Guy's Blog

Is This YOUR Belief System...Or Our Industry's?

Mon, 07 Apr 2008 18:51:40 -0500

I've recently been reading, and yes, commenting on posts that in some form or fashion relate to "serving" our clients.

Most interesting are the large number of agents who are adamant that they don't deserve time off, that they must work 7 days a week because it's their job...it's what they're required to do in order to service their clients properly. I even saw one agent state the Code of Ethics requires this of them. Huh? Some have even arrogantly stated, "for those who don't want to work weekends, find another line of work" or "for those who think this is a regular job, they should keep their day job." Certainly and interesting take on things.

While I do believe that we should each run our business as we see fit, it is somewhat disturbing to read the statements made about those of us who choose to work full-time in real estate but also have a life...meaning a life like anyone else deserves, free of a 7 day work week. I'm not sure how many of these agents have been in business in excess of a few years, but it seems to me that working 7 days a week will eventually lead to a serious case of burn-out. It also seems that working 7 days a week is not conducive to a strong family unit. Of course I could be wrong but when I look at many agents I meet who are never wiling to let a possible customer/client pass them by, I see some very stressed out folks who may be making money but they sure don't seem all that happy.

In fact, a couple of agents that I'm very close to (formerly 7 day a week agents) realized that there will always be another "buyer or seller" but there won't always be another young child or loving spouse. I'm sure I'll get my head served up on platter for this blasphemy, but isn't it possible to prepare a client to understand that your family is just as important to you as their's is to them? Wouldn't it be fair to explain that you work one, or maybe even two weekends a month, but that the client may have to take off work half a day to see properties. Are there so many unreasonable buyers and sellers out there that they're not happy unless they know you're neglecting your family? I think sometimes we set the wrong expectations and instead of asking questions, we just assume how our client would react. I think it's a matter of communicating in advance how we work and then ask if the client has a problem with it. If they do, is there anything wrong with letting them know that the two of you are just not good fit and that they should continue the interviewing process?

I'm curious as to where the idea came from that the only way an agent can properly service a client is to be available at the drop of a hat, including on weekends, holidays, etc. I'll never forget NAR's commercials that ended by stating something to the effect of, "We're REALTORS...real estate is our life." Apparently it is for many, but for me real estate is not my life....it is a means to have a life. And honestly, I've been pleased with it even without committing all my weekends. Maybe my clients are just more family oriented and therefore more understanding. Clearly there are many agents who have incomes that greatly exceed mine, but I seldom run into one that is more relaxed (although obviously opinionated) than I am. See, there really will always be another buyer or seller, but my son is growing up fast and I don't get a re-do on that, so I'll just stick to living my life and keeping my definition of service rather than allowing other agents or my industry to define what "service" means. My motto is...Don't Be Defined By What You Are, But Instead By Who You Are.

OK, I've put on my thick skin.....so let your comments roll. .

Want To Work In Beautiful Austin, Texas?

Tue, 01 Apr 2008 00:52:45 -0500

For any Austin area agents who are seeking change in their professional lives, we would love to talk with you.

The PowerHouse Group is now seeking qualified agents to join our team and we're even offering a signing bonus to those agents who join us by the end of May, 2008.

1. 90-10 split

2. Initial and advanced training twice a week

3. Signing bonus

Our philosophy is simple. You get to keep more of your money and therefore become more profitable and The PowerHouse Group can earn your loyalty for the long-term.

Allow us a few minutes to talk with you over a cup of java...you just might find The PowerHouse Group has the warm, laid-back Austin feel you're looking for.

Guy E. Gimenez - Broker / Owner

guy@phgbrokers.com

512-731-5613

RACISTS! Yeah, Well You're Fired

Fri, 28 Mar 2008 16:38:20 -0500

Some years back, I listed a property near the lake and explained to the sellers (an African American couple), who were still readying their house for sale, that there was no need to start looking at a replacement home until we had their current home under contract. It was highly improbable that our market (that we were in at that time) would not allow us to locate a seller willing to accept a contingency offer. They agreed and continued to make the improvements to their home that we agreed were necessary prior to marketing.

You guessed it...within 2 days of our conversation the wife found a house she just had to see and "probably" make an offer on. I showed them the house, but again explained that their home was not even on the market yet so there is no chance of another seller accepting a contingency offer. My clients viewed the home, immediately decided I didn't know what I was talking about and advised me they wanted to make an offer. I tried once more to tell them was not a good idea. They demanded I move forward with an offer. Now understand this wasn't just any offer, but a contingency offer that was 20K below list price and in a hot market. I was dumbfounded and told my clients not to hold their breath, then submitted the offer.

