A special greeting at this Thanksgiving from American Trust Escrow to express our sincere gratitude for reading our blog and the feedback you provide. We are thankful and would like to extend our best wishes from our family to yours. Happy Thanksgiving!
Every Tuesday, here at the American Trust Escrow blog, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.
Blogging is the cornerstone of the new media marketing movement, and the promise of business for the REALTOR who embraces it, is tempting. This post is designed to give the pros and cons of blogging, and help you decide if blogging is something that you should incorporate into your real estate business.
First, what is blogging?
I wrote a detailed post answering this very question. Basically blogging is an on-line journal. It consists of posts, or articles, that the blog author writes and adds on a regular basis to the blog. The most current post resides at the top of the blog, and the prior posts move down the page.
Success in blogging results from two things:
1. Providing content of value to your target audience
2. Frequency
What content is of value in real estate?
I view the following topics as good topics for REALTOR blogs:
* Market Data: Answer the question, how is the market? This is likely the most common question in real estate and makes for excellent blog post fodder.
* Neighborhood Info: Talking specifically about different neighborhoods and farms will help build your credibility, establish your expertise in an area, and help you with what is called the “long tail” search in Google. When it comes to buying decisions, people are very interested in the nuances of a particular neighborhood. You discuss this in the car with prospects, and you work to show sellers your neighborhood expertise with post cards mailings, and in your listing presentations. Take this information to the web in the form of blog posts.
* Lifestyle Information: Every buyer wants to know what the lifestyle is like in various cities, communities, and neighborhoods, and you as a REALTOR are selling not only the houses in a particular area, but you are also selling the lifestyle. Blogging about the events, people, restaurants, schools, and area information are all great topics for a blog and paint a picture about the local lifestyle in the area.
* Transaction Education: For most people, the process of buying a home is complicated and overwhelming. As the REALTOR, part of your job is to navigate buyers and sellers through that process. By discussing the process and providing an education on the nuances of the transaction, you have the opportunity to establish your professional credibility and attract buyers and sellers who appreciate the education you are providing them on the process of home buying and selling.
* Competent Advice/Perspective/Interpretation: No doubt about it, there is access these days to almost any information someone could want. The problem is that the amount of information is overwhelming. This presents a blogging opportunity for the REALTOR who can provide an interpretation of all the data. From all the stats, what is the most important piece of information for today’s buyer to know? Why is it important for them to know? What is meaningful about that?
And what about frequency of blogging?
How often you blog is going to vary for each REALTOR. I suggest that blogging once or twice a week is a good target. The key is to do it on a regular basis. This keeps your blog fresh, reminds people that you are active and current in the market, and helps you get Search Engine Optimization with Google.
Blogging has several advantages for the REALTOR.
Blogging Pros:
* Establish Your Expertise: Keep in mind that when you are positioned in the mind of the buyer or seller as THE trusted advisor, you have a client. There is no better way in social media to establish yourself as a trusted advisor than with blogging. Blogging provides you a golden opportunity to establish your real estate expertise. It allows you to express your perspective, your professionalism, and you market knowledge in a way that reflects your tone and personality.
* Google Friendly (Search Engine Optimization – SEO): By definition, blogging is Google friendly. The platform of blogging is designed to be indexed by Google and if you are blogging using words that are relevant to your market (key words), you are helping yourself naturally appear in search results when people search Google for terms that match what you are blogging about. So, for example, if you are frequently blogging about items related to Pasadena real estate, when someone types in “Pasadena real estate” into Google, you are more likely to rise to the top or be on page one.
* Subscribe Feature: Blogs have the ability to have people subscribe to them so that any content you post is automatically distributed to the reader (vs. them having to come to the site to see new content). When this channel is properly respected (and not abused, which would result in the reader “unsubscribing”), the blogger creates a drip marketing opportunity to all of the readers who are “reminded” of you ever time you post a new blog post.
* Brand Building Opportunity: Through blog subscribers (as described above) and in the visual design of your blog, you have the opportunity to establish, and extend, your personal brand. What you say on your blog, and how it looks, is a reflection of your professionalism and your personality and gives people an impression about you.
