Better-trained Realtors keep buyers safe

By Manuel J. Iraola
I enjoyed Michael Miller’s timely article “Realtors insist ethics missing” (Feb. 4) at a time when our country is facing one of the most difficult real estate crises.There is no doubt many buyers — first-time or otherwise — lack the fundamental knowledge of basic finance. However, it is the moral, ethical and legal responsibility of the so-called experts in transacting real estate to protect the rights of the stakeholders involved in the process.Yes, the lending institutions failed by placing their own economic interest ahead of shareholders and borrowers. These institutions are the same that irresponsibly provided financing to developers and contractors to overbuild our communities.And, obviously, this same group provided the financing to many who should never have purchased. Bottom line: Record number of foreclosures and write-offs, and hundreds of thousands in many industries associated with real estate will now join the ranks of the unemployed. The industry system of “checks and balances” totally crashed or maybe it never existed. Our instant-gratification mentality fueled by an exuberant amount of greed has destroyed the American Dream and many of our communities.Elia Ceniceros is totally right. She said, “There’s a lot of unscrupulous and unethical agents out there that may have done that to clients, but the problem is that when the client turns around and needs the agent to help them, the agent is no longer in the business.” So true, but why are we surprised? The entry and exit barriers in our industry are among the lowest. It is easy to get in and even easier to get out. Very few Realtors have any skin in the game.Our industry has more part-timers and retirees than any other. These individuals are not committed to the long-term prosperity of the industry. When the tide is high and easy money is to be made you will find them in herds, but when the tide is low and they have to work hard for their so-called clients, they simply disappear.Most of these are there to make a quick buck and undoubtedly the means justify the ends. These individuals need to close in order to earn a commission and as such they have consistently manipulated the process to their advantage.We need to “professionalize” the Realtor’s role. This in turn should result in a significantly better-prepared Realtor and, among other things, a financially literate one. I have met many agents who do not have the slightest idea about basic finances. Immigrants are very vulnerable. Would you not think an agent could play an instrumental role in protecting them? It boils down to morals and ethics. It has nothing to do with legality. It is about time as an industry and individuals we become “socially responsible.”
MANUEL J. IRAOLA is chief executive of www.homekeys.net

Reinventing Real Estate : The Power of Disruption

“We are going to see our industry go through dramatic transformation via the Internet and consolidation of agents and companies.” – eRealty Times Columnist Dirk Zeller once said. How prophetic!

Some industry observers have adopted Harvard Business School professor Clayton Christensen’s term “disruptive technology” to explain recent developments in real estate. Though it’s easy to point to the World Wide Web and advancing technology as the main changes in real estate, that’s only part of what’s shaking things up. Essentially, the real cause of disruption is not just technology, but technology-enabled real estate consumers.

Who are these Web-enabled consumers?
According to the National Association of Realtors (NAR), more than 80 percent of homebuyers now begin their home search online. The popularity of online real estate ads surpassed newspaper property listings back in 2001, and the gap is widening. You must advertise online because your potential clients “live and die” by the Web. They just do not know any other way. And the trend will continue to grow. Just remember, these web-enabled consumers do everything online, from dating to anything you can think of.
These consumers are tech savvy. They know what they want and where to find it. And if they don’t, one of their friends will. They also want to act on their time. They resent being pressured to act. And not least important, they have been accustomed to have free and unlimited access to information in every single aspect of life and real estate is not an exception. They are willing to pay but based on the value of the services received.
So, if you believe that you can survive without the web you are committing suicide. It is not going to happen.
On the other hand, there will always be a place and time for the “face to face” contact between clients and agents. This, however, will be the exception and not the rule.

Who will survive?
Let’s face it. The consumer is always right. Moreover, they always tell you what they want. The problem is that sometimes we do not want to listen. We cannot handle change. Change hurts especially when it attacks the foundation of the business model that has existed for the last 50 plus years. Is this a generational thing? Yes to a large degree. The older you are the more difficult it is to accept that there are ways to buy and sell real estate. It is even more difficult to justify the traditional 6 plus percent commission structure. So it boils down to the efficiencies and economies of scale that only technology can deliver.
Those that have access to those technologies will survive and prosper, the others will simply become part of larger tech based real estate technology companies.
But at the end of the day, many agents will be displaced and there will be fewer agents as we know them today.

