"Singing in the Rain!"

The word "trust" is the second most overused word in real estate. "Honesty" - is the first one. These words are bantered around the Internet so much, people probably do not pay much attention to them. Nevertheless, misusing them in a real estate blog could lead to problems. Misusing them on a multiple blogger platform could lead to even more problems.

The goal of most real estate bloggers is business - i.e. demonstrating their expertise  and personality to the blog readers, i.e home buyers and sellers. The idea is that these readers will be so impressed, they would want to hire the blogger as their real estate agent, mortgage broke, stager, etc.

The second goal of many bloggers, especially on Active Rain, is to get referrals from from their fellow members, again based on their blog.

So, what is the problem with using the "trust" and "honesty" words? The problem is not delivering on the promise. Let's say a real estate agent says on her blog "I sell all my listings for top $". The home seller, who hires her based on such a  claim would be very unhappy, if he didn't get the promised top dollar.

Suppose, a mortgage broker says "I am never late with closing". If he is late, the consumer would be very unhappy, especially if the timing was an important issue to them (which is usually the case with mortgages).

The worst broken promise is of honesty.  Misstating the facts, reneging on commitments, claiming that the other party misunderstood -are just a few ways to undermine honesty and ruin ones credibility.

Doing it from the pulpit of  an individual blog is bad and inexcusable, because it undermines other bloggers in the industry.  Doing it from the platform of Active Rain is in some ways even worse, because it undermines consumers' and other members trust in the other 60+ thousand bloggers.

When a member gives business to another, there is an explicit trust built in through the membership. Violating this trust could negate the efforts of many.

The points in this post are self evident to most, but not to all. Not all business opportunities that develop on Active Rain should be pursued. Here is one easy test - what post would the member, who referred the business to you, write at the end of the transaction? What post would a consumer write at the end of the transaction?  Take the business, only if the answer is "glowing", "spectacular", "more then promised".  You get the point.

P.S. Note to self: Grow up. Just because somebody says something on a blog (even on Active Rain), doesn't make it so.

P.P.S. Another note: I don't like the previous note -I have too many great friends. Having resolved this existential issue, I can get back to writing truthfully about Princeton real estate.  

Please comment on which note you think makes more sense or what you think about truth on a real estate blog. 

Photo by  Katie Tegtmeyer  

Okay, so pour yourself a strong cup of Java, pull up your iTunes, and enjoy the next installment of the ActiveRain Community Guidelines 'EXPANDED' version!

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This next guideline must've been inserted by our corporate lawyers. It sounds too much like one of those 'fine print' disclaimers...

• Do not violate any laws of your local jurisdiction. This includes all Fair Housing related laws.

Seems pretty straight-forward and obvious, right? One would think so. But ya know, as I observe our members conversing with one another, whether through their blog posts, or commenting on other member's articles, sometimes people say the 'darndest' things!

One area that tends to annoy me is in our "Q&A" Feature (it's one of the tabs right up above there).

In the past, when I've accessed this feature, I've gone straight to my home State of Washington, for the purposes of answering any questions left there by consumers. However, many times when I've done this, I find that the answers have already been provided by a fellow member from another State!

Now if it's a question that's general in nature, like "Who brews the strongest cup of coffee?" or "What's the best thing to use for crab bait?," then no problemo. Anyone can feel free to pipe in.

But if it's a specific real estate related question, why would you want to expose yourself to the potential liability of speaking 'out-of-turn?' I mean, seriously, we all have enough liability as it is, right?

For me, the basic rule of thumb is plain as rain - "If you're not licensed in a particular State, or you don't practice/offer services in that State, don't answer the question!" As basic as the question may seem, or regardless of how much you genuinely want to help out, don't answer. <stepping off soapbox>

Remember, that whatever you write/publish on the Internet can or will be used against you in a court of law!

And additionally, ALWAYS keep in mind the Federally protected classes, and not to use any words/language in your posts or comments that could be perceived as being discriminatory.

 ~ Now get out there and sell something!!! ~

With the advent of Web 2.0, there's been a literal explosion of 'Social Networks,' with many of them finding a specific applications for cultivating potential business.

