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RealtyTrac: Distressed property and REO sales rise in 3Q | Mount Kisco Real Estate
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Category Archives: Lewisboro
Home Buyer Compromises | Katonah Real Estate
Rising home prices signaling ‘recovery’ | Katonah Realtor
Rising home prices signal ‘recovery,’ analysts sayU.S. home prices rose in September for the sixth straight month, despite seasonal weakness, signaling that the housing market is “in the midst of a recovery,” according to the S&P/Case-Shiller home-price index released this week. The index that looks at 20 cities showed that prices have gained 3% over the past 12 months, echoing other recent positive housing data, such as gains in new construction and existing-home sales. However, despite recent increases, prices are about 30% below peak levels in 2006. And the housing market still faces challenges from shadow inventory, and tight credit standards.Read more about home prices.Sandy hits new-home sales Sales of new single-family homes in the U.S. ticked down in October, with a large drop in the hurricane-hit Northeast while there was a record surge in the Midwest, according to data released by the U.S. Department of Commerce. By region, sales in October fell 32% in the Northeast and 12% in the South. Monthly sales rose a record 62% in the Midwest and 9% in the West. While the new-home-sales data are volatile on a monthly basis, a trend over the last few months has been steady, showing an average U.S. annualized rate of almost 370,000. That average rate is up 17% from a year earlier, but far below a peak rate of almost 1.4 million in 2005.Read more about new-home sales.Third-quarter growth revised higher, but…The government’s estimate for economic growth in the third quarter was revised higher this week, but the news wasn’t entirely rosy. A large portion of the higher estimate is due to inventories, which can be positive or negative. If these goods are sold soon, then the inventories were a good bet. If not, companies will have excess supply on their hands. Read more about GDP.Residential investment grows in third quarterThe economy’s expansion in the third quarter was also due, in part, to faster growth in the housing sector, government analysts said. In the third quarter, residential fixed investment grew at an annualized rate of 14.2%, compared with 8.5% in the second quarter. However, looking longer term, this sector has lost much of its heft. Residential fixed investment— which measures purchases of homes — currently accounts for about 2.5% of the economy, down from a bubble peak of more than 6% in 2005. Read more about GDP. Breakdown of GDP
After consumption was largely responsible for growth in the second quarter, there was a more evenly divided split between consumption, investment and government spending this time around. The big push behind government spending is a one-time boost in defense spending, so that is not likely to be sustained in the fourth quarter.
U.S. housing market’s fragile recovery | Mount Kisco Real Estate
via sfgate.com
Forecast for steady growth, but no boom in home sales | Mount Kisco Real Estate
The national outlook for home sales next year looks “very good,” though tight credit means housing will not see rapid growth anytime soon.
That’s according to Kenneth T. Rosen, chairman of the University of California, Berkeley, Fisher Center for Real Estate and Urban Economics, who spoke at the 35th Annual Real Estate & Economics Symposium hosted by the center Monday.
Interest rates at a 50-year low, job growth and low inventory mean that the housing market is recovering, Rosen said.
“It’s not a boom, but it’s recovering,” he said.
Rosen thinks the reason housing isn’t booming is because the government has responded to the economic downturn by trying to fight the wrong problem.
“The problem is not (that there is not) enough money, because the (Federal Reserve) has poured in a lot of money into the economy,” Rosen said. “We have too much money out there, not too little money. The problem is loan availability.”
Restrictive credit score requirements mean 40 percent of people can’t get a loan, he said.
According to Ellie Mae, a provider of software to mortgage originators, borrowers approved for conventional purchase loans in October had an average FICO score of 762. The average FICO score for purchase mortgages insured by the Federal Housing Administration was 700.
“I think the average FICO score should be back at 650,” Rosen said.
But he held little hope for improved credit availability in the near future.
“Credit is not going to get a lot looser. This administration is not pro-homeownership. They are not homeowner advocates, they are renter advocates” because their constituency is largely in urban areas, which typically have a high share of renters, Rosen said.
The FHA, whose mission is to provide homeownership opportunities for moderate-income families, particularly first-time buyers and minorities, is an exception, Rosen said.
“The FHA is doing a great job, but they’re the only ones there,” he said.
The FHA reported a $16.3 billion deficit last week, raising the specter that the agency will require a taxpayer bailout next year for the first time in its 78-year history.
Rosen said the shortfall was “not surprising,” given the FHA’s role in shoring up the housing market during the downturn. The agency expects $70 billion in future losses from loans made between 2007 and 2009.