What do you think? Please visit http://www.homekeys.net/ and give us your comments.

Tomorrow's topic : Displacement

Tip # 9 For First Time Buyers

Tip 9: Begin with the end in mind
Author Stephen Covey’s advice for effective living also applies to effective home buying. Resale may not your primary consideration, but it’s an important factor. Can you buy in an up-and-coming neighborhood or region? How is the “commutability” from your new home to local employers? How good are the local schools? A few queries to your favorite search engine will turn up free or inexpensive school rating services. Also be on the lookout for outdated features when you buy. If the those small closets and harvest gold appliances seem out of step now, you can bet that they won’t look any better to prospective buyers in a few years.
Visit us at http://www.homekeys.net/ for details.

Reinventing real estate: How online empowered consumers are taking charge and paying less

Homekeys Town Hall Meeting- February 19, 2008

Remarks made by Manuel J. Iraola, CEO of Homekeys

What is going on in real estate?

These are fun times for the Real Estate industry. So much is going on !

For decades, the real estate world turned in a predictable manner. And now, everyday brings the news of many start ups using technology to transform what has been a "well protected business model".

For many years,the roles of buyers, sellers and real estate professionals were fairly well defined and transactions followed a predictable path of yard signs, newspaper ads, open houses and miles of paperwork. Not anymore ! Online and empowered consumers are and will continue to change the game.

Real estate professionals now face issues similar to the ones that have transformed the
retail, personal finance and travel planning industries. As technology advances and new business models evolve, the real estate industry has begun to transform itself from providing traditional, carefully controlled “agent-centric” transactions to new “consumer-centric” practices.

What are the trends driving these changes?

The “Five Ds” that are driving change in real estate are:
1. Disruption – Over the past 10 years, the Internet has matured into a powerful platform for delivering real estate information, forever changing the interaction between buyers, sellers and real estate professionals.
2. Displacement – The popularity and acceptance of self-service and consumer direct business models is being felt by real estate professionals, who are striving to develop attractive new offerings for Web-savvy consumers.
3. Demanding consumers – You now have more real estate knowledge, tools and resources at your fingertips than ever before. More savvy consumers tend to be more independent and demanding.
4. Downward pressure - Traditional real estate commissions of 5-6 percent of a property’s sales price are facing downward pressure.
5. Developing alternatives – The real estate industry is transforming itself to provide targeted services and exciting new options that add value for consumers.

Tomorrow's topic : Disruption

Look for us on the Web at www.homekeys.net and give us your feedback, ideas or input.

We would like to hear from you!

Tip # 8 For First Time Buyers

Tip 8: Clean up your credit
Low credit ratings mean that buyers won't qualify for the best available interest rates and fees, which could mean considerable extra expense each month for the life of the loan. Financing is getting tighter but those with good credit have an advantage.
Credit reports frequently contain inaccurate information, which can hurt a buyer’s purchasing power. First-time buyers should check their credit scores and fix any problems before applying for financing.
Visit us at http://www.homekeys.net/

Tomorrow's Topic : Begin With The End in Mind

Tip # 5 For First Time Buyers

Tip 5: Buying – personal decision, business transaction
The Department of Housing and Urban Development (HUD) advises home buyers to create a wish list to help focus priorities. That way, you’ll remember that a spectacular foyer is nice-to-have, but safety and services are essential. Having clear goals will help keep you from getting carried away with emotional factors. Sellers who love their homes tend to ask too much, and buyers who fall in love can end up overpaying. With a little research, you can get can get an objective estimate of property value to make sure the seller has set a fair asking price. There are tools and resources on the Web to help you better understand home valuations.
Visit us at http://www.homekeys.net/ for a full demonstration and free consultation.