I received a call from the listing agent the following morning saying the offer was laughable, at best. I called and left a message for my clients that their offer had been categorically rejected. Within minutes, I received a call from my client while I was in the middle of fueling my car. The husband was absolutely livid and was yelling at me that I didn't present the offer properly and he's not sure I knew what I was doing. I again advised him of our market conditions and my experience, but he railed that there was something that didn't add up here and he thought the seller's rejection of his offer had racial overtones. The buyers and sellers had never met to my knowledge. I told him his assumption was ridiculous and the rejection was based on a clearly unsuitable offer, not skin color. He then yelled at me for a couple more minutes and said he'd be back in touch later to discuss this.

As you can imagine, I knew this had no where to go but south, so I went directly to my home office and processed a listing termination letter. While driving to my client's home, I called my broker to advise him of the situation in case things got worse. I continued directly to my client's home and saw the husband cleaing out the garage. I approached him, shook his hand and told him I was firing him effective immediately. Believe it or not, he couldn't understand why I was upset. He said he wanted to continue working with me. What? I was the idiot he had yelled at only a couple hours previously. I told him there were plenty of agents who needed his business much worse than I, so please contact one of them.

Before I even got home, he had called my broker and complained that I had fired him and couldn't understand why. My broker questioned him for a few minutes and then told him our decision was final and he should locate another office to list his house. My then former client had the nerve to ask if there was another agent in our office who would list his house to which my broker replied that no agent in our office will be working with him.

This business never ceases to amaze me....never a dull moment wouldn't you agree?

How Do You Define Success? A New Beginning?

Mon, 24 Mar 2008 00:26:29 -0500

(A recent post by Jim Crawford-Atlanta Real Estate, inspired me to expand on this topic...I hope you will let me know your thoughts).

How many of you know what success really is? I'm not talking about someone else's definition of success...I mean YOUR definition of success. If not, you're not alone.

Our industry is full of agents, new and old, who are working themselves into an early grave while trying to reach dream that will never be attained. It was not that many years ago that I was guilty of the same offense. I am so glad that I woke up in time to smell the roses before they were placed on my casket.

Too many agents have accepted as fact those perceptions that our industry perpetuates as acceptable, in fact desirable. Money, transactions, notoriety....whatever the drink of the day may be. And yet, even agents who are still experiencing substantial business activity don't seem to be happy. Could it be that our industry perpetuates the myth (or lie) that the more money you make and the more deals you close, the happier you'll be. If money or notoriety is the answer to happiness, why do so many rich and famous people have rooms reserved at rehab centers? Could it be that true success and perceived success are very different animals? I say yes.

Here was my first experience with real estate success. In my first of real estate sales with a national brokerage firm, I was teamed with a "successful" agent who was to mentor me. Successful by industry standards anyway. What I soon found out was that this agent closed lots of transactions, made lots of money and this agent's life was a mess. This agent worked 7 days a week and was grabbing all the floor time/phone duty available. Did it help? Sure it did, afterall this agent closing lots of business and was therefore a success. But consider the life of this successful agent and see if this is what you would hope for. This agent:

1. was on a second marriage which was becomeing a third failed marriage;
2. had two elementary school children who had been kicked out of several schools;
3. smoked like a chimney because it helped this agent handle the stress;
4. consistently spent more money than was coming in;
5. was miserable, though it was important to keep up the facade of success within the office setting.

Keep in mind this agent had a new car, lots of toys and was perceived by other agents in our office as being very successful. I realized quickly that my concept of success did not look at all like this agent.

So the question is this. What is your definition of success. I you don't have one, what is it you're working for? See, in my opinion most agents seem to spend more as they bring home more. They buy more expensive cars, buy a bigger house, buy more toys and take more expensive trips. But I've seen very few that have achieved even a moderate level of true inner peace and happiness. Why because the material things only bring these agents temporay happiness, short-term satisfaction. When the new smell wears off, they must have the next material thing to excite them, to please them, to give them comfort. But this cycle never stops.

Perhaps the slowing economy is just what some of us needed to re-evaluate our concept of success. Perhaps it will help us remember what should be important to us. And maybe we can look at our success and happiness from a whole new perspective.

I would love to hear what others think and if they feel like now is a great time to consider some changes in our businesses and our lives. I for one, say YES!