“It’s a function of history and they’ll get through it,” Rosen said.
On the inventory front, underwater homeowners are likely to sell as prices rise next year, increasing the number of available homes for sale, said Daren Blomquist, vice president of foreclosure data aggregator RealtyTrac, who also spoke at the symposium.
But “I don’t see a flood of inventory; it’ll be slowly meted out as prices come up,” he said.
The role foreclosures will play will vary by state, Blomquist said.
In states where foreclosures are handled by the courts (judicial foreclosure states) foreclosures take considerably longer to process than in nonjudicial foreclosure states. For example, in New York, a judicial foreclosure state, it took an average of 1,072 days to process a foreclosure in the third quarter; in California, a nonjudicial foreclosure state, it took 335 days.
Though delayed, foreclosures are being processed in judicial foreclosure states such as Florida, Illinois, New York, New Jersey, Ohio and Pennsylvania, and each has seen increasing foreclosure activity in the last nine to 10 months, Blomquist said.
“That indicates more foreclosure sales next year,” he said.
But in nonjudicial foreclosure states like California, Arizona and Nevada, there’ll be less foreclosure inventory to add to for-sale inventory, he said.
“If Realtors are looking for shadow inventory in those states, it’s probably not very likely,” he said.
Clouds on the horizon
Overall, the U.S. economy has many positives going for it right now, though there are some clouds on the horizon that could affect the housing market next year.
“We have very strong job creation. Private sector job creation is very good, (though) a little slow in summer. Auto sales are quite strong. Home sales are coming back. We have very low interest rates. Corporate profits are very high and cash balances are high,” Rosen said.
Rosen said the so-called “fiscal cliff” — a series of tax increases and spending cuts that will go into effect at the beginning of next year unless U.S. lawmakers come up with an alternative plan to reduce the federal deficit — remains a concern. At the moment, he said, a grand bargain seems to be more likely than congressional gridlock.
Regardless, he said, the U.S. economy could face headwinds including instability, a slowdown in overseas growth, and tax increases at home.
Rosen estimates there’s a 30 percent chance the U.S. economy will double-dip back into recession if any one of three events occur: we fall off the fiscal cliff, the euro collapses, or the supply of oil from the Middle East is disrupted.
Should we go over the fiscal cliff, taxes will rise for all taxpayers. These include a jump in capital gains taxes; tax rate increases in the top four brackets to 39.6 percent (from 35 percent), 36 percent (from 33 percent), 31 percent (from 28 percent), or 28 percent (from 25 percent); and 28 million more taxpayers will be subject to the alternative minimum tax (see “What happens to your taxes if we go over the fiscal cliff.)”
New Medicare taxes will kick in next year regardless for for high-income taxpayers under the Patient Protection and Affordable Care Act (“Obamacare”). Married couples with adjusted gross incomes over $250,000, and singles with AGIs over $200,000, will face a 0.9 percent increase in the current Medicare tax and a 3.8 percent tax on investment income. All taxpayers who itemize will also face more restrictive limits on deductions for medical expenses.
A payroll tax holiday that has reduced workers’ share of Social Security taxes from 6.2 percent to 4.2 percent for the last two years is set to expire at the end of 2012. Reuters reports support for an extension of the tax holiday is growing in Congress, particularly among Democrats. The tax break has provided workers with an average of about $1,000 a year in extra cash, Reuters said.
At the state level, in California, the newly passed Proposition 30 will raise the sales tax for everyone, from 7.25 percent to 7.5 percent, and also raise income taxes for those earning more than $250,000 a year.
A deal to avoid the fiscal cliff could include limits on the mortgage interest tax deduction. Also, if the Mortgage Debt Relief Act is allowed to expire, mortgage debt forgiven in a short sale, loan modification or foreclosure could be considered taxable income next year.
“We don’t know what’s going to happen, but we do know taxes will be higher,” Rosen said. “A lot higher or a little higher we don’t know.”
“It will hurt the housing market because there will be less money in the system,” he said. How much it hurts depends on the tax increases themselves, which are as yet uncertain, he said.
On a global scale, the eurozone sovereign debt crisis and recession as well as economic slowdowns in the BRIC countries (Brazil, Russia, India and China) could blunt U.S. exports and increase the trade deficit, which fell to its lowest level in nearly two years in September.
Rosen predicted the euro would not last due to a lack of homogeneity among European countries.