Tomorrow's topic : Don't Let The Closing Costs Surprise You

Tip # 7 For First Time Buyers

Tip 7: Build a support team
Buying a home is a big investment and a big decision, but you don’t have to go it alone. Remember, at each step of the way, there are people and resources to help you. Use the Internet and ask friends for referrals. Don’t be afraid to pick up the phone and call real estate professionals, mortgage providers, title companies and insurers to ask questions. These professionals should be good resources to help you learn more about home buying, because they want to earn your business. If they are not helpful, then you have also learned something important…that they don’t deserve your business.
Homekeys supports you every step of the way and on top you receive a rebate of up to 75 % of whatever commisiion we are entitled. Visit us at http://www.homekeys.net/ for details.

Tomorrow's Topic : Clean Up Your Credit

Tip # 6 For First Time Buyers

Tip 6: Don’t let closing costs surprise you
Once you understand the buying process, you should understand and budget for transaction costs. In addition to your down payment, buyers pay most of the closing costs when purchasing a home, including things like inspection fees, title insurance, taxes and more. Closing fees can add up to 5-7 percent of purchase price, and must be paid before you get the keys. Your lender can provide what’s called a “good faith” estimate of your closing costs. Most closing costs are not negotiable but some are. When you’re comparing lenders, don’t be shy…ask which fees are negotiable, then ask if any discounts are available. Finally, be cautious about “no-cost” closing promotions because the lender may be simply passing on the costs in the form of a higher interest rate.
Do you know that you can use homekeys buyer's rebate to offset most of the closing costs?
Visit http://www.homekeys.net/ for details

Tomorrow's Topic : Build a Support Team

Tip # 4 For First Time Buyers

Tip 4: Lock in a realistic budget
To save time and trouble, first time buyers should have a realistic budget in mind before they shop for homes. One way to determine how much house you can afford is to get “pre-approved” by a lender. Pre-approval means you know exactly how much of a loan you’ll qualify for, so you can limit your search to homes in the right price range. Pre-approval also boosts your credibility and negotiation position with sellers. Most lenders will offer pre-approval as a no-obligation free service, in hopes of winning your business.
For additional details visit us at http://www.homekeys.net/

Tomorrow's topic : Buying is a Personal Decision and a Business Transaction

Tip # 3 For First Time Buyers

Tip 3: Check out the new real estate business models
Real estate’s old guard seems to be under assault at every turn today as traditional brokers battle competition from discount and Web-based brokers. Today, buyers have more options than ever before. You can use a full-service broker, discount broker or buy without a broker. To make buying more affordable, consider the homebuyer rebate programs that are becoming more popular. Rebates can help offset closing costs, which are a real obstacle for many first-time buyers. Be aware that some states currently ban real estate rebates all together, and others limit rebates to credits applied to closing costs. Rebate fans around the nation are proliferating .
Do you know that homekeys.net offers a rebate of up to 75 % ? Visit http://www.homekeys.net/ for details.

Tomorrow's Topic: Lock In a Realistic Budget

Tip # 2 For First Time Buyers

Tip 2: Leverage free and low-cost resources
There’s an abundance of free and low-cost resources for homebuyers on the Web. A Web search can turn up helpful articles, buyer guides, online tools and purchase/ refinance calculators. Keep an eye out for helpful tools like step-by-step guides and checklists to help organize your search. Some Web sites now offer online tools to help you estimate home prices and search for undervalued properties. Many offers on the Web for free property valuations actually are come-ons from real estate brokers looking for seller listings, so check first to see what strings are attached.


