Baron Briefs

My-Currency.com launched this week to much fanfare. The idea is to generate home values using crowd intelligence. Why does that sound so familiar? Oh, yea. RealtyBaron launched its version of crowdsourcing back in 2004 (before the word ‘crowdsourcing’ was even coined). From our press release:

Estimates generated by IntelligentValue(TM) are composed of price opinions from homeowners and real estate agents in the area in which the property is located. Properties are shown randomly and include an exterior photo, feature descriptions, and an interactive map for easily identifying location. Opinions are applied to estimates daily providing real-time feedback to property owners.

The feature, called IntelligentValueâ„¢, was removed from the website last year for retooling. It will relaunch next month so don’t label us as copycats when you see it again.

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.

…pretty good if you ask me. This morning, I searched for homes with asking prices between $250,000 and $500,000 in 13 metro areas and compared the size of RealtyBaron’s RealSearchâ„¢ results with two real estate search leaders, Trulia and Propsmart. The results surprised me:

Atlanta	1,462	1,496	2,693
Boston	242	498	1,240
Chicago	2,420	10,023	9,199
Dallas	744	332	1,950
Denver	411	1,358	1,186
Vegas	5,050	3,264	3,336
L.A.	369	2,686	4,023
Miami	1,950	8,770	10,375
Phoenix	2,128	6,802	4,063
Seattle	298	3,470	751
S.D.	1,038	3,238	5,519
S.F.	75	468	1,186
D.C.	603	720	2,374
**NOTE: 15% added to Trulia numbers to account for no FSBOs in results.

Was this a scientific comparison? No, because it doesn’t consider the quality of the listing data. For example, Trulia’s or Propsmart’s search algorithms may exclude listings from their index if the listing is missing data points A, B, and/or C. As a result, the total number of their results would be lower. Regardless, it was nice to visualize how RealtyBaron’s RealSearchâ„¢ sizes up against the incumbents.

…2.7 million at last count. But if the number changes, you’ll know immediately now that our search form shows the total size of Vast’s dataset.

Today, I’m proud to announce the public beta launch of RealtyBaron’s newest product, RealSearchâ„¢. My goal was to blend a basic yet fast vertical search with decision tools to help put a search result in context for buyers–all wrapped in a clean user interface. If you have feedback for me, drop in on the search discussion group and join other beta testers in adding new dimensions to the product. Enjoy!

If so, send an email to marc at realtybaron dot com with ‘Beta Tester’ in the subject line. Thanks!

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.

Business 2.0 put real estate on the cover of their November edition which arrived in the mail this week. As with any real estate feature, I dove in immediately. The coverage is good because it doesn’t dwell on the bubble bursting. Rather, opportunity is the focus.

Within seconds, however, my eyes were drawn to a footer on page 85 titled “New Ways to Buy and Sell: The latest real estate websites go beyond just searching the listings”. Occupying one of only eight panels was none other than RealtyBaron.com:

It’s an awesome feeling to see a major business publication take notice of my creation. Thanks, Business 2.0.

Zillow launched MyZillow earlier this week allowing anyone to save a list of favorite homes and track their Zestimates after signing up for an account. It didn’t take long for mortgage brokers to figure out how to profit from it:

Every time a broker does a refi, they can use the appraisal to work up the estimate to match the real value. Then you can save that estimate in MyZillow. You get a monthly report on that homes value. Now you know about how much the home has appreciated, and how much of the mortgage is likely paid off. With this data, you have a pretty good idea of your existing client base’s equity, and can market to them accordingly.

Based on this information, you could send out reminders that they may have reached 80% LTV, and should look into getting their MI dropped. Or, you could send out offers on HELOC’s, or Cash Outs.

Not only do I fail to see how Zillow can possibly prevent this, but it’s also an end run around Zillow’s core business model–advertising. How long before we see a website using Zillow’s API to help manage marketing campaigns on behalf of mortgage brokers?

FYI, I’m not Zillow-bashing here. I’m hoping someone–Zillow or otherwise–can debunk this because the last thing I or anyone wants are more mortgage offers in the mail.

CORRECTION: False alarm. Somehow I skimmed over the fact the broker was referring to a previous client…not a prospective client as first thought. Not so sinister after all.

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.