C J Johnson's Blog

DREAM BIG OR DON'T DREAM AT ALL

2008-08-20T09:22:38Z

That has been my motto for many years and it has worked once again. A few months ago I logged on to our NAR site to take a look around for news and announcements. A message popped up that said "today is the last dayto submit a proposal to speak at the NAR Convention in November". This was the Universe hitting me over the head once again. So I typed up a proposal and off it went. Low and behold a few months later I received an email from NAR as follows:

"CONGRATULATIONS YOUR PROPOSAL HAS BEEN ACCEPTED AND WE HAVE SCHEDULED YOU AS ONE OF OUR SPEAKERS AT THE NAR CONFERENCE IN ORLANDO FLORIDA NOVEMBER 9TH, 2008"

I had a dream 5 years ago and began designing some workshops for my fellow REALTORS and jumped right in head first (which is my style just ask anyone) with the Dream that I would someday become a speaker and National Real Estate Trainer. So here we are 5 years later and lookie here, I did it!

If any of you out there in AR Land are going to be at the conference on November 9th, 2008 I will be delivering my "SHOWN BY APPOINTMENT ONLY-HOW TO LIST BUYERS" introduction course from 11:30 to 1:00 and the location should be on the NAR site in the next few days. It would be great to meet some of you that I have shared thoughts, rants, comments, and opinions with over my experience in the RAIN.

So KEEP DREAMING....I sure will.

DIRTY PICTURES...NO IT'S NOT WHAT YOU ARE THINKING

2008-07-06T19:15:18Z

YOU COULD HAVE BLOWN ME OVER WITH A FEATHER:

I just received a photo from a fellow REALTOR that I admire very much asking for my feedback on his new $2.4 Million Dollar listing and you could have blown me over with a feather. He send a shot of the yard that needed a Gardener in the worst way, a shot of the dated interior of the house which could have been helped immensely with a few gallons of interior paint, and worst of all a shot of a half filled pool/spa that was 1/4 filled with brown dirty water.

I see this over and over again. Doesn't matter what the price is but at 2.4 Million if the seller would not pay to do it I would have shelled out a few bucks (with a 1 year contract) to have it done on my dime and made arrangements with the seller to reimburse me at the close of escrow. How can you expect to sell a dirty house, garden, pool, etc? Especially in this competitive market. Even if the price is a huge discount buyers will expect even deeper discounts on dirty smelly properties. Remember the old saying "IF YOU CAN SMELL IT YOU CAN'T SELL IT"....well?

So if you insist on taking listings in this condition then at least have the common sense to not use photos of dirty homes filled with clutter and trash. I am seeing this over and over again on REO listings and I think it borders on violating your sellers trust. My REO clients always pay for trash outs and initial cleaning. My REO's are selling like hotcakes while others are sitting and expiring, wonder why? I wait to take the photos until after the cleaning crew leaves. If a seller will not pay to replace the carpet or paint I have the crew take down all the window coverings, have the carpets cleaned and deodorized with scented baking soda, and have the kitchens and baths scrubbed down with a bleaching product to kill odor and eliminate mildew. Even the rottenest of my listings (and I have several) are selling because I took the time to have them smell better. Here's a great tip...buy Fabreze in bulk carry it in your trunk and spray the carpets every week when you go to check on your houses. Especially helpful when the houses are closed up and get no air circulation. I have one house that even cleaning would not help so I took photos that painted the property in its best light. We got multiple offers last week and sold it at 98% of the asking price. Ok someone will say that was misleading but we explained the true condition of the property to all prospective buyers. My point is that if you continue to use ugly duckling photos you won't even get the call to elaborate.

I am certain that all my home staging friends agree that even if you are on a limited budget a broom, mop, sponge, some large trash bags, and a little elbow grease would help even the worst homes look 100% better . Flash people....the .99 Cent Store sells these items for .99 Cents. Every seller and agent can afford clean.

THANKS BUT NO THANKS

2008-05-10T17:43:31Z

I almost could not believe my eyes when I received a referral request from an AR agent about 10 minutes ago that spent almost three paragraphs explaining his distaste for how we do business and how he felt he was going to control a listing that was three counties and over 3 hours from his office. He was not avialable to be bothered to show the property, did not have it listed in the subject properties local MLS, did not have access to local disclosures, but was willing to throw a few crumbs at the agent that would have access to the comps, show the property, answer all the buyers a questions, and be liable for all the local disclosures. WOW what a deal...where do I sign?

In Calfornia there is a push for a Statewide MLS and the opponents use this kind of scenario to point out why it is a horrible idea. How can an agent that is 3 hours from a property do the seller a proper fiduciary agency duty? If you they can not even be "bothered" to show the house to a prospective buyer let alone place the property in front of the most likely cooperating brokers in the local MLS.

He went on to say that this was an over $600,000 listing and even if he only made half the commission he stood to make somewhere in the area of $12,000 to $18,000 but was not willing to spend $500 to $1,000 to join the local MLS and maybe another $100 for a local keysafe for the area agents access.

I list many REO properties and try to stay within 60 minutes from my offices. That means that I must join and maintain monthly dues for over 7 different MLS systems, have 3 different models of incompatable keysafes, 3 different card/key/programmer access devices, 4 different computer programs to learn, but still I do all this to properly service my listings which are far less than $600K. I look at this as a cost of doing business and if I could not or would not be avialable for these expenses or have the inclination to learn the local municipalities, do all the propery disclosure research, or list the property with the sellers best interest at heart I would simply refer the propery to someone who could and would.

THANKS BUT NO THANKS FELLA I FOR ONE DO NOT NEED OR WANT YOUR REFERRAL.

What's An REO Agent To Do?

2008-04-29T11:44:12Z

You worked long and hard to prepare the proper resume and the materials to submit to the 100's of REO Asset Managers out there and then it comes....YOU JUST LANDED AN REO ACCOUNT. Sounds like easy money doesn't it? Not so fast my friend. Some of these folks are paid a whopping $10.00 an hour and have never spent two minutes in the Real Estate business and are now in control of your destiny. Here are some of the challenges to working REO portfolios in today's market.

