One of the many things I will struggle with when the real estate market eventually turns is showing homes that are occupied. You see, in the current market most listings are vacant, making them extremely easy to show. Having started in this market, I'm used to just walking into a place without the hassle of calling the owner first. For me, it's very uncomfortable walking into an occupied home, snooping through closets, and stepping around someone's underwear.
A short time ago I had a client who wanted to see a listing that was owner occupied. The deal was a short sale, and the MLS asked that you "Contact the owner...then go!". I sucked it up, made the call, left a message stating that I was on my way, grabbed my clients, and headed over to the house.
Driving up I noticed that there were no cars in the driveway, and finally relaxed when I confirmed that no one was home. I opened the door, waved my clients inside, began to show them the home, and then started to have second thoughts.
I was reluctant to close the door, feeling that I might shock the owners if they were to return and find three strangers walking through their home. I was also reluctant to keep the door open as I worried about bugs getting into their beautiful home. I chose the latter, figuring it was the lesser of two evils.
I don't know what other agents do, but I tend to rush my clients through occupied homes. It's crazy, but I just feel like we're imposing. These particualr clients were notorious for taking their time at each listing, without a care as to whether or not the owner's were home.
I was stressing!
Finally, after what seemed like eternity, we exited the master bedroom at the rear of the home, and headed toward the front door. As we were leaving I pointed out a beautiful white cat that was sleeping on the livingroom sofa. My client's immediately went over and began to pet the cat, and commented on how well groomed it was. I swear...that cat looked very expensive.
Just as I was shutting the front door, it struck me; "Was that the owners cat, or had a stray just wandered in and made itself comfortable?" I asked if my client's had noticed it before, but neither had. I looked around for any cat paraphenalia, but could find none.
What to do?
If I kicked the cat outside I risked losing the owner's cat, which had escalated, in my imagination, to become the world's most valuable feline. On the other hand, if I left it inside I risked letting a strange cat tear up furniture, or worse, crap inside the house.
I left the cat in the house!
About an hour later, after dropping off my clients and heading to the office, I received a message from the homeowner. She was sorry she had not gotten back to me sooner, but wanted to assure me that it was fine to show the house. Her message ended with ..."Don't worry, we don't own any animals."
I instantly spun round, raced back to the house, and began the search. It took me about 30 minutes, but I finally found that damn cat curled up at the back of the master closet. The cat's exit from the house was pretty abrupt, with the last view being the ass-end cart-wheeling over the neighbor's fence.
I learned a valuable lesson that day; one which I will never forget. I'm sure that it won't be the last!
The Rookie
Tuesday, June 29, 2010
Sunday, June 27, 2010
Hitting Home
Before I spent my first day actually working as a realtor, I purchased all the equipment necessary to do business. I got my business cards, my magnetic car signs, my name tags, my open house signs, and lastly, my "For Sale" signs and yard stands. Wow...was I one optimistic SOB. I purchased 10 "For Sale" signs, and 10 yard stands to hang them from. I guess I envisioned myself on the front lawn of every other available listing.
Now I know better!
It didn't take long to realize that the available listings, mostly REO's, weren't going to a "green pea". No...those listings were available only to the top agents who had the resources to not only market them, but maintain them. Literally, I could not have afforded a bank owned listing.
So far I have had three listings; a small, inexpensive condo, which I made all of $412 when it sold; my neighbors home, which was foreclosed on before the short sale approval came through; and, my latest, another neighbors home, which I would just as well not have.
I live in a great neighborhood, with fantastic neighbors. We all moved in at the same time, so we're fortunate to all know each other. We all bought after the housing market had crashed, so it was safe to assume that we could well afford our homes. Because of that, we figured to be neighbors for a very long time.
What a difference a couple of years make. This recession (will someone explain why this is not called a depression?), was put in motion by the collapse of the housing market, brought about by greedy lenders, and foolish buyer's, who combined to create a false market, the demise of which was inevitable. But things are different now!
As the economy rode the express elevator to the basement, it began to gather additional riders on the way down. No longer was the elevator full of ignorant or deceitful buyer's who signed up for loans they could never hope to pay back. Now other folks were hopping on. People who a short time earlier could well afford their mortgage, began to struggle as hours were cut, or jobs were lost.