* “Long Tail” Opportunity: This benefit relates to the opportunity to reach people who are searching for specific terms in Google, vs. broader terms. For example, “Pasadena Real Estate” is a very general term that yields about 1.6 Million results in Google. Compare this to “Oak Knoll/Madison Heights Real Estate” which yields about 8,000 results and you can see that there is a much greater opportunity to be found on the long tail search. Another benefit is that people who search long tail terms tend to be closer to a purchase or sale decision as they have gotten specific in what they are looking for.
* Can Be a Lead Generator: Blogs can generate great leads. When you are effective in articulating your real estate knowledge, answering the questions of your target market, and positioning yourself as a trusted advisor, people will contact you through your blog. Those that do contact you are generally attracted to your perspective and generally stronger leads than you may get off of an ad or other form of marketing. People tend to watch a blog for a while. They will get a feel for you. When they do contact you, it is because they have a feel for who you are and they are interested in working with you.
Blogging Cons:
* Time Consuming: No doubt about it, blogging is a time consuming endeavor. It takes a commitment from the REALTOR. Keeping in mind that frequency is a key element to successful blogging, you really need to view blogging as a strategy that you have a plan for. It takes time to generate good content.
* You Need Average, or Above Average Writing Skills: Blogging is a content driven marketing vehicle. If you are not generating good content, you are not going to get good results. If you do not have the ability to articulate your perspective easily with the written word, blogging will be a challenge for you. There is an alternative – video blogging. With a very affordable piece of equipment called a Flip Video Camera, you can post a video blog instead of writing one. A video blog doesn’t carry the same SEO benefits that the written word does, but it can be a very effective way to articulate your perspective, or actually show your market area. A video blog can also be an efficient use of your time (maybe video tape yourself while you are sitting at an open house and waiting for traffic).
* Several Nuances to Learn: Although the actual process of posting a blog is not much more difficult than sending an email, to succeed in blogging over time, there are many nuances to learn about the blogging platform. For example, there are better (vs. worse) ways to title your posts so that you rank well in Google and/or capture the attention of your readership. There are best practices to follow in terms of naming your images and inserting links into your posts. Although none of these items are particularly challenging, all of these little items tend to present a learning curve for the Realtor just getting into blogging.
* Becoming Competitive: Blogging has been popular in real estate for several years now, and in some markets, there are some very established real estate blogs. In these areas, the landscape for blogging is very competitive. You should survey the blogging competition for your market and determine if there is a great opportunity for you there. Even in markets where blogging is very established, there are still ample blogging opportunities on a hyper-local level. You don’t have to blog about Pasadena. You can blog specifically about the homes around the Rose Bowl. This would be a hyper-local topic and one where you have a strong chance to stand out and dominate a niche area. Alternatively, you could also define a niche market – maybe foreign buyers or sellers for your area. Or , seniors. Or, first time home buyers. Think about segments that may be under-represented by blogs that are focused on larger areas and geographies and you will find some great blogging opportunities.
I’ve pointed out the reality of the challenges of blogging in an effort to give you a realistic view on what it takes to succeed in blogging. Blogging may or may not be for you. But, if you are searching for a new strategy, or you actively farm a geographic area or demographic niche, and plan to be in business for 5 years or more, I suggest you seriously consider establishing a blogging presence. There is just so much to be gained. In a future post, I will lay out the leading blogging options for those who would like to pursue a blogging strategy for their real estate business.
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A probate sale is defined as the sale of a property where the owner is deceased and the sale is being conduced by the deceased estate. An Administrator or Executor signs on behalf of the deceased person with either full or limited authority. Sometimes the deceased has a will. Sometimes they don’t. Although the escrow process is fairly similar for both scenarios, the time frames associated with the two situations can vary dramatically. Understanding the core differences between the two can assist agents and clients in successfully closing a transaction.