Asset Managers that will not list at your recommended price due to some crazy formula the investor derives from what was previously owed on the property or what they paid at their own auction. Now you have an overpriced turkey that will require countless hours of paperwork and visits to the property and will be given to someone else when it does not sell.
Free property management. You will do all the coordination of contractors from rekey to rehab at your own expense and wait 30 to 60 days to get reimbursed only to find out that they LOSTthe invoice and you must wait until the next billing cycle to get paid. I know REO agents that have THOUSANDS of DOLLARS of their money on the street right now and what happens if that company goes belly up just like the sub-prime lenders.
Many companies will give you listings only to take them away and give them to an Auction Company with the threat that if you do not participate they will not give you anymore listings.
Several municipalities are now fining the listing agent if the property is not maintained to some standard that they set for us but not for open market transactions. In Bakersfield California today they announced a $1000.00 per day fine for foreclosure property that they will decide the care level on and when they do not fine the seller/owner they fine the LISTING AGENT. Lancaster California now requires all listing agents to register their vacant REO properties with the city for a fee of $105 each which they keep as a revenue stream and then they can send their code enforcement folks over weekly to fine you if they don't like what they see and start a fine schedule until you are in compliance with their standards of cared.
Often it is more important for them to have their Monthly Report on unsold inventory than it is to actually close an escrow that has been delayed for one more piece of paper that they lost in the system and you are still waiting for a paycheck 90 days later.
There are way too many cooks in the kitchen. On average there is at least 8 people between myself and the lender/investor who manager to loose paperwork on a regular basis and if they use their electronic delivery systems look out you have no paper trail to show what you did and you will not do it all over again, and again, and again.
You will do much redundant work because they change their systems on a daily basis and their tedious reporting systems will ask you for reports and updates that are duplicates, and beyond.
There is no rhyme or reason to their proceedures and they change from file to file.
It may take an extraordinary long time to get an offer through and the buyer will not wait it out in many cases.
Most REO agents are handling 100's of listings and are so overwhelmed that they can't or won't return a buyers agents phone calls let alone respond to the low ball offer the buyer wants an answer on TODAY!
You may be making enemy's of your fellow professionals on the other side of your deals when your Asset Professionals can't or won't cooperate with mandated disclosures and paperwork that they need for their file to get paid or stay in compliance with the law.
Asset companies in different time zones will have you working a 14 hour day M-F and then you need the weekend to show property to potential buyers so when and where is your day off?

So what's an REO Agent To Do? Well perhaps we should stand shoulder to shoulder with other cooperating REO agents and make some noise in OUR industry instead of competing for these so called magic accounts. We have turned into a bunch of frightened rabbits just to get listings that cost us time, money, exposure, and all for what? A chance at that big REO account that will save our business. Do the math guys and gals you are probably making about $5.00 an hour working for these guys and the stress level is enormous. Most of these properties are not in Beverly Hills and the commission is quite low in comparison to the work you perform. If you want to put this into your business module you need to consider the consequences and your work vs reward. It can be a windfall for some but most agents I know do not have the systems or tools in place to do it properly and they burn out quickly. Remember that it is still on average only 30-40% of most pending sale business so maybe it is time to concentrate on the other 60-70% in the open market.

Certified Foreclosures/Short Sale Specialist...NOT!

2008-03-01T16:43:37Z

"CERTIFIED" my foot! I am sure you have all seen them or worse like many have you have paid thousands of dollars for this latest in real estate training scams. There is no such designation or certification at the National, State, or Lender level that I can locate. Anyone can put some letters together, add a trade mark and call themselves a "Certified" anything. This does not mean a hoot or a holler to the lenders or asset managers that actually assign REO properties to agents and brokers.

Here is the latest pitch.

Dear REALTOR are you hungry? Want to become a millionaire overnight? Take our 2 to 10 day course (which is usually priced somewhere between $1,200 and $3,900) and we will turn you into an REO machine.

They are chasing your money all the way to the bank.

Some suggestions to ask these so called trainers might be:

Are you CURRENTLYselling REO's?
Have you ever sold REO's?
Can you GUARANTEE me REO listings?
Who makes up the "Certification"?
What will the "Certification" do that I can not do by myself?

My bad; I recently attended one of these 2 day events and forked over $397 for a training manual that was filled with poorly xeroxed notes and trustee deeds, sample copies of CAR forms available to any member free on line, and triple spaced filler material. I spend two days away from my office, paid for a hotel room, drove over 2 hours in each direction at $3.50 a gallon, and all I got for my money was a lecture from some so called expert that spent one half of the first day telling me about the difference between a recourse and a non recourse loan so I could circle the poor defaulted seller like a vulture to try to talk him/her into listing with me before the big thug GUIDO came calling from the bank to take their home away.

I am all for training and learning new methods to make a living selling real estate. What I can not tolerate is the late night get rich quick mentality that fuels these programs. Have you ever laughed at someone that has bought a NO MONEY DOWN real estate program off TV? Well don't be too quick to judge you are falling for the same technique when you buy into these programs. There are many trainers out there that are legitimate. They will not charge you for "Certificates" that do not exist. Choose wisely my friends!

SHORT SALE OR COME ON..You Decide

2008-02-09T08:35:12Z

Is it really a short sale or are you just another Snake Oil Salesman?

Is it just me or are you tired of under-priced listings (which BTW are against our code of ethics) that are clouding the true value of a neighborhood? Many agents have turned to the practice of pricing a home where they know the property is not going to sell, or get short sale approval, at the much below market price they put on the listing. This practice of pricing way below market value to get multiple phone calls from REALTOR.com and other advertising venues is an attempt to bait the buyer in and simply sell them something else.

Why are there different rules for different situations? The model rules of MLS clearly state that we can not make conditional offers of compensation yet they allow shot sale agents to list property as 50/50 of whatever the bank says they will accept at the close of escrow. NOT FAIR! This is bait and switch at it's finest. If you offer me a compensation to show and sell your property I want to be assured that I will not waste my time and effort to be discounted in the end.

