Champions of Home

The California Association of realtors has cherry-picked a few positive stories about working with realtors and assembled them in a new advertising campaign.

Irvine Home Address … 2 RHODE Is Irvine, CA 92606

Resale Home Price …… $836,900

You know I look into the mirror see myself and then

I always often say… “Hot damn I'm great”

Poor Righteous Teachers — Hot Damn I'm Great

Anyone who has ever done any self promotion knows how difficult it can be. The little voices of doubt inside work to keep you down. “You're not that good.” “You don't know what you're doing.” “You can't succeed.” When those voices become a paralyzing distraction, you need to go look in the mirror and say, “Hot damn, I'm great.”

California realtors have launched a new promotional campaign. To judge by the videos they produce, you would think they are great. And some are, but many are not. I always enjoy a little parody to remind us of the dark side.

Calif. Realtors Launch Testimonial Campaign

by Tanya Irwin, Thursday, August 25, 2011, 5:04 PM

The California Association of Realtors is launching an integrated campaign that features testimonials from satisfied consumers.

The effort, from Philadelphia-based Red Tettemer + Partners, marks a change in strategy for the association with creative that is much more “consumer inclusive and conversational.” Spending is under $2 million.

Titled “Champions of Home,” the campaign was created in direct response to the economically challenged real estate market, to show consumers they can rely on their realtor.

realtors can be relied on to make self-serving statements they hope will generate a commission. Otherwise known as “bullshit,” the art of telling prospects whatever they want to hear is openly encouraged by realtor associations and taught at realtor sponsored seminars.

The multiplatform manipulative campaign features homeowners in California, telling their individual stories of buying and selling homes and how their realtors helped conquer the process.

We have seen exactly how realtors help their clients conquer the process. realtors voyeuristically listen in on private conversations and manipulate their client's emotions to cajole prospects into buying properties many of them can't afford. Remember Suzanne?

The stories focus on everything from short sales to epic tales of paperwork and highlight realtors as experienced professionals guiding them toward closing. The campaign targets first-time homebuyers and sellers in California.

Media includes cable TV heavy in major California markets including Los Angeles, San Francisco and San Diego, and will include HGTV, AEN and Bravo Networks within “House Hunters,” “Sell this House,” “Design Star,” “Property Virgins” and “Million Dollar Listing.”

Traffic radio will air across 17 markets and more than 145 stations. Online display will blanket the state of California. There will also be a number of social media efforts, primarily focused on Facebook and Twitter. All areas will drive to a microsite, Champions of Home.

With the high page rank of IHB on Google, after this post gets indexed, whenever someone searches for Champions of Home, this post will likely be at the top of the list — even above the CAr site. ~~ giggles to self ~~

The Facebook and Twitter elements will roll out throughout September at facebook.com/CAREALTORS, twitter.com/#!/CAREALTORS and ChampionsofHome.com.

The association launched its first consumer advertising initiative in 1997 to raise awareness in terms of differentiating association members from non-member real estate agents.

CAr should be pleased. I am helping them differentiate realtors from people like myself who are non-member real estate agents.

That first campaign was specifically focused on brand differentiation, says Anne Framroze, vice president, California Association of Realtors. “We then moved to new campaign creative in 2007, when we partnered with Campbell-Ewald,” she says. “This campaign focused primarily on the value of homeownership, and the value of working with a realtor.” That effort aired from 2007 until last year, on TV, radio, and online.

The latest effort represents an entirely new direction given its focus on featuring real consumers speaking directly and from the heart — without the aid of scripts — about the home-buying and home-selling process, she says.

“We realize that in today's socially networked environment, focusing less on what we want to promote and more on what the public has to say is the best way to connect with consumers who have the capacity to access a variety of information via a multitude of channels,” Framroze tells Marketing Daily. “We want to be as authentic as possible, and we anticipate that this type of campaign strategy will continue to build virally and organically, and ultimately will resonate best across a broad spectrum of home buyers and sellers who might see themselves in similar situations.”

Actually their strategy is a good one. The problem is with the product.

Since Google will pick up this post, and many people will find it by accident, today would be a good day for anyone wanting to share their realtor horror stories in the astute observations. I look forward to reading them.

Thanks for the $268,000

Today's featured property is dull by Irvine standards. The Ponzis who owned this house only escaped with their $143,000 down payment plus $125,000 of the bank's money, a small take by Irvine standards. Of course, this is more than a full year wages for most people, but it seems like pocket change compared to the really bad cases I have profiled here.

