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Coldwell Banker becomes first Realtor of "Virtual Real Estate"


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2007 Mar 24, 7:43am   26,812 views  194 comments

by Randy H   ➕follow (0)   💰tip   ignore  

WTF!
COLDWELL BANKER® ENTRANCE INTO SECOND LIFE® MAKES VIRTUAL HOMEOWNERSHIP EASIER FOR MILLIONS OF RESIDENTS

Company Leads Real Estate Industry Into Virtual Future

(link)

This is in the give me a f*#!ng break category. All the zaniness in the "virtual worlds" space is a subject I've purposefully kept separate from Patrick.net until now. But this crosses the line for me. As if we don't have a big enough headache with the *real* real estate bubble, along with all its hype, mania, collusion, greed, corruption and now economic fallout, now we get to legitimize a whole *pretend* real estate bubble. And in case you think this is some irrelevant, minor fringe element bear in mind this particular virtual world claims over 4,000,000 current residents and is growing at over 30% per month.

For anyone lucky enough to have not been exposed, the short version is:

  • Second Life is a huge online computer game.
  • The game has no goal, purpose or point, but is just a big virtual reality simulator.
  • They call that a virtual world and get pissed off if you call it a game, even though it's made by a game company.
  • All kinds of pundits, academics and over-budgeted corporate marketers are falling all over each other to get in on this.
  • People are spending all kinds of real money inside of the Second Life computerized cartoon world. The biggest thing they're spending money on is ... you guessed it ... Virtual Real Estate! Complete with flippers, "land" developers, brokers, and now apparently, bona fide realtors.

Ok, so I took this whole issue on, called out what I saw as a type of Ponzi pyramid scheme, and roundly got ripped up by cult Second Life's love hype machine. You can find my articles here (main one that started it all), here, here, and here. There is also a lawsuit (the real kind, not the pretend computer cartoon kind), Bragg v Linden in which my first two articles above have been submitted to the court in a revised complain[t] statement. The case is a dispute over -- you guessed again -- Virtual Real Estate!

If nothing else, I thought this might make a nice weekend distraction for everyone before we get back to the *real* RE bubble next week.

--Randy H

PS. If you really want to ruffle some academic and fanbois feathers, you can go join the discussion on the "Ivory Tower" blog that covers virtual worlds stuff here.

#housing

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51   Bruce   2007 Mar 25, 3:35am  

How hard would it be to make a 'watch for falling prices' insert to fit into the 'sold' slot on RE signs?

52   sfvulture   2007 Mar 25, 3:40am  

In this life, I'm a capitalist from the sole of my feet to the crown of my head. In the Second Life, I'm the most left-wing communist that you will ever meet.

53   Bruce   2007 Mar 25, 3:42am  

And if we become a tax-exempt cult, who gets to write the Dyanetics parody?

54   Peter P   2007 Mar 25, 3:43am  

In this life, I’m a capitalist from the sole of my feet to the crown of my head. In the Second Life, I’m the most left-wing communist that you will ever meet.

You got me worried. :)

Perhaps I will become the Casey Serin of the virtual world. Or maybe even a virtual NIMBYist!

55   Randy H   2007 Mar 25, 3:57am  

@nanab301

Thanks for the compliment but keep in mind as soon as someone starts to think they are smarter than everyone else they just as surely aren't.

I kind of became an accidental SL "pundit". It's much more a statement about the lack of any serious scrutiny by the press and most of the wide eyed academics than it is about me. Except for a couple of exceptions, the bar wasn't really set that high when I came in.

I was really working on much wider online computer games stuff when the whole SL episode erupted. I actually believe there _is_ something pretty big developing in the realm of "online virtual reality", but I think the crowd that's now squatting on that intellectual realm aren't deserving all the hype; and maybe they're actually causing damage.

@Jimbo

Consider it a weekend distract then and wait for the next thread. A "virtual reality real estate agency" being offered by a real world major real estate agency is a crossover worth bitching about, at least on a slow weekend.

56   Brand165   2007 Mar 25, 4:02am  

You guys are using limited imagination here. Someone needs to be a mortgage broker that is a giant talking alligator. Then when people are close to foreclosure, the alligator can eat them.

Maybe we should be Linden mortgage brokers. Then people don't have to pay up front. We could purchase their land and homes, and then rent it back to them indefinitely. The lack of a legal system wouldn't necessarily be a problem. You could always grief that person continuously.

Seriously, people are stupid. They will focus on the monthly payment instead of the total capital outlay. If you make it easy for them to live in SL in tiny little bites, then they would probably do so.

