellers to actually sell their properties. There are still qualified buyers capable of buying properties, but in light of the current credit crunch, they simply may be unable to get a mortgage.

In terms of private equity, there may be a growing market for private mortgages - not seller financing, but perhaps pools of private equity that may be able to bridge the gap.

My gut tells me that mortgage rates are going to climb and probably quickly in the near future, further squeezing out buyers - perhaps the worst is truly yet to come?

I had a light-bulb moment yesterday during a closing - yep a closing - that word has not been spoken alot lately - good news is, real estate is still selling - but I digress...

Here is some background information:

The process was second nature to me, needless to say, things come up during closings that are unforeseen - bottomline, I leave it to the legal professionals to work it out. However, my clients were uncomfortable with the nature in which documents were shuffled, stacked, signed, faxed etc with little or no explanation as to exactly what needed to be read, signed, explained etc. "Just Sign Here."


Unfortunately my buyers' attorney was not present during the closing and hence had to explain the significance of each document - what to sign and where to sign etc via the telephone ... My buyers had a less than ideal experience with the seller's attorney - she was extremely unprofessional and condescending to my clients with her terse explanation of why there was a delay from the seller's side in providing a clear and merchantible title. In addition to the mortgage, there was a lien on title which needed to be removed prior to transferring the title to my buyers.

During the laborious process of signing documents, the closer presented my client with a disclosure form, required by HUD to inform my client that that seller's attorney was an agent of the title company. As per Federal Law (RESPA) requirements, the disclosure informed them that the seller's attorney would be paid a referral fee for referring the closing to their title company.

Perhaps it would not have been an issue had there been a - hmmm - a more pleasant exchange - between my client and the seller's attorney prior to the presentation of the document. My clients questioned the validity of the referral - needless to say, they didn't feel she deserved it. My clients were not even aware of the fact that there was a financial benefit derived by the attorney simply by selecting a title company - and of course the signed document, while in full compliance, required a signature of acknowledgement that a referral was paid - somewhat after the fact.

To be clear, I don't fault attorneys in any way for deriving referral fees from title companies. I often pride myself on how I try to educate my clients thru out the process, trying to be as informative and provide as much information regarding disclosure as possible - however, it simply dawned on me that while this disclosure is relatively insignificant, it highlights the fact that consumers simply don't know what they don't know.

What even prompted this entry was the reading of article related to a study that questions the true effectiveness of RESPA, perhaps allowing the states to better regulate the settlement services.

Laws do not equate to better education or necessarily to better disclosure. Regardless of federal and state laws designed to protect consumers, I as an agent cannot minimize what is significant or insignificant as it relates to disclosing information. Consumer education regarding the purchase and sale of real estate is so critical, yet some many of us as real estate professionals fail to provide in-depth education of the process. Again, what was second nature should have been more thoroughly explained.

Perhaps the best way to leverage new technologies for real estate would be best leveraged in education regarding the PROCESS of buying and selling real estate and not on FINDING property - or maybe combine the two. Hmmm - now that sounds like an idea.

While reading this month's Illinois Realtor Magazine, I came across the following site sponsored by the Illinois Association of Realtors and its foundation, the Partnership for Homeownership. The resources for grants, assistance funds, legal assistance, HUD-approved counselors, senior services and energy assistance programs.

The interactive map allows you to select your county - you'll be provided a list of resources in the categories provided.

For those facing a potential foreclosure or currently in foreclosure, IAR's consumer site, www.YourIllinoisHome.com provides an array of resources for people currently facing foreclosure.

In light of the current real estate market conditions, the Federal and Illinois state governments and other non-profit organizations are offering assistance.

If you are in facing a foreclosure, SEEK ASSISTANCE - there are a number of organizations who can help. Most importantly, call your lender! If you are unable to make your mortgage payment, explain to your lender your situation.

US Housing and Urban Development homeowner counseling: 1-800-569-4287

Federal Housing Administration refinancing program, FHASecure

Illinois Legal Aid

Neighborhood Works America Center for Foreclosure Solutions: 1-800-995-HOPE(4673)

Our Own Home, Illnois Treasurer's Office loan and refinance program: 1-800-803-4663

Where's the good news regarding real estate? Here's some counterpoints to why you SHOULD buy and buy with confidence in Chitown - the Windy City - The City of Big Shoulders - ok, you get the picture. I just wanted to pass along the comments my colleague provided regarding why Chicago is a good bet when it comes to buying real estate:

If this city would get some New York attitude, it sure would help the situation.. If people can not make it here, they are losers.... see Wrigley Field... Chicago has no equal .. we are like the 20th largest economy.. IN THE WORLD. this city.. wake up to the gold at your feet.. the cry baby , un informed consumer needs shut up and buck up.... so pop this in their pipe to smoke..

from Wikipedia.... for memorization

Chicago has the third largest gross metropolitan product in the nation — approximately $ 442 billion according to 2007 estimates.[32] The city has also been rated as having the most balanced economy in the United States, due to its high level of diversification.[33] Chicago was named the fourth most important business center in the world in the MasterCard Worldwide Centers of Commerce Index.[34] Additionally, the Chicago metropolitan area recorded the greatest number of new or expanded corporate facilities in the United States for six of the past seven years.[35] In 2006, Chicago placed 10th on the UBS list of the world's richest cities.[36]

Chicago is a major financial center with the second largest central business district in the U.S. The city is the headquarters of the Federal Reserve Bank of Chicago (the Seventh District of the Federal Reserve). The city is also home to three major financial and futures exchanges , including the Chicago Stock Exchange , the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which includes the former Chicago Board of Trade (CBOT). Perhaps due to the influence of the Chicago school of economics , the city also has markets trading unusual contracts such as emissions (on the Chicago Climate Exchange ) and equity style indices (on the US Futures Exchange ).

In addition to the exchanges, Chicago and the surrounding areas house many major brokerage firms and insurance companies, such as Allstate and Zurich North America. The city and its surrounding metropolitan area are home to the second largest labor pool in the United States with approximately 4.25 million workers.[37] Chicago has the largest high-technology and information-technology industry employment in the United States.[38]

Manufacturing, printing , publishing , and food processing also play major roles in the city's economy. Several medical products and services companies are headquartered in the Chicago area, including Baxter International , Abbott Laboratories , and the Healthcare Financial Services division of General Electric . Moreover, the construction of the Illinois and Michigan Canal , which helped move goods from the Great Lakes south on the Mississippi River , and of the railroads in the 19th century made the city a major transportation center in the United States. In the 1840s, Chicago became a major grain port, and in the 1850s and 1860s Chicago's pork and beef industry expanded. As the major meat companies grew in Chicago many, such as Armour and Company , created global enterprises. Though the meatpacking industry currently plays a lesser role in the city's economy,Chicago continues to be a major transportation and distribution center. Early in the 20th Century, Chicago was part of the automobile revolution, hosting the brass era car builder Bugmobile , which was founded there in 1907.[39]

Chicago is also a major convention destination. The city's main convention center is McCormick Place . With its four interconnected buildings, it is the third largest convention center in the world. Chicago also ranks third in the U.S. (behind Las Vegas and Orlando ) in number of conventions hosted annually.[40] In addition, Chicago is home to eleven Fortune 500 companies, while the metropolitan area hosts an additional 21 Fortune 500 companies.[41] The state of Illinois is home to 66 Fortune 1000 companies.[42] Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims one Dow 30 company as well as aerospace giant Boeing , which moved its headquarters from Seattle to the Chicago Loop in 2001.