(This article was originally published on GeekEstate.com, the premier Wordpress & Internet Marketing Community For Real Estate.)

I wrote a previous piece on the five things that Realtor.com could learn from Zillow including the newer, fast-paced marketing techniques that they have been using to catch up to Realtor.com in terms of consumer traffic online.

While “shiny and new” always generates attention, it’s worthwhile to also examine some of the superior traits of a company with a long track record.  Experience creates some wisdom in marketing and an attention to detail that can sometimes be missed in a pell-mell startup environment.  Ergo:

Five Things That Zillow Could Learn From Realtor.com

Bigger Isn’t Always Better:  Sometimes More is Less

Of course, I’m talking about the database of homes available for sale.  It’s been widely reported that in many markets, the number of homes listed for sale on Zillow’s website and apps greatly exaggerates the actual market.  Expired listings, duplicates, and questionable “foreclosure” listings inflate the numbers and give an inaccurate view of the actual market of homes for sale.

While Realtor.com will sometimes miss a minute portion of the market, the listings you see on their website are directly from MLS sources.  The database of homes available is accurate, timely, and smaller for a good reason.  Home buyers browsing these homes will make better use of their time, and have a better understanding of the current market.  While Zillow has higher hurdles to cross to make this happen, that’s just reality.  The consumer isn’t concerned with the impediments a company faces, just the product it produces.

Speed and Ease of Use are Paramount for Mobile

I had previously lauded Zillow’s ads for their mobile device apps as superb marketing.  Realtor.com hasn’t quite started the same level of marketing push, but after comparing the actual mobile products, they should be blasting mobile ads on every screen they publish.

To be fair, Zillow and Realtor.com’s apps are both sensational real estate applications.  They have similar features, and are better visual products than what most agents use from their actual MLS.  The ability to draw an outline on a map with your fingertip and select homes within that sketch is mind boggling to an agent who has watched the clunky search functions evolve over time.

Realtor.com, even though its products have been downloaded less times, has superior products on both mobile phone and tablet platforms, in my opinion.  They just seem to get a user to their desired endpoint more quickly.  There are less steps to take, and the menus seem more intuitive.  The “draw” function for buyers to circle a search area happens seamlessly within the screen without delay.  Of course, the quality of listing data is better as well.

If you haven’t tried out these apps, give them a try.  I tested on Android, iPhone, and iPad, and although both companies’ apps on all platforms performed well, the Realtor.com app on iPad blew me away.

Newbies Like Flashiness;  Serious Buyers Like Accuracy

Real estate websites generate the majority of their revenue from advertising.  Most of that advertising comes from real estate agents.  While the sales process is changing daily, more and more attention is being paid to the kinds of visitors a web site gets, and not just the raw traffic numbers.

Agents want to advertise on sites that have serious home buyers.  Realtor.com prioritizes listings first, with all other offerings as auxiliary features.  When a user searches for homes, they’re not being called away to other items.  The focus is squarely on the homes for sale.

Zillow, on the other hand, seems more focused on displaying a wide range of features and tools, with listings for sale being one of those features.  Listings are just one of many layers of icons upon a map.  It’s a big part of the business, but it’s just one of many.

Which leads to a related point:

Not All Web Visitors Are Created Equal (In an Agent’s Eyes)

News stories and user discussion forums bring in traffic, but quality listing databases create buyers who stay on-site.  Realtor.com’s average visitor spends about 20 minutes on the site and views 45 pages.  The majority of this time is spent on actual listing pages, not conversing with strangers about the Federal Reserve.

These are the visitors that agents are looking for, and as the metrics and analysis for agents become more clear and prominent, this will be a huge factor in driving advertising revenue.  Realtor.com’s visitors spend more time, visit more often, and view more pages.  These are valuable visitors.

All Publicity Creates Traffic, but Bad Publicity Also Creates Enemies

We can cut to the chase on this one.  Zestimates created Zillow.  There are a whole lot of other amazing technical achievements by the company as it grew over time, but the Zestimate was the iconic calling card that brought attention to the company.  Everyone wanted to know what their home was worth, and this was the single element that initially defined the company as being very different.

While this drove a large amount of initial traffic, it was criticized by the vast majority of those than analyzed it.  Every strain of real estate professional knew that the numbers were ridiculous, and these are the people who were supposed to be the revenue source.  Home buyers and sellers, in large percentages, scoffed at the values they received.  Yes, they certainly visited the site and looked.  When they saw the results, however, the taint of inaccuracy was attached to the brand name.  No amount of disclosure, explanation, or rationalization can separate the zestimate from the overall brand.  If you rely on a marketing gimmick for traffic, you receive the appropriate consumer response.

Realtor.com had similar access to automated valuation products from First American other providers if it had felt the need to follow suit, but chose to stay out of the fray.  Home buyers, sellers, and agents who understand the inaccuracy of those valuations appreciate that.