Situation #1 – The Deceased Left a Will:
From the standpoint of escrow and most buyers, this situation is a far preferable probate sale due to the predictable time frames this situation provides. When the deceased leaves a will, the property falls under the Independent Testamentary Act and the court designates an Administrator or Executor of with full authority over the estate. Typically this person will be a close remaining relative. It then becomes the responsibility of this person to decide the future of the property. Because this person has full authority, the process from an escrow perspective is very similar to that of a standard sale. However, there is one additional document that will be required by title in order to close the transaction. They will need certified copy of the “Decree of Distribution of Letters of Testamentary”. This is official paperwork issued by the court that designates the Administrator of Executor and is required by title in order to insure the transfer of the property. CV Escrow also will want to receive a copy of this document in order to proactively review it for potential hiccups in the transaction.
Situation #2 – The Deceased Did Not Leave a Will:
In the event that the deceased did not leave a will, the property sale will have to go through the court probate process. The court will approve and assign an Executor or Administrator for the Estate of the Deceased. This Executor will be an independent court representative. The court will also issue an Order Confirming Sale which basically stating that the listing price is at fair market value and it authorizes the sale of the property. A certified copy of this document will be required by title in order to close the transaction.
The challenge for escrows on Probate Sale listings in this situation where the deceased did not leave a will is that the time frame for the court probate process can vary from 60 days to 6 months or beyond. This creates a challenge in negotiating escrow times. Agents should be prepared to properly set buyer expectations about the time it can take to close a court appointed probate sale. It is not uncommon to require an extension of escrow. And, unfortunately, sometimes the extended escrow duration can become a deal breaker.
If you are ever in a probate property sale transaction, understanding the process and what you must do to transfer the property can affect the success you have in closing the deal. Your escrow officer can be an excellent resource to inform you of the paperwork and time frames that will be required to complete the transaction. In addition, consulting your family attorney or estate planner is your best course for answering specific and legal questions in these types of transactions.
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Every Tuesday, here at the American Trust Escrow blog, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.
Our “Tech Tuesday” tip is being posted a day early this week in order to get the word out that tomorrow (November 17, 2009) a great online event is being held that any Realtor interested in learning more about technology and social media for their career can attend. It’s Virtual RE BarCamp and all you need to attend is a computer and an internet connection. If you are interested in any of the following topics, then Virtual RE BarCamp is for you:
- You Tube for Real Estate
- Using Flickr for Real Estate
- Making Real Estate Sales with New Media
- The Brand of “You” in Social Media
- WordPress for Real Estate
- Social Media Trends for 2010
- Search Engine Optimization (SEO) 101
- Linked In for Real Estate
- Must Have Word Press Plugins
As the event website states:
The REBarCamp phenomenon has exploded over the last year with dozens of in-real-life gatherings where the real estate community comes together to discuss and demystify the current trends in technology and marketing. The goal of VirtualREBarCamp is to bring this experience to you as opposed to having to bring yourself to it.
Event Details are as follows:
- When: November 17, 2009, 9:00 am – 4:00 pm PST
- Where: Online Webinar
- How to Attend: Links and Call In Information Here
- Cost: Free
- Registration: Participate by registering here
- Schedule: Calendar of Sessions
- Speaker Bios
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Did you know that in several counties in California, Propositions 58 and 193 can save homeowners money in the transfer of property between parents and children and even grandchildren? These propositions are geared towards keeping property “in the family” and both propositions help avoid a forced sale if the home is reappraised and the taxes go up exponentially making it too difficult for the family member to make the payments on the home.
Proposition 58 provides property tax relief by preventing an increase in property taxes when real property is transferred between parents and their children.
Proposition 193 broadens the tax relief to include transfers between grandparent and grandchildren, or from grandchildren to grandparents. This transfer is only exempt in cases where both parents of the grandchild are deceased.
The Parent-Child Exclusion applies to any real property purchases or transfers between parents and children, which occurred on or after November 6, 1986.
The exclusion applies to natural children, children adopted before the age of 18, stepchildren (as long as the parents are still married), and sons- and daughters-in-law are considered children under this exclusion program.
What most homeowners do not know is that the claim must be filed within three years after the date of the purchase/transfer or prior to the transfer of the property to a third party, whichever is earlier or within six months after mailing of the notice of supplemental assessment.
What type of property can be transferred without a tax increase?
