Is the Real Estate Industry Doomed?

What will the real estate industry look like in 5 or 10 years?  Will it be fractured?  Defunct? Obsolete?  What will replace it?  Technology?  Will transactions be streamlined so people (read Realtors) are no longer needed or desired?  These rhetorical questions are being asked by Realtors at every gathering.  No one has an answer – no one person has a consistent belief – no one person can give us peace.  Everyone believes real estate is in a state of change – ushered in by others.

I had been a practicing registered nurse for nearly 25 years.  I learned one valuable lesson – there are some things that cannot be replaced by technology.  Barbers, chefs, nurses, doctors, and plumbers.  The human hand, and yes – human judgement is instrumental to these professions.  What about Realtors?  Can Realtors be replaced by technology ?

I’m reminded of an old teaching trick I used with my clinical nursing students.  Presume a man has just entered the ER after a serious accident involving a power saw and his right hand.  (sorry for the image – but go with it)  I’d ask my students to “assess the patient”.  They went in the room, gathered information and came out to present their results.  I’d ask them once again to go “assess the patient”.  They’d enter the room, listen to his lungs, evaluate the bleeding, check his pulses, pupils  – they would do a more in-depth physical exam, and again present their results.

Once again I would ask them to “assess the patient”.  Exasperated – they would say – “But we HAVE assessed the patient – 2 times now”!  My response – no they had not.  This time, I told them “find out WHY he had the accident – did he black out? does he have a history of heart problems? Does he have a history of seizures?  What about his medications – does he take blood thinners?  Is he diabetic? When did he last eat?  Was he right hand dominant? A concert pianist, retired?  Did he live alone?  Couple this information with the PHYSICAL data they had collected in his exam, combine it together, synthesize it into a plan of care –  and now you have “assessed” the patient!  That moment was their epiphany.

In my experience with nursing – the general public frequently summarizes the function of a nurse as someone who “passes pills and empties bedpans”.  Anyone who knows a nurse, or has been taken care of by a nurse – knows this is an over simplistic depiction of a nurse.  Much the same as simplifying Realtor duties as someone who “fills out contracts and shows houses”.

The world of real estate is all a flutter with MLS data, online transactions, publicly available information, tax data, data sharing, lead conversion  – all centered around the over simplistic view of what a Realtor does.  Yes – MLS data and writing contracts are important like physical exams are important in “assessing” a patient, but the judgement side of the process – the human side is the 800 pound gorilla commonly overlooked.

I don’t believe a computer will replace the judgement a Realtor provides.  I don’t believe technology can anticipate the market, read the “tells” of a buyer or seller, coach a seller or buyer through negotiations, explain the process of escrow and hold the clients hand through closing, nor inspect a property for title encumbrances or encroachments.  Technology has its place.  Efficiency can be gained with technology – but technology is a tool.  It helps the Realtor provide better judgement and function more efficiently.   There is data, and there is information – two distinctly different subjects.

The human body is amazing.  The healthcare industry doesn’t need to intervene in every malady that afflicts man.  Much of the time, the body takes care of itself.  It is the healthcare system we engage when things don’t go well, or when one needs someone who understands the human body to tell them all will be well.

So are we doomed in real estate to be replaced by technology?  Certainly some parts of our duties can be more efficient with technology.  Some functions can be automated.  Can the human hand and judgement be removed from real estate?  Many will try to replace the Realtor, some will improve inefficient aspects of the industry, but my view is the human Realtor will remain so long as humans do.

Please share your comments!

Image Credit: The Future of Work… Complete with Robots  by Nicole Kemp

To the Tenants of Coldwell Banker Platinum Partners

Due to the severity of Hurricane Matthew and its direct hit on us, rest assured we are diligently trying to get things back to normal, and as you are well aware, it is going to take time.

Tenants:  IF YOU FEEL UNSAFE IN THE PROPERTY, PLEASE LEAVE MEDITATIVELY,  YOU ARE OUR PRIMARY CONCERN, but please, email or call  your property manager with any damage reports to the property.

Please Note:  Contract labor is in short supply and in high demand – we will assist as resources are available.