57   Michael Holliday   2007 Mar 25, 4:13am  

astrid Says:

"...Don’t blame China for what America does to itself."

Also - the Chinese don’t eat domesticated cats (even feral domesticated cats) and is any Chinese food more disgusting than what America serves in its school cafeterias?
_____

The problem is, is that too many fat cat's (Repub's and Dems) are doing big business with a big brother totalitarian regime, which is tantamount to the maintenance dictatorships, its sine qua non for existence.

Just follow the money, honey!

Yeah, I'll never forget Californa cafeteria food. And the smell of the cafeteria...

58   Peter P   2007 Mar 25, 4:16am  

Mike, there is nothing wrong with totalitarian business partners. So long as we are not living under totalitarian rule who cares?

59   Michael Holliday   2007 Mar 25, 4:18am  

corrections:

cats (Repubs...)

...of a dictatorship...

...California

60   Michael Holliday   2007 Mar 25, 4:22am  

Peter P Says:

Mike, there is nothing wrong with totalitarian business partners. So long as we are not living under totalitarian rule who cares?
_____

You're joking, right?

Unless, of course, you're an advocate of the Brezhnev Doctrine of Sovereign Equality: all systems are validly equal and moral.

I guess money has no morality.

But then again, I was born and raised on the old-fashioned, American value that we all have a stake in the individual liberty of others, and I cannot simply be indifferent to the suffering of others.

Plus, instinctually, I abhor totalitarian dictatorships. And, like statist art, statist beer is simply intolerable...

61   Peter P   2007 Mar 25, 4:29am  

I guess money has no morality.

Money is amoral. It is neither moral nor immoral.

I abhor totalitarian dictatorships.

I hate totalitarian dictatorships too. But again, we do not need to like everybody we deal with.

62   PAR   2007 Mar 25, 4:33am  

Patrick mentioned in LA Times:
http://www.latimes.com/business/la-fi-bloggers24mar24,0,2762858.story

Sorry if this was posted earlier but I scrolled back and didn't see it anywhere...

63   skibum   2007 Mar 25, 4:34am  

A BIG THANK YOU TO NONE OF YOU. I ASKED A SIMPLE QUESTION IN THE PREVIOUS THREAD ABOUT MAKING AN OFFER, AND WAS RIDICULED FOR USING CAPS, BUT NO ONE GAVE ME ANY HELP ABOUT MY QUESTION.

It's not a clique-iness issue here. Put it this way - If you walked into a coffee shop looking for directions to somewhere and just started yelling out to the crowd "TELL ME HOW TO GET TO BLAH BLAH BLAH NOW!" you would simply annoy people, and they would ignore you. It's a simple matter of etiquette. If you've followed this blog, plenty of "newbies" come on and ask questions or comment. There is no clique-iness I see.

64   Brand165   2007 Mar 25, 5:34am  

I thought we agreed to only have interesting trolls on patrick.net.

65   skibum   2007 Mar 25, 5:41am  

PAR,
Thanks for the link. To me it's just another example of the MSM jumping on the bandwagon too little too late. For instance, the article fails to mention the possibility of the subprime mess spilling into Alt-A. When that happens in a few months, there will be yet another article claiming how shocking that trend is, and yet they could have predicted it now.

66   sfvulture   2007 Mar 25, 5:49am  

PAR:
March 25th, 2007 at 11:33 am
Patrick mentioned in LA Times

I disagree with the premise of the article that bloggers are the "alternative" voices. The MSM and the Realtors are now the "alternative" voices. You learn the truth on blogs long before the MSM and Realtors will tell you anything that is really going on. When the finally do, it's like skibum says above...too little too late.

67   Brand165   2007 Mar 25, 6:03am  

It isn't the job of journalists to make economic predictions. It is their job to state facts that have already occured, and to quote experts about future predictions. If you want to complain about journalists writing that the subprime problems are isolated from Alt-A, then you have to fault the economists they are quoting.

Perhaps they don't get a sufficient sample when writing articles, but I don't expect someone with a Journalism degree to publish their own macroeconomic analysis of the mortgage market.

68   Randy H   2007 Mar 25, 6:11am  

HELP

First and last warning to:

a) Stop using all-caps. Not only is it annoying, but it is hard to read for many people.

b) Offer some form of value; anything. But repeated name calling and flame baiting will just lead me to ban you and delete your comments.

Think carefully before your next comment.

69   Randy H   2007 Mar 25, 6:17am  

Journalists are supposed to exercise editorial professionalism, though. That is in fact exactly what separates professional journalism from most infotainment and most blogs.

