Baron Briefs

Of all the moving parts in our system, AgentRankâ„¢ is the most difficult to communicate. Most people look past the role it plays in pairing homeowners with an agent. Frankly, I’m surprised how often homeowners choose the default value of 1 (out of 10). However, when I designed the system, it was the “eureka” moment. Without it, the system would be fertile ground for bottom-feeding, hungry agents who would inevitably disappoint homeowners.

I’m always trying to think of “real world” examples to use as comparisons. A few weeks ago, credit scores came to mind. Borrowers with better credit scores typically are seen as less risky and, as a result, receive a better interest rate. Today, however, I thought of an even better one while shopping for a printer with my Consumer Reports ratings in hand at Sam’s Club. AgentRankâ„¢ is nothing more than an objective rating assigned to a Realtor representing the quality of service a consumer can expect.

Just as consumers don’t have to test each and every printer when armed with Consumer Reports ratings, consumers don’t have to interview and haggle with each and every Realtor operating within 10 miles of their home. They simple pick a number–1 to 10–and let the bidding begin.

Speaking of AgentRank(TM), I added two more components earlier this week:

1. Market Forecasts
2. Weblogs

Market forecasts will be used to measure an agent’s knowledge of price trends. By comparing the agent’s forecast of median sale price against the metro prices reported by the National Association of REALTORS®, we’ll identify agents who have exceptional insight into the local market.

Weblogs will be used to measure an agent’s authority on matters of real estate. The popularity of an agent’s weblog in the blogosphere will help identify agents who are considered the experts in their local market and beyond.

Two reports this week indicated the U.S. housing market continues to slow. On Wednesday, the National Association of REALTORS® released existing home sales data showing July sales slipped 11.2% from a year ago. On Thursday, the Census Bureau reported new home sales were down down 21.6% from a year ago.

Fear not, says Bill Tancer, General Manager of Global Research at Hitwise. He’s plotted NAR’s existing home sales against the search term “homes for sale” and predicts an uptick come September:

…barring any unusual circumstances over the next week, our search term data indicates a reversal in the downward trend reported by NAR yesterday. The August numbers, scheduled to be released September 25th, should reflect that reversal.

Real estate brokers on the Realtor® mailing list, RealTalk, sounded off today when asked ‘Where have all the sellers come from?’. Here’re a few of the responses:

People bought homes with adjustable rates and now the payments have gone up to the point they can’t comfortably pay them.

A lot of the sellers I’ve talked with decided last year to cash in on the profits and move up to new and bigger homes. Now that construction on their new homes is being completed, they’re putting their current homes on the market.

Sellers home owners insurance being increased so much that they feel they have to sell and move out of the area A large chunk of them appear to be coming from investors.

Many of them planned to buy and flip and got caught when the market changed faster than they anticipated!

I say, “What about buyers?”. Shouldn’t they accept some of the blame? After all, if buyers were able and willing (i.e. demand) to do their part, there wouldn’t be an inventory build up.