If possible, a few pictures would be appreciated.  We are working diligently to help get things back to normal.  Thank you for your patience, we will get through this.

To contact your property manager, please visit the following pages:

Property Managers

 

To The Owners of Property with Coldwell Banker Platinum Partners

Due to the severity of Hurricane Matthew and its direct hit on us, rest assured that we are diligently trying to get the status of your property.  We will be in contact with you via email if at all possible.

If you still have contact with one of your neighbors, try giving them a call and please pass that information on to us.   Please have your insurance papers handy as many of our owners have suffered extreme damage.

Power is still out in the majority of areas, streets are impassible even though it seems main arteries are opening,  and as tenants who have evacuated are returning and are advising us.

We are trying to get to our vacant properties, but many of the roads are still impassible and as soon as we are able…we will advise.

For those of you who have damage where insurance will not be involved,  you may want to identify local friends that may be able to lend a hand – or consider coming to Savannah.  Due to the widespread damage, contract labor will be in high demand and short supply for some time.

Remember, there are tax incentives wherein you are permitted to view your property once per year…..All minor repairs to homes will probably be the last to be tended to.  WORKING TOGETHER WE WILL GET THROUGH THIS:OWNERS, TENANTS, PROPERTY MANAGERS AND NEIGHBORS.

If you need to speak with a property manager, please visit the following page for contact information.

Property Managers

It is our pleasure to serve you, and we are doing all that we can to meet your needs!

Can Real Estate be “Uber’d”

Uber is an economic disruptor.  It’s a company that changed things so fast – so dramatically – affecting so many people both personally and professionally – that businesses now refer to getting “Uber’d” when they talk about disruptive technologies and change in their industry.  The internet did to travel services what Uber has done to the taxi industry.  With the entrance of a new application or technology, industry can change on a dime.  Real estate agents throughout the country talk of new technologies, and there is no shortage of predictions the next “new” application around the corner will “Uber” real estate.  Should we fear this?  Embrace this? Ignore this?

If you know what Uber is, skip to the next paragraph.  Uber is a company that developed an App (Application) which allows any Mom or Pop to subscribe to the App, and make themselves available for a fee to transport people in need of a ride using their own automobile.  Consumers simply download the App to their phone, put in a credit card, and open the App to schedule a pick up and destination.  Any available Mom, Pop, or college student with a car in the area can take the opportunity as a service provider.  The process is all handled by smart phone and credit card.  No operator.  No phone call.  Simply schedule the car, a price is quoted, and the car shows up.  Uber gets their share and the driver gets their share.  Simple.  Ingenious.  Trans-formative.

So how does an App like Uber transform the real estate industry?   The problem (some may say advantage) with real estate is very simple –  it is a dysfunctional industry.  Each state has its own license requirements.  Each state has its own laws for the practice of agency.  Each market, both big and small, has their own quirks, competition, and customs.  Commissions are negotiated differently depending on individual market pressures and individual brokerage policies.  Data is delivered by multiple software environments, with different quality controls, and different ownership philosophies (and personal agendas).  Contract obligations, disclosure laws, title conveyance – all are driven by traditions that have evolved out of the states founding influences.  Louisiana has laws with French influences, New Mexico has Spanish influenced laws, and Georgia has laws influenced by England.

So, can real estate be “Uber’d” – I think not.  Can small components be “Uber’d” – I think YES.  Across the United States and beyond, inventors (programmers) are tinkering in their garages or basements trying to find the next Uber for some small component of the real estate industry.  These minor changes will make the industry better for both the consumer and the providers.  But will it be trans-formative, industry changing, simple, and cheap like Uber?  I say no way.  Real estate is too dysfunctional.  And I’m not sure that’s a bad thing.

I’d love to hear your comments below!

ZAP – The Killer App!

Just back from ZapCon in Orlando and my head continues to spin!  Quite simply, ZAP, the new program now being implemented across the country by Realogy, represents a giant leap for Realtorkind.  Let me explain…

So…What is ZAP?
ZAP is a back office program, known as a CRM (Client Relationship Management) tool.  Well? Maybe its a website. Or, maybe its a prospecting tool. Come to think of it, maybe its a lead generation tool.  Actually, its a marketing tool.  Hmmm.

