Over the past year the number of agents in my office had dwindled to a very few die-hards like myself. The once vibrant atmosphere had become almost funereal, and the writing was on the wall that something was going to happen.
Last Friday it was announced that our office was going to close, and a merger would take place between our office and one nearby. Because of that it seemed like a good time to move on, and see what other opportunities might be out there.
Yesterday I started with a new agency, and I am really looking forward to the challenge. I kind of feel like I was traded to a new ball club, and I want to perform well, and start off "hot". Unfortunately, I have to get my pipeline filled back up, as I am a little dry at the moment. Plus, I was pretty comfortable at my old location, and had built a lot of important relationships. Now I feel like a total rookie again, but I'm confident that the feeling will pass once I jump in to the new office environment.
Anyway, I think that change is good, and I am going to embrace it. Wish me luck!
Wednesday, March 7, 2012
Monday, February 6, 2012
What To Expect From Your Agent
The first thing I always tell new clients is that I am a Realtor, not a "House Salesman." Most people don't understand the difference, and view real estate agents in much the same manner as lawyers and used car salesmen.
The truth about my industry is that a great agent, focused solely on the welfare of his/her client, makes the process seem effortless and pain-free, whereas a poor agent, more concerned with their own welfare, can turn the dream of home ownership into a nightmare. It is extremely important, therefore, that you understand the role of an agent, and use care and consideration when choosing one.
Lets start with real estate agents vs. Realtors.
All Realtors are real estate agents, but not all real estate agents are Realtors. Anyone who has been licensed by the state to practice real estate is a real estate agent. Realtors, on the other hand, are members of the National Association of Realtors, and have sworn to practice their trade ethically, following the carefully crafted guidelines of that organization.
Simply stated, a real estate agent represents you to a third party, a buyer or seller, keeping the protection of your interests as their primary goal. Of all issues that arise during a normal real estate transaction, the agent's commission is of the least importance. Remember also, that the agent works for you, and must abide by your decisions, as long as those decisions are not illegal or blatantly unreasonable.
A good agent will meet with you first to gain a better understanding of your needs. In the course of that initial meeting, the agent should review the current market conditions, the intricacies of your particular transaction, and the probable issues that may confront you as the process moves forward. When you leave that meeting, you should be thoroughly comfortable with your knowledge and expectations of the upcoming transaction.
Above all else, communication is the key. You should be kept up to date on the most recent issues concerning your deal, and should express to your agent any questions or concerns that you may have. Your agent should advise you on issues that fall within his/her area of expertise, but should never tell you what to do, or lend advise on issues outside of their scope (ie; taxes, mortgages, title, etc.).
Finally, like any relationship, some are better than others. If you find yourself questioning the agents commitment to your transaction, discuss it with them, and if you are still not satisfied, find another agent.
The truth about my industry is that a great agent, focused solely on the welfare of his/her client, makes the process seem effortless and pain-free, whereas a poor agent, more concerned with their own welfare, can turn the dream of home ownership into a nightmare. It is extremely important, therefore, that you understand the role of an agent, and use care and consideration when choosing one.
Lets start with real estate agents vs. Realtors.
All Realtors are real estate agents, but not all real estate agents are Realtors. Anyone who has been licensed by the state to practice real estate is a real estate agent. Realtors, on the other hand, are members of the National Association of Realtors, and have sworn to practice their trade ethically, following the carefully crafted guidelines of that organization.
Simply stated, a real estate agent represents you to a third party, a buyer or seller, keeping the protection of your interests as their primary goal. Of all issues that arise during a normal real estate transaction, the agent's commission is of the least importance. Remember also, that the agent works for you, and must abide by your decisions, as long as those decisions are not illegal or blatantly unreasonable.
A good agent will meet with you first to gain a better understanding of your needs. In the course of that initial meeting, the agent should review the current market conditions, the intricacies of your particular transaction, and the probable issues that may confront you as the process moves forward. When you leave that meeting, you should be thoroughly comfortable with your knowledge and expectations of the upcoming transaction.
Above all else, communication is the key. You should be kept up to date on the most recent issues concerning your deal, and should express to your agent any questions or concerns that you may have. Your agent should advise you on issues that fall within his/her area of expertise, but should never tell you what to do, or lend advise on issues outside of their scope (ie; taxes, mortgages, title, etc.).
Finally, like any relationship, some are better than others. If you find yourself questioning the agents commitment to your transaction, discuss it with them, and if you are still not satisfied, find another agent.
Sunday, February 5, 2012
Real Estate Agency
The next few blogs will focus on agents, or the agency relationship. It is extremely important to understand what an agent does, who the agent actually is, and what expectations you should have for your agent. A good agent can make the home buying process seem relatively effortless, whereas, a poor agent can make you long for your studio apartment.