My neighbors, my friends, just recently hopped on that elevator. The husband had his hours cut back 15%. His wife lost her job completely, but was offered another position in a small town two hours away. They made the decision to move, but can't afford two places, so they're desperately trying to sell. The last time I met with them, the husband looked at me and said dejectedly, "This is probably the nicest home I will ever own in my life".
I'm trying to avoid short selling their home, holding out hope that I can somehow save their credit, but their initial $180,000 deposit is long gone. They're really good people, and in a normal world, would never be in this position. I don't believe that I have ever seen, or lived through, a more difficult period. In some way or another, everyone I know is struggling. It's frustrating that I can't help my friends, but I'm too busy trying to figure out how to pay my own bills.
I know that this will all work itself out; that things will improve. I guess we've all learned a valuable lesson, but to tell you the truth, I'm ready for class to be over!
The Rookie
Now I know better!
It didn't take long to realize that the available listings, mostly REO's, weren't going to a "green pea". No...those listings were available only to the top agents who had the resources to not only market them, but maintain them. Literally, I could not have afforded a bank owned listing.
So far I have had three listings; a small, inexpensive condo, which I made all of $412 when it sold; my neighbors home, which was foreclosed on before the short sale approval came through; and, my latest, another neighbors home, which I would just as well not have.
I live in a great neighborhood, with fantastic neighbors. We all moved in at the same time, so we're fortunate to all know each other. We all bought after the housing market had crashed, so it was safe to assume that we could well afford our homes. Because of that, we figured to be neighbors for a very long time.
What a difference a couple of years make. This recession (will someone explain why this is not called a depression?), was put in motion by the collapse of the housing market, brought about by greedy lenders, and foolish buyer's, who combined to create a false market, the demise of which was inevitable. But things are different now!
As the economy rode the express elevator to the basement, it began to gather additional riders on the way down. No longer was the elevator full of ignorant or deceitful buyer's who signed up for loans they could never hope to pay back. Now other folks were hopping on. People who a short time earlier could well afford their mortgage, began to struggle as hours were cut, or jobs were lost.
My neighbors, my friends, just recently hopped on that elevator. The husband had his hours cut back 15%. His wife lost her job completely, but was offered another position in a small town two hours away. They made the decision to move, but can't afford two places, so they're desperately trying to sell. The last time I met with them, the husband looked at me and said dejectedly, "This is probably the nicest home I will ever own in my life".
I'm trying to avoid short selling their home, holding out hope that I can somehow save their credit, but their initial $180,000 deposit is long gone. They're really good people, and in a normal world, would never be in this position. I don't believe that I have ever seen, or lived through, a more difficult period. In some way or another, everyone I know is struggling. It's frustrating that I can't help my friends, but I'm too busy trying to figure out how to pay my own bills.
I know that this will all work itself out; that things will improve. I guess we've all learned a valuable lesson, but to tell you the truth, I'm ready for class to be over!
The Rookie
Thursday, June 24, 2010
Things I've Learned So Far
- The deals not done until Title says it's done, so don't pre-spend your commission.
- FHA appraisers can be royal pains in the ass.
- When the loan agent says that the loan package is complete, your client is usually about halfway through submitting paperwork.
- You won't get paid until that flippin' file is complete.
- Clients telling you that they "totally understand", means that they don't have a clue.
- What you say..."Remember, this first house isn't going to be your dream house." What they hear..."Next to the Taj Mahal, the houses I show you are going to be perfect."
- You can work 24/7 if you're not careful.
- Passing the real estate exam is the easy part, and the question on the test have no relationship to the actual job.
- Listings are a lot more fun, and a lot less work. No wonder everyone wants them.
- Open houses actually work.
- Short sales suck.
- Real Estate is fun as hell.
Thursday, June 17, 2010
Empty Pipeline
One of the key facets of being a successful agent is to keep a steady stream of clients available so that you don't have huge gaps between closings (paychecks). They call this keeping your "pipeline full". It's not rocket science, but it is very difficult to do.