I am asked frequently what ZAP is, and I am at a loss for words.  ZAP is a paradigm shift.  Everything changes.  One of my agents succinctly said it best.  Jane Beare says “ZAP is a program that seems to knit everything together”.  A profound insight.

Here is the problem.  The average Realtor is in their late 40’s and 50’s.  That means they missed the computer revolution.  When the computer revolution began, there were Franklin computers, Tandy’s, and Commodore 64’s.  Then life happened – kids, family, and high school graduations.  Now there are smart phones, web strategies, and SEO.  The average Realtor feels like Rip Van Winkle when it comes to technology.  Real estate is a PEOPLE business, but getting to the PEOPLE requires considerable technology skills in today’s world.

The younger generation knows nothing else.  My children don’t know a world without iPhones and the internet.  Their life is full of short, abbreviated soliloquies.  They text each other while in the same car.  They struggle with dynamic argument.  In a technology world, they contemplate their response before hitting “Send” without interruption or interrogation.  Put them at a listing table where the seller objects to something and they are stunned.

There is no longer a generation gap.  There is a technology gap.  Experienced Realtors struggle with connecting to the emerging millennials, while the younger generation struggles with what to say and do with all of their “leads”.

Enter ZAP.  While various companies struggle to piece together the next “Killer App”from acquisitions and advertising platforms , Realogy is quietly, and methodically implementing ZAP throughout their ecosystem.  For those that do no know, Realogy is the franchisor of:  Coldwell Banker, ERA, Century 21, Better Homes and Gardens, Sotheby’s, ZipRealty, and Corcoran.  Realogy is unleashing ZAP to 250,000 Realtors.  There are 1.2 million Realtors nationally, and ZAP will be at the fingertips of almost 25% of them.  Most astonishing in all of this – none of the 250,000 Realtors with Realogy will spend one single penny more to get these benefits.  ZAP is part of the value proposition of Realogy paid with franchise existing fees.

ZAP by itself is a work in progress.  What it is today, is less than what it will be tomorrow.  With each passing 2 weeks, new things are added.  With a cohesive implementation team that gets better with each company launch and each problem solved, and the power of the Realogy brands backing them, the landscape of online real estate is changing.  The technology gap is closing.  The brain drain of experienced agents getting out because they don’t want to learn technology will stop.  The edge the geeks have in landing leads will stop, and the paradigm shift will conclude.

Take the industry’s most influential franchisor, a technology platform that “knits it all together nicely”, a crackerjack implementation team, and the ingenuity of thousands of brokerages throughout the country and something special is bound to happen.  That my friends… is ZAP.

2016 – Real Estate Trends for Coastal Georgia and South Carolina

Here it is folks!  Your real estate road map for 2016 for coastal Georgia and the the southern coast of South Carolina:

Before we get to some predictions, lets take a look at the real estate industry and factors that that will influence the coming year.

It’s an election year.  In most election years, real estate sales slow down a little.  People get distracted with the election process and some sit on the sidelines until the election is over.  In Savannah, GA, the lean months are October through March, and in Hilton Head, SC, monthly sales are stable all year round.  How the election times with local market cycles will determine its effect, and how buyers and sellers personally perceives the results come into play as well.

The Fed is raising interest rates.  Although short term rates do not have an immediate impact on long term mortgage rates, these short term rate increases will eventually affect long term rates.  Paradoxically, the most recent Fed rate increase actually caused mortgage rates to go DOWN – but that will be short-lived for sure.  Expect long term rates to rise over the year.  They could get as high as 5%.  (if you have been in the business a while, that statement alone is kinda funny!)  Remember, interest rates are a matter of perception – if the public perceives them to be high, then they are high no matter what history says.

Flood Insurance…still!  Flood insurance remains a thorn in the side of coastal real estate markets.  Homes in flood prone areas have additional insurance needs for flood risks on top of general hazard insurance, and the National Flood Insurance Program (NFIP) has been in a state of flux for two years now.  Congress made attempts to stabilize the program in 2014, but uncertainty remains.  However, one certainty does exist – flood insurance rates will rise.