A Broker Misses The Good Ole Days Of Being “High”

Fri, 21 Mar 2008 02:33:52 -0500

I had an opportunity to fly to Houston recently (Southwest Airlines) for a one day business trip and boy was it a pain. It's been a couple of years since I've flown on a major airline so I'd forgotten just how cumbersome it is to get from point A to point B on a commercial carrier in our post 9-11 world.

Then my mind drifted back to the days when I flew helicopters for the Dallas Police Department. I reminisced about just how easy and relaxing it was to cruise a 370+ square mile area without all the restrictions required of airlines or even those imposed on private aircraft these days.

It was always great to get to work early Sunday morning on a clear but hot summer day, crank up the Bell 206 and climb to a much cooler 1500 ft. altitude for a leisurely 1.5 hour patrol flight. We would then land at a local restaurant for breakfast before proceeding back to the hanger with not a worry on our minds.

I can also remember shooting down to Austin on many occasions in a small plane I owned. I typically flew at 8 to 9 thousand feet where it was cooler and where there would be less traffic. This was before President Bush purchased his ranch which sits between Austin an Dallas, I can't imagine trying to navigate my way between Dallas and Austin now days for fear of having Blackhawks and F-16's on my tail should my flight path deviate even the slightest bit.

While I remember the great times I had while flying high in the sky, I also think about how fortunate I am to have the opportunity to be self-employed, run my own company, set my own hours and work only with those clients who can appreciate that I have a greater devotion to my family than I will to theirs. I think about how fortunate I am to have learned to live life more fully than ever before and how to enjoy my family and my career without neglecting either.

And while things are clearly difficult in many areas of the country, perhaps we should all look back and remember our past with great fondness but not so much that we can't see the blessings we've been given today. Remember the old saying (paraphrased here), "I cried because I had no shoes, till I met a man who had no feet."

What Do You Drive? What About A Billionaire?

Wed, 19 Mar 2008 23:45:29 -0500

I've seen several posts regarding the importance, or lack of importance on what an agent drives. Many of the postings describe the importance of "looking" successful. I understand the importance of looking the part, but should that be the overall focus? Here's a lesson I learned years ago about looking successful versus being successful.

Many years back when I was a police officer, our police association had invited H. Ross Perot to speak to us regarding the difficult poliitcal times our department was going through. I had been assigned to the parking lot of our association office to wait for Mr. Perot to arrive and make sure he and his body guards were escorted in safely. Our office was not in the best area of town, so I assumed there would be multiple vehicles arriving in somewhat of a motorcade fashion. As I waited, I noticed a car drive up and park in the lot. I assumed by the age and type of vehicle (it was a 3-4 year old mid-sized Buick), that it was another police officer arriving late. Much to my surprise, Mr. Perot himself emerged. What? No bodyguards? No motorcade? No frills? That's right, just an unassuming man in a non-luxury vehicle who could have passed for any of our neighbors....except for the fact that he had a net worth exceeding 3 billion dollars at the time. He took the time to shake my hand and make some small talk as I escorted him into our meeting. I don't think anyone can challenge that this man was in fact successful.

That night will be ingrained in my mind forever, not just because he'll likely be the only billionaire I'll ever meet, but because he did not "appear" to be successful based on my stereotype of a billionaire. This man wealthy beyond belief and he drove the same type vehicle as most police officers would drive.

This is not meant to knock those folks who drive luxury vehicles because it makes them feel more successful. Good for you if that's the case. But I do think we sometimes perpetuate stereotypes that much of the public rails against when we don't look at inner selves rather than just our outer selves.

I'm not hypocritical either...I drive a 2001 4Runner with 177K miles on it and I plan to keep it for several more years.

"My Client May Have Pulled Your Sign Up"

Tue, 18 Mar 2008 09:00:56 -0500

About 9 years ago, I was referred to and received a great listing that offered a fantastic view of Lake Travis. I knew this would be a "hot" listing....but what I didn't know at the time was just how low a veteran broker would stoop to keep her client in the running for this home.

The house was vacant and was located about 35 minutes from my office and my Seller asked me to check on it once a week. It had only been on the market a one day when I started receiving calls off the sign. The next day (Friday) I decided to visit the house as the weekend was nearing and I wanted to make sure the home was ready for the traffic that was sure to come.

When I arrived, I noticed my sign was missing. I eventually found it had been tossed under a low hanging tree. I was none to happy, but what could I do. I went inside the house and noticed all the blinds had been closed which prevented potential buyers from seeing through the house and realizing the beautiful lake view if offered (my seller requested I leave the blinds open for this very reason).