We should all ask our local MLS's to reconsider using a different set of rules for different scenarios. We should not have to compete with ourselves on different terms. The consumers that place their listings and their future in our hands deserve better treatment. They are already competing with REO's, builders with incentives that they can not offer ie: upgrades at 300% profit, and now we add under-priced inventory with no guarantee of success. UNFAIR & UNETHICAL! We need to let our local MLS Boards know that this is not acceptable and that we want our rules applied equally to all listings. One answer is to have a flat fee that the listing firm will pay and if they wish to pay a bonus great if not they get to keep the rest. At least this way I go into the transaction knowing what my pay off is at the closing table.

P.S. I just found this neat conversion tool and am trying out the watermark version. If you want to convert wmf to jpg and more check out Image Converter Plus it is pretty cool.

THE TRUE COST OF DOING BUSINESS

2007-12-28T12:30:28Z

Earlier today I placed a New Years Resolution post and got a really eye opening comment from Al Maxwell that said he thinks $3,000.00 a month in expenses is over the top. That brought up a good second subject.

What is your true cost of doing business? As we all get prepared to do our taxes again we should look at this very closely. Rent or Split to the firm (or your own if you are an independent). Marketing materials (color flyers, lockboxes, signs, sign posts, just listed cards & postage, caravan drawings or food to bribe agents to come see the house, newspaper ads, color homes magazine ads, etc. If you take 10 listings a quarter and don't spend at least $400.00 per listing you are probably not going to get much in the way of income from those listings. Annual Membership dues and fees to National, State, Local, REALTOR organizations. MLS' dues and fees. We do not have a Statewide MLS so I am forced to join an pay 6 different MLS's just to do business in a 60 mile radius of my office. Now let's not forget car payments, insurance, gas, oil changes, tires, and car washes. Telecommunications bills, cellular, text, instant messages, and the cost to upgrade your phone almost every two years. How's your computer running? Need a new one about every two to three years to keep up. Not to mention all the new software to make our lives so much easier! How about designation course and continuing education. I am sure I am leaving out quite a bit. Anyone have any other they would like to ad?

So you see Al it is not what you make each year, which is what everyone will be putting in their ads next week to show how many millions of dollars in sales volume they did in 2007, but it is how much you spend to make it that truly effects the bottom line.

HOW DO YOU GET TO CARNEGIE HALL?

2007-11-16T10:06:52Z

HOW DO YOU GET TO CARNEGIE HALL? PRACTICE, PRACTICE, PRACTICE.

Real estate as a career, what a concept. The gurus of real estate are now saying that 20-30% of the agents currently in the business will not renew their license next year. WHAT A SHAME. The market is not flat it is just different. Agents can no longer be order takers that go to the office and wait for the phone to ring or for the next walk in buyer or seller. Investing in your future in real estate does not mean buying calendars or other promotional give aways it means going out and hocking the farm if necessary to pay for, and follow, a trainer or coach or both. No professional athlete got there on their own. They trained and did the basics over and over again. Every musician I know practices their instrument daily to prepare for their performances.

The key to the above statement is the follow up. Going to a seminar or buying a program and then not following it is simply not good business. I have trained over 4000 real estate agents and brokers over the last 5 years and I guarantee that less than 1% ever did 1% of what they learned.

I am in a big REO market. I was one of the top REO agents in my area from 1990 to 1999. I tell you this because last month I bought a program on line from a new trainer and then I followed it for just one month and my business soared. Was it such a great program? NO, it was a good program. The difference was that I followed it from the beginning to end exactly as written. Sure I knew alot of the material already but the big AH-HA here is that I dropped my ego at the door and followed the program 100%.

Like any other career you must invest in your business. So here's my thought for the day. Go out and find a seminar/workshop/on line program, or coach, and follow it 100% for just 30 days. I will guarantee you results.

DON'T SLAM THE COMPETITION

2007-11-08T09:01:40Z

I just commented on an AR blog that compared business models by slamming their "discount" competitor. This is a major problem in our business. First, it may be a viloation of the Anti Trust laws regarding group boycotts. Second, it is a violation of our code of ethics. We are not to make false statements about our competition. If you have never worked for a particular company how do you KNOW what it is they do and don't do? I made the point to the author of that blog that Nordstroms does not slam Walmart in their ads they simply expand on their superior customer service and quality of merchandise. Also, a Mercedes is a car and so is a KIA they both get you to the store. the ride is just a bit different. On the other hand you don't see the reverse in their ads either. Hybrid makers do not take out ads saying the HUMMERS will make you go broke at the gas pump they simply state the obvious advantages to their product.

Poor quality customer service can be found in every business model. I know many "full-service" firms that have agents that do not do a very good job. The also put up a sign, throw the propety in MLS, make a flyer, and are never seen or heard from again. I do not make a point of slamming them either. Instead I simply inform my clients of what I do, not what my competition does not do to help sell their home.

The Department of Justice is the number one threat to our business right now. Please do not help them build a case against our profession by practicing this way. It's bad for our industry and it's bad for your business too!

GOING ONCE, GOING TWICE, SOLD...HOW TO OVERPAY FOR A PROPERTY

2007-11-05T11:10:51Z

OK so now Auctionis the new rage in buying property. I just saw a story on the morning news cast about how many buyers are getting great deals at auctions. Well here is my personal experience from last week. I attended an auction for some land owned by ENRON. First, the auction company had three employees that were straigt out of GLEN GARY GLEN ROSS. Hard sell hucksters in cheap suits that got in peoples faces while they were bidding in an attempt to push up the price. Second, the people bidding on the properties did not even understand the process and one gentleman bid what he thought was $6200 for a property when in fact he was bidding $6200 and acre for the property which was over $30,000. Third, some of these "excellent deals" were out in the middle of no where and could not be accessed unless you were air dropped to the location. Last, people must have gotten auction fever because I did not see one property that went out below current market value. Quite the contrary I saw property that went out well over what was avialable in the local MLS which could have been purchased for less through a reputable broker/agent.

Please tell me why the public thinks these are good deals. The hype is that you buy the property at 60% below market value. Really, who's market value would that be? The buyer places a NON REFUNDABLEdeposit and does not even have the opportunity to make inspections or get an appraisal without risking leaving their deposit on the table. The buyer also pays a "premium" or "reserve" of 10% over the final bid price. This is another term for commission and I don't get why DOJ is after us but let's these guys get away with this practice. I can not find one auction that charges less so it sure feels like price fixing to me. Personally I would love to take a buyer out and get paid a 10% commission wouldn't you?