Borrowing / Lending money is more complex.  October 3rd, TRID was implemented.  What does TRID stand for???  “Truth in Lending Act, Real Estate Settlement Procedures Act, Integrated Disclosure”.  Only in government will you get an acronym of acronyms!  The Dodd / Frank Act of 2010 has culminated (at least for consumer lending) with TRID implementation.  This is the “age of the consumer” and TRID is designed to make the lending process easier and protect the consumer more effectively.  In short, it is more complex than before, it favors larger lending institutions, banks fear regulators so much they will say “no” to loans they would have previously approved, mandated cooling off periods create havoc on closing and possession timelines, and…and…and.  The industry will get better at following the new rules and closings will become more streamlined, but it will take a while…

Healthcare  I know… “How does healthcare effect real estate?”.  A personal perspective will help you understand.  First – 70% of our population gets healthcare from their employer (44.5%) or from a government plan (25.6%) (Gallup-2015).  11.3% are considered uninsured, while 16% get their insurance by purchasing it on the open market.  The ACA, aka Obamacare, does not effect large employers until 2016.  That means only 16% of the population have been impacted thus far, with a whopping 44.5% getting ready to go into sticker shock.  This will reduce the available money to purchase homes for sure.

Healthcare Sticker Shock!  2 years ago, my family of 6 spent $10,200 in PRE-tax dollars on premiums, with a $1,000 deductible and a family deductible of $2,500.  So, our total healthcare insurance exposure was $12,700 per year plus some change for office visits and prescriptions.  Compare that with my family’s costs after the “Affordable Care Act”…  We now spend $19,200 in AFTER tax dollars on premiums, with $2,500 deductibles and a family deductible of $9,000.  That makes our annual health care exposure $28,200 plus more change for office visits and prescriptions.  Our health care costs have gone up 125% in just 2 years.  125%!!!!  44.5% of the population is getting ready to experience these staggering costs.  At least my wife and I, neither of which have a uterus, have prenatal care and obstetrics coverage!

Nontraditional Workers Unite!  Entrepreneurial spirit is on the rise.  The 30 year factory position with a pension is like a purple unicorn.  My children see it.  Their peers see it.  They now feel the pressure of making their own way.  This is a great thing!

College Graduates saddled with enormous debt.   College is outrageously expensive.  I have 2 children in college.  I am experiencing these costs.  18 year old kids are suckered into huge student loan debt while pursuing their degrees in Psychology, Epistemology of the Spoken Word, or Gender Studies, only to find at the end of the rainbow no one is hiring in their areas of expertise!  So, they get a job flipping burgers to pay their $750/month Sallie Mae bill, move back in with Mom and Dad, and don’t contemplate purchasing a home for 10-15 years.  Couple that with a feeble economy and first time home buyers are facing some headwinds.

And now for some predictions…

Single Family Residential:  We’ve come a long way from the “Great Abyss” of 2008-2012.  Monthly number of homes sold just surpassed those of 2007 in the Savannah MSA.  Although this is not adjusted for population growth, it is a sign we have come a long way and there is still room to grow.  Homes sold will continue to grow at a modest 3% year over year pace.

Mortgage Rates:  Mortgage rates remain at historically low levels.  They will remain relatively low, and should not go above 5%.  How the public perceives this is the bigger question.  If the public thinks they are high, then they are high and they will keep their hands in their pockets.  If the Fed raises rates again, this may cause many to get off the fence while the “gettin is good” and we will see a short lived bump in home sales.

Regulatory Environment:  Due to the complexities of the new settlement procedures, the Consumer Finance Protection Bureau (CFPB.gov) will begin to relax some of their rules.  They may go as far as returning the responsibility of the the Closing Disclosure formulation, now uncomfortably in the hands of the Lenders, back to the attorneys.  This will relieve pressure on closing and possession timelines.

Average Home Price:  The median sales price will continue to rise nationally.  There are some hot spots like Miami, Las Vegas, and Los Angeles.  But for coastal GA and SC, expect a modest rise in median sales prices, no more than 3% overall.