  • The property was purchased on 5/23/2003 for $715,000. The owners used a $572,000 first mortgage and a $143,000 down payment.
  • They opened a HELOC for $100,000 on 7/16/2004.
  • On 6/21/2005 they obtained a $185,000 stand-alone second.
  • On 3/13/2007 they refinanced with a $840,000 first mortgage. Apparently, they couldn't afford the payments.

Foreclosure Record

Recording Date: 02/28/2011

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 08/16/2010

Document Type: Notice of Sale

Foreclosure Record

Recording Date: 05/05/2010

Document Type: Notice of Default

The property was taken back by the bank on 4/5/2011 after at least 14 months of squatting. The bank paid $751,500 at auction, and they believe they can get $836,000. With no Mello Roos and low interest rates, the cost of ownership for an owner-occupant us just under $3,000 per month. Despite the high price, that's probably not far from rental parity.

This property is a test case for lenders. This is the highest priced REO in Irvine. Lenders have many more properties more expensive than this one they are holding vacant until they believe a market exists to sell into. Right now they don't believe there is much of a high end market. They are right.

——————————————————————————————————————————————-

This property is available for sale via the MLS.

Please contact Shevy Akason, #01836707

949.769.1599

sales@idealhomebrokers.com

Irvine House Address … 2 RHODE Is Irvine, CA 92606

Resale House Price …… $836,900

Beds: 4

Baths: 2

Sq. Ft.: 2944

$284/SF

Property Type: Residential, Single Family

Style: Two Level, Contemporary

Year Built: 1998

Community: Walnut

County: Orange

MLS#: S664624

Source: SoCalMLS

Status: Active

On Redfin: 58 days

——————————————————————————

BANK OWNED beautiful home in the gated community of Harvard Square. 4 bedrooms all with walk in closets, all bedrooms are up, Huge Master with massive walk-in closet, dressing area in master bath, Hardwood floors in entry, living, dining, kitchen, family room. New carpet upstairs in all bedrooms. and Beautiful wide open Kitchen with huge walk in pantry. Custom landscaping in oversized backyard with custom patio dining area. Fireplace in family room and living room. Just Freshly painted and brand new carpet.

——————————————————————————————————————————————-

Proprietary IHB commentary and analysis

Resale Home Price …… $836,900

House Purchase Price … $715,000

House Purchase Date …. 5/23/2003

Net Gain (Loss) ………. $71,686

Percent Change ………. 10.0%

Annual Appreciation … 1.9%

Cost of Home Ownership

————————————————-

$836,900 ………. Asking Price

$167,380 ………. 20% Down Conventional

4.19% …………… Mortgage Interest Rate

$669,520 ………. 30-Year Mortgage

$166,135 ………. Income Requirement

$3,270 ………. Monthly Mortgage Payment

$725 ………. Property Tax (@1.04%)

$0 ………. Special Taxes and Levies (Mello Roos)

$174 ………. Homeowners Insurance (@ 0.25%)

$0 ………. Private Mortgage Insurance

$122 ………. Homeowners Association Fees

============================================

$4,292 ………. Monthly Cash Outlays

-$766 ………. Tax Savings (% of Interest and Property Tax)

-$932 ………. Equity Hidden in Payment (Amortization)

$250 ………. Lost Income to Down Payment (net of taxes)

$125 ………. Maintenance and Replacement Reserves

============================================

$2,968 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$8,369 ………. Furnishing and Move In @1%

$8,369 ………. Closing Costs @1%

$6,695 ………… Interest Points @1% of Loan

$167,380 ………. Down Payment

============================================

$190,813 ………. Total Cash Costs

$45,500 ………… Emergency Cash Reserves

============================================

$236,313 ………. Total Savings Needed

——————————————————————————————————————————————————-

12 thoughts on “Champions of Home

  1. octal77

    Interesting statistic from current (August 2011) edition of OC Metro Magazine

    Latest News section:

    “O.C. housing vacancies rise 64 percent in 10 year period

    2010 Census figures show that 56,126 units were empty last year, up from 34,197 in 2000”

    1. Swiller

      “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

      – Thomas Jefferson

      Nowadays, people would call him a wacko conspiracy nut. Interesting how times have changed. The real patriots might be the ones smoking dope, or the ones not reporting taxes. *They* know what real freedom is, and when enough is enough. This country was founded for FREEDOM, not for profit, greed, and capitalism.

  2. Swiller

    Like a pit bull on a arm or leg, or like herpes on a persons lip, the NAR wishes you would let go, or quickly fade away. We all know that isn’t a possibility.

    Thank you for doing what you do 🙂

    1. newbie2008

      Swiller,
      Just as in Proverbs ch. 7, someone is trying to sell something by a smooth talk that is rotten to the core as a great deal. Only after the purchase, does one realize that it leads to destruction.