An "Agent" is simply someone who represents you, the Principal, in a business transaction when dealing with a third party. In some cases an agent can perform all of the tasks normally assigned to the Principal, some of those tasks, or only a very specific task. Real estate agents fall into the latter category, having the authority to represent you only throughout a single real estate transaction.
When most people speak of their real estate agent they are usually referring to the person who took them around to see properties, or perhaps kept pestering them to list their home. In most cases, however, that person is actually a "sub-agent" of the actual agent, better known as the "Broker". Real estate agents, if not licensed as a broker, must work under someone, or some entity, who is. In my case, I am licensed to sell real estate in California, but not licensed as a broker, therefore I work for Keller Williams Realty; a licensed real estate broker. When you, the Principal, hire an agent, you are actually hiring the brokerage whose license that agent works under.
It is imperative, in any financial transaction, that you have someone representing your interests. I have noticed a recent trend where some buyer's are going directly to the listing agent believing that they will somehow obtain a better price. This is a dangerous trend, and leaves the buyer exposed to the conflicting interests between the buyer and seller, and never results in a reduction in the asking price of the home.
An "Agent" is simply someone who represents you, the Principal, in a business transaction when dealing with a third party. In some cases an agent can perform all of the tasks normally assigned to the Principal, some of those tasks, or only a very specific task. Real estate agents fall into the latter category, having the authority to represent you only throughout a single real estate transaction.
When most people speak of their real estate agent they are usually referring to the person who took them around to see properties, or perhaps kept pestering them to list their home. In most cases, however, that person is actually a "sub-agent" of the actual agent, better known as the "Broker". Real estate agents, if not licensed as a broker, must work under someone, or some entity, who is. In my case, I am licensed to sell real estate in California, but not licensed as a broker, therefore I work for Keller Williams Realty; a licensed real estate broker. When you, the Principal, hire an agent, you are actually hiring the brokerage whose license that agent works under.
It is imperative, in any financial transaction, that you have someone representing your interests. I have noticed a recent trend where some buyer's are going directly to the listing agent believing that they will somehow obtain a better price. This is a dangerous trend, and leaves the buyer exposed to the conflicting interests between the buyer and seller, and never results in a reduction in the asking price of the home.
Saturday, July 30, 2011
Verbal Communication; A Lost Art
A friend of mine was expressing her exhasperation over the lack of employment opportunities in the San Francisco Bay Area. Her intention was to become an event planner with a major hotel chain, but after looking for several months, she was making little headway.
At this point, I feel obligated to inform you that my friend is 29, and I am 56. You will understand my reason for divulging this shortly.
I asked my friend how she was going about getting her name out to those who mattered. She immediately began to rattle off the numerous online job and social network sites that she utilized. I asked her how many times she had met, face-to-face, with a potential employer, other than during an interview.
"I never have", she said.
I then suggested that she dress professionally, go to hotels in San Francisco, ask for the sales and catering manager, and personally hand her resume to each one.
Her response?
She laughed, and said that it was no longer done that way; that her generation utilizes the latest technology to secure employment.
Thus, the previous admission of the age gap! I am graciously giving all you real estate agents who agree with my friend an excuse to blow off what I'm about to tell you. Blame your lack of success on something other than the fact that you're too lazy and embarrassed to get out and build actual, personal, relationships. Claim that I'm an old fart, whose out of touch if it makes you feel better.
The fact is; our business is now, and forever, about personal relationships, and the slow building of professional bonds. What we accomplish down the road will always be directly related to the way we communicate with our peers today.
One evening, while waiting for a client, I noticed a man, and a woman who I assumed to be his agent, standing in the driveway of a listing. They were in the middle of a heated discussion, and were quite animated. After a short time, the agent jumped in her car, and sped away. The man, seeing me, started across the street toward my car.
He asked me, point blank, what I would suggest my client offer on that particular listing. I asked if the person who had driven away was his agent, to which he replied that she was. Handing him my card, I assured him that I would lend my opinion, but not while he was working with another agent.
A couple of weeks later we met at my office. He had dropped his realtor, and wanted my advise. I told him that I would be glad to help, but I explained the difficulties of the market, and stated that it was possible his previous agent had worked hard on his behalf, and was simply handcuffed by the market restraints. I asked him what it was that he wanted but felt his previous agent had failed to do.
He leaned forward and said, "I asked her to personally call the listing agents when we submitted an offer. She never did."
I was shocked! That's it? All he wants is a little personal touch added to each offer? Wow...how easy is that?
The poor guy was an FHA buyer who had spent the previous eight months looking at properties, submitting offers, and receiving rejections. During that time his agent had never once contacted the listing agent to discuss his offers. Not once!