Short Sales and Foreclosures:  With the correction of the housing market well underway, short sales and foreclosures sales are already in a sharp decline.  I expect that trend to continue.  Banks are being scrutinized by regulators and short sales are becoming even more difficult.  Additionally, with rising prices, banks will be able to wait out the market and reduce the amounts that must be forgiven when sellers must sell short.  Institutional buyers in large metropolitan areas like Atlanta who purchased huge amounts of foreclosures in blocks during the Great Abyss will begin to unload their inventory.

Overall impression for 2016:  Relatively flat growth with modest gains, a few bumps along the way, but a pretty good year on the horizon!

 

TRID: Triumph or Tragedy?

The Truth in Lending and RESPA integrated disclosure, affectionately abbreviated as TRID, is now the official “Rule of the Land”.  Effective October 3rd (actually TODAY because October 3rd was a Saturday), new rules come into effect that will change the way consumers apply for a loan and get financing for a home.  Depending on the fence you stand on will determine whether you see this as triumph or tragedy.

A brief history:  In 2010, the congress passed the Wall Street Reform Act, more frequently referred to as Dodd/Frank, so named after is main sponsors Senators Chris Dodd (D) and Barney Frank (D).  This law created a wholly separate branch of government called the Consumer Financial Protection Bureau a.k.a. the CFPB (www.CFPB.gov).  I say new branch because the CFPB functions independently without congressional oversight, budgetary restraints, or judicial review.  They need only desire money and simply invoice the taxpayers, who then must pay the bill.

Dodd/Frank was a response to the financial crisis of 2008.  Some say the law was draconian while others say it did not go far enough.  The gist of the law and subsequent rules is consumer centrism.  We have entered the age of the consumer, and the consumer is the indisputable king.  The law creates a host of new rules enumerated by the CFPB.  Among these new rules are the Qualified Mortgage, the “Ability to repay”, and now finally TRID.  For a more complete roundup of changes, please see  my previous blog posts, or visit CFPB.gov.

With the implementation of TRID, several forms go away.  The Good Faith Estimate or GFE is now replaced with the Loan Estimate, and the ubiquitous HUD-1 is replaced by the Closing Disclosure.  Furthermore, the closing date is no longer called as such, but rather referred to as “consummation day”.  An easily overlooked, but dramatically important wrinkle is the addition of a 3 day review of the Closing Disclosure prior to closing.  This 3 day review cannot be waived.  Again, it CANNOT be waived.  The closing disclosure must be IN THE HANDS of the consumer 3 business days prior to closing.

The triumphs many see in this law are consumer protections against predatory lending practices, and the liability lenders expose themselves to if they do not comply with CFPB rules.  That said, lenders fearing liability may decline an otherwise suitable borrower for fear of being sued down the road should the borrower fail to pay the money back (known as “Loan Default”).

With TRID, the consumer (read “borrower”) will be offered the opportunity to shop rates on things such as title insurance and homeowners insurance.  In reality, consumers have always been able to shop these items.  It is now a front and center disclosure that they may shop these rates.  One problem is shopping title insurance.  Most do not understand what it is, let alone what it SHOULD cost, and where to begin to shop for rates.  In reality, there are only 2 major insurers to choose from for title insurance.

In many states, title companies run the closing show.  In GA, attorneys run the show.  States where attorneys run the show will see the most changes to the closing (read “consummation”) process.  In GA, the attorney was responsible for the HUD.  With TRID, the responsibility of the HUD (read “Closing Disclosure”) is the responsibility of the lenders.  In fact, on a nationwide scale, the LENDER is now responsible for the creation of the final HUD/Closing Disclosure.  Add the new mandated 3 day review period to the final HUD/Closing disclosure with the LENDERS new responsibilities, and you begin to see some of the tragedies that may befall the real estate industry.

There are several trigger points that will require new HUD/Closing Disclosures to be resent to the borrower.  If one of these triggers are pulled, a lender must re-issue the HUD/Closing Disclosure and a new 3 day period must be observed.  If you are the borrower, this could create problems for you and if you are the seller, this could create problems as well.

