Austin Real Estate Blog

OCLC (an organization with a mission similar to RPR, but for libraries) has alienated itself from it's supposed beneficiaries. Could something like this happen with RPR?

In order to understand the potential problems with providing original real estate records to a communally-owned database, as RPR is suggesting, it’s useful to look at an analogous situation that exists in a similar community: the library world.

On July 6, 1967, the Online Computer Library Center (OCLC) was founded as a cooperative effort among libraries to allow standardization and sharing of bibliographic records among libraries who signed up for this service. The records were to remain the property of the library that created them, but would be free to use for any member library, with only a small cost-recovery fee charged for various services. OCLC continued to grow, until today it serves 72,000 libraries all around the world, who participate by creating bibliographic records and sharing them. OCLC is also available for library users to search, allowing them to locate hard-to-find items through its online search options. So, libraries created bibliographic records for books and journals and CDs and DVDs, and users could find information on them through OCLC. And everything was fine, for a while.

Then, in 2008 OCLC announced its proposed “Policy for Use and Transfer of WorldCat Records,” which required that all records before and since that appear in OCLC would bear a line granting copyright (license) over the record to OCLC and prohibiting the record’s use in any other service that was similar to OCLC. Essentially, OCLC simply took over the license for those records. OCLC did not make those records, so how could they do this?

The answer lies in the way that copyright law is structured. The records stored in OCLC were comprised of facts. Facts cannot be copyrighted. I can’t copyright the fact that a house is located at a certain address or that it is on the market for a specific amount; I can’t copyright that grass is green and the sky is blue. I can, however, copyright the way that I describe the house, the look and feel of my real estate descriptions, and the formatting I use in creating a listing for the house. It’s the last issue, that of formatting and metadata, that created the situation with OCLC.

OCLC didn’t claim ownership over the information in its database; it couldn’t. Copyright doesn’t allow for ownership of facts. Instead, OCLC claimed ownership over the format and metadata (descriptions of the books) – the look and feel of the interface – as its justification for claiming the right to license the records. Because the information had to be entered in a format that OCLC set up when the initial database was first put into place, OCLC owned the format. The records in that format were thus the property of OCLC because the format was OCLC’s. Restrictions were outlined that restricted the rights of libraries to use the records, even for records they had created themselves and that logic would dictate those libraries “owned.” Despite public outcry, the provision was implemented in 2009.

But OCLC was a consortium of libraries working together, right? So how could they do something that was so clearly at odds with what the majority of the membership wanted?

The answer, sadly, is that OCLC’s leadership seems more interested in protecting its own financial interests than in being responsive to its membership. Once OCLC became the standard that most libraries used, it began to derive its own profit-driven agenda; since it essentially had a monopoly on the records that had already been created, it no longer needed to serve the libraries that had created it and built its success.

If any of this sounds familiar, it should. Similar situations are arising throughout the intellectual property world. If RPR successfully implements its proposed database, it can make a claim that the records contained belong to it, no matter who originally created the record, because RPR would own the format and metadata. This would allow for a widespread land grab that could end up costing members and others simply to get their own listings back.

Don’t think this could ever happen? It already has. Just ask a librarian.

Put this on my www.joecline.com/blog by accident. Here is the link, if you were looking for this post about the Realtors Property resource. I made this little ditty in Photoshop just for giggles. I was in a startup company a few years back and when the impending death sale of the company was in progress we had similarly themed, but much, much more professionally created posters. You know, don’t let any details slip out or you’ll sink the ship. Anyway, silence is great in war, but NOT WHEN YOU’RE TRYING TO GAIN BUY IN or when you’ve used association moneys to start your company!

Someone should let the folks at RPR know that we ARE interested, but are not going to swallow whatever they produce hook, line, and sinker.

If you’re an agent you should do some research on the proposed RPR or Realtors Property Resource.

You can read about it here.

http://www.inman.com/news/2009/11/12/mls-buy-in-key-nar-database?page=0%2C4
and here
http://www.inman.com/news/2009/11/14/rpr-execs-under-fire-nar

Below is a snippet from the 1000watt blog posted on Inman. If you’d rather a more concise description skip down past the quote.

The NAR has taken over certain technology assets of Cyberhomes from LPS (formerly known as FNRES) in order to bring its RPR (Realtors Property Resource) project, as well as its consumer-facing play, HouseLogic, to market. To do this, they have created Realtors Property Resource LLC — a wholly owned subsidiary of the NAR.

Certain LPS executives, including Cyberhomes GM Marty Frame, will be making the transition over to NAR/RPR (see Inman News article). Frame will serve as the president of the new entity. Dale Ross, who was co-founder of MRIS, the nation’s largest MLS, will be CEO. LPS will also provide call center support and other services as part of the deal.