The question for Zillow is, when do you drop the gimmick?  Is there a point at which you’re so successful that you don’t need it anymore?  It clearly hurts credibility.  It would be wise, in my opinion, if a company had already gained front-runner status and gone public, to re-evaluate the need for such a controversial feature.  Then again, I’ve never managed an IPO, nor had to answer to a board of directors.

Overall, these sites have both brought some significant and exciting changes to the world of real estate online.  Both have also made some mistakes that deserve analysis.  Still, the ongoing changes will keep us entertained and on our toes…and continue to give me something to write about.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

A new law emphasizing the importance of carbon monoxide alarms in Washington homes has created many questions about which real estate transactions it affects.  Here are a few points synopsized from a recent Coldwell Banker Danforth memo to clarify the requirements:

As of April 1, 2012, sellers of OWNER OCCUPIED single family homes, condos and mobile homes must install carbon monoxide alarms prior to closing.   Homes that have electric heatare not exempt.  Homes without attached garages are not exempt.

• Listing brokers (real etate agents) need to let the seller know, at the time of listing, that they will be required to install carbon monoxide alarms.
• Some appraisers are looking for the alarms and calling for them to be installed before closing.  If you’re buying a home, make sure the seller is aware that this is best done prior to the appraisal.  Should the appraiser have to return for reinspection, the buyer may have to pay for the additional inspection.
• Bank Owned properties will not have to comply as the property is vacant.
• Short Sale Sellers that live in the home will have to install the alarms.
• The resale of homes built after January 1, 2011 should not be affected as they should already have the alarms installed.  Building code has required them since that date.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a recently published story by Inman News, research done by Trulia was analyzed to see which major U.S. Metropolitan areas had more affordable homes available for purchase than those available for rent.

Surprisingly, in 98 out of 100 U.S. cities, buying was a better decision than renting.  Low home prices and low interest rates have been contributing to this trend for years, but the recent rise in rent prices in many cities has pushed the rent vs. buy index to new lows in many cities.

California and New York had some of the highest price-to-rent ratios in the country, while most of the lowest  were in Midwest states.   Seattle came in at #81 with a higher-than-average ratio, but still solidly in the category of a city where it’s better to buy than rent.   The two cities not on that list with the highest ratios were San Francisco and Honolulu.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

NWMLS statistics released recently point to a number of statistics showing a strong resurgence in the real estate market.

• In February, pending home sales increased 27.4% compared to last year
• 20 of 21 counties in the NWMLS service area showed double digit gains
• Lake Forest Park, Central Seattle, and Normandy Park all marked sales gains of over 50%
• Inventory of homes available for sale in the NWMLS territory is down 22.5%
• Inventory in King County is down 32.3% and in Snohomis County is down 38.2% since last year

Rising sales and shrinking inventory can only lead to rising prices in the long-term.  Distressed properties will still drag on the market, but other forces seem to be taking over, and we are just starting the Spring selling market.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a recent interview with CNBC, Warren Buffett reiterated the inherently valuable investment of single family home purchases in the current market.  The Oracle of Omaha, one of the country’s and the world’s most respected investors, has become bullish on real estate investment in recent times, especially considering the attractive interest rates available.

Speaking with Squawk Box’s Becky Quick, Buffett said that if it were practical to do so, he would buy up “a couple hundred thousand” single family homes.  His reasoning for the investment potential in real estate was based upon the artificially depressed real estate prices in the current economy, and the availability of financing at historically low rates.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Medina’s sole waterfront home sale in February was a late 1960’s home near the tip of Evergreen Point.  The 3,180 square foot home is small for Medina’s standards, but a fairly good-sized home in general with three bedrooms, three baths, and two floors.  The majority of Medina waterfront homes are 4,000 square feet or larger.

The 118 feet of Lake Washington waterfront are the real value feature, with some of Medina’s most-sought after properties near this location.  The home had been on the market for around 1.5 years.

Originally listed for $4.38 million in August of 2010, the home was reduced to $3.68 million in March of 2011 and then relisted at $3.495 million with a new real estate broker in August of last year.  The final sale price represents a 14% discount on the final list price, or a 32% reduction from the time it was originally listed.

Medina Waterfront Homes Sold, February 2012

3516 Evergreen Point Rd, Medina WA 98039

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

The total number of new homes for sale in the U.S. hit its lowest point on record in January, creating a stronger seller’s market for home builders and rising new construction prices.  The lack of construction for the past few years has created a dearth of available new homes in many parts of the country, and most undeveloped and partially-developed land sits stagnant as lending for new construction remains tight.

