SuperBowl's not the only game in town, take a walking tour of Super Price Reductions

Looks like Boston.com has added some graphics to their article, Year’s end lifts sales of condos in Boston, and is recycling it on the landing page of their Real Estate section for SuperBowl weekend.  Glad that visibility gives The Real Estate Cafe the opportunity to highlight the "Super price reductions" -- $1 million dollars or more -- in Back Bay and Beacon Hill.  Couldn't agree more with one luxury real estate agent who told the Boston Globe:

"...he expects the high-end market’s rebound to be a slow process.

'Properties $1 million or more are going to see pretty high discounts’’ for some time...' "

As we Tweeted yesterday, there have been 485 MLS listings in Back Bay and Beacon Hill priced over $1.5 million dollars since the meltdown on Wall Street, September 26, 2008.  Twenty-two of those listings have reduced their original asking price by more than $1 million, including three price reductions of $4 million or more.

One of those $4M markdowns -- 20 Brimmer St. -- is using an auction, an "unorthodox route in hopes of creating a sense of urgency among unmotivated buyers" to generate a "price point" on March 3, 2010.  Prudent luxury home buyers, homeowners and real estate agents across Back Bay and Beacon Hill, if not the nation, will be watching.  If you'd prefer to sit on the sidelines, and bargain hunt before or after what may become a media circus, we'd be glad to take you on a walking tour of Million Dollar Markdowns in Back Bay or Beacon Hill. 

Send us an email if you'd like to take a walking tour -- online or off -- of Million Dollar Markdowns in Back Bay and Beacon Hill. 

PS.  We've been using Valentine's Day to track the "Sweetest Deals" in the most expensive zip codes in Greater Boston on and off since 2003, and would be glad to take you on a tour of Million Dollar Markdowns in suburban communities as well. 

Should "Blind" bidding wars be regulated? Time to launch iPetition?

In response to an article entitled, Year’s end lifts sales of condos in Boston, one of Boston.com readers wrote:

"Seriously, the bidding wars that have been going on for the past 2 years, that is what someone should write an article about."

I agree, articles about bidding wars are warranted, but NOT because of an uptick in sales or housing prices.  In my professional opinion, "blind" bidding wars over an eight year period, 1998-2006, fueled the "irrational exuberance" that drove housing prices in Boston -- and elsewhere -- to artificial, unsustainable levels; and ultimately left the taxpayer to pick up the tab.  (See Real Estate Bubble Map created by The Real Estate Cafe in 2006 when most real estate professionals denied the existence of a housing bubble.)

As home buyers know from this past Fall, the original deadline for the first-time home buyers tax credit was hyped so shamelessly by the real estate industry that too many buyers were once again manipulated into paying OVER asking price.  That's why I would love to see multiple bid situations regulated through a transparent bidding process outlined in this blog post:

Dual agency: The illusion of individual savings & the real cost to society

If Boston.com readers and others agree, should The Real Estate Cafe create an online petition to regulate "blind" bidding wars?  The goal is not to eliminate competition (that would be politically unacceptable in our capitalist system); but to maximize transparency and minimize deceptive buyer manipulation through a controlled bidding environment, like http://www.N-Play.com.

Over 650 people signed the iPetition we created in 2003 to Protect Consumer Access to Real Estate Listings, without the benefit of social media to turbo charge a viral marketing campaign.  If you want to help organize a campaign to regulate "blind" bidding wars, or just to sign an iPetition if we create one, please leave a comment below or contact us privately.

Digital Playgroup eager to welcome iPad, newest member of Apple's iFamily

Seems everyone is choo-ing over Apple's new iPad, including my grandson.  At four months, wonder how soon this "precocious" little guy will begin interacting with the iPad?  Haven't read enough about how the device actually works to know what's possible, but Twitter is already buzzing with predictions about killer apps.  So our extended family is developing it's own wishlist of intergenerational apps, and we invite tech-savvy families -- kids, parents, grandparents, even great grandparents -- to share their own dreams. 

Some real estate innovators, including @paulmobley and @GregRobertson, are already sharing their initial thoughts on uses for Realtors, and asking if the Apple tablet be a game changer in real estate.  We'd love to hear what do-it-yourself (#DIY) home buyers and sellers think about that question, how they envision using the iPad, and their wishlist for dream functionality.

Can't wait to stimulate that discussion by passing the iPad around the Digital Playgroup we launched at TogetherInMotion in Arlington, MA on the 1st anniversary of Randy Pausch's death.  As anyone who watched the Last Lecture or read the book knows, Randy had an imagination as big as his heart.  Wonder how many Valentines would be sent or received on iPads if it were available immediately?  Seems everyone loves Apple's new baby, as we love our new Grandson! 

If you're a real estate professional, home buyer, or seller already posting your #iPad comments on Twitter, please ReTweet | RT them in the comment field below.  Here's our first Tweet on the subject:

DIGITAL HOME: #iPad "..Tablet is NOT laptop without keyboard, Apple sees ..personal media experience they create." http://bit.ly/iPad_MSNBC
http://twitter.com/RealEstateCafe/status/8289583887 

Anyone want to go on a pilgrimage to a local Apple store in Boston when the newest addition to the Apple iFamily arrives in June or July?  Tech Superpowers @digilounge has already hosted a TweetUp of the Apple Faithful in Boston to watch the announcement of the birth.  Wish I had been there, but anyone can still follow their Twitter list, review their #superapple stream, and watch them tonight at 6pm on @WBZ TV.  