For additional details visit http://www.homekeys.net/



Tomorrow's tip : Check Out The New Real Estate Models

Nine Tips for First Time home Buyers- Tip # 1

This is the first of 9 tips for first time buyers.
For additional information, please contact us at http://www.homekeys.net/

Tip 1: Don’t bet on market timing
It seems that everyone loves a good real estate story. The media is filled with reports about declining property values and proclaiming that the time is right to purchase a home. As a result, many first time home buyers, afraid of missing out, will rush into buying decisions and achieve less-than-spectacular results. As a first time buyer, your biggest challenge is to balance livability and profitability in a way that makes sense for you and your family. Remember, you are buying a home first and an investment second. Of course, there’s no foolproof formula for buyer success, but there are steps you can take to stack the odds in your favor:


If you’re waiting for prices to drop to the bottom in places like Southern California, Washington D.C. or Miami, you may be waiting a very long time. In regions that are built out with limited room to expand, it’s not realistic to assume property values will fall dramatically. Of course, prices in the nation’s super-heated residential markets (much of California, Nassau-Suffolk Counties in New York, South Florida) arev cooling down , but there’s no guarantee that higher interest rates, insurance or propertry taxes won’t eat up any savings from a price correction. If your personal circumstances say it’s time to buy, high prices alone shouldn’t keep you on the sidelines. Current interest rates are still historically low, so you may consider locking in a mortgage before rates head north. Even in booming markets, there are good deals for those willing to devote some time and energy to finding them.

Tomorrow's tip : Leverage Free and Low Cost Resources

An Increase in Entry Barriers for Real Estate Agents will improve ethical behavior

There is no doubt that many buyers- first time or otherwise- lack the fundamental knowledge of basic finance. However, it is the moral, ethical and legal responsibility of the so called experts in transacting real estate to protect the rights of the stakeholders involved in the process. Yes, the lending institutions failed by placing their own economic interest ahead of their own shareholders and the borrowers. These lending institutions are the same that irresponsibly provided financing to developers and contractors to overbuild our communities. And, obviously, this same group provided the financing to many that should had never purchased to begin with.
Ah! and let us not forget our City Governments who so diligently approved many projects that should had never seen the light of the day. They were in a position to stop it but obviously that would have been an unpopular decision!
Bottom line, record number of foreclosures, record write-offs and hundreds of thousands employed in many industries associated with real estate will now join the ranks of the unemployed. Wow! The industry system of “checks and balances” totally crashed or maybe it never existed to begin with. Our “instant gratification mentality” fueled by an exuberant amount of “greed” has destroyed the American dream and many of our communities. Ms. Elia Ceniceros is totally right. She said “There’s a lot of unscrupulous and unethical agents out there that may have done that to clients, but the problem is that when the client turns around and needs the agent to help them, the agent is no longer in the business.” So true but why are we surprised? The entry and exit barriers in our industry are among the lowest in any industry. It is easy to get in and even easier to get out. And very few realtors have any skin in the game. Our industry has more part-timers and retirees that any other industry. These individuals are not committed to the long term prosperity of the industry. When the tide is high and easy money is to be made you will find them in herds but when the tide is low and they have to work hard for their so called “clients” they simply disappear. Most of these are there to make a quick buck and undoubtedly the means justify the ends. These individuals need to close in order to earn a commission and as such they have consistently manipulated the process to their advantage. We need to “professionalize” the realtors’ role. This in turn should result in a significantly better prepared realtor and among other things financially literate. I have met many agents that do not have the slightest idea about basic finances; and these are the first contact with the client. Immigrants are very vulnerable. Would not you think that an agent could play an instrumental role in protecting these people? It boils down to morals and ethics. It has nothing to do with legality. It is about time we- as an industry and individuals - become “socially responsible”.
Manuel J. Iraola is President and CEO of Homekeys.net

What goes up must go down

According to the associated press December ended as the worse year for the real estate market in the South Florida in the last 3 decades.
Real estate is a local business and we need to be careful with "satistics". You simply cannot generalize. The glass is half empty for some and half full for others.
Homekeys offers real estate services in 67 Florida counties and what we see is different from County to County. If you travel through the tri-county area Dade, Broward and West Palm, you will see more for sale signs than ever before. but that is not the case in other Regions . It is a fact that the tri-county area has become one the most difficult places to sale a house. But like anything else, all that goes up must come down and that does not exempt real estate. We have been through similar difficult periods in prior decades and eventually the market will sort itself out.
Homekeys offers the widest range of choices and savings for buyers and sellers.
Call us for details