“One currency requires an integration level that I don’t think is going to happen,” Rosen said. “So, I think within several years we’ll will have shadow currencies and country after country will say they don’t need one currency.”
That doesn’t mean other eurozone policies, such as open borders, can’t remain in place, he said.
As far as oil prices, Rosen noted oil and gas booms in states like North Dakota and Ohio, but said the technologies that are creating those booms, namely hydraulic fracturing (“fracking”), would be exported to other countries, who would then have their own energy booms.
The result may be a $10 or $20 drop in the per barrel price of oil, though it may only be a 10-year phenomenon as supplies run out, Rosen said. Alternative energy is a better bet for the long term, he said.
For now, oil prices are still very high, he said, and “if the Middle East blows up, we could see $150 a barrel overnight,” he said.
via inman.com
3 overlooked real estate benefits | Katonah Real Estate
Recently, I took a brief, self-imposed retreat to work on some involved, important and frankly, neglected, projects. I left a tad bit late, which put me right in the worst of the commute-hour, end-of-week traffic, which is particularly bad in the direction I needed to drive.
It turned what should have been a two-hour drive into a three-hour odyssey. But I noticed how, right at the two-hour mark, my route took me onto one of the most scenic of California’s coastal highways. So I spent the last hour (the extra hour that had been tacked onto my trip unnecessarily) watching the sky turn from bright blue to golden, auburn-ey red-oranges and purples as I saw the sun set over the Pacific Ocean.
When I checked in, the concierge asked me how my drive was, and I told him, “Longer than expected, but I’m glad that it was because it gave me the chance to see the sunset that last hour driving down Highway 1.” He sort of looked at me strangely and said, “Wow, I’ve never heard anyone say they were grateful about traffic,” shook his head and carried on with his work.
The fact is, I’m rarely unencumbered enough, in terms of obligations on my time, to see a sunset, so I was particularly aware of how fortunate I was. And this is common: Since the time I broke my foot, I’m ecstatic to be able to work out and run. Mark Nepo, a famous poet and one-time cancer patient, has written about how grateful he is to see the lawn keep growing back in order to need mowing — something he once perceived as relentless, and a reason to complain.
All this came to mind when I was having a conversation with a couple of homebuyers recently around the subject of trade-offs. It became crystal clear, during our talk, that they were struggling to reconcile their conflicting wants and needs between themselves, but, more importantly, within themselves, creating an internal war and state of being stuck when it came to committing to a firm direction in which to proceed with their house hunt.
As I explained that everyone compromises (no matter whether they are spending $50,000 or $50 million on their home), it became apparent that these folks really just needed some help seeing the upsides of some of the seeming compromises they were contemplating.
Here are a few of the most overlooked trade-offs and hidden benefits in real estate:
Older construction → maturity of home and neighborhood. Some people like old homes, while others like new ones. My personal preferences tend to run to older homes, but I grew up in an area where no one buys anything but brand new, if they can avoid it.
The advantages of a newer home are pretty obvious: modern conveniences and construction, among them. But most people think older homes are a purely aesthetic indulgence. What they overlook is that older homes and the neighborhoods they are in have already settled, so that their mature state is clear to the buyer to be. That may mean they have already physically settled, surfacing any condition problems so that what is unknown is minimal. And with respect to older neighborhoods, the trees have matured and the nature of the area has as well, so you find less dramatic shifts with older neighborhoods than you do with new ones.
“Inconvenient” locations → quiet and privacy. Living right in the mix of things has obvious advantages, in terms of convenience of commute and nearby amenities, plus the energy downtown runs at a higher vibration than elsewhere. But having lived right in the heart of a bustling quasi-commercial district and having lived in the way-out hills has made clear to me the upsides of living in a less convenient location, namely peace, quiet and privacy.
A buyer’s desire for these qualities can evolve as he moves through the stages of life.
When I first got out of college and apartment living, I craved quiet and was willing to drive a ways to get to the grocery store to get it. After a few years, though, I was ready to be closer to other people and activities.
In any event, it’s critical to understand the multisensory trade-offs of picking a super-convenient, commutable or even highly walkable location or a less convenient locale, in terms of noise and serenity.
Mortgage interest → tax deduction. At the depth of the trough in home values a couple of years back, most homeowners I know busied themselves refinancing their home loans at all-time low rates and appealing the assessed values of their homes to have their property taxes lowered. What many failed to realize until a year later was that these numbers they had reduced were also the basis for their largest income tax deductions: the mortgage interest and property tax deductions. Long story short, as these costs went down, their income tax liability went up.