I knew it was probably an agent who threw my sign under the tree and closed the blinds, but all I could do was put the sign back up and open the blinds. When I arrived back home, I found an offer had been faxed to me from a long-time broker who worked exclusively in that area. I called to tell her I received the offer and would let her know once my client had a chance to review it, but that it is was a multi-generational fax and was mostly illegible. Unfortunately, I also told her I'd just returned from the listed house. Something told me to go back to the house the that day, which I did about 2 hours later.

As you might have guessed, upon my arrival the second time, the sign was missing again and the blinds were closed. This time I was certain the broker was behind it. Later that evening, the broker called and I confronted her about it. Her response, "Oh no, I'd never do anything like that.....but my client may have have pulled your sign up." I could not believe my ears. She was scapegoating her client!

My seller ultimately countered the offer which he faxed to me and which was now completely illegible. I asked the broker to meet me half-way to exchange a legible version of the offer and she refused. I told her I would pick it up at the house the following day if she would leave it there for me. She was agreeable to that since she wouldn't have to put forth any effort. My seller was not too happy with the broker's behavior either and as a retired military pilot, I was fairly sure he'd tell her his feelings. As it turned out, my client decided to drive into town and meet me to discuss this offer, but by the time arrived early Saturday morning we had received two more offers including one for $7,000 more than our asking price, which my seller later accepted.

I advised the broker and she was terribly angry, and even had an attorney call me late that evening to tell me we could not sell the house to our buyer because he had been "advised" that my clients were already under contract with the broker's client. RRRiiiiiigggghhhhhtttttt. This broker called me all weekend trying to convince me that we had a contract with her client. She adamant and I knew she wouldn't give up. On Monday morning, I called the title company I used and had them do an email blast to all their offices in case this broker attempted to receipt an illegible copy of her offer. Yep, at 10am Monday she tried receipt her copy so she could tie up the property. The title company respectfully refused to accept it.

Things got considerably worse....well actually better. The broker's client eventually called me and told me he fired the broker for being untruthful and that he would probably sue her because he made it clear to her that he wanted this home, regardless of price. He asked me to offer the contracted buyers $10,000 cash if they would walk away from the purchase. The contracted buyer refused the offer and we closed the transaction as scheduled.

I'm not sure what happened with the broker and her former client but I would love to have been a fly on the wall when they met for the final time.

The Blame Game.....Do You Play It?

Sat, 15 Mar 2008 01:06:28 -0500

I just had two closings, neither of which closed on time.

On these particular closings, I followed up regularly with the agents and quickly got the feeling they simply placed the transactions on autopilot and assumed all would go as planned. Understand that almost all my sellers choose to include a "time is of the essence" provision in their contract in an attempt to keep the buyers / buyer's agent on track. I've never really believed that floating closing dates are a good way to do business....just my personal preference I suppose.

But I'm always amazed when we get to the day of closing, and I realize by now that we won't make our closing date/time, and the agent says, "yeah, looks like there will be a delay for a day or two" in a nonchalant manner as if the time frames in the contract have no meaning. I wonder if they would be as casual if I said, "yeah, we decided we need two grand more for the house?" Of course the usual suspects get blamed, the title company, the lender, the neighbor down the street, etc. But I'm more than certain that some of these delays could have been avoided if the agent had just followied up every few days with the lender, title company or neighbor down the street? It's always worked for me and I sure don't want to place my client in breach of a contract because I overlooked a time frame, especially a closing date.

I know I'm seeing more of this than I wish to and thought I'd see if this is becoming an issue in your area and how your clients are accepting it.

Did I Invite You Into My Inbox?

Tue, 11 Mar 2008 22:33:23 -0500

I'm sure there will be valid arguments on both sides of this issue, but this a growing problem for me and a number of other agents I've talked to recently.

I'm sure we all get plenty of spam daily and my inbox is certainly no different. Spammer's nationwide will continue to load our inboxes about anatomical enlargement drugs to business development seminars.

But what about the spam we get from other agents. Yes, I said spam. A growing trend in my area is for agents to email blast hundreds or even thousands of agents advertising each new listing these agents receive. I do understand the purpose but I have access to the MLS and can easily locate suitable properties without crowding my inbox with additional spam. I don't fault agents for working hard on behalf of their seller clients, but how about some consideration for those of us who are spending more and more time deleting emails advertising properties in areas that I would seldom have a client interested.