Here is a scenario:  Buyer receives a final Closing Disclosure on the home they are purchasing, yet the home they are selling has been delayed.  The delay causes the buyer to lose their loan rate lock, causing a change in the loan rates.  In this case, the lender would have to re-issue a NEW closing disclosure, mandating a new 3 day waiting period and delaying their new home purchase.   This creates a domino effect.  The seller, who was planning on using the proceeds to buy a home, now has their closing delayed, and so on, and so on…

Kudos to the consumer, who is now the center point of the lending process.  Kudos to the lenders, who have moved mountains to get to comply with the new processes.  Kudos to the attorneys, who have moved mountains to accommodate these new changes.  Pitty the poor sellers of the homes these buyers are buying and lenders are lending for.  It is the seller who is in the dark, and considered an after thought, until they become a consumer of money for the purchase of their new home.

An attorney friend of mine who has been a real estate closing attorney since before RESPA was implemented in 1980 said “RESPA took 2 years to settle down once implemented”.  2 years from now, we will know for sure if TRID was a triumph or tragedy.  Until then…hold on as the ride may get a little bumpy!

Hat tip The Professional Wingman for the pix – click HERE to visit.

The Wild, Wild, West of Real Estate?

Never let it be said I am a proponent of government regulations.  I am not.  I am someone who plays by the rules and believe the rules have their place.  I believe in a robust and healthy competition, and marvel at the creativity Realtors employ in their businesses.  That said, let me get to my point.

The internet has revolutionized our industry.  Beginning with home grown text based websites maintained by individuals and exploding into the sophisticated network we have today, the regulatory bodies of our industry have struggled to keep up with the rapidly changing landscape.

The sole purpose for the creation of the regulatory agencies, and even the National Association of Realtors, was to protect the consumer and each other from sophisticated players.  The big players of the real estate internet space – Zillow, Trulia, Homes.com, Craigslist, Hotpads, Rent.com – all create venues where the consumer is getting harmed, and sophisticated players are taking advantage of the consumers lack of understanding.

A few examples:

• Rental fraud is rampant on Craigslist, Hotpads, and other internet sites.  Scammers copy listing information from legitimate websites, create profiles on these sites, advertise the rental as available, take peoples money, and sign bogus leases.  (my brokerages clients have been scammed in this way)
• Websites like Trulia and Zillow scour information from public sources and collate the data into compact presentations such as the “Zestimate”, and do not inform the consumers of the data sources, the age of the data, nor the reliability.  Data is frequently incorrect, unreliable, and stale.  Correcting the data is akin to dealing with the IRS.  The stock answer from these entities is “I will have to look into that and get back with you”.  There is rarely follow through.
• Websites collate legitimate listings and use those listings without broker authorization, then sell ad space to other real estate agents on the listing presentation pages.  This misleads the consumer and violates the laws in many states (GA in particular).
• Search history, cookies on the users computer, and many other data points are used – without the consumers knowledge – to alter the consumers personal computer experience and therefore alter/limit their choices.  The real estate industry is not alone here.  With the Consumer Financial Protection Bureau  proactively looking out for the consumer, it is a simple matter of time before they put their hands in this “cookie” jar.

I could go on, but I believe the point is clear.  The stock answer when asking key players at these firms about these issues is “We are just an advertising agency”.  They simply throw their collective hands up and say “Golly G, What can WE do”.  Here are a couple suggestions:

• Clearly display the source of information – as clearly as the call to action on the page
• Clearly display the Listing Broker information, as clear and prominent as the call to action
• Make available the Geo-location and valid email address of the modifier on manual entry listings (this can easily be done with IP addresses).
• If the source of a manually entered listing is using a proxy server or hiding their location in any manner, prevent the information from being loaded.
• Proactively manage fraud complaints with case numbers and audit trails and publicly disclose the data
• Create a direct modification of the listing by the owner (broker) of the listing with an audit trail of changes clearly posted on the listing itself (include Geo location of the user and valid email address of the modifier)

The spaces where these industries operate did not exist 10 years ago.  The progression to where we are now has occurred at lightening speed.  Regulators are typically political appointees – gunslingers of the past – no disrespect intended.  They are experts in their own right, but broadly speaking, their understanding of how this whole thing called the internet works is limited.  Consumer protections of the past must be folded into the new realities of today.