ATTENTION BUYERS real estate agents work for you for free! We get paid by the sellers or the sellers firm not by the buyer in almost 99% of all transactions. Yes it most cases it is worked into the purchase price but it is NOT 10% above and beyond what you pay for the property. So the next time you get AUCTION FEVER please consult a real estate agent or broker first. They can and will save you time and money by telling you things that these hip, slick, and cool characters will not. P.S. Most auction companies are exempt from disclosure so this is truly BUYER BEWARE.

MY ANSWER TO THE SELLER IN SEATTLE FROM TO LIST OR NOT TO LIST BLOG

2007-10-29T00:18:57Z

To the Pilot from Seattle: Interesting that you did not give an email address for my response. So here is my response to you and all who might log on to see it.

I did not "stereotype" sellers. I commented on sellers that do not really have a reason to sell but just want to test the water. This is not the market for that type of seller. Those are the folks that are hurting you and all your friends and neighbors that NEED to sell because of job transfers, family illness, retirement to downsize, etc. These are the people who tell their agents things like "I want to sell but I'm not going to give it away", and "Let's start higher we can always come down", and "The buyers can always make a lower offer". All of this skews the numbers for YOU! In the current climate when I work with a buyer that sees homes selling for 70-80% of the original asking price they feel that all homes should take that kind of a hit. Ergo the lowballer buyer offers with all those conditions you mentioned in your recent experience.

As for you assertion that agents over priced homes in the SELLERS MARKET I beg to differ. The sellers always have the final say as to the price by law. Not one of my sellers that got multiple offers at over the asking price said OH NO THAT'S NOT FAIR TO THE POOR BUYER lets just sell it lower. When buyers in that market had a home inspection and requested a repair the sellers response was no way. Then they would try to get rid of them as quickly as possible in hopes that someone else would pay more.

Have you told your agent that you are unhappy with her or that you would like a different working relationship? I certainly agree it apprears that you two are not on the same page. I always ask the sellers I represent to work together with me as a team preparing strategies, marketing programs, and the like. We communicate in what ever manner they prefer. Some like calls, some prefer email,some want written reports, and some want to meet in person. I ask for their preference on our first meeting. Did you give your agent your communication preferences? If you truly believe that agents can not assist you in finding the correct asking price you can always PAY an appraiser. By the way they are using the same data as the agent that did the job for FREE. It theirs is a best guess process by definition. They also can not guarantee the correct price. Both professionals use as much information as is avialable and then it is the market that will decide in the long run not any of us, not even the seller.

I am not familiar with the contracts in your area but in California we have several clauses in our contract for buyer performance during their loan process. Blaming agents for a buyers lack of credit worthiness or their right to negotiate terms is a bit silly don't you think. Now answer this next questions honestly. if you were a buyer instead of a seller and read and heard all the media hype the buyers are exposed to today wouldn't you negotiate the best deal you could get? Would it matter to you if someone had to sell their home because they had a job transfer? Would you offer more because their family member was ill? Sorry to burst your bubble but we do not live in that type of world. Both buyers and sellers seem to be looking out for number one and don't give a hoot about the other guys position. Which is why many hire agents to work as a buffer in the first place. I think if more sellers and buyers tried to negotiate with each other instead of using us as the whipping post you might find that it is not the agent that is in the drivers seat at all. We are simply in the middle and often that is a really bad place.

Many sellers are overextended because they had to have it ALL and have it ALL right now. I can tell you that when I go over to someones home that has a brand new SUV, plasma screen TV, kids rooms looking like a toy store blew up in them, the latest electronic gadgets, 100+ HD premium channels, digital recorders, boats, quad runners, RV's and on and on. Then when I listen to them tell me that they are upside down on their house that has more bedrooms than people in the family I hardly loose sleep. Those were the people that I was referring to in the "KITCHEN". I am sure you know a few of them yourself. We all do.

I found your next to last paragraph reprehensible, derogatory, and highly offensive. I am sure my friends that are of Mexican or Korean descent do not appreciate your slurs. I think that perhaps it was the most telling signal of your comments. I am sorry you are so bitter about the whole process. I wish you luck and will say a little prayer for you and your family tonight.

WE ARE DEFINATELY NOT ON THE SAME PAGE

2007-10-28T17:26:04Z

HERE IS A COMMENT FROM A MEMBER OF THE PUBLIC TO MY POST ON TO LIST OR NOT TO LIST.

Glutting the market with overpriced product is not only unintelligent it is unprofessional.

The sellers rely on us to be truthful and professional.

These are the only points I found valid in your post, but then again, I'm a Seller, not your resounding chorus of yea-saying agent-colleagues.

I sold a home and purchased another two years ago during the great "Seller's Market" when ALL agents were encouraging overpricing homes to compensate for lack of inventory and precious little new home construction. The money I made from the sale of my home went to a ridiculous down payment required on the new home. I made next to nada. So much for the average Seller greed(?). What disturbs me the most about your blog is your stereotyping of Sellers. You do it quite handily and with much arrogance. I really don't understand your stereotype. Investment Sellers perhaps? Everyone I know who is selling HAS to sell for reasons other than being overextended. I'm a pilot and am looking at an unexpected job relocation. A friend of mine was unexpectedly laid off, his wife developed terminal cancer, and they have to sell. And you say, "get out of the kitchen?" How absolutely heartless.

All many of us want is to break even and we can't.

Ms Johnson: would you be particularly inspired or motivated to sell when you know you're facing a tremendous financial loss as a result of the transaction? I have no idea what your criteria is for accepting a listing, but it sounds as if you're almost proud of yourself with the pick and choose rant. Your condescending attitude toward Sellers makes it clear why your industry is viewed in about as high regard as used car salesmen.

This blog has been helpful to me nonetheless, because I now know why my high profile agent doesn't want to work too hard for me. She's maxed herself with listings, and I'm just another flash in the pan that she can do with or without. She hasn't done much work that I'm aware of other than put a sign on the lawn, ad in the paper, send me contract faxes and e-mails about home price reductions. The only time she's phoned is when I've had an offer.