A parent may transfer their principal residence and any other property valued up to $1,000,000 to their children. The properties will not be reappraised providing that the proper Claim for Exclusion from Reappraisal form is filed and approved by the Assessor’s Office.
An inheritance or transfer to children within a trust may qualify for this exclusion. The trust documents must be provided with the claim.
You may request a Parent-Child or Grandparent-Grandchild Exclusion claim form by contacting your local County Assessor/Recorder/Clerk office. You may ask your Escrow Officer for the contact information for your local Assessor’s office, too.
The Los Angeles County Office of the Assessor did a great writeup on this topic, as well, and included links to the forms that are used in exclusion claims. Their summary can be found here.
The points presented here are meant as an informational summary and are not inclusive of all of the nuances of the propositions. For full definitions of Prop. 58 & 193, please view Revenue and Taxation (R & T) Code Section 63.1 online at www.leginfo.ca.gov and consult with your tax or legal professional.
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When you’re dealing with a Seller who is not a U.S. citizen and is considered by the government as a non-resident alien for purposes of United States income taxation, you can avoid escrow delays and minimize the Seller’s frustrations by knowing and understanding the basic process that all Foreign Sellers have to go through when selling property in the United States.
First of all, the U.S. government will get its taxes when a property is sold, no matter who the Seller is. While you should always advise your clients to consult with their CPA or tax consultant for specific information for their transaction, the following information should lay the groundwork to let you know how unique the Foreign Sellers process can be. Hopefully with this information, and advice from the Sellers CPA, Sellers can get everything in order ahead of time to keep the escrow process on a reasonable timeline.
Apply for a SSN or Tax ID Number
Begin by checking whether the foreign seller who is transferring U.S. real estate has a Social Security number and/or Tax ID number. If they don’t, start the selling process by submitting an application for IRS Individual Taxpayer Identification Number Form W-7. Married sellers need to submit one for each spouse. The application must be notarized and include a current, certified U.S. passport. The process of obtaining a Tax ID number will take at least seven to eight weeks and the Seller should seek the guidance of a Tax consultant or CPA for the proper forms and further assistance.
Early Submission Ensures Proper Tax Withholding
Any non-resident of the US who sells real estate in the US will have 10% federal withholding as well as 3 1/3% California withholding. If the sellers do not start the Tax ID application process early, it delay any refund and/or reduction due to them.
Request a Reduction of Withholding
If your sellers feel that the 10% withholding exceeds their capital gains, they can submit a Form 8288-B Application for Withholding Certificate for Disposition by Foreign Persons of US Real Estate Interests. This document will be provided by the Escrow holder and should be submitted to the IRS requesting Reduction of Withholding upon receipt of the document. This document needs to be approved early so the Escrow holder processing the sale has time to obtain approval to submit less than the 10% U.S. withholding. This process takes several weeks, as well.
In summary, it’s important to remember:
- It takes seven to eight weeks to submit IRS Individual Taxpayer Identification number Form W-7. Married sellers must submit one notarized application for each spouse with a current, certified U.S. passport.
- Any nonresident who sells U.S. real estate will have 10% federal withholding and 3 1/3% California withholding. Not having a Tax ID delays any tax refunds or reductions.
- The Seller might be able to reduce their withholding, but must allocate several weeks to be approved before submitting less than the 10% U.S. withholding.
For further information and forms, seller’s should consult their CPA or tax adviser and can visit:
- IRS: http://www.irs.gov/pub/irs-pdf/p515.pdf
- Tax ID Number: http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html
- Withholding Reduction: http://www.irs.gov/pub/irs-pdf/f8288.pdf
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Every Tuesday, here at the American Trust Escrow blog, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.
What is a blog and how does it relate to real estate? You aren’t the only one asking. As I talk with Realtors about social media, this is one of the most common questions I get. Blog is a contraction of web log. In its simplest of descriptions, it is a type of website. It is a type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order (By the way, you are reading a blog right now). Blogs are a type of social media – this is because blogs allow for interaction with readers because they can post comments on articles which creates the opportunity for interaction with your blog audience.