There was a time when real estate was unregulated.  High pressure sales induced buyers to purchase swampland in Florida, dual agency and lack of disclosure was the norm, fair housing laws weren’t yet enacted, and the consumer suffered greatly.  Regulatory agencies and licensing laws were created for these very reasons.

It seems we have come full circle where the consumer is now at the mercy of these sophisticated players.  While we are a long way from where we came, the unregulated world of real estate advertising and data mining on the internet has brought us back to the wild west.  There is a new sheriff in town called the CFPB.  If these sophisticated players do not self regulate and the licensing bodies of each state do not create effective protections for consumers on real estate websites, I believe the new sheriff will be knocking on their collective door soon.

Introducing… Robert Kozlowski, Real Estate Instructor

Certified GA Real Estate Instructor, Robert Kozlowski

Anyone who has ever been a teacher knows how this goes.  About 12 years ago a student came to my class.  He paid attention, enjoyed himself, laughed at himself, laughed with others, and successfully completed my real estate course.  He was “that student” all teachers love to have in their class.  He was “that student” that stands above the rest, someone who could do what you do – but be better at it.  He went on to do great things as a real estate agent.  We worked together, and had a great time.  Then the “Great Recession” touched us all.  That student went on to other things, but stayed in real estate.  I went on to other things.  Fast forward 10 years.

As the Great Recession began to subside, I returned to my passions in real estate.  My firm was growing.  With growth come growing pains.  We were in need of a managing broker in two of our offices and my wife Christy mentioned Robert – Robert would be PERFECT for the job.  So I called him.  He was perfect for the job.  And still is.

I am the director of a real estate school called The Academy of Real Estate Education and Consulting (www.AREEC.com).  I am more than pleased to announce the addition of Robert Kozlowski as our newest GA Pre-License and Post License Real Estate Educator.  Robert has extensive experience in real estate sales, has been a mentor and new agent trainer, holds his GA Associate Brokers license, and is the Managing Broker of 3 real estate offices in GA.  He is also a trusted and active member of the Glynn County Board of Realtors.

Robert will be a real estate instructor for AREEC in St. Simon’s Island, Brunswick, Kingsland, and St. Mary’s, GA.  He specializes in GA salesperson pre-license and post license education.  Every day I meet and work with exceptional people.  I invite you to meet Robert Kozlowski, and I am confident you will agree our real estate school and profession are fortunate to have such an exceptional person, teacher, and friend.

Zillow Whistleblower Claims Data Stolen

The Scoop:

News reports are now circulating Zillow has been stealing data from Realtor.com and agent websites. In a news article posted by Housingwire.com on April 10th, 2015, a whistle-blower alleges in a letter to Move.com, that Zillow has been scraping data from Realtor.com and agent websites to compare their data with those websites, and using non-Zillow owned data servers to house databases and documents so they cannot be discovered in the Move.com lawsuit against Zillow.

Zillow and Move.com (parent of Listhub and Realtor.com) have been in legal skirmishes since Errol Samuelson, Chief Strategy Officer at Realtor.com left to become the Chief Industry Development Officer of Zillow. National Association of Realtos (NAR) and Move.com sued for breach of contract alleging that Mr. Samuelson’s former position at Move.com was in direct conflict with his new position at Zillow. In July of 2014, Move.com won a ruling supporting that claim.

So What Does All This Mean?

Aside from the news junkies and geeks like me, most folks won’t even know this happened, and won’t understand the profound implications this could have.  For Geeks, this is the equivalent of Bill Gates getting caught taking pictures over the shoulder of Steve Jobs.  It is a crack in the damn that protects Zillow, and if true is confirmatory evidence that Zillow is just another website stealing data from those who create it for their own gain.

In my opinion only, perhaps those MLS’s signing direct feed agreements with Zillow should stop listening to Group Think and take a healthy and skeptical look at the fine print of those agreements.

Some questions to make you go “Hmmm…”

• Will this be a bump in the road on Zillows meteoric rise?
• How will Realtors view Zillows credibility after such allegations?
• Maybe, just maybe – folks will take a second look at Zillow – will they like what they see?

One final thought, and on a separate note – for those of you who have seen Zillows new TV Commercials – am I the only one who’s noticed there are no real estate agents in them?