The inventory of new homes fell to a 5.6 month supply.  At the same time, new home prices increased by 0.3% and new home sales rose 3.5%, as compared to the previous year at this time.  While new households have been created at a consistent rate during the past five years, there has been little construction to compensate, and the market is likely to continue tightening in terms of inventory and rising in terms of prices.

From Realtor Magazine:

“Inventory of new homes on the market shrank to its lowest point on record in January, marking a 5.6-month supply at the current sales pace, the Commerce Department reports.

With fewer homes available, the price of new homes increased slightly last month. The median price for a new home ticked up slightly at 0.3 percent to $217,100, which is the highest level since October.

However, January sales of single-family homes mostly stayed falt in January, falling less than 1 percent last month compared to the previous month. New-home sales reached a seasonally adjusted annual pace of 321,000 units.

New-home sales were up 3.5 percent compared to the same time last year, the Commerce Department reported.

“This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth,” said David Crowe, the National Association of Home Builders’ chief economist. “Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process.”

Regionally, the Midwest saw the biggest decline in new home sales in January, a 24.5 percent drop in sales followed by a 10.6 percent drop in sales in the West. On the other hand, the Northeast posted an 11.1 percent gain in new home sales in January, and the South saw a 9.3 percent increase.“

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Sales of existing homes in the U.S. showed a gain for the third time in four months, according to an N.A.R. report.

As housing inventories continue to drop, the increase in home sales has real estate analysts, investors, and home buyers all seeing positive signs for the market.  Total real estate inventory of homes for sale is down 20.6% from one year ago, creating around 6 months of inventory.  This is a level that most analysts believe is a healthy number of homes for sale in a even buyer-and-seller market.

From the report:

“Increased demand from investors and first-time homebuyers helped boost existing-home sales in January — the third increase in the past four months, the National Association of REALTORS® reported.

NAR said total existing-home sales — including single-family homes, townhomes, condominiums and co-ops — were up 4.3 percent from December to January, to a seasonally adjusted annual rate of 4.57 million.

While that’s essentially unchanged from the same time a year ago, for-sale inventory was down 20.6 percent from a year ago, to 2.31 million homes, a 6.1-month supply of homes at the current pace of sales.

Many housing analysts view a six-month inventory of homes as a good balance between supply and demand — a larger inventory of homes can indicate an oversupply of homes for sale, which can undermine prices. When inventories drop below six months, the shortage of homes for sale can drive up prices.

“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” NAR Chief Economist Lawrence Yun said in a statement.

Yun cited the statistics as evidence that a government proposal to convert bank-owned properties into rentals on a large scale “does not appear to be needed at this time.”

“Foreclosure sales are moving swiftly with ready homebuyers and investors competing in nearly all markets,” he said.

Merrill Lynch analysts Michelle Meyer and Ethan Harris think part of the drop in inventory is due to delays in the foreclosure process in the aftermath of the so-called “robo-signing” scandal.

With top banks nearing a final settlement with state attorneys general, they expect the foreclosure process to accelerate, and for inventory to swell to eight months later this year.

The first REO-to-rental transactions are weeks away, but the property pools offered this year may be smaller and more manageable for groups of qualified local investors than previously assumed, Ken Harney reports.

NAR said foreclosures and short sales accounted for 35 percent of sales in January, and that the national median existing-home price for all housing types was down 2 percent from a year ago, to $154,700.

Investors purchased 23 percent of homes in January, up from 21 percent in December, while the percentage of first-time homebuyers increased from 31 percent in December to 33 percent in January.

Nearly one in every three January home sales was an all-cash transaction. A survey of NAR members showed more than half had at least one contract canceled or delayed in January, often as a result of a mortgage application being turned down or because appraisals come in below the negotiated price.

Single-family home sales were up 3.8 percent from December to January, to a seasonally adjusted annual rate of 4.05 million. That’s a 2.3 percent increase from a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from the same time a year ago.

Existing condominium and co-op sales increased 8.3 percent from December to January, to a seasonally adjusted annual rate of 520,000. That’s a 10.3 percent decline from a year ago. The median existing condo price was $156,600 in January, up 2 percent from January 2011.

At the regional level, the West saw the biggest jump in sales, an 8.8 percent increase from December to January. Sales were down 3.1 percent from a year ago, however, and the median price was also down 1.8 percent from January 2011, to $187,100.

The Midwest saw the smallest jump in sales, with sales up 1 percent from December to January. Although that was a 3.2 percent increase from a year ago, the median home price fell 3.9 percent from January 2011, to $122,000.

In the South, existing-home sales rose 3.5 percent from December to January but were unchanged from a year ago. The median price in the South was $134,800, down 0.3 percent from a year ago.

Existing home sales were up 3.4 percent from December to January in the Northeast, and up 7.1 percent from a year ago. At $225,700, the median price in the Northeast dropped 4.2 percent from January 2011.”

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service