Blog Terminology Basics:
Blog (noun):
A type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order. For example, this article you are now reading is part of the American Trust Escrow blog. Blog entries remain indefinitely on the site and are always available to readers. Often, blogs allow for the current article to be distributed to its readers via email in addition to always being available on the site.
Blog/Blogging (verb):
To maintain or add content to a blog. Example: I “blog” by writing the weekly technology tip series of articles that you are reading on the Glen Oaks Escrow Blog. Or, Stacey is blogging this week about the topic of Social Networking for Realtors.
Blogger (noun):
The person who generates the content for the site. I, Stacey Harmon, am a blogger because I am writing this post. Also, many of the escrow officers from Glen Oaks Escrow are bloggers because they are generating posts about escrow topics like The Opening Package From Escrow – Why it Matters.
Post (noun):
This is the term most often used for a particular entry, or article that appears on the blog. Posts typically will have a headline, an author, and the article. For example, right now you are reading a post titled “What is a Blog & How Does it Relate to Real Estate?”, authored by me. The most recent post appears at the top of the blog. The post is also classified part of a particular category (in our case, some of our categories are “Escrow”, “Technology Tuesday Tips”, and “Events”). These categories make it easy for you to find a post on a particular topic after some time has passed and the post is no longer at the top of the page.
Subscribe (verb):
One of the great features of blogs is that readers can subscribe to the site. Many of you are reading this post in your email – that is because you are subscribed to our blog, meaning you don’t have to go to the American Trust Escrow blog to read the new posts. Instead, they come straight to your inbox. As you find other blogs on the web, they will also have the ability for you to put in your email address and have their posts come directly to you – keep an eye out for this. It makes staying updated very convenient! (Sometimes the subscribe functionality is presented as “RSS” – this is an alternative way to subscribe to the site, and wording to look out for if you don’t see the word “subscribe” on the site)
Who Blogs?
These days it seems that everyone is blogging: The Administration, Martha Stewart, Mark Cuban, The Desert Sun, and the ATEBlog. Blogging has grown exponentially over the past few years. According to the New Media Lab 2008 Social Media White Paper, there are 184 million people worldwide that have started a blog, 346 million people read blogs, and 95% of the top 100 U.S. newspapers have reporter blogs. In addition, there are roughly 1 million blog posts every day.
So, How Does Blogging Fit with Real Estate?
For Realtors, having a blog offers the opportunity to express and establish their expertise out on the internet (where we all know buyers are looking, and sellers are wanting their listings to be), rank well with Google (blogging is by definition VERY search engine friendly), reach a geographically wide audience, and/or target specific niches, all in a very financially affordable way. Compared to print marketing, blogging is cheap (it can even be free!). But, keep in mind that blogging takes time. And, you should have an average, or above average, ability to write. If you are not developing content that people want to read, you are not going to have an effective blog. So, blogging may or may not be the right decision for your business. However, even if you decide that a blog isn’t going to be a part of your current business plan, understanding what a blog is, and reading blogs, can be a very helpful in your education process and real estate career. There are some outstanding blogs focused on the real estate industry.
Real Estate Blogs to Check Out:
Realtors:
- Miamism: Maimi real estate blog by Enrique Garcia & Ines Hegedus-Garcia
- Phoenix Real Estate Guy: Jay Thompson’s blog on all things Phoenix Real Estate
- First Time LA Home Buyer: Great niche marketing blog by Los Angeles Realtor Nick Segal
- Active Rain: Over 160,000 Realtors and affiliates belong to this site and blog about all things real estate. This site is a great way to get started blogging easily for a moderate monthly fee for new accounts if you want the public to see it. Although there is a fee, I still think that it is an excellent way for Realtors to start blogging.
Industry News:
Another Perspective – Blogs In Plain English:
Also, Common Craft has done a great video illustrating the concept of blogs. It isn’t real estate specific, but does a great job of showing how blogs came to be and the value that blogs provide. It is well worth the 3 minute watch:
If you think that blogging might be for you, stay tuned. Future posts will discuss great ways to get started with blogging, as well as vendors who can help you execute a full blogging strategy.
Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.ATEBlog.com) in the box titled “Subscribe via Email”.
