Baron Briefs

Trading of housing “binaries” returned to HedgeStreet today with three additional cities: Las Vegas, Denver and Washington, DC. That brings the total number of cities available for hedging and speculation to ten.

HedgeStreet’s website describes their hedging instruments as a way consumers can “speculate the degree to which their home will appreciate, or conversely, hedge against depreciation in the value of their home”. But I’d be willing to bet (no pun intended) they’d increase trading volume rapidly if they pitched to real estate agents as a way to hedge asking prices. For example, Joe Realtor could suggest a slightly higher asking price for a listing and place a bet against rising prices using HedgeStreet.

In any event, I think HedgeStreet is a cool idea and hope it gains more traction this year whomever the traders may be.

Not likely. But some people believe this. My guess is they came up short on a deal and decided the whole bunch of them–Realtors, that is–are sleazy sales types who would cheat their own mother out of a commission.

And there’s no shortage of voices against Realtors on the web. Read the comments section of any bubble blog or browse the real estate section of Yahoo! Answers and you’re bound to run into Realtor backlash. Besides NAR and the individual Realtors themselves, nobody tells the other side. So, I now present a small sliver of the other side.

The endorsements below were received in a matter of 24 hours on behalf of one Realtor who signed up with RealtyBaron.com:

It’s hard not to believe this Realtor goes the distance for all his clients. Bottom line: hard-working, ethical Realtors do exist. You just have to know where to look.

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.

The National Association of REALTORS® yesterday said they urge consumers to “do their homework” and “interview at least three REALTORS® before making a decision”. They suggest the consumer is dropping the ball when selecting a REALTOR® and include stats to prove it:

Fifty-eight percent [of buyers] talk to only one agent before deciding to use them. Sellers are worse: Only 26 percent of sellers talk to more than one agent before deciding who will market their property.

Sure, ‘homework’ should be done when selecting a REALTOR®, but who has time for interviews and marketing plans? And why are consumers expected to be the best judge of a marketing plan? It reminded me, however, that’s why we exist. Our business is REALTOR® selection. We automate both the interview and negotiation process–all within 48 hours. So remember, American consumer, you can do your own homework…or let us do it for you. We guarantee an A+ experience.

Doing Your Homework [NAR]