I've closed a deal a month for the past year, and have had a reasonably full pipeline throughout. Now, one deal per month might not sound like much, but I know agents who have sold only one property all year.
Right now my pipeline is looking pretty empty! Kind of scary! I started the year with twelve prospects, closed six, lost three, and am currently working with the remaining three. I have also added one or two others, but you can never have too many.
Unfortunately, I had to bite the bullet, and get a few clients into short sale listings. That means that I won't see any return on those for months, but at least my clients are covered.
Anyway...off to my second job.
The Rookie
I've closed a deal a month for the past year, and have had a reasonably full pipeline throughout. Now, one deal per month might not sound like much, but I know agents who have sold only one property all year.
Right now my pipeline is looking pretty empty! Kind of scary! I started the year with twelve prospects, closed six, lost three, and am currently working with the remaining three. I have also added one or two others, but you can never have too many.
Unfortunately, I had to bite the bullet, and get a few clients into short sale listings. That means that I won't see any return on those for months, but at least my clients are covered.
Anyway...off to my second job.
The Rookie
Friday, June 11, 2010
So Long Good Neighbors
Less than three years ago my wife and I bought a home in a new development, shortly after the housing market took a nose dive. Since we were only the third committed buyer for our phase, we were lucky enough to pick our lot, choose all of our upgrades, and watch our home being built.
We finally moved in December of '07, one week before Christmas. Only two other neighbors had moved in, and most of the remaining twelve houses were under construction. Finally, about 4 months later, the rest of the neighbors moved in, all on the same weekend. It was cool...like, instant neighborhood.
We were really lucky. Moving in together allowed us to meet each other and become friends. We've had great block parties, a lot of fun times, and the comfort of knowing that the neighborhood was safe.
We also believed, but never said openly, that we would all be neighbors for life. We had bought after the peak; after the bad loan era, and could afford to own our homes. Right down the street, in the next block, people in phase one were already losing their homes to foreclosure, having bought at the peak of the market, with ARM's.
During the last block party, I noticed a difference. Everyone seemed subdued, or didn't come to the party at all. One of the original neighbors spoke openly about walking away from their home. Another discussed the impending loss of work hours, and the distinct possibility that his wife was going to lose her job. It was an eye opener.
Since that time, perhaps six months, my next door neighbor walked away from his home. On the opposite side of my house, I am working on a listing agreement with the other neighbor. Unfortunately, through job loss and company transfer, they can no longer stay in their home, and must sell within the month, even though, under normal circumstances, they could easily afford their mortgage.
I think that most people look at this housing disaster as something only affecting those folks who commited to too much home, and extremely poor financing. But things have changed. The trickle down effect, has caused layoffs, and is forcing responsible home buyer's from their homes. Terrible!
I ran some comps on my neighbor's home, and found that they are close enough to the payoff amount to possibly avoid a messy short sale. It will be close, but I think I can make it happen. I ran over to tell them the good news, and watched as their shoulders sunk, and realized that their initial investment of $180k had just gone down the drain.
It's a very difficult time for some really great people. The sense of uncertainty is really hard to deal with sometimes. I can tell that home prices have stabilized, and are creeping up. I get a feeling that the job market will loosen up next. It will be a slow recovery, but hopefully we'll all be a lot wiser when it's over.
I'll miss my neighbors!
The Rookie
We finally moved in December of '07, one week before Christmas. Only two other neighbors had moved in, and most of the remaining twelve houses were under construction. Finally, about 4 months later, the rest of the neighbors moved in, all on the same weekend. It was cool...like, instant neighborhood.
We were really lucky. Moving in together allowed us to meet each other and become friends. We've had great block parties, a lot of fun times, and the comfort of knowing that the neighborhood was safe.
We also believed, but never said openly, that we would all be neighbors for life. We had bought after the peak; after the bad loan era, and could afford to own our homes. Right down the street, in the next block, people in phase one were already losing their homes to foreclosure, having bought at the peak of the market, with ARM's.
During the last block party, I noticed a difference. Everyone seemed subdued, or didn't come to the party at all. One of the original neighbors spoke openly about walking away from their home. Another discussed the impending loss of work hours, and the distinct possibility that his wife was going to lose her job. It was an eye opener.