The RPR database will contain parcel information on nearly 150 million properties through a data license from LPS, which (along with First American) is one of the two major sources of public property data.

This is interesting news, but let’s back up a minute for those of you who have more well-rounded lives than I (my fellow online RE junkies can skip down to my take on what this deal means).

The RPR is the national property database initiative that the NAR has been quietly working on for some time. It has gone by a number of names over the past couple years, including “Gateway,” “The Real Estate Channel,” and the “Library/Archive.” It will aggregate tons of property data, including public records, in one place. This will be a Realtor-only database. The idea is to keep agents and brokers competitive amidst widespread data diffusion and other challenges.

HouseLogic.com is a NAR-owned public destination site that will be unveiled next week at the NAR EXPO. The site is part of the NAR’s long-term strategy to engage consumers on behalf of its members.

RIN is the “Realtors Information Network,” a for-profit arm of the NAR from which the RPR sprung. It was conceived for the purpose of creating an ill-fated online real estate service nearly 15 years ago. It was proprietary, something like a Prodigy or early AOL-type service. It blew up, costing the NAR millions. It was from that failure that the present-day Realtor.com was born, in 1996.

Thanks to Brian Boero and Inman for the above snippet.

If you don’t subscribe to Inman here’s the gist…

Sometimes it feels like this is my relationship with NAR...

REALTORs Property Resource in a Nutshell

Basically, NAR would love to create another cash cow like Realtor.com by taking our MLS data and building a system around it, then selling it to the likes of ANYONE WHO WILL PAY FOR IT including government agencies. Can you say appraisal districts? Hope everyone is ready for their taxes to go up once we expose our complete MLS data (even in aggregate).

A Better Idea

And you folks are Realtors like me…. Why doesn’t our MLS ever agree to give any of us all the data for free so I can sell it to other people? IDX feeds for members are $200 per year now (or thereabouts).

I’ve got an idea. Why don’t all the MLS systems around the country give me the data. Then, you know, I’ll build a website with your images, your listing data, and publicly available records and then I’ll sell the services to you and other entities for a profit? Of course your dues may go up a bit since you’ll have to hire someone at ABOR to handle all this data exchange, help NAR with any issues they have, etc, etc.

Sounds like a good deal, right? Who’s on board?

I’m not a data entry robot working to make NAR and their partners money while paying Realtor.com $50 a listing to “showcase” my data on their website, not to mention a website that is worthless without said data.

Who Wants Higher Property Taxes?

In Texas, we are a non-disclosure state and they want to sell the info to government agencies. Um.. I’m pretty sure that all the appraisal districts will love that. Personally, I think this is the dumbest thing NAR members could do to themselves. If NAR wants said data for their system our MLS should charge them accordingly. I think $100 per listing sounds about right. Then we could automatically get a featured listing in Realtor.com and have $50 profit that could go to reduce or eliminate our MLS fees.

Sounds more fair to me. NAR can go and partner and sell the data, but they need to BUY IT FIRST.

Aside from all this… Why do I, as an agent in central Texas need, or care about accurate valuation or data about property in Montana? I’m not licensed there. I don’t sell there. And NAR Code of Ethics Article 11 says I can’t because I’m not competent in the workings of real estate in Montana.

Why should my dollars go to fund a NAR company that makes profits for LPS Real Estate (an RPR partner) and allows the data that is our lifeblood to go out to whomever?

I’ve only been thinking about this for a few days so I could be wrong. I would love to hear what other folks at our board or at any board across the nation think. If you are for or against the RPR and have an interest in real estate other than being a salesperson please disclose it so we can get a read on where each stakeholder stands.

Joe Cline – REMAX Capital City

April brought some of the biggest gains in the US home buyer market. The number of home buyers who have agreed to purchase a previously owned home took the biggest gains by leaps and bounds in the month of April. Historically, it is the largest jump in previously owned homes since 2001.

Even as the market is moving forward, home buyers can expect prices to continue to fall in different areas around the country. One benefit of shopping for a home in the Austin market is that it has not been a part of the huge pricing swings. Prices in this market are not expected to swing in one direction or the other.

According to the Austin Board of Realtors there were 1,919 pending sales anticipated to close in May, bring the April total up 3%, the highest number since July 2008.

Home prices will increase once foreclosures stabilize again. Currently on the national level, there is still a plethora more homes in the sales inventory base, than home buyers. This is changing, as seen in the evidence from April, and forecasters only expect this trend to continue until the end of the year.