Thankfully, my spam blocker is catching more of these each day, but I still thought it might be worthy of some discussion.

Please let me know your thoughts pro and con. Thanks.

"I Gave It To My (Dead) Mother", Agent Says

Tue, 11 Mar 2008 00:07:16 -0500

Here is yet one more installment of my most bizarre transactions.

An elderly, but cash heavy buyer, contracted to purchase a small home on the north side of town. Being retired, and in less than great health, he fell in love with the large corner lot with all the flower beds and the 5' tall, multi-level water fountain that was set upon it's own perch in the garden and energized by the underground electrical service designed specifically for this magnificent, peaceful piece of art. He envisioned enjoying this beautiful garden and water fountain for years to come as he sat on the covered patio. Now let me say that before we had even submitted his offer, I felt obligated to warn my client that this may be a troublesome transaction as I knew the listing agent well..she was nearing her 25th year in business and had a less than stellar reputation among the real estate community yet had still managed to build a sizable following of clients.

It just so happened that my client lived only blocks away (in an apartment) from this house and he drove past it daily, sometimes twice a day as he yearned for the closing day to arrive. Then, about four days prior to closing he noticed the waterfall was missing. I'll never forget the sound of alarm in his voice when he called to tell me, "someone stole the waterfall!" I was afraid it was going to put him in the hospital knowing all the heart problems he had. I finally got him to calm down a bit and told him I would call the listing agent so her clients (who were now living in another state) could file a police report. My client was heartbroken to say the least. I contracted the listing agent phone and told her the water fountain was stolen. To my surprise she said, "no it wasn't." I asked her if she knew what happened to it and she said, "yeah, I took it." To be honest, I was certain I heard her wrong. I asked her again and go the same response. I asked her why she removed it and she said, because it doesn't go with the house. She said, "it's like a picnic table, and those don't convey either. Well needless to say, we had a strong difference of opinion on that. A 5' water fountain with specially designed underground wiring to it is a far cry from a picnic table. We argued for a few minutes before I explained that I would contact the police regarding this matter.

I told my client what happened and he began screaming that he would $^$$%% that %^$$%$. Again, I had visions of an ambulance arriving too late to save him. Again, I calmed him down and we discussed our options. Although he was retired, he was no less the savvy businessman he always was and he took matters into his own hands. He tracked down the sellers and called them them. He explained the situation and was assured that they intended the water fountain to convey. I again called the agent and explained this and she began yelling at me to leave her clients alone. And she still refused to return the water fountain, even after repeated calls from the sellers insisting she do so.

I knew this would go nowhere quick, so I scheduled a lunch with an old friend, who just happened to be a Detective/Sargeant with the local police department. While we ate, I explained my predicament and asked if he thought the county attorney would accept a case of theft. He stopped eating, called the C.A. and was told, "file it." Now, at this point, you would think common sense might come into play with the listing agent. After all, the Detective called her and "told" her to return the water fountain, to which she responded, "I can't, I gave it to my mother." So the Detective began getting his statements from the sellers, my client, me and others and I explained the situation to my buyer. He made a few calls to his sphere and found out that the listing agent's mother had died about two years prior. How did he know this? One of his friends actually attended the funeral. Well, once I told the Detective about this event, he went ballistic and told the listing agent that he was swearing out a warrant for her arrest and that he'd not even consider arresting her until he could do it at her office. I think they call this the "Perp Walk." Apparently the listing agent saw her world coming down around her and within an hour of that call from the Detective, the water fountain was back at the house and set up.

After much discussion about filing a complaint, my client requested, as did the sellers, that we "just get it closed' and not drag them into any more problems. They did not wish to make any further statements or answer any more questions from anyone. I swallowed a bitter pill and honored their requests, but reluctantly so. And to this day, I can't believe someone would disparage their own dead parent in order to cover up a crime.

But This Is A Cash Deal......Just Kidding

Sat, 08 Mar 2008 21:59:28 -0600

A while back, just prior to my family and I leaving for a vacation. a referral called me to list an home from his mother's estate. He was was still doing final repairs on it so we decided to wait until the repairs were complete before starting our marketing. This was going to be a very hot listing due to the location which is highly sought after, so I was looking forward to receiving multiple offers once we started our marketing.

Within a few days, and before my sign was on site, an agent saw the seller working on the house and said she had cash buyer for the house if he'd be willing to sell. He told her to call me. The buyer agent called me and submitted a cash offer which we eventually countered before coming to an agreement. Shortly thereafter our family left for our annual Florida vacation. I was due to be back just a few days prior to closing and without any lender issues, I assumed this would be a relatively pain free transaction. I could not have been more wrong.