She doesn't particularly overprice homes. In fact, the feedback on mine has been overwhelmingly "priced at market value." The market (Seattle) is a crap-shoot right now, and I'm not sure agents even know what price to put on a home. My home is drop dead gorgeous, immaculate and always in show condition. BUT, I have a whole lot of competition, and I do want to keep my shirt. The home is now under second contract -- a VA Buyer who wants the house zero down, and basically my soul with it. The first Buyer was worse, and his funding failed. Speaking of exiting kitchens, how about slinging that mud in the direction of dead beat Buyers who have crap credit and no money and think they're at a Mexican or Korean market when they're making a bid on my home?

You speak of truth and professionalism, but agents and clients are not on the same page regarding meaning of those words. Again, enlightening blog. Many thanks.

CAN'T WE ALL JUST GET ALONG?

2007-10-28T12:48:54Z

I have been reading a lot of AR posts this week that reminded me how much we need each other now more than ever before. From our friends and associates who were in the path of the California Wildfires to the members that are either facing cancer or have family that are facing some illness that turns their attention to what really matters in life. The outpouring of support and concern for each other is inspiring.

But we all still have to make a living to survive too.

What occurred to me while reading all those inspirational AR posts and comments to posts was this, how do you think our business would change if we all treated each other in transactions the way we treat each other when facing personal adversity. Lately I have found that outside our AR support system, where there are over 1.5 Million Realtors and many more licensees, the climate is not as cooperative as it could be. Many desperate agents and brokers are taking the "my client" standpoint to the extreme. They seem to be forgetting that the clients goal is to have a successful transaction. Why do so many fell that fiduciary must translate to adversary? There is a difference between cooperating and competing. If you double end all your transactions all the time you don't need me but if you don't you better think twice about how do business with others. The great trainer Danielle Kennedy has been teaching for years with the philosophy that buyers and sellers come and go but we need to treat each other with respect and kindness to survive in this business.

I know desperate times bring out the worst in some. Another famous statement from the last decade that comes to mind was Rodney Kings' now infamous question "Can't we all just get along?" Seems like such a small thing to ask. Maybe it is time to check our egos at the door. If we concentrated more on getting the transaction from listed to closed instead of who is the number one multi million dollar producer we might just go a bit farther towards becoming true professionals.

Yeah, I know, I'm preaching to the choir here but it makes me feel better.

TO LIST OR NOT TO LIST THAT IS THE QUESTION

2007-10-14T16:36:52Z

I have turned down more listings in the past few months than I have turned down in my entire 18 years in the real estate business. Overpriced under motivated over extended sellers cost time and money. Yes, but here is the rub, sellers in my market area actually believe the hype brought on by many TOP PRODUCER ads that tell them that if you have the most signs and unsold properties you are the most successful agent in town. You know those "MARKET SHARE" propaganda ads that some like to run. What a crock. The top producers in my area are only successful 1 in 12 times on average in their list to sell ratios. Same in most areas around the country right now I suspect. If this was an average success ratio in any other industry we would be fired on the spot.

If we truly wanted to control our own destiny we would tell the consumers the truth. The reason that the market is flat is NOT because of the Sub Prime loan fall out, NOT because of the current under 6.5% Interest Rate, NOTbecause of the lack of affordable housing, and NOTbecause no one can qualify to buy. It is because some numb-skull real estate agents with a bigger than life egos feels that they need to have their name and face all over town.

Here is the irony to all of this. All the brokers in my area are saying "I don't let my agents overprice property" REALLY? Have you looked at your inventory lately? Your office has 80% of their listings overpriced yet you can stand there and look me in the eye and say that they are not? Here's an idea. Take all your listings and do a true CMA. Anything over 5% above the last sold comp is overpriced! Stop looking back over 6 months. Look at the pending sales and nothing else. Those are today's buyers. If a seller is not willing or able to do this then it is time to cut and run. This is not a kiddie ride market. This is an ETICKET ride market. A wise women once said "IF YOU CAN'T TAKE THE HEAT GET OUT OF THE KITCHEN!".

It is time we take back our control of our industry. Glutting the market with overpriced product is not only unintelligent it is unprofessional. We want the public to respect us but we continue to mislead them when we overprice their homes. If I hear one more agent say that they are doing this because the seller is telling them to do this I will scream. The sellers rely on us to be truthful and professional. When you take that overpriced listing you know in your heart and mind has not chance of selling you are helping no one. Most especially the seller.

Call me crazy I still think that one well priced nice showing home is worth all the others combined in today's market. Don't you? If we only took those that were prices right and in good showing condition or priced to reflect the true meaning of Fixer Upper Sold AS-IS then we would all be much more successful in our endeavours, and maybe, just maybe, the public would begin to trust us again.

EXCLUSIVE BUYERS AGENT DEBATE

2007-10-05T13:20:08Z

Well here we go again. I just read about four new blogs with multiple comments about agents not wanting to ask a buyer to sign anything before they took them out to show property. Many comments came from people that thought that "bonding" with a client first was a good idea. Problem number 1 the "client" is not a "client" sans a contract. So many agents say the so called client is resistant to signing the contract. I say rubbish. The agent is resistant to doing any pre screening to find out if this is actually a buyer in the first place. A very wise trainer once said you should always use the ABC method (ALWAYS BE CLOSING) but a much wiser trainer said you can't C them before you A & B them. Imagine if you would going to a sellers home and asking them to sign a contract before you ever told them a thing about yourself and the way you work. Not gonna' happen. Same thing applies with a BBA.

Here are some steps that might help with you walk through this business model.