This is not to suggest that anyone should pay a single cent more than they need to for mortgage interest or property taxes — that would be foolish. However, when the thought of paying mortgage interest or paying property taxes gets you down, it bears reminding that these costs of homeownership are also the basis of the pretty amazing tax advantages that come with this version of the American dream. And that can make signing those checks just a little bit more palatable, sort of like sitting in traffic as you drive down the coast.
via inman.com
Half-built dreams in still-shaky Southland housing market | Mount Kisco Realtor
via suntimes.com
Rising home prices signaling ‘recovery’ | Katonah Realtor
Rising home prices signal ‘recovery,’ analysts sayU.S. home prices rose in September for the sixth straight month, despite seasonal weakness, signaling that the housing market is “in the midst of a recovery,” according to the S&P/Case-Shiller home-price index released this week. The index that looks at 20 cities showed that prices have gained 3% over the past 12 months, echoing other recent positive housing data, such as gains in new construction and existing-home sales. However, despite recent increases, prices are about 30% below peak levels in 2006. And the housing market still faces challenges from shadow inventory, and tight credit standards.Read more about home prices.Sandy hits new-home sales Sales of new single-family homes in the U.S. ticked down in October, with a large drop in the hurricane-hit Northeast while there was a record surge in the Midwest, according to data released by the U.S. Department of Commerce. By region, sales in October fell 32% in the Northeast and 12% in the South. Monthly sales rose a record 62% in the Midwest and 9% in the West. While the new-home-sales data are volatile on a monthly basis, a trend over the last few months has been steady, showing an average U.S. annualized rate of almost 370,000. That average rate is up 17% from a year earlier, but far below a peak rate of almost 1.4 million in 2005.Read more about new-home sales.Third-quarter growth revised higher, but…The government’s estimate for economic growth in the third quarter was revised higher this week, but the news wasn’t entirely rosy. A large portion of the higher estimate is due to inventories, which can be positive or negative. If these goods are sold soon, then the inventories were a good bet. If not, companies will have excess supply on their hands. Read more about GDP.Residential investment grows in third quarterThe economy’s expansion in the third quarter was also due, in part, to faster growth in the housing sector, government analysts said. In the third quarter, residential fixed investment grew at an annualized rate of 14.2%, compared with 8.5% in the second quarter. However, looking longer term, this sector has lost much of its heft. Residential fixed investment— which measures purchases of homes — currently accounts for about 2.5% of the economy, down from a bubble peak of more than 6% in 2005. Read more about GDP. Breakdown of GDP
After consumption was largely responsible for growth in the second quarter, there was a more evenly divided split between consumption, investment and government spending this time around. The big push behind government spending is a one-time boost in defense spending, so that is not likely to be sustained in the fourth quarter.
Delaying repairs may cost landlords | Katonah NY Real Estate
Water heater image via Shutterstock.
Q: The water heater at the rental we own broke and we had a hard time getting it replaced (we do all of the repairs ourselves). After a week, the problem was solved, but our tenants are demanding that we compensate them for expenses they incurred as a result of our tardy work. They’re asking to be reimbursed for their stay at a motel, several days’ worth of meals, and the added costs of transportation that resulted from living further away from work and school. It’s quite a bill! We admit to being less than on the ball with the repair, but do we have to pay these expenses? –Martha and John
A: Lack of hot water in a residential rental is a serious problem, and in every state but Arkansas, it’s a violation of the warranty of habitability. Depending on the state, tenants have various remedies if they alert landlords of the problem but the landlord fails to act reasonably promptly. Remedies include repairing the problem and deducting the cost from the rent, withholding rent, and living with the problem but suing later for a retroactive rent reduction, called rent abatement.
Another remedy includes procuring substitute housing during the time that the deficiency persists. Several states allow for this option, including Alaska, Connecticut and Tennessee. In these states, however, the approach isn’t uniform — should the tenant be compensated for substitute housing and be excused from paying rent? If so, this presents the tenant with a chance for a windfall — if the pro-rated rent is lower than the daily substitute housing, the tenant is “making money” on the deal, though few tenants would willingly choose the disruption to their lives caused by such a move.