I was still on vacation when I received a call from my closing attorney to tell me that a lender had just called to get a copy of the title commitment. What lender...this is a cash deal. I immediately called the agent to see what she knew about this issue. She said, "yeah, the buyer can pay cash, but he thought it might be better for tax purposes to use a loan." I explained that we accepted her offer before we even placed the home on the market because it was a cash offer and we would not allow a lender to get involved at this point." I told her that because the house had no floor coverings, no working plumbing, ancient electrical wiring, was in the flood plain and numerous other issues, a lender would never provide a loan on this home. I told her, "no way" and she argued her point some more before hanging up on me.

Then it was time for her lender to call me and argue the point. By this time, they were disturbing my vacation far too much, so I told the lender she was not and would not be involved. She began calling me every name in the book. She was screaming so loud that my wife and son who were in the car with me could hear her rantings. I decided to hang up and enjoy my vacation.

Apparently the lender had not had enough. she called my seller and began complaining about me and why she should be allowed to do the financing for this purchase. My seller than called me to complain about the lender. There seems to be a pattern here don't you think? I advised him not to answer her calls anymore.

Upon returning form my vacation, we did close it as a cash transaction. My seller was elated...the other agent likely bought a voodoo doll and named it Guy.

PS. I've used used one closing attorney exclusively for about 5 years and he says I'm a magnet for crazy buyers, sellers and agents. I'm starting to believe him.

How To Get Your Client Arrested!

Sat, 08 Mar 2008 18:52:47 -0600

What we experience can often be considered a cruel teacher, but a teacher nonetheless.

I had a listing that was under contract and and failed to close per the contract as scheduled due to buyer/lender issues. I knew the buyer agent was out looking for her next victim...I mean client, so this transaction had been placed on the back burner. Apparently this agent (newbie) believed her obligation ended when the contract was executed and everything else would happen while on autopilot. It did not.

About a week later than originally scheduled, the buyers (who were local) did finally close their side of the deal but I was not given advance notice. And there was no reaon for me to attend the buyer side closing as my clients were in other states and had already signed their closing docs via a mail-out.

At 4:30pm about week later, it finally closed/funded and the buyer agent calls me wanting to know where the keys to the property are so her clients can get inside "their" house. Yes, she was mad at me from my previous questioning of her involvement in this transaction. Anyway, I told her the keys were left inside the house with the exception of the one key in the electronic lockbox which she had access to. Then she says, "My clients need to get inside so YOU need to meet them there and let them in." I told her that since I wasn't even told the closing would take place this day, and because I had other commitments, she could make the 1.25 hour drive in rush hour traffic to let them in or I would provide them the key early the next morning as I could not drop my other business to take care of hers. Needless to, things went from bad to worse in our conversation and I eventually ended it without her approval. She called back several times apparently in an attempt to continue this argument...I declined to answer.

This is when things went from bad to worse. She refused to fight rush hour traffic to service HER clients, so she apparently told them to have a locksmith remove the door knob, and put a new lock on. This is fine, but based on hearsay, she also told them to take my lockbox and place it inside the house. The next morning I arrived to find my lockbox missing so I contacted the buyer by phone. He wouldn't talk to me, but his girlfriend did. She began screaming at me that this was "THEIR" house (she was not even on the contract) and refused to give me my lockbox. As I had already seen my lockbox sitting inside (I peeked through the back window), I decided to file a theft report with the police department. I did so immediately and the officer who took my report also tried talking to the buyer, but got his girlfriend instead. She then started yelling at him. BIG MISTAKE! He went back to the house with me, looked inside and saw the lockbox. He forwarded his report to a veteran Detective, who also called and spoke with the girlfriend. Yep, she started screaming at him and then hung up on him. EVEN BIGGER MISTAKE. The Detective called me to see if these folks were just stupid or mentally challenged.

Well, within a couple of months, a warrant was issued the the buyer was arrested for a Class B theft. He was not happy. Perhaps he won't allow his girlfriend to do his talking in the future. He was taken to the County Jail and booked for theft. Within a couple of days of that I got a call from my broker at the time who had received a call from the buyer's attorney. They were threatening to sue, file a complaint with our real estate commission, call the President of the United States...you name it. I explained the situation and told him this was a police matter and that is who the attorney should contact.