The initial meeting is a fact finding mission. The buyer gets a complimentary consultation to establish if they want to work with you and vice a versa.
The initial meeting is also a time to present your Buyers Listing Presentation. Everything here from company info, your bio, examples of purchase contracts and disclosures, loan procedures, escrow or closing procedures, etc. Many old jaded agents have said that "BUYERS ARE LIARS" . No they are not most are just confused as to how we work and get paid.
The initial meeting is also the time to ask many questions. Will you be paying all cash or will you need assistance in locating financing? Do you need to sell your current home first? What are you looking for in a home? What are you looking for in an agent? How soon would you like to move? How have you been looking for property so far? Have you been working with any other agents? (this is required under our NAR Code of ethics and further to this question) Are you currently under contract with any other firms? There are many other questions that you will probably ask and answer as well.
May I take you through the home buying process and introduce you to the paperwork now so that when we find your new home you will not be under stress to sign documents you don't understand or have not had time to read. This is HUGE. Most problems in my experience of over 700 escrows has been that someone did not understand their rights or responsibilities in a transaction.
How would you like me to communicate with you? Email, phone, fax, in person, etc.
Have you had any bad experiences in a prior transaction? Also HUGE. Have you ever met a man or woman that is fresh out of a bad divorce? They are usually wounded and angry. Same goes for people fresh out of a bad real estate experience.
What is the buyers take on the current market. Establish up front their expectations and see if it is realistic or are they going to make everyone angry by writing low ball offers and wasting everyones time.
Pre approval process for a loan explained and contact made with a lender. Non qualified buyers are the most motivated and nicest people in the world!
AND ON AND ON AND ON...You decide what goes into this initial meeting.

You see fellow real estate professionals in this scenario we are now working as a true buyers agent. Not just looking out for number 1 and trying to slam someone into the car, drive them around at $3.00 a gallon, and then loose them to an agent at the Sunday open house the only day you were not available. This is not only a disservice to you it is a disservice to the buyer too. No one wants to be pressured or sold. Everyone just wants to have their expectations met so why not take a few minutes to establish what the working relations will be for you and the buyer. If you did not even explain what your expectations were so how can you expect people to act a certain way and then become disappointed when they fail to do what you never explained to them in the first place.

I have been practicing Buyers Agency since 1992. Very few people will not sign the agreement when I take the time and professionalism to present it properly. Those that do not want to sign after I explain the process can pay me an hourly "preview fee". I pay for my car, insurance, gas, MLS dues, Association fees, lockbox access, key cards, (some of you pay desk rent) pay for my cell phone, web site, advertising, and do all the research all to accommodate and educate my buyers as to the market and available properties. None of this is free and should not be given away easily and without certainty of compensation. I work a repeat and referral business of almost 85% and each and every one of my buyers signs the contract or pays the preview fee. Only one person in all these years was offended by the process. Turns out he was going to call every agent in town to get access to property and then use his Aunt Edna to write up the offer because she was going to kick back 3/4 of her commission!

Go ask your doctor, lawyer, CPA, or any other professional to give you an entire day (or more) of their time for free and see how far that gets you. However they might give you a short consultation at no charge to get your business. Thats what I am proposing to you here. If you want to be treated with respect and be treated as a professional then you need to act like one.

I CAN NOT WAIT TO SEE AND READ ALL YOUR COMMENTS ON THIS BLOG ENTRY.

FALL IS IN THE AIR, MY HOME IS ON MY MIND, AND IN MY HEART

2007-10-03T14:36:12Z

With all the negative publicity lately about the housing market "boom to bust" scenarios and the sub prime lending collapse with its multiple foreclosures throughout the country I think we may have lost sight of what homeownership is all about. Owning a home was not meant to be a get rich quick scheme. It was meant to be a place to feel secure in an unsecure world. It was meant as a safe place to raise our children and grandchildren. It was meant to be ours for the long haul.

When you ask the average person why they want to own a home they usually reply that they like the security of owning their own home. No one can tell them what color to paint their walls. There is never the worry about having to move out because the landlord wants to sell the home or move in a family member. But most of all it is a place to raise a family and build lasting memories.

The holidays are right around the corner. This is the time of year I cherish my home the most. Family and friends visit. Kids and grandkids laugh, sing, and play in the yard. We all eat too much and some fall asleep watching the game. Holiday decorations come out of storage. Yards are covered with fallen leaves and in some cases snow. I pull out the old photo albums showing my grandchildren all that came before them and are no longer with us as we celebrate the season.

Perhaps as real estate professionals we need to refocus our clients back to the true meaning of owning a home. Home prices will go up and down but found memories of owning our own home are here to stay

Whining or Working

2007-09-16T11:09:50Z

There is an old saying "that you can never go home again". Well yesterday I did just that. I attended a Picnic thrown by my previous Board of REALTORS in Ventura County, California where I practiced real estate for 16 years. I now live in a small town about 2 & 1/2 hours north east in Tehachapi, California. Many of my old friends and associates were there and we caught up and chatted about things that were important to us in our businesses and our lives. I had taught several classes at that association as a trainer. Many agents wanted to talk to me about the how the "bad market" was effecting their businesses. Some were surprised when I asked them to review their appointment book for the last 30 days to see if they were WHINING or WORKING. Most admitted that they had fallen into the media trap of stressed and depressed real estate agents that could not see any upside to their current situation. So I suggested that they step back and take a long look at the positives that this market has to offer.

Less competition from part time agents that never intended to make this a professional career.
More professional agents on the other side of your transactions will make your job much easier.
Better ethical behavior=less frustration and angry public perception of your profession.
Brokers and managers will take more time with agents.
More time for you to get additional training to improve the quality of your work.
Sellers that will listen to your professional advise and not think you are in this just for a quick buck.
Quality time with your friends and family now that you are not in the office til midnight and beyond.

Three years ago I opened my real estate company named Silver Lining Productions. I truly believe that there is a Silver Lining in each and every cloud. Our business will always be a roller coaster ride. Sometimes it is chugging upward, sometimes it is plummeting down at a high rate of speed. So how do you survive in this market? Well one way is to stop WHINING and start WORKING. Take out your appointment book and do a hard look true evaluation of how you spent your last 30 days. Were you in the office playing can you bottom this with other agents? Did you even go to the office? Did you do anything proactive that actually related to finding a motivated seller, or did you just throw up signs to have them in the ground so it looked like you were working only to later complain to everyone that would listen about how your ad budget was killing your savings account. Did you think outside box for even a minute?