What do you think of when you here the term "Social Network?"

Wikipedia defines them as follows:

A social network service uses software to build online social networks for communities of people who share interests and activities or who are interested in exploring the interests and activities of others.

Most services are primarily web based and provide a collection of various ways for users to interact, such as chat, messaging, email, video, voice chat, file sharing, blogging, discussion groups, and so on. Social networking has revolutionized the way we communicate and share information with one another in today's society. Various social networking websites are being used by millions of people everyday on a regular basis and it now seems that social networking is a part of everyday life (to access a current list of the most notable & popular social networks, go HERE).

Most of us are familiar with the highly popular network, MySpace. I joined at the prompting of my kids, and have used it mainly to discover new bands and musicians. In spite of the incessant invites by scantily clad bimbos and web-cam hotties, I know of many people who use it to make legitimate contacts for business, and to gain added Internet exposure.

There's been an ongoing debate here as to whether or not ActiveRain should be considered as a 'social' network. For many of the hardcore real estate purists, I know they would like nothing more than this platform to contain real estate 'only' related articles and information. No recipes. No jokes. No human interest stories. No pet pictures. 

"All Real Estate. All the Time!"  

I think for some people, there is a negative connotation or misunderstanding associated with social networks in general, and a fear that ActiveRain will eventually regress into some form of a real estate "MySpace."

Well, like it or not, ActiveRain IS a social network. We don't operate in a vacuum. We don't live in some remote monastic cave retreat. We are, after all, by nature, social beings. We are wired to interact with other humans - to communicate, and develop interpersonal relationships.

Yes, ActiveRain is a social network. But it's much, much more. In addition to developing meaningful friendships here, there are obvious opportunities for us to increase/improve both our business and our level of professional knowledge/expertise. Thus, ActiveRain clearly distinguishes itself from many of the other social networks by not only offering us a place to enjoy meaningful relationships, but to also experience the value of enhanced business that positively impacts our bottom line.

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I don't know about you, but I find it increasingly more and more difficult to weed through all the social networking platforms that seem to pop up everyday. It seems like my mailbox is constantly filled with invites to join some new start-up. I typically end up joining most of them, if for no other purpose than to fill out a basic profile. But I sometimes wonder, what's the value? Seriously, who has the time to invest in participating in every network that comes along? Which ones truly offer value to my life and business?

ANNOUNCING - "SOCIAL NETWORK REVIEW"

Well, in an effort to help other members save a little time from having to navigate the endless array of networks, I thought it would be beneficial to begin posting a series of reviews/critiques on many of the popular and emerging social networks across the Internet. And in particular, to determine whether these networks are worth our time investment, and can bring value to our business. 

Have a social network you've encountered recently? Send me a link and I'll add it to my list. Whenever I publish a review/critique, I will post it to a newly formed group, Social Networks.

A Harris Interactive poll revealed that out of 11 of the most popular consumer-oriented service professions, real estate agents were one whose advice was least trusted, 2nd to last place, just above Stock Brokers.

Obviously, as an industry, we have a credibility issue. Or a perception problem. Or both.

In some recent blog articles here in the Rain, there's been an excellent dialogue concerning our collective value proposition and how we can best articulate/justify our worth to those we serve. You might want to hop over and catch the Bolen Brothers in action. It's really great stuff!

In our continuing series on gaining a better handle on the ActiveRain Community Guidelines, we're going to discover one rather obvious way that our actions/behavior can either be an 'asset' or a 'liability' towards the public's perception of real estate professionals.

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Our next guideline reads:

I remember taking an elective class in high school entitled "Science Fiction Literature." One of the required books was George Orwell's "1984" where the entire society was under the watchful eye of 'Big Brother.'

Even though this is a Network for Real Estate Professionals, the majority of what we contribute here becomes part of the public record, and as such, is under the watchful eyes/scrutiny of consumers.

I wonder,..What kind of impact do our conversations here on ActiveRain have on their perception of our industry?