On our first weekend out we found a fixer that met his requirements. We wrote an offer, and submitted that evening. The next morning I contacted the agent, and spend about 15 minutes discussing my client, and simply chewin' the fat with another realtor. To be honest, I realized then that I could have done a much better job of communicating with fellow agents, prior to this deal. I felt embarrassed. The conversation ended with the listing agent saying that she would go look for my clients offer, and would review it.
The following Monday my client received a counter on his offer, entered escrow, and closed on the home. Last we spoke, he was absolutely thrilled.
It doesn't always happen this way. Sometimes you can talk until you're blue in the face, but a cash deal is always going to trump an FHA offer. What you can do is improve your odds; building relationships that will allow you to jump to the top of the list because the listing agent knows you and respects the way you handle business. Emails will never replace the subtle qualities of the human voice, a good laugh, or the warmth of a friendly handshake.
At this point, I feel obligated to inform you that my friend is 29, and I am 56. You will understand my reason for divulging this shortly.
I asked my friend how she was going about getting her name out to those who mattered. She immediately began to rattle off the numerous online job and social network sites that she utilized. I asked her how many times she had met, face-to-face, with a potential employer, other than during an interview.
"I never have", she said.
I then suggested that she dress professionally, go to hotels in San Francisco, ask for the sales and catering manager, and personally hand her resume to each one.
Her response?
She laughed, and said that it was no longer done that way; that her generation utilizes the latest technology to secure employment.
Thus, the previous admission of the age gap! I am graciously giving all you real estate agents who agree with my friend an excuse to blow off what I'm about to tell you. Blame your lack of success on something other than the fact that you're too lazy and embarrassed to get out and build actual, personal, relationships. Claim that I'm an old fart, whose out of touch if it makes you feel better.
The fact is; our business is now, and forever, about personal relationships, and the slow building of professional bonds. What we accomplish down the road will always be directly related to the way we communicate with our peers today.
One evening, while waiting for a client, I noticed a man, and a woman who I assumed to be his agent, standing in the driveway of a listing. They were in the middle of a heated discussion, and were quite animated. After a short time, the agent jumped in her car, and sped away. The man, seeing me, started across the street toward my car.
He asked me, point blank, what I would suggest my client offer on that particular listing. I asked if the person who had driven away was his agent, to which he replied that she was. Handing him my card, I assured him that I would lend my opinion, but not while he was working with another agent.
A couple of weeks later we met at my office. He had dropped his realtor, and wanted my advise. I told him that I would be glad to help, but I explained the difficulties of the market, and stated that it was possible his previous agent had worked hard on his behalf, and was simply handcuffed by the market restraints. I asked him what it was that he wanted but felt his previous agent had failed to do.
He leaned forward and said, "I asked her to personally call the listing agents when we submitted an offer. She never did."
I was shocked! That's it? All he wants is a little personal touch added to each offer? Wow...how easy is that?
The poor guy was an FHA buyer who had spent the previous eight months looking at properties, submitting offers, and receiving rejections. During that time his agent had never once contacted the listing agent to discuss his offers. Not once!
On our first weekend out we found a fixer that met his requirements. We wrote an offer, and submitted that evening. The next morning I contacted the agent, and spend about 15 minutes discussing my client, and simply chewin' the fat with another realtor. To be honest, I realized then that I could have done a much better job of communicating with fellow agents, prior to this deal. I felt embarrassed. The conversation ended with the listing agent saying that she would go look for my clients offer, and would review it.
The following Monday my client received a counter on his offer, entered escrow, and closed on the home. Last we spoke, he was absolutely thrilled.
It doesn't always happen this way. Sometimes you can talk until you're blue in the face, but a cash deal is always going to trump an FHA offer. What you can do is improve your odds; building relationships that will allow you to jump to the top of the list because the listing agent knows you and respects the way you handle business. Emails will never replace the subtle qualities of the human voice, a good laugh, or the warmth of a friendly handshake.
Thursday, July 14, 2011
The Sales Flow
Over the past three years I've come to realize that all successful transactions have a certain flow. There's a rhythm to the entire process; a natural movement through the various stages of each deal. It's as if you can sense immediately that this is the offer that's going to be accepted. This is the house that the buyer's are meant to have.
It all starts with the client, and their acceptance of the advise you give. If they're willing to listen, and truly have the desire and patience to see the process through, they will inevitably be successful. I can think back through the list of transactions that I've closed, and in each and every one the buyer was determined, smart, and informed. They had strong opinions but were open to suggestions, and remained flexible when my advice clashed with their beliefs.
I've moved on from a few clients, which is difficult. Just as you can sense a good relationship, you can also feel a poor one. Sometimes your suggestions just go against the grain of the client. Sometimes personalities simply don't mesh. Sometimes there's just this feeling that the timing, or flow, is off; like a bad marriage that starts out great, then slowly falls apart.