The end result is that the Buyer spent a night or two in jail and he eventually had to pay me restitution for the lockbox (which was never subsequently found) and how has this arrest permanently on his record. All because he may have been given bad advice by a new agent.

I'll Sue Your %$*^#!

Fri, 07 Mar 2008 20:02:40 -0600

It's unfortunate, but I'm sure many of us have experienced the agent who is always right and is willing to curse at you if you indicate otherwise. Like a drunk in a bar, they're always looking for an altercation. Because of my previous career, I know it's usually a result of low self esteem, but that doesn't excuse the behavior.

The last time I ran into this type of agent was in December 2006. She had been an agent for all of 14 months so she was clearly a gifted, knowledgeable practitioner. Right. Her client was purchasing my client's vacant home. I knew from the start she would be a treat to work with because she felt obligated to tell me how to do my job. Not really that unusual...I often tell my attorney how to practice law. Well, as I expected, we got to the day of closing and I knew her clients would not be ready to consummate the transaction. I also knew my client authorized the inclusion of a "time is of the essence" provision (drafted by an attorney) in the contract which would put the buyers in default of our contract. Our knowledgeable agent was not aware of this.

Well, as expected, the closing did not take place and the agent never even requested we amend the closing date, so default it was. When the agent did finally call me late on the scheduled closing day to let me know...you guessed it, that we wouldn't be closing that day, she requested we amend the contract to extend the closing date. Ya thunk? Since there was some question in my mind as to whether this deal would ever get closed, I had already discussed this eventuality with my client. When I explained to the agent that they were in default of the contract and that we had some concerns about the probability of a closing, we would require her clients release the earnest money to my clients who would then credit the buyers at closing, if a closing took place. This would prevent us from having to argue over the earnest money should the closing not take place. At this point, you would have thought she had just caught her husband in the back seat of the car with the nanny. She began spewing filth that would put a drunken sailor to shame. And it just wouldn't stop. The last thing I heard before hanging up on her was, "I'll sue your %$$%$$". Uhm, you don't say.

That was my last converation with her, we later amended the contract under our terms and the closing did take place the next week. But I'll never forget her extremely unprofessional reaction and wondered why she thought this was the appropriate way to handle a business transaction. Throwing out vulgarities and threatening to sue someone, especially when your clients just defaulted on a contract, will seldom convince the other agent to see things your way.

I hope none of us ever have to encounter this type of behavior again.

Become A Doctor.....Of Real Estate That Is

Fri, 07 Mar 2008 09:11:21 -0600

Over the last 10 years, I have been a student of real estate. I say student because I don't think you should ever stop learning or having a strong desire to learn. And real estate, like our world, is constantly changing.

But one thing I've noticed is how few agents continue to aggressively learn as they continue their career. Many get their license and in the ensuing years do only what is required of them ito keep their license. Here's an example. Some months back, I took another agent along on a "short-sale" listing appointment with me at his request. He had been in business for 18 months and had sold a few homes, but he didn't feel comfortable with listing presentations or finding comparables, and he admittedly knew nothing about short sales.

We ultimately listed the house and on our drive back to the office, I began a line of friendly questioning to see if I might be able to offer anything of value to him in the way of advice. The first thing I realized is that he was more than 30K high on his market analysis and this was a 140K listing. Next, when I asked him if he had a listing presentation that he practiced, he said no. When asked why, he said, "I just don't have that desire to like you to learn and practice and....". I couldn't believe my ears. He was striving to be average and that's exactly what he had achieved. It clearly did not bother him a bit. Then to top it off, he said he never really felt comfortable explaining the contract forms to his clients because he didn't understand them. WHAT?

In reality, he's more often the norm than the exception. In my humble opinion, I've found far too many newer agents believe they've hit the pinnacle when they obtain their license, and they never crack a book, read a periodical or attend classes/seminars that will help them better understand the nuts and bolts of the business rather than how to market more effectively. With this particular agent, he declined my offer to help him understand the processes and paperwork, he simply didn't want to know or do any more than he already did. A sad commentary indeed.

I know there are plenty of agents out there that work hard every day to become more knowledgeable, but I think we all have a duty to help push the newer agents in that direction. Many are young and don't have a lot of life experiences to fall back on and that is where those of us with some gray hair can help.

So, for those in our industry who also believe that learning never stops, I applaud you. It is the only way we can be considered the Doctors of Real Estate.

So When Did You Join The IRS?