One of my favorite writers here on ActiveRain is Maureen Francis. Her kind mentoring during my early days on this Network were incredibly helpful. She wrote a popular article entitled "Hey, We Are Being Watched, And Not Everyone Likes What They See. Another great post comes from Mariana Wagner, a Keller-Williams agent down in Colorado Springs. She wrote a rather introspective article, "Perception = Reality: Real Estate Agents Suck!"

To me, the most meaningful way we can communicate and demonstrate our RESPECT for the general public is by the manner in which we treat our fellow professionals.

Now granted, this medium called blogging has a history of being somewhat adversarial in nature. And many people seem committed to continuing that tradition. But does it really help to improve or elevate the public's perception of our industry when we constantly argue and attack one another in our blog posts and ensuing comments? Transparency is one thing, but personal character assassination is quite another. Do you really think that someone is going to want to work with us when they observe our petty bickering? Not likely.

So, what are YOU doing today, both on this platform and in your business, to turn the tide of negative public opinion and perception?

Are you an 'ASSET' or are you a 'LIABILITY?'

For your added reading enjoyment:

"Monsters in the Blogosphere"

"Playing Fair in the Blogbox: The Core Rules of Netiquette"

The ActiveRain Community Guidelines are as follows:

The following are the ActiveRain Community Guidelines. For an expanded explanation/definition of each point, simply click on the highlighted links.

Respect the Real Estate Industry 

ActiveRain is a place where real estate professionals can network with their peers and discuss industry insider topics. It is also a public forum where consumers can pull back the curtain and see what the real estate industry is really about. 

Because of this level of transparency and openness, ActiveRain members must remain zealous in their quest to represent our industry in as true and professional of a light as possible.

Respect the ActiveRain Community

Being a part of any community requires a certain level of trust. Don't abuse the site or your fellow members. By joining the ActiveRain community you are given a platform to present your ideas and opinions to a large number of people. We trust you to be responsible with that platform; thousands of other ActiveRain members are also counting on your trustworthiness.

• Do not advertise yourself or your services in the comment section of another members blog post.
• Do not personally attack another person.
• Do not slander another person. 
• Do not send unsolicited emails, or faxes, or make unsolicited phone calls to another member.
• Respect the public that this community serves and derives its living from.
• Do not violate any laws of your local jurisdiction. This includes all Fair Housing related laws.
• Do not republish any content initially revealed in a Member's Only post.
  
• Respect copyright. Only upload content that you have the right to use.
  
• The point system is intended to recognize the top professionals in our industry. Do not try to game the system.
• We encourage free speech and defend everyone's right to express unpopular points of view. But we don't permit hate speech which contains slurs or the malicious use of stereotypes intended to attack or demean a particular gender, sexual orientation, race, religion, or nationality.
• There is zero tolerance for predatory behavior, stalking, threats, harassment, invading privacy, or the revealing of other members' personal information. Anyone caught doing these things may be permanently banned from ActiveRain.

Please take these rules seriously. Don't try to look for loopholes or ways around them; please take them to heart and try to respect the spirit in which they were created. We administrate this community using logic and common sense, and we will give greatest regard to the intention of the rule. If we decide to terminate your account as a result of a violation of these Community Guidelines, you will be prohibited from ever signing up for another account!

We Review Content Flagged As Inappropriate

We built ActiveRain as a place for real estate professional to network and create a sense of community/belonging. This is your community! It is our members that ActiveRain a special place.

• Have fun with the site. Don't be afraid to dig in! There's a lot to do and learn here.
• Let ActiveRain staff and other members know what you are thinking. Member feedback is essential to our continued growth and development
• Get connected. At first ActiveRain may seem, both at the same time; so big that you could never be heard, and so small and cliquish that you will never be a part of it. Everyone experiences this phenomenon. Our suggestion is to start off slow; read blogs, then start commenting on posts that interest you, and once you feel ready, blog away!

—The ActiveRain Team

Well, it's finally here. The new FHA loan limits are officially out, that they have been changed. This will definitely open up the doors to new purchase deals, because the credit guidelines are more relaxed than conventional mortgages. Especially with Fannie Mae and Freddie Mac coming out with new appraisal guidelines in regards to ordering appraisals. Also, on a conventional mortgage, if you have less than a 680 credit score, you are penalized.