With the growing expectations and the increase in pending home sales, the market is ripe for new home buyers. For 2009 there is available an 8,000 dollar new home buyer tax incentive. This is an increase from the previous 5,000 and in addition to any incentives being offered at the state level. This means that the buyer’s market is reaching its pinnacle in 2009.

Like every city in the nation these days, Austin is facing some difficult choices. Amidst economic worries and budget concerns, Austinites are faced with the task of electing a new Mayor. Lee Leffingwell, a current City Council Member, has placed his name into the race.

Leffingwell in an Austin native, graduate of the University of Texas, and a retired Navy pilot with over twenty years of service. Through his service, he has “learned what it means to be an honorable, hard working, accountable leader.” As a member of the City Council, Leffingwell has fought for better infrastructure and public transportation, environmental issues, and public safety.

Leffingwell has several innovative ideas to help Austin through a most difficult time. If elected, he plans to form a committee made of leaders that represent everyone in Austin as an advisory panel. He also plans to focus on the development of green collar job training strategy. Leffingwell is opposed to cutting back on health or safety issues, wanting to maintain the current levels of safety and social services and expanding mental health services when able. He is also recommended a more open government, including posting all of the city’s finances and issues online and allowing residents to comment.

Leffingwell is optimistic about Austin’s future and wants to be on the front lines to help maintain its great living standards. Learn more about Lee Leffingwell at his website www.austinleadership.com. Remember, early voting begins on April 27th, with Election Day on May 9th.

Starting this June, those who wish to sell a home in Austin will be required to have their home inspected for energy efficiency. This new ordinance does not require the seller to upgrade any leaks or other problems that may be found, but it does state that the buyer be made aware of the outcome of the audit via disclosure. Of course, given the current market and economy, anything that may decrease the value of a home should be repaired prior to sale. Buyers don’t want to think of what needs to be fixed when looking at a home, so it will be better to make any necessary upgrades before putting the house on the market.

The energy audit will be looking into four areas of energy efficiency. There will be a duct pressure check on the air conditioning unit to check for leaks. Weather stripping around doors will be inspected. Shades and screens, especially on the east, west, and south sides of a home will be looked at, as will the type of insulation found in an attic. Energy Raters can be found online at Austin Energy’s Website, and will generally run about $300 for every 2,000 square feet. If you decide to go ahead with the upgrades, the home will need to be inspected again when complete.

There is another option considered in compliance with the new ordinance. Homeowners can participate in the Home Performance with Energy Star Certificate program. Homes that have already done so within the last ten years are exempt from the ordinance. In this case, a home performance contractor will inspect the home, sometimes for free with a bid for work. The same areas will be reviewed as with the energy audit, and then the information will be sent to Austin Energy for review. To receive a certificate of completion, three of the requirements must be met or the homeowner must have received a rebate of $500 or more from Austin Energy.
In either case, Austin Energy must approve the upgrades for energy efficiency. The information must be contained within the Seller’s Disclosure and is good for ten years.

I am pretty much addicted to magazines and newsletters about a few things. Green building, architecture, home stuff, computers, and real estate. I thought I’d finally put some of my subscriptions to wider use and share a few links every day on this blog and on my West Austin real estate blog. Be sure to check out both sites for links of interest and let me know if you suggest any other magazines for me. I currently subscribe to about 25 or so and always love to get new ideas.

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Interested in Green Building and Sustainable Living? I got this a few days ago. I’m going so if you want to go and meet up, I’d love to meet ya.

Designing for Food Resources
Food is among life’s most basic needs.  Our current food production model is centralized and sells to a global market.  Like any other massed-produced commodity, our food product is cheap, abundant, and easy. There are many problems with the current model, leaving our food resources far from secure or sustainable.  Food production, transportation, consumption, and disposal each have a huge impact on our carbon footprint.

On a local level, grassroots groups are working hard to reduce Austin’s carbon foodprint. This presentation explores ways in which our planning process, building infrastructure, and operations policies can incorporate goals for responsible food resources. Changes in our single-family homes, multifamily homes, and commercial buildings can lead to more sustainable, reliable, and environmentally-responsible food resources.

This seminar will feature three speakers:

• Pamela “Sweetpea” Hoover is the assistant grounds master at Natural Gardener and a certified teacher of the square foot gardening method.  Sweetpea will address attainable and appropriate food production in Austin on a single-family scale.
• Marla Camp is the owner/publisher of Edible Austin magazine and also sits on the board of the new Austin Food Policy Council. Marla will speak on local food production, consumption and education on a community scale.
• Justin Doak is the founder of BlueBin LLC, a sustainability guidance firm for the retail industry and a partner in Austin Refuel, a Texas-based company that has developed a closed loop waste-to-resource network. Formerly the Program Manager of LEED for Retail, Justin will address marketing and money-making strategies in food waste-management for Commercial retailers and developers.