You’ll need to find out how your state handles the issue of substitute housing. As for the other bills you’ve been presented with, these expenses are a bit more attenuated, but they follow from having to move away. Unless the motel had a kitchen, your tenants were obligated to get take-out or go to restaurants. And, unless they chose a location needlessly far away from school and work, their added commute costs were also an unavoidable result of having to move out temporarily.
Landlords in your position have been asked to foot the bill for items such as increased utility bills, the cost of replacement heaters, child care expenses (required because children could not stay comfortably or safely at home) and so on.
This has been an expensive lesson. In the future, it may be cheaper to hire a plumber than wait for the weekend to do it yourselves.
Q: The lease we are about to sign has a clause that says the winner of any lawsuit gets to recover attorney fees and court costs from the loser. Is this a good idea? –James and Ella
A: This “two way” attorney fee clause is common in contracts and leases. The idea is to make it clear to both sides, before a dispute has even broken out, that bringing a worthless lawsuit is likely to be an expensive affair. If the person who brings the bogus lawsuit loses, he pays not only his own costs and fees, but the other side’s, too. The clause also encourages both sides to work out legitimate differences between them, without involving a court. No one, even someone who is sure he’s in the right, can guarantee that a judge or jury will agree; far better to compromise than risk losing and having to pay your own and the other side’s costs, too.
In residential lease situations, the analysis takes a slightly different turn. Precisely because the clause will discourage litigation, tenants may hesitate to bring lawsuits to enforce their rights, fearful that if they lose, they’ll have to pay big time. In a similar vein, landlords may find the right to collect from the losing tenant an academic right — few tenants have the resources to write a check for attorney fees and court costs. These landlords would prefer a world in which each side pays its own costs and fees, which is the rule most of the time.
via inman.com
Why’d You Choose That Domain Name? | Mt Kisco Realtor
Let’s admit one thing. We all started this web thing honestly, naively.
Our first site was designed to help people, to fill a gaping void we saw in the online world.
We wanted to do so much good.
Where, then, did it go so wrong? And why? Why did we end up with a website like “www.how-to-earn-money-online.com” that we can barely mention across the dinner table without blushing?
In this post, I’m going to target the psychology behind our seemingly harmless paths to web domination. I’ve been curious for a while about why a few of us start the Zygna.coms and Digg.coms while others go a, well, different path. It all dates back to the mid 1970s, when a man name Albert Bandura, the guy behind Social Cognitive Theory, examined how we seek to replicate success we see in our surroundings and in media, often at all costs. It gets a bit creepy.
Day 1: A new beginnning
It all began with GoDaddy.
“What is GoDaddy?” we ask Google. And Google responds with a full tutorial on GoDaddy.
“Thank you, Google. Now I’ve got my first domain and I have no idea how to use it.”
Well at some point, no thanks to GoDaddy, we find Blogger or WordPress. Your first domain name most-likely had a .blogspot or .wordpress in it. Hello, new blog.
“Wow, this is so interesting,” we think. “I can write posts, post images, create links, and put things in my side bar. And what exactly is a sidebar? I’m going to grow this blog to be huge! I’m getting 100 views a day! Wait, I was tracking my own views. Shut that off. So this actually is difficult … okay, I can handle that.”
We set up our first Google Analytics profile and hardly use it. We’re too focused positioning Adsense ads and garnering Facebook likes.
“Suggest to friends? I think so. Why did he not like it? Not my friend anymore! Write posts, write posts, write posts. Write even more. How am I ever going to have as many posts as that other site? Three a week, that’s it. Must happen. Three great posts of 500 words at least. More coffee. You can do this! Backlinks. Backlins! Need more. Alexa tells me I don’t have enough. Must network. Got one! Got a tweet too! Oh my dear god prepare yourself for traffic! Traffic didn’t come…why not? More posts … more domination!”
At some fateful point after much deliberation we decide to hack off the .blogger/.wordpress and basically think the world will rejoice over our decision.
“Sigh, they don’t. People don’t care. They’re focused on their own websites. Oh well, more networking, more Facebook marketing! Backlinks!”
Day 2: Day 1 got old
At some point in blogging, we become jaded. It just isn’t like it was on Day 1. Our community blog, our niche review site, and our Google Adsense landing page just didn’t work as planned. It wasn’t all we were told it would be, but we did learn in the process.
So, we start a new blog. We suck up our pride. We hobble back over to the computer. We probably woke up later that day because we were up late making it big the night before.
This is where it gets interesting.
The day we start up a second website defines us in our blogging careers.