And I don't mean simply finding "the other side" for every issue. That adds no value. What does add value is when a news media develops a credible reputation for consistency in editorial power. That way whether you happen to agree or disagree with the information/message/opinions being reported, you do have confidence in the methods and reliability of that news.

What we largely have now is a mainstream media which is frantically chasing around individual, oft anonymous bloggers, in a doomed attempt to remain relevant. In the process, editorial consistency and journalistic method have been abandoned. My topic for this thread is a case-in-point. The media simply echoes whatever message is fed into the system.

70   astrid   2007 Mar 25, 6:25am  

I'm an economic efficiency girl in real life, but I can become an anarchist in my second life.

71   astrid   2007 Mar 25, 6:31am  

I want to know when we've become obligated to answer every freaking question ever posted here. If there's a post that says "Dr. Mogumbe requires your assistance with retrieval of US$50 million," do I need to reply to that so some Nigerian 419 scammers don't feel left out?

72   astrid   2007 Mar 25, 6:33am  

Michael,

It's free market that is pushing production overseas. There's no political conspiracy here, just the natural result of absolute price advantage on semi-skilled labor.

73   Randy H   2007 Mar 25, 6:37am  

I had an idea to create Third Life. It can be a virtual getaway for your Second Life avatars when they tire of the daily virtual grind. Think of it as "meta".

74   sfvulture   2007 Mar 25, 6:47am  

Hey Randy H,

Hold off on the Third Life for a while. I'm just getting settled in to the Second Life. I just found a virtual refrigerator box and a virtual shopping cart, however I'm still looking for an virtual highway overpass before the next virtual rain. As if that were not enough, I'm still trying to find the Health and Avatar Services Department.

The First Life and the Second Life are a bit overwhelming right now. I appreciate the patience.

75   Michael Holliday   2007 Mar 25, 6:54am  

HELP Says:

"...A BIG THANK YOU TO NONE OF YOU. I ASKED A SIMPLE QUESTION IN THE PREVIOUS THREAD ABOUT MAKING AN OFFER, AND WAS RIDICULED FOR USING CAPS, BUT NO ONE GAVE ME ANY HELP ABOUT MY QUESTION..."
_____

Pats HELP on the head and hands him a chockychip cookie and cold glass of Hi-C fruit punch.

I'll adopt HELP as my little friend.

Everybody be nice to HELP. Don't make him yelp...with ALL CAPS. We must strive to remain relevant as a blog and no be insular, clannish and parochial in our treatment of newcomers.

Hell, even I feel not fully assimilated here.

76   Peter P   2007 Mar 25, 7:04am  

Hell, even I feel not fully assimilated here.

Huh?

77   Brand165   2007 Mar 25, 7:21am  

Hell, even I feel not fully assimilated here.

Resistance is futile. You will be assimilated.

78   skibum   2007 Mar 25, 7:21am  

It isn’t the job of journalists to make economic predictions. It is their job to state facts that have already occured, and to quote experts about future predictions. If you want to complain about journalists writing that the subprime problems are isolated from Alt-A, then you have to fault the economists they are quoting.

Brand,
Yes, that' true to some extent. However, the "quote experts about future predictions" requires finding experts. What I see is that most MSM reporters are either too lazy or too in bed with the REIC to do anything other than quote the local Realtor (TM) as economic expert (gimme a friggin' break on that one!) or cut-and-paste Learah's disseminated sound bites as the "expert" opinion. How any journalist can use the opinion of an interested party as "fact" is just incomprehensible to me.

79   Randy H   2007 Mar 25, 7:22am  

SFvulture

Remember, we can always create {n-1}'d Life where n is the total depth of abstract thought possible for the average virtual-world-resident. Such would create a perfect polynomial fit with R^2 = 1.0 (but zero degrees of freedom).

In the case of most of these folks I suspect that n=2 is already perhaps a bit too deep.

80   mr beezer   2007 Mar 25, 7:26am  

1-non interesting read in FT saying that the subprime mortgage problem in the US is that MB'S were making loans to black and hispanic people no mention of caucasions garnering anything toxic. tell me it ain't true
2- great reading on counterfeit wines being sold to the wealthy - didn't know you can buy a 1787 wine that thomas jefferson once owned in his collection
3-whole foods markets in fairfax va has a plastic tube that runs outside produce section to allow bees access to make real honey in the store
4-sony has a 3d virtual world called "home" for $995 playstation3 gamers coming out
5-usa obligations to socsec and medicare is running about $360k per person in liabilities
6-great vacation place is in BEQUIA near the grenadines for $79 a nite
7-walmart female adv exec and her cohort fired for scheming to give wmt ad acct to firm they were going to join--were busted because of their stupidiy with gmail email accounts they thought wouldn't be monitored
8-mcdonalds trying to have dictionary delete MCJOBS definition
9-minimalist homes rule if you can live without your junk
10-james crace the brit writer new book "The Pesthouse" worth a read coming out may1st
there is a recap of last week's FTimes for those 2busy to read--