  3. kishore (renter)

    not sure if you guys are aware.. but the irvine company seems to have increased rents in their apartment complexes by 5-20% in the past month or so. especially in the woodbury area.

    1. IrvineRenter

      They must have hit some magic occupancy threshold that made them less motivated to cut a deal. I haven’t seen private landlords raising rents from what I can tell watching the MLS and Craigslist.

      1. kishore (renter)

        i actually called one of the complexes and they did confirm the prices. the two bedroom apartments have especially gone up a lot.

        http://www.rental-living.com/Communities/Woodbury-Lane/Prices-And-Floorplans/
        http://www.rental-living.com/Communities/Woodbury-Place/Prices-And-Floorplans/
        http://www.rental-living.com/Communities/Woodbury-Square/Prices-And-Floorplans/
        http://www.rental-living.com/Communities/Esperanza/Prices-And-Floorplans/

        i did see craigslist, and zillow for rents and the private landlords are still pretty reasonable for irvine.

        1. bigmoneysalsa

          Just a heads-up. The prices quoted on IAC’s website are like the sticker prices on cars at the lot; they are not the same as the market prices and few people actually pay that exact amount. Increased sticker prices may, or may not, indicate actual increases in the market rents they are attaining.

          1. ben

            I can confirm this. Ask for a $1,000 concession and you will get it instantly. Work a bit harder and you can get more.

  4. DarthFerret

    Horror stories about [r]ealtors. Wow, where do I start? There are so many.

    Full disclosure: I have taken (and passed) the real estate salesperson licensing exam for CA. I took it on a whim in 2006 when I was working for my uncle’s business shortly after returning to the U.S. after living in Europe for 6 years. I did not take the follow-on steps required to become an agent, and I never joined any [r]ealtor organization at any level (local/state/national).

    I returned to the U.S. right as the very first cracks were starting to appear in the Ponzi scheme, but RE hysteria was still very much alive and well in December 2005/early 2006. Liar loans and subprime products of all flavors were still available everywhere to everyone. Within a year, I did notice some of the [r]ealtor bluster die down a bit, and by late 2008, you could literally see the doubt and fear behind their plastic smiles.

    Right about the time I started reading the IHB (but before I really got Larry’s message), I submitted an offer in April 2008 for $440K on a 3/2 condo on Greenfield in Irvine (slightly below market prices at that time). Those condos are now selling as low as $325K, and they are still not at rental parity: http://www.redfin.com/CA/Irvine/54-Greenfield-92614/unit-53/home/5574565. With no yard and no garage, these units should overshoot rental parity by quite a bit before this is all done. Our [r]ealtor had all sorts of nice-sounding ideas about how the market was heading back up and Now-Is-A-Great-Time-To-Buy!. She was actually one of the less-slimy ones, too! The really ridiculous arguments (ridiculous now that my eyes have been opened!) were the ones that I heard at open houses that I toured in the area. They sound so flimsy now! I can’t believe that I was nearly taken in. There are thousands out there, unfortunately, who still haven’t gotten the message and whose lives and finances are being ruined as we speak.

    We ended up rescinding our offer on the condo on Greenfield within days of making it (thanks in part to what I learned on the IHB!; the rest was the result of lots of prayer and some very clear guidance from God; sorry for those that are non-religious/anti-religious, but I’m the one that lived it, and that’s how it happened; the details of what else happened to convince us are none of your business).

    I continue to tour open houses in Woodbridge on a regular basis to keep my finger on the pulse of the market, and I am STILL hearing the same tired old lines from [r]ealtors about the market coming back, rents set to skyrocket, and all sorts of other nonsense. There are some properties that pop up from time to time that are at or near fundamental values for a healthy, normal market, but do you really think that our economy is in a state to support even a normal, healthy market?!?! No, we’ve got a ways to go, folks, and, although I am getting a little weary of renting, I’m still not in any hurry to catch the falling knives.

    -Darth

    P.S. After Europe dies and the double dip of this DEFLATIONARY recession begins in earnest, and Europe will die by this time next year at the latest, then we’ll see where the U.S. economy and RE market are headed.

    P.P.S. The not-yet-reached fundamental values for house prices in Irvine are based on PAST economic events. A new recession based on a credit crunch triggered by the failure of the Euro will be a new, future economic event that will result in a further downward adjustment of fundamental values in house prices due to falling wages/rents.

  5. chuckconners

    Crap. This means the online Orange County Register
    pages will load slower being clogged with more propaganda realtor bs.

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