Why? Because (in case you didn’t realize yet) everyone starts a semi-successful-yet-pretty-mediocre website at first, then moves on to another project. It’s in that second project that we either:
- show the world we’ve learned from our mistakes and are ready to build something useful, or
- totally sell out and continue down the path to eventual existential failure.
I’m sorry, but it’s one or the other. Which path are you on?
Maybe you’re on a different path?! If so, let’s hear about it in the comments.
Day 3: Pick a new domain
It may not be on actual day 3 of blogging, but the “third day” in your blogging career is the day you choose your next domain name. On Day 1 you made your first website, on Day 2 you decided to build another one, and on Day 3 you picked this new domain. And on Day 7 s/he rested.
So what did you pick?
The brandable domain
If you picked a brandable domain then I’d like to buy you a beer. I’m proud of you. A brandable domain is something like “Twitter.com”. It’s something like “Coursehero.com” or “Koofers.com”. It’s a brother of “Problogger.net” and a cousin of “Alexa.com”. Its recognizable. It stands out.
It holds its own in a conversation across the dinner table. (Should that be the new standard?)
People learn not just from trying and failing, but from observing, sometimes subconsciously, sometimes for means of survival, what works for our peers.—Albert Bandura
The importance of a brandable domain is five-fold:
- Unique: It stands out.
- Recognizable: People remember it.
- Bizarre: It’s weird enough to generate some intrigue the first time someone hears it.
- Worth mentioning: People want to talk about weird things.
- Worth putting on a t-shirt: Yes, you would consider wearing that logo with it’s branded image on a t-shirt.
If you picked a brandable domain I commend you because, while you won’t get immediate “direct match” traffic from Google, you will get many more returning visits because you have a pretty cool concept.
These websites are more likely to get blog comments and will inevitably build larger email followings. They may not be the best at making a quick buck, but they do have a long-term trajectory to success. Props to you for choosing this option!
The keyword-rich domain
If you picked this type of domain, you may want to watch this short video as Matt Cutts talks about how Google is changing the algorithm.
Short summary: A lot of noise and competition exists among keyword-rich domains. Google is altering the algorithm so websites with keyword-rich domains won’t get as much an advantage over similar websites with less keyword friendly domains.
If you picked a keyword-rich domain, this is my advice for you.
- Check out onlineprofits.com: It’s a successful community that makes online profits.
- Check howtomakemyblog.com: It’s actually an awesome how-to site by Marko Saric.
- Check out onlinecolleges.com and literally every other domain name with some variation of the phrase “online colleges” in it. You’ll begin to see just how competitive things are getting.
- Learn some on-page SEO: It’ll help you immensely against the waves of others like you.
- Get used to being #2: Hey, look at how well Monster does in the shadow of Redbull.
It’s okay, as a few of these examples will show you. With your keyword-rich domain your blog might actually make that six-figure annual income you dreamed about on Day 2.
However, as time passes I can’t help but think keyword-rich domains will become a dime a dozen, and will get sifted out to the bottom of the blogosphere while unique, original concepts rise to the top. It’s a process that may be happening as you read this.
Why did we choose one option or the other?
We’re human. We don’t want the things we do to eventually lead to failure.
We want to succeed, sometimes badly, and will often consider every means necessary to do so. Sometimes this means selecting a domain we at first would have scoffed at.
Albert Bandura was a renowned Canadian psychologist. He examined the characteristics we learn in our adolescence that leads us to success or failure. From the existing Social Learning Theory, it was known four key factors affect how we learn new behavior: drives, cues, responses, and rewards.
What Bandura found, in plain words, was that those of us who are more aggressive often skip a couple steps to get to the “rewards.”
This can be dangerous.
When our aggression outweighs our engrained moral compass, we exhibit “lapses in judgement,” as Bandura called them, where we totally avoid “cues” and “responses.”
It’s these tendencies which lead us to choose a certain domain and make larger, more long-term business decisions. It’s pretty hard to say a domain doesn’t hold vibes and messages that follow our website throughout its entire existence. So next time you’re sitting at GoDaddy about to make a purchase, remember Bandura and think about the long-term implications of your choice.
Bandura became the endowed chair of social psychology at Standford University in 1974 and is believed to be the fourth most cited pyschologist of all time. Go find more of his related work on Wikipedia.
The Blogger is a 25 year old guy from Manhattan who answers 150 blog questions before breakfast and holds a world record for comment response time. Sign up to his email club if you haven’t already (jeez) and find him on the Twitter.
via problogger.net