Here's a some suggestions that might help. If builders in your area are like the ones in mine they are offering high compensation and many bonuses to you to sell their inventories. Become a NEW HOMES SPECIALIST. This can be accomplished by simply visiting the sales office, picking up their beautiful expensive brochures, getting a list of their standing inventory, talking with the sales associate about future phase releases, finding out what incentives are being offered, and calling once a week to find get availability and price information from the sales staff. Prepare a NEW HOMES book with all this information. Now you are a NEW HOMES SPECIALIST. You can advertise your services as such. You can work with buyers that need to sell their homes to buy a new home. You can show buyers some homes that are maybe only a few years old that would be better buys based on the upgrades, larger SFT, landscaping improvements, etc. Attend planning meetings. Get a copy of your market areas general plan so that you can speak intelligently about the future of the area. Bonuses include, being seen by many people while you are doing your research and talking with them about real estate, meeting the sales people in the models may lead to other business, getting out and feeling like you are actually doing something productive, last but not least you are no longer WHINING you are now back out in the field WORKING.

This is just one of many out side the box things you can do in a down market. Let's hear from those out there in AR land that have thought of ways to make this market work for them instead of against them.

BIG BROTHER IS WATCHING

2007-09-02T11:26:27Z

I just read Aaron Gordon's blog about an agent that actually thought it was OK to ask for a referral fee from his mortgage broker. My suggestion is to turn this clown in to HUD. As Aaron pointed out this activity a direct violation of section 8 of RESPA.

Many new agents may not be aware of the actual wording of this section so I thought it barred repeating to keep you out of harms way. Here is the verbiage directly from www.hud.gov. Please note that the first offense is punishable with a $10,000 FINE AND IMPRISONMENT FOR UP TO ONE YEAR. These guys are not fooling around. This is a FEDERAL OFFENSE.

RESPA'S statutes explained: consumer protections and prohibited practices

Section 8: kickbacks, fee-splitting, unearned fees

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Violationsof Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit a person who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service.

A good rule of thumb is as follows: "take nothing of value from anyone". Not Title, Escrow, Inspectors, Lenders, Contractors, Warranty Companies, Hazard Companies, etc. In California a few years ago KINKOS went so far as to threaten to turn Title Companies in to HUD for making flyers on behalf of REALTORS stating Section 8. Many agents still have Title Companies printing and mailing post cards on their behalf. This is considered a direct violation. Many agents have web sites provided by a Title or Mortgage company. This is considered a direct violation. A major brand name company was recently fined MILLIONS of dollars for having an affiliated service provider pre-printed into their contracts and there was added violations as they had an ownership interest that was not disclosed either.

Who do you think takes the time to turn violators in? Their competition. It is easy to eliminate a competitor that is doing business sideways. The only taint our good name and take food off our table. I for one want these people out of our business.

WE LOST ONE OF OUR OWN TODAY

2007-08-31T16:40:21Z

I just received an email telling me that one of my fellow REALTOR friends had just passed away suddenly. I was having a pretty good day running around taking photos of my new listings, putting up lock boxes, making flyers, etc. When I checked my email and found that message I stopped in my tracks. I simply wanted to clear the decks and reflected on our time together. He was funny and a really hard worker. He loved real estate and felt it was a great business because he truly liked working with people. Larry even loved the challenges of a new market. Once he drove over 2 and 1/2 hours in each direction just to sit down with me face to face to discuss a new marketing plan he wanted to try out. He will surely be missed by all who knew him.

This photo is one that I keep just because it makes me feel better at times like this I hope it does the same for you.

In Larry's memory I wanted to ask all who read this today to stop for a moment and do a few things:

COUNT YOUR BLESSINGS
HUG YOUR CHILDREN
CALL YOUR PARENTS
SAY A LITTLE PRAYER FOR LARRY AND WISH HIM A SAFE JOURNEY

WHO ARE YOU READING?

2007-08-30T08:35:52Z

When I was new in the real estate business my mentor took me by the hand and asked me "who are you reading?" I did not have a clue what he meant. He explained to me that my success in the real estate field would be tied to what I learned and who I learned it from. So off I went to find a direction in which to steer my career. I attended seminars with Tommy Hopkins, Mike Ferry, Brian Buffini, Floyd Wickman, Howard Brittan, Daniel Kennedy and many other fabulous real estate trainers and recommend them all to you if you ever have the opportunity to see them. What I did not understand back then (18 years ago) was that I needed to look at material outside our industry for additional guidance and information on how to work in our profession and in life. So again off I went and found Brian Tracy, Tony Robbins, Steven Covey, and many others. Now I have been introduced to Jack Canfield. Low and behold "when the student is ready the teacher will be revealed". I have just finished THE SUCCESS PRINCIPLES and re-read CHICKEN SOUP FOR THE SOUL and THE SECRET, THE WORLD IS FLAT, DONNIE DEUTSCH, and 5 LESSONS A MILLIONAIRE TAUGHT ME. In less than 30 days I have gone from unhappy and broke blaming the market for my lack of success to listing over 2 Million dollars of saleable listings and an amazing 700K in open escrows , a better relationship with my husband, and I am having a great time in the business again. What a turn around and wow it came quickly too!

WHO ARE YOU READING? I WOULD LOVE TO HEAR FROM YOU.

Let's get a chain going to see what recommendations you all have. Books, audio, seminars, coaching, etc. We can all benefit from learning what is working out there in this interesting market that improves our businesses and our lives.

ARE WE ALL CHICKEN?

2007-08-25T09:06:52Z

Are we all chicken? I just read a rant from Marlene in Orange County about the lack of professionalism that is appears to be pervasive in our industry. Some of the comments on that blog included complaints that should be turned in to the MLS or Professional Standards Grievance Committees for disciplinary action. We are a self policing industry. If you are afraid to file a complaint or feel you just don't have time then perhaps you only have yourself to blame. As a long standing participant of the Professional Standards system I believe in my heart that if we want less competition we should start by turning inthe "Bad" people. In Ventura County the agents and brokers are working hand in hand with the DA's office and have one of the best real estate fraud task forces in the State. If we don't mind the store who will?