There is a certain level of commitment that a client should expect from their agent. Conversely, without a similar commitment from the client, the agent will find themselves wasting a lot of time and energy. I try to keep things simple by sticking to three basic rules:
It all starts with the client, and their acceptance of the advise you give. If they're willing to listen, and truly have the desire and patience to see the process through, they will inevitably be successful. I can think back through the list of transactions that I've closed, and in each and every one the buyer was determined, smart, and informed. They had strong opinions but were open to suggestions, and remained flexible when my advice clashed with their beliefs.
I've moved on from a few clients, which is difficult. Just as you can sense a good relationship, you can also feel a poor one. Sometimes your suggestions just go against the grain of the client. Sometimes personalities simply don't mesh. Sometimes there's just this feeling that the timing, or flow, is off; like a bad marriage that starts out great, then slowly falls apart.
There is a certain level of commitment that a client should expect from their agent. Conversely, without a similar commitment from the client, the agent will find themselves wasting a lot of time and energy. I try to keep things simple by sticking to three basic rules:
- Every new client must sit down for a one-on-one introductory meeting.
- No houses are shown until the customer produces a pre-qualification letter.
- I will not randomly send listings unless client commits to working with me.
Wednesday, July 13, 2011
The Short Sale Carousel
What am I missing? What is the thought process behind it all? What could possibly be the benefit, in a market where property values continue to decline, for a lender to reject a fair market offer on a short sale listing, and instead, choose foreclosure? I'm at a loss!
I have been negotiating deals, in one industry or another, for 30 years. I feel that I understand human nature, and can generally anticipate the next move, but I oftentimes find myself baffled by the short sale negotiation (or lack thereof). It leads me to believe that there's another game afoot; a sub-plot to the storyline. There has to be some hidden financial incentive for these financial institutions to avoid short selling, and embrace foreclosure, but for the life of me I can't see it.
I just spent the past eight months negotiating with Bank of America. We had a strong offer of $320k, which somehow took 6 months for the "investor" to approve. Six months...really? When the appraisal came back at $295k, the buyer submitted an addendum to correct the price, and again we waited. Yesterday, two months having past, I received an acceptance at $295k, with the caviat that the buyer agree to a $34k, no interest, promissory note, to be paid over 15 years "...to offset the losses" of the investor. Are you fucking kidding me? That's the best you could come up with after 8 months. Let me get this straight! You want the buyer to overpay by $34k on a house that has dropped 8% in value during the negotiation?
That's what I mean; they must know that the counter will be rejected (I'm not even sure that it's legal). That tells me that the entire process is a sham; that they decided on foreclosure long ago. But why? Explain it to me please!
I have been negotiating deals, in one industry or another, for 30 years. I feel that I understand human nature, and can generally anticipate the next move, but I oftentimes find myself baffled by the short sale negotiation (or lack thereof). It leads me to believe that there's another game afoot; a sub-plot to the storyline. There has to be some hidden financial incentive for these financial institutions to avoid short selling, and embrace foreclosure, but for the life of me I can't see it.
I just spent the past eight months negotiating with Bank of America. We had a strong offer of $320k, which somehow took 6 months for the "investor" to approve. Six months...really? When the appraisal came back at $295k, the buyer submitted an addendum to correct the price, and again we waited. Yesterday, two months having past, I received an acceptance at $295k, with the caviat that the buyer agree to a $34k, no interest, promissory note, to be paid over 15 years "...to offset the losses" of the investor. Are you fucking kidding me? That's the best you could come up with after 8 months. Let me get this straight! You want the buyer to overpay by $34k on a house that has dropped 8% in value during the negotiation?
That's what I mean; they must know that the counter will be rejected (I'm not even sure that it's legal). That tells me that the entire process is a sham; that they decided on foreclosure long ago. But why? Explain it to me please!
Tuesday, July 12, 2011
Back At It
Wow...crazy! It's been a year since my last post. July 25th to be exact. Doesn't really matter since I really don't have any followers.
This last year has been a challenge, but hey, I'm still here. Had to make some very tough choices between selling real estate fulltime, or eating. I am still fully committed, but I found some part time work that has really helped me make it through. I would be lying, however, if I told you that it didn't affect my real estate business. It definately did!
In sales we call it "filling your pipeline"; or, building up your client base again. That's where I'm at. My pipeline went dry as I scrambled to survive, and now I'm like a "green pea", starting fresh. I'll get it back, and my energy and focus is definately there.
I'm very excited!!
This last year has been a challenge, but hey, I'm still here. Had to make some very tough choices between selling real estate fulltime, or eating. I am still fully committed, but I found some part time work that has really helped me make it through. I would be lying, however, if I told you that it didn't affect my real estate business. It definately did!
In sales we call it "filling your pipeline"; or, building up your client base again. That's where I'm at. My pipeline went dry as I scrambled to survive, and now I'm like a "green pea", starting fresh. I'll get it back, and my energy and focus is definately there.
I'm very excited!!
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