Fri, 07 Mar 2008 00:57:20 -0600

Real estate is my second career...my first was law enforcement (17 years), so needless to say I thought I'd seen and heard it all. Until I got into real estate that is.

As a police officer, I pretty much kept to myself, did my job and went home. I didn't share much of my job with my family as I didn't see the need to give them an idea of just how disjointed some of society really is. I didn't hang around other cops, I didn't go drinking with them and I sure didn't share my personal thoughts and matters with them. I simply kept to myself.

So you might imagine my surprise when I left law enforcement and joined a national real estate company and found that other agents thought they had a right to know my most personal details. This was foreign to me. But to my disgust, I would have agents I just met ask me "how much have you netted this year." It was like the IRS was getting ready to go in for the kill. Once I realized this was a cultural thing for agents, I put my foot down and made sure folks knew not to dig into my personal life.

The last time it happened in the large office I was working form, a female agent, who was a known busybody and who had had a very good year and let everyone know it, put her hands on her hips and said, "so what you have made this year?" She must have caught me at a bad moment because she no sooner spewed her question before I responded loud enough for other agents nearby to hear, "What size bra do you wear?" She became very red and said "WHAT?" That's when I told her that we have apparently become very close friends who are willing to share our most intimate life details and I thought is was only fair that she share hers with me too. She was mad as a hornet and left the building to have a smoke and calm down while the other agents had a good laugh at her expense.

But I never could understand how or why someone thought they could ask me how much money I make, who I voted for or whether my sex life at home was sufficient. After all, I truly can not remember asking my doctor any of these questions and it wouldn't have ever crossed my mind to do so. Let's hope the newer agents arriving on scene now days have better ethical standards than many of their peers did.

What are you thoughts?

The Power Of Perseverance...No Matter What You Do

Thu, 06 Mar 2008 22:29:12 -0600

I'm sure we've all heard about the power of sticking to something, not giving up, persevering until we reach our goal. But how many of you will do it for 15 years?

I'm close to one such person who did just that. He is a talented, dedicated attorney who graduated from Notre Dame School of Law (and paid for it himself), got a job at a big law firm in Dallas and made partner on the fast track. But after only 5 years of the rat race, he knew he really didn't want the grandiose lifestyle that so many young attorneys strive for. No, he wanted a simpler life as a low key attorney and he WANTED to become a writer.

So write he did, even taking an 18 month sabbatical from his profession to focus solely on his real passion. He wrote and wrote and wrote and tried over and over to get published but always got the same response. It's just not good enough. He soon realized he would have to continue practicing law in order to support his passion. So, for the next 15 years he practiced real estate law and wrote numerous books, learning how to improve his writing with each one. Still never good enough according to the big publishers.

But he never, never gave up. Sure, he wanted to quit at times because that would be easier than enduring the continuing rejection, but he would never step away from the computer long enough for that thought to imbed in his psyche. He pushed ahead time and time again. And just like we've all heard happens, he awakens one day to find that one his books is picked up by a major publisher and is soon on the NYT Best Sellers List. And yep, he's soon known as an "overnight" success.

Why would I write such a post about perseverance? Because this attorney just happened to be my brother who has always been free with his time and knowledge to help me and so many others. And because his story is not unusual. So many in our profession are struggling right now, wondering if they should continue the fight or throw in the towel. Sometimes quitting may be the best option, but most of the time it only relieves our suffering temporarily, especially if we leave what we love.

My brother Mark is no more an overnight success than any of us were. The only difference between him and so many others in this world is that his love for his writing was stronger than the pain of this rejections.

The Sky May Be Falling Elsewhere....Not In Austin

Thu, 06 Mar 2008 21:51:33 -0600

I have all but given up watching TV these days. Good TV, like good radio stations is hard to find. And every time I turned it on, I would hear just how bad the housing market is. Obviously, the statistics are dismal in many areas of the country, but Austin, Texas is still beating the trend with a very stable market. In fact, from 2006 to 2007, almost all areas of Austin saw moderate to significant increases in home values.

Austin is expected to have a strong net population gain because industries, large and small, have found the Austin area very conducive to continued growth. And with ample housing available, a youthful educated population and probably the best location in all of Texas (easy travel to the Texas coast, San Antonio and Dallas), Austin will clearly be "the place" for singles and families relocating to Texas.

When looking at the housing trends throughout the city, the signs are actually quite positive even considering that we are experiencing a slight market adjustment. So for those of you who watch plenty of TV, go ahead and look up...you'll see the sky is NOT falling in Austin.