WBZ's webcast of the State of the Union begins at 8pm, and will surely generate discussion of the housing tax credit and foreclosure prevention.  Hope the iPad does not upstage the President as this Doonesbury's cartoon implies. 

Defensive homebuying: How to protect your commission rebate

So pleased to this blog post on Newbuyer.com warns first-time homebuyers about the conflict of interest inherent in dual agency.  Their words describe the cartoon we used in our blog post last week, Dual agency: The illusion of individual savings & the real cost to society:

"...try to imagine working for both parties with opposite interests? You can see how difficult and precarious a feat this is. Although this practice does exist (it is called dual-agency), it is uncommon and it is recommended that you do not become a party to it. The agent works for the buyer or the seller, not both."

However, there's another financial reason cost-conscious home buyers should be warned AGAINST rushing into private showings that goes beyond conflicts of interest and overrides this misguided advice:

"If you must look at it [a new listing] sooner, try to remain tight-lipped and know that the seller’s agent will not be telling you a complete story. Make the visit a quick one and know its purpose is only to learn if you want to pursue the home further; with your own agent of course."

In Massachusetts (and probably other states), a listing agent in the situation above could try to deny compensation to the buyer agent if they do not accompany their buyer client on the first private showing.  As Boston.com readers were recently warned, They call it procuring cause.  That blog post has attracted more than 30 comments, including one praising The Real Estate Cafe's rebates.  Unfortunately, the blog's author, Rona Fischman, made a grossly misleading generalization in her own comment when she wrote:

"Discount and fee-for-service models run afoul of the agreement to 'procure' the buyer and can find themselves in arbitration from a listing agent who feels ripped off.  If Redfin has to pay the commission back, they can't rebate the buyer, can they?"

We cannot speak for Redfin; but in fifteen years, The Real Estate Cafe has never been involved in an arbitration hearing and only once has a listing agent denied us a commission.  Even that could be reversed in the next 90 days.  Our client is tenacious, and a leading national real estate news service is already following his lawsuit, holding their article until the outcome of the last hearing is made public.

MONEY-SAVING ADVICE:  If you want to use a buyer agent, particularly one offering a commission rebate (like our 100% commission rebate option), the buyer agent must act as your spokesperson throughout the transaction, starting with the first PRIVATE showing.  That means buyers should refrain from communicating directly with listing agents outside open houses, and why we insist on that condition in our buyer agency contract.

NEXT STEPS:  If you've just seen a new listing, use the search page on Boston.com to see if an open house has been scheduled.  If NOT, click on The Real Estate Cafe's banner ad on http://boston.com/openhouse (see image above), and we'll schedule a private showing and rebate up to 100% of our buyer agency fee.  As buyer agents, our mission is to protect homebuyers and we hope to help clients save over $1 million dollars again this year.

Wanted: "Loving Thoughts, Thoughts on Love" to celebrate Valentine's Day online & off

On and off over three decades, I've invited friends to celebrate Valentine's Day by sharing their favorite thoughts on love.  This year, I'd like to extend the invitation to anyone worldwide who'd like to explore how we can use social media to create a "Virtual Love Fest."  The format we've used offline in the past has been a big hit and content -- words, images, and video -- can easily be replicated online (as demonstrated five years ago).  Guests are invited to:

1.  Cut a heart out of paper and decorate it if they like;

2.  Inscribe the words of their favorite quote on love, favorite love song, love poem, etc. on the heart; and

3.  Pin the artwork on their heart or literally "wear their heart on their sleave." 

Throughout the party, guests mingle and read each other's hearts, literally and metaphorically.  Interesting, soulful conversation flows easily, as does laughter and flirtation.  At some point later in the evening, guests are invited to read their quotes (optional) and explain why the words are significant to them.  Others are free to comment and there are often collective sighs of appreciation!

In the past, the heartfelt sharing has been balanced by lots of laughter and merry-making around outdoor activities -- snow tubing and broomstick ice hockey being the most memorable.  One couple who met on the ice got engaged about a year later.

Guests, some of whom arrive without quotes, have also enjoyed the opportunity to create Valentine's at the party with art supplies and collage materials.  A small library of books on love and relationships is available, and guests are invited to flip through the books for ideas and inspiration.

I'd love to correspond with anyone, in the real estate industry or beyond, to (1) learn from Valentine's Day themes or events you've hosted or attended in the past, (2) hear what you are planning for 2010, and (3) explore how we can collaborate using social media to extend this party format, online and off, to other parts of the country if not the world. 

Inspired by the map on HopeForHaitiNow.org, my hope is that some techies will volunteer to help us create a live Twitter map which reflects, moment by moment, the universal experience and expression of love.  Offline, I'd love to invite people to cohost local make your own Valentine's Day parties in the three weeks before VDay2010; and hope local faith communities and campus ministries will get involved in this grassroots, community-building experiment. 

February can be cold, bleak and sometimes lonely time; done right, Valentine's Day parties can help friends, old and new, connect at level of depth and playfulness that is truly memorable.  If you are interested, can you cut and paste this Tweet, and share it with friends on Facebook or Twitter?  Thanks!

IDEA STARTER Planning Valentine events/themes? Create national network to cohost local #vday parties? See Proposal http://bit.ly/VDay2010 RT