Overall, I could be describing more than 8 reasons why FHA mortgages are that much better, no matter how you look at things. Unless you are putting 20% to 30% down and/or you have a credit score above 680, the pricing on a FHA mortgage will be that much better.

For more reasons why FHA mortgages are easier to obtain and less expensive, please read this : Top 10 reasons FHA is a great way to finance your home....

For a very good reason why FHA mortgages are better than conventional mortgages with 10% down or less, please read :

• FHA mortgages vs conventional mortgages -- 3% down comparision

• FHA mortgages vs Conventional mortgages -- 5% down Comparison

• Will Conventional loans be just like the Subprime mess? 10% down comparison

Many of us are waiting for the HUD Mortgagee Letter that tells us that the changes have been made. Also, if there is any risk base pricing that might be applied to these new loan amounts. Many investors are not allowing the lenders to go over a loan amount of $417,000, no matter how high the loan limit in your area. But as it stands, the new FHA loan limits are official and can be found by going to this site. And keep in mind, these new loan limits, as it stands for now, are only good until December 31, 2008.

https://entp.hud.gov/idapp/html/hicostlook.cfm

Here is a preview of the high cost loan limits and it's areas.

**** Word to the wise -- Just because the loan limits are set with maximums, doesn't mean that the lenders or investors will honor these new limits without some sort of penalty. For example : In Burlington County, New Jersey - the new loan limit is $420,000. But we just got a memo from one of our investors that at this moment, they will go up to $417,000 without any penalties or changes to the down payment.

What I am trying to say is....Typically with FHA, you can put the least amount down which is 2.25% as your down payment. Some of these lenders might want you to have the difference down up to a certain loan amount. A lot of this will be cleared up in the next several days as the lenders sort through the pricing criteria.

My advice, pick your loan officer and lender wisely. I had a client that spoke to a lender 3 weeks ago that told her that the new limits were out. That was FALSE, as you can see, because they just came out now. You just can't go off the new changes mentioned in the link that I supplied. We have to wait basically until the dust settles and that we get the particulars from those investors on Wall Street. ****

______________________________________________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Let's face it. We live in a microwave, fast food culture. We want/demand everything "NOW!" In fact, even 'NOW' isn't fast enough anymore. Getting our eyeglasses in 'about an hour' just ain't cutting it!

Nowhere is this attitude more prevalent than on the Internet. Just think of how spoiled we've become:

Remember back to the good ole' days of dial-up modems? Do you recall when 28.8K bits was the 'Cat's Meow?' And when 56K came out, you felt you'd died and gone to heaven? Did you ever leave your computer on overnight just to download a large file? How many times did you pray to the AO-Hell gods for your connection to finally 'sync?'

Ah, and now we have our cherished broadband, cable modems, and wireless access. We're 'wired' to the hilt! Now we've got all the necessary widgets, and gidgets, and gadgets to quickly access the Net from any place at any time, and at WARP speed!

But still, if we come across a website that takes too long to load, what do we do?

That's right, We MOVE on! We don't have the time or the patience. And there are a gazillion 'other' sites on our Google search to access - sites that are 'faster' and more responsive to our needs/demands.

Unfortunately, there's a few 'log-jams' of our own here in the Rain.

Have you ever attempted to access another member's profile or blog, and it seemingly takes FOREVER to load?

So what do you do? That's right, You MOVE on! There's 75,000 other profiles and thousands of other blogs to peruse.

Do you find yourself unsubscribing to the "Slow Pokes?" Or simply 'not' accessing their profiles/blogs anymore?

I've noticed that the member profiles/blogs that take the longest time to load are always the ones who seem to have added the most 'widgets' to their sidebar. Are all of those widgets, gadgets, and whozits really necessary? Is it worth the trade-off of losing impatient readers who won't wait for your site to load?

Just some friendly 'Food-for-Thought' on a Monday.....