In my home community we have a "Commission Alternative" company that opened up. No problem everyone is entitled to their business model, right? Wrong, after a few Internet inquiries I found out that the person posing as an agent does not actually have an active license or a sponsoring broker. What is one to do? Well first we filed a complaint with the DRE, then we called the DA, then we contacted our local police chief to inform him that this individual was entering homes with a business card that had real estate in the company name and was not in fact a licensee. We also had several attorneys from our local brokerage firms write letters asking this individual to stop approaching our listed properties with literature that had violations of our REALTOR trademark and we are turning this individuals materials over to NAR for trademark violations. The point here is to take action. We can not just sit back and complain we must take actions to insure that we protect our clients and ourselves. Here are some suggestions that might help you when you feel there is a violation of the rules or the law.

READ YOUR CODE OF ETHICS
READ YOUR MLS RULES AND REGULATIONS
GET A COPY OF THE CIVIL CODE BOOK
TURN IN A WRITTEN COMPLAINT WHEN APPROPRIATE
CALL YOU LOCAL ASSOCIATION OF REALTORS AND SEE IF THEY HAVE AN OMBUDSMAN
CALL THE CAR LEGAL HOTLINE FOR ADVICE IF IT IS CONTRACTUAL
ASK YOUR BROKER AND YOUR PIERS FOR ADVICE ON HOW TO HANDLE INAPPROPRIATE BEHAVIOR

ALL THE WORLDS A STAGE

2007-08-18T08:01:39Z

Many homes will need a professional "Staging" but most just need your advice as a professional. One of the hardest tasks you may have as a listing agent is to tell a seller to clean up their house. Clutter, toys, dirty clothes, smelly animals, etc. I remember telling one seller that they had really nice things and way to many of them. A portable storage unit or even a month to month rental unit for storage could be the answer. Some homeowners just won't part with their stuff so have them pack it and move it out of their space. The added advantage to this is that it puts the seller in moving mode. It also takes much of the stress out of their move when they do close as they don't need to pack as much all at once. Be cautions though and try to be kind and gentle when giving this advice it is easy to offend. I have taken clients to model homes in the area to show them design ideas. I can then point out freshly painted colored walls, new flooring, uncluttered spaces, curb appeal, and more. Then I remind them that it only needs to be a show place until it sells. While this may be inconvenient at the time it will pay off in the long run when their house sells before their competition and often for more money for their efforts.

HE WHO GIVES BUSINESS GETS BUSINESS

2007-08-17T08:09:55Z

The longer I am in this business the more I am amazed at the big guys that make big mistakes. I just saw that Countrywide has taken a 11.5 Million dollar bail out loan to protect their assets and avoid bankruptcy. Ok so far, but wait, the next sentence said that they will sell their REO's through auctions and not use real estate agents. Well I don't know about you but I certainly will consider that when I assist my clients in looking for a loan in the future. As you all know we have been instructed to give the clients a list of at least three companies for each affiliated service and I for one will remove Countrywide from my list if this continues to be their position. This is a referral business after-all and I for one do ask my affiliates for referrals all the time as they ask me for my business daily and a little reciprocol consideration from them does not seem inappropriate. Don't be afraid. I did check with HUD and this is not a RESPA issue. We are only trading clients not money or referral fees.

If anyone from Countrywide would like to comment we would all like to ready your response.

IT WALKS LIKE A DUCK, IT TALKS LIKE A DUCK, NO WAIT ITS A CHICKEN...OR MAYBE A TURKEY!

2007-08-10T09:25:05Z

Your REALTOR may not be a REALTOR or even a real estate licensee. We recently found a company in Tehachapi that is advertising themselves as the "no commission alternative" to selling your home. Look good to you Mr/Mrs Seller? Their web site shows several clients listings. No wait those properties belong to the so called agent or to a family member. The company must be for real they have half page color ads in the local newspaper and a huge billboard on the Freeway. Well there's just one problem they are working without an employing broker on a suspended real estate license. This could be a violation of the law but more importantly this should be a danger signal to the consumer.

The word REALTOR has become synonymous with real estate licensee. The two are not one in the same. A REALTOR is required to have an active license and must also aspire to a higher level of professionalism by adhering to a code of ethics. There is accountability. If a REALTOR does not operate within the code they can be brought up on disciplinary charges from the public or from their piers. The results can be educational, monetary, or both. You can check to see if the person you are considering hiring is a REALTOR in California at the California Association of REALTORS web site at www.car.org. Before you do business in California with anyone in the real estate community you should go on line and check their license status. Information available includes the broker or company of record that is responsible to monitor their activities, how long they have been licensed, their license status, and if there have ever been any disciplinary complaints. Only about one half of the over 500,000 licensees in California are actually REALTORS. This is not to say that you can not do business with a licensee that is not a REALTOR but you should know who you are dealing with and if they are a Duck, a Chicken, or a Turkey for that matter.

NOTE: The word REALTOR is a registered trademark of the National Association of REALTORS.

What A Day, Hand In There

2007-08-08T00:07:46Z

First you are up, then you are down, and then you are totally confused. Ever had this kind of day in real estate? Happens all the time. How do you cope with all this? Well a wise trainer told me to "tell the truth and don't be attached to the outcome". This has become my mantra over the past 18 years in the business and allows me to remain sane. Today felt like Men are from Mars and Women are from Venus and Buyers are from Neptune and Sellers are from Saturn. Everyone is on a different planet right now. Sellers are in denial over the decline of prices and buyers want to low ball everything they see even when we show them an average of 97% list to sell price on reasonably priced listings. So how do you find a meeting of the minds? Perhaps you simply revert to the "please don't shoot the messenger" scenario. Tell the truth to both sides and let them make the decision. It is their decision after-all. Does the seller really want to sell? Does the buyer really love the home? Well they will work it all out in the end. The last thing that same trainer taught me was the most important lesson in my entire career in real estate and that was simply to SHUT UP and listen. Silence is definitely golden in our profession. The right decision will be made by all parties in the end.

KISS

Keep It Short and Simple

YOUR WERE GIVEN TWO EARS AND ONE MOUTH

Listen twice as much as you speak

YOU CAN NOT BE GRATEFUL AND DEPRESSED AT THE SAME TIME

Before you go to sleep count your blessings and then count them again when you awake