AVM's with Homekeys ValueKey

The interactive approach used by Homekeys to determine the market value of a property is unique. In addition to providing historical comparables, Homekeys allows the consumer to adjust property values by reflecting existing market conditions; that is, by also providing detailed info on comparable properties that are “listed for sale”. This allows the consumer to gauge the impact of “market forces”. Homekeys is the only company I am aware of that offers free online value estimation tools that include both historical comparables and current comparable listings in determining the “market value” of a property. In addition, users are guided in reflecting unique property characteristics gathered from actually being at the property site.
To round out our self service offerings Homekeys provides consumers with a plethora of real estate information and resources including rehab and income property analysis tools, calculators, step by step buyer and seller guides, tips, original content and service providers of real estate related services at absolutely no charge…no strings attached.
Homekeys is one of the fastest moving real estate space. Feel free to contact Homekeys for details on how to buy, sell and rent easier, smarter, faster and cheaper.

Selling Direct by Owner is Increasing in Popularity

Trying to differentiate one real estate company from another, could be a difficult task. They all seem to offer the same products, for a similar price. Web based companies are starting to break the mold. Perfect examples of it can be found at Homekeys. Their theory is to offer maximum exposure and complete service; all these for a low set fee. And this seems to be the trend that real estate is moving to. Sellers are realizing that paying 6% commission is too high for the amount of actual work that is put on a listing. Companies like Homekeys have recognized that issue and are aggressively marketing their “for sale direct” program. This means you get all the benefits of a realtor, plus all the exposure of a web based company for a ¼ of the realtor’s fee.
At the end of the day, what really matters is that your property is price properly and that it receives maximum exposure. And in today's environment you do not have to pay 6 plus % to sell your property.

Technology must reduce real estate transaction costs

We don’t believe it is enough to use technology simply to generate traffic for real estate and mortgage professionals and perpetuate the role of the traditional intermediaries. This provides consumers with access to better information for decision making purposes but total transaction costs basically remain the same. It does nothing to change the agent centricity of the current real estate business model. The real estate professional remains in control of what for most people are the two most important financial decisions in their lifetime. The only thing that changes is who enjoys the lead generation revenues.

At Homekeys we develop and use technology to transform the way real estate has been transacted during the last 50 years. Homekeys redistributes the “value chain revenues” and allows consumers to significantly reduce transaction costs. They are provided with the information, tools and resources necessary to control the transaction and save significant money. The more the consumers choose to do, the more they save.

We believe that to truly be customer-centric in today’s real estate market, consumer empowerment should extend well beyond access to property value estimates, comps and county data, it means enabling consumers that take on a more active role to translate that labor into savings. The more significant the role, the more the reciprocal savings.

What do you think?

How to find the best real estate deals?

First it was Homekeys who provided consumers free home value estimates of their homes in Florida. Then Zillow provided value estimates for 60 million homes in the country. Recently Fidelity National has provided a new web site cyberhomes for 100 million homes in the country and I am sure others will follow.

Something else Homekeys has offered for the lst three years that can't be found anywhere else is a patent-pending technology called ValueSearch™. If your looking for a home in Florida and want to find the best deals, then ValueSearch™ is the only search today that will show you those listings in seconds. Because we have our own GIS systems, our own AVM algorithms, and we own all the code, we have been doing it better, faster, and longer than anyone.

The NAR and the local MLS boards now have their hands full with many web sites showing MLS listings illegally. Many of these sites show MLS listings without permission and knowledge of the listing agents and are not licensed. Incorrect pricing, descriptions, pictures, and detailed information never being kept up to date plague these web sites. Tie that to estimated values and value reports that take into account this wrong data and you really have a mess.

Homekeys is a licensed real estate company in the state of Florida and is bound to follow the MLS rules and regulations. You can feel secure in knowing that when your searching for an undervalued home on the Homekeys web site, it is based on the most accurate information to date. Information received directly from MLS feeds.

At Homekeys the future is now. The future is ValueSearch™.