81   astrid   2007 Mar 25, 7:44am  

For those interested in lighter reading, here's the latest Gawker recap of the NYT Wedding section:

http://gawker.com/news/altarcations/ad-hoc-altarcations-dont-mind-the-leaking-duffel-bag-246947.php

82   astrid   2007 Mar 25, 7:51am  

Sorry, that was the recap of the New York Post wedding section

No coverage of the NYT wedding section this week. This one is from last week:

http://gawker.com/news/altarcations/altarcations-patricia-haggerty--brian-dodwell-245275.php

83   B.A.C.A.H.   2007 Mar 25, 9:26am  

Michael Holliday,

I think the Princess is right. If we don't like China's policies, then rather than blame China (and its provinces like Taiwan) for doing what China thinks is best for China, we ought to blame ourselves if we go along with it.

Try to remember that every time you vote for a democrat or a republican.

84   Michael Holliday   2007 Mar 25, 11:17am  

sybrib Says:

Michael Holliday,

I think the Princess is right. If we don’t like China’s policies, then rather than blame China (and its provinces like Taiwan) for doing what China thinks is best for China, we ought to blame ourselves if we go along with it.

Try to remember that every time you vote for a democrat or a republican.
_____

Well, I don't vote Democrat, so dont' worry about that.

But, let's have another look at that sentence you wrote above. Let's replace the word "China" with a phrase that elicits a truer meaning:

I think the Princess is right. If we don’t like the COMMUNIST POLICE STATE THAT STAMPS OUT HUMAN RIGHTS' policies, then rather than blame the COMMUNIST POLICE STATE THAT STAMPS OUT HUMAN RIGHTS (and its provinces like Taiwan) for doing what the COMMUNIST POLICE STATE THAT STAMPS OUT HUMAN RIGHTS thinks is best for the COMMUNIST POLICE STATE THAT STAMPS OUT HUMAN RIGHTS, we ought to blame ourselves if we go along with it.
_____

Precisely my point. We shouldn't go along with it. It goes against everything we are supposedly for: everything we fought a world war to stop; everything we fought a 50+ year Cold War to prevent.

Why grovel before the COMMUNIST POLICE STATE THAT STAMPS OUT HUMAN RIGHTS now, just because it's wearing a smiling face that implores "you can trust us; just do business with us, we're your friend!"

F-ck that!

85   FormerAptBroker   2007 Mar 25, 12:57pm  

HelloKitty Says:

> Randy H, Here is my business plan:
> Buy 5000 sq foot McMansions as REO’s
> then install 100 xtra large cubicle/beds
> in each house that I rent to SL junkies.

For some reason that business plan sounded familiar…

http://tinyurl.com/25fq7y

I wonder how long it will be before we have some people trying to leave “Real Life” and enter “Second Life”?

86   Malcolm   2007 Mar 25, 1:03pm  

I can understand this crap if you live in the midwest, but here on the coast there is just too much fun to be had in the real world. These people need to get out and enjoy life. Why not put the same amount of effort into straightening your own life out verses trying to start all over in virtual reality?

87   Busted   2007 Mar 25, 1:49pm  

Subprime hell hitting the bay area:

http://www.insidebayarea.com/business/ci_5518220

88   Randy H   2007 Mar 25, 1:51pm  

FAB, HK

Cult Heaven's Gate is just what I was thinking as I read HK's business plan. I was thinking, "you forgot to add the black Nikes".

I will not be in the slightest surprised if we get a mass exodus of folks from First Life into Second Life. One of my hate-mails I received was about a 5000 word treatise on how Second Life was a blueprint for how everyone would be forced to live over the next 20 years. "You will be assimilated to the matrix or die", (said in 4991 less words). There were a few paragraphs about why you'd need virtual real estate, or be forced to rent from others who got there earlier.

I never did quite grasp how Furries figured into the new world order.

89   Brand165   2007 Mar 25, 2:26pm  

Furries are the true form of the alien spirits that moved into human form. If you're going to be trapped here waiting for the next comet pass, at least you can Second Life in your real form. Although most advanced species are not very fond of double indirection.

90   ozajh   2007 Mar 25, 2:34pm  

Randy H,

Maybe the Congressional bailout for FB's could take the form of free McMansions in, and subsidised subscriptions to, SL?

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