Since that time, perhaps six months, my next door neighbor walked away from his home. On the opposite side of my house, I am working on a listing agreement with the other neighbor. Unfortunately, through job loss and company transfer, they can no longer stay in their home, and must sell within the month, even though, under normal circumstances, they could easily afford their mortgage.
I think that most people look at this housing disaster as something only affecting those folks who commited to too much home, and extremely poor financing. But things have changed. The trickle down effect, has caused layoffs, and is forcing responsible home buyer's from their homes. Terrible!
I ran some comps on my neighbor's home, and found that they are close enough to the payoff amount to possibly avoid a messy short sale. It will be close, but I think I can make it happen. I ran over to tell them the good news, and watched as their shoulders sunk, and realized that their initial investment of $180k had just gone down the drain.
It's a very difficult time for some really great people. The sense of uncertainty is really hard to deal with sometimes. I can tell that home prices have stabilized, and are creeping up. I get a feeling that the job market will loosen up next. It will be a slow recovery, but hopefully we'll all be a lot wiser when it's over.
I'll miss my neighbors!
The Rookie
Monday, June 7, 2010
Being Unavailable
My first six months in the business turned out to be a real learning experience. I was cramming in 4 open houses a weekend, trying to secure a few clients, and was having no luck.
One afternoon, my wife stopped by to bring me some coffee. She watched me work with a few guests, and noticed that I was telling each that I was "available anytime" they needed someone to assist them. When I returned home my wife asked me if I thought that a real millionaire agent would actually be available all the time. She told me that my obvious availability was sending out signals that I was a rookie.
The next weekend I told people that I would try to fit them into my schedule, if possible. I skimmed through my appointment book; the one with no appointments. I told them to call me sometime the following week.
That Monday I received three calls, and eventually closed my first two deals. Crazy advice, but right on the money. Have never forgot it, and tell myself daily that I'm a rich agent with very little time. Well...at least the time part is true!!
The Rookie
One afternoon, my wife stopped by to bring me some coffee. She watched me work with a few guests, and noticed that I was telling each that I was "available anytime" they needed someone to assist them. When I returned home my wife asked me if I thought that a real millionaire agent would actually be available all the time. She told me that my obvious availability was sending out signals that I was a rookie.
The next weekend I told people that I would try to fit them into my schedule, if possible. I skimmed through my appointment book; the one with no appointments. I told them to call me sometime the following week.
That Monday I received three calls, and eventually closed my first two deals. Crazy advice, but right on the money. Have never forgot it, and tell myself daily that I'm a rich agent with very little time. Well...at least the time part is true!!
The Rookie
Sunday, June 6, 2010
Working Overtime
This is a tough time to be a new realtor; no doubt. I started with the knowledge that it was going to be a struggle, since this particular market was so depressed. I have to say that it is almost exactly as I anticipated.
My goal was to establish myself during a down cycle so that when it turned I would have a leg up on those that want to jump in and take advantage of the improving market. The problem is, holding on until things improve. I've often thought about getting out, but never very seriously. Each time I do, I just get busier, and try a little harder.
Last week I decided that I needed a little financial security, so I took a part-time job, three days a week, to help cover expenses. I felt kind of badly when I told my 18 year old son that I had landed a job with secure hourly income, because he started shouting for joy. I realized that he had been stressing for years over my working full-commission jobs; never knowing how much the next check was going to be, or when it might come.
I'm going to make this work! I'm going to be a success! Nothing is going to stop me!
The Rookie
My goal was to establish myself during a down cycle so that when it turned I would have a leg up on those that want to jump in and take advantage of the improving market. The problem is, holding on until things improve. I've often thought about getting out, but never very seriously. Each time I do, I just get busier, and try a little harder.
Last week I decided that I needed a little financial security, so I took a part-time job, three days a week, to help cover expenses. I felt kind of badly when I told my 18 year old son that I had landed a job with secure hourly income, because he started shouting for joy. I realized that he had been stressing for years over my working full-commission jobs; never knowing how much the next check was going to be, or when it might come.
I'm going to make this work! I'm going to be a success! Nothing is going to stop me!
The Rookie
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