A Question/Answer period will follow the presentations.

You can get the full details of the meeting at Austin’s Green Building site.

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PROJECTS READY, CREDIT NOT

AUSTIN (get the full story at Austin American-Statesman) – Large Austin projects set to begin construction are stalled because of the recession and frozen credit markets.

JMI Realty is ready to start work on the Hotel Van Zandt, a 327-room boutique hotel at the eastern edge of downtown on Red River and Davis, but cannot receive the financing to do so.

“We have lots of jobs ready to be created with this project, but until the banking environment improves, we will be on hold,” said JMI Senior Vice President Greg Clay.

In north Austin, Atlanta-based Novare Group and its local partner Andrews Urban are holding off on a 28-story tower that would house condominiums and the 145-room Twelve Hotel at Endeavor Real Estate Group’s Domain. The developers say the delay of the $100 million-plus project stems from the postponement of three major retail projects at the mixed-use Domain. These include new stores for Nordstrom, Saks Fifth Avenue and Whole Foods Market Inc.

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From the Niel Spelce Austin Letter ( I highly recommend subscribing for anyone trying to stay abreast of what’s going on in Austin)

The information was released midweek that seven states posted an unemployment percentage above 10%.Texas was not in the group of seven.In fact, it was among the best overall.

The totals, as well as some major shifts, provide an interesting comparison. Let’s start with a few of the best states.Wyoming was the only state, at 4.8% unemployment, that came in under the 5% mark.Texas was one of the best, at 6.8%, ahead of New York at 7.6%.

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But some of the hardest-hit states appear to be reeling because of the suddenness of the impact. For instance, North Carolina (a state many consider competitive to Texas because of its technology industry centered in the Research Triangle) suffered the worst upswing in unemployment.At the beginning of 2008, its unemployment was a very reasonable 5.3% then, wham!, it hit 10.3% at the start of this year.A swing of five full percentage points!The number of workers looking for a job almost doubled.This is how you define “impact.”

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So what about the other big states?How do they compare to Texas January 2009 total of 6.8%.In addition to those mentioned above, Florida recorded 8.8% unemployment, Illinois notched 8.5% unemployment, Massachusetts tallied 8.1%, Ohio nudged near the 10% mark with 9.7%, and Pennsylvania came in at 7.7%.It’s pretty clear that Texas still stands out among the states that matter for future leadership and growth.

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EveryScape.com has created a photo perfect version of select cities around the country and made it interactive so that anyone can take a  virtual walk around the area and see the sights nearly first hand. Recently they’ve just added Austin to their menu. Anyone can have a 360 degree look at such landmarks as the Children’s Museum, the Hancock Golf Course, and the University of Texas at Austin, to name a few.

EveryScape.com offers an interface that is smoother than Google Maps street view tool and allows a more detailed view of an area. The ‘3-D’ rendering helps to put the viewer in the picture and real estate agents will find the tool useful, when combined with Google Maps street view, to give their clients a real feel for the city and what it offers.  EveryScape will be offering the added bonus of allowing a viewer to virtually enter a building and have a look around inside. They already offer select interiors of buildings at various city locations.

For anyone who may want to relocate to the Austin area this may prove to be the valuable tool many have been waiting for.  With an option to get a virtual feel for neighborhood before arrival, narrowing the field of options is within grasp. This helps agents and shoppers alike find the right place for everyone before they tour the available properties.

Most people won’t do something for nothing, even if it benefits them and their surroundings, because few can see the long-term benefits. As such, there are a number of government agencies that are putting out the incentives for consumers to help motivate them to change their lifestyle toward a more environmentally friendly one, but it can sometimes be hard to find information about these programs. GreenMadeSimple has a tool now in beta testing to help people find the rebates and programs available in their immediate area aimed toward encouraging conservation of energy and resources.

Programs such as Energy Star for appliances, rebates for hybrid vehicles and discounted mortgages for energy efficient homes are available nationwide. If a home owner wishes to find other local programs, they only need to enter their ZIP code, select the type of purchase they’re planning to make – appliances, financing for a home, cars, solar power, or lighting – and the tool searches the database to find state and county programs available in the area.

Another search tool on the site can find you local home products and services that either contribute to reduced energy use or use recycled or reusable products. Contractors and manufacturers are listed and a Google map is provided for ease in locating the business.

The site also has testimonials from other home owners on their energy saving tips and projects that can serve as inspiration to others. Most of the projects are simple enough for do-it-yourselfers, some require a professional, but most are worth it in long-term energy savings and reduced depletion of resources.