I had an interesting experience today...I attended a media training class in preparation for becoming the Sacramento Association of Realtors 2014 President.  My story isn't about me, but about what I learned.

The main thrust of the class was tell enough, but not too much.  Be articulate without sounding rehearsed.  Know your facts and tell your story...not necessarily the reporters story.

...and now comes my story.

I showed my clients 7 houses on Saturday.  We whittled it down to 2.  When I called on their first choice, I learned that the agent was literally on her way to present another good offer.  My clients were set to write a competitive offer and then, upon reflection, decided that their second choice really was a better house for them.

I called the agent to find out if there were any offers on the table.  Yes...there were 2 offers that had been countered but did not require a response until the following Monday.  My clients decided to attend the Sunday open the agent was holding to confirm what they liked about the house.

Now..here is what we learned in our conversations:

When I called the first time, the listing agent asked if we would be offering over $500,000 and I said yes.  In that case, he said, go ahead and write the offer.  The house was listed for $535,000.  Now I knew that instead of writing the higher offer I thought we would have to write to be competitive with two other offers, I could write a lower offer.

When my clients attended the open house the following day, he shared his concerns of having a contingent offer from one of the other agents.  Now I knew why he did not like at least one of the offers.

Of course, we wrote a lower offer than we had originally planned.  I called to let him know it was coming and he asked if I would tell him what our offer was.  I gladly told him and his response was, with 2 minor changes, consider the offer accepted.  Now I know that he speaks for his clients without consulting them, so future negotiations will be approached with this in mind.

This agent just cost his clients at least $10,000...just by talking too much.  I feel badly for his sellers, but am thrilled for my buyers.

How does this tie into my class?  It's okay to have a conversation, but remember who you are representing and what information you may be sharing that can be used. 

We should be recovering quicker.  We have more buyers than properties to sell.  Interest rates are low.  There are still people out there with solid careers.  So, what's going on?

Back in "the day", sellers would set a price.  If buyers felt their price was fair, they would agree to sell the property at that price.  There may be a bit of negotiation, but ultimately, there would be established a fair market value.  What happened?

Sellers still ask a fair price.  Buyers are willing to pay when the price is fair.  They come to terms and escrow is opened.  Then, the bank decided to set the market value in their eyes.  The market value is the "safe" value that guarantees that the bank won't eat the loan...not market value.

Appraisal reform was established a few years ago to establish "arms length" determination of value.  While the idea may have had some merit, the result was anything but arms length.  Banks created Appraisal Management Companies as required by the new guidelines.  The banks owned these companies.  Then, when an appraisal was needed, the bank would assign the appraiser for the property.  The banks created a whole new revenue source and in the process, was able to control valuation of a property.

Sadly, I don't see a light at the end of this tunnel.  Banks created, through legislation, the real estate nightmare.  Banks, through legislation, now have new revenue sources.  Banks, through legislation, now have control of market values...not the consumer.

Please, tell me how we are going to get out of this mess sooner than later!

Okay...the world is entirely too serious right now.  So, to lighten things up a bit, I want to propose a conspiracy.  I believe that the manufacturers of tents are the instigators of all that is crazy with the world.  You laugh, but think about it!

Occupy Wall Street, aka Occupy Oakland, aka Occupy Whatever....they are making statements by pitching their tents for a long-term stay.  As quickly as they pitch them, the police come along and tear them down.  So, to ensure that the protesters are making their point, they go out, buy more tents and pitch them again...and on it goes.

Now, we have a new group of tent pitchers...the Black Friday (misnomer since they are pitching now) enthusiasts are pitching their tents outside their favorite store so they can trample each other come midnight Thursday. 

I would hazard a guess that there may be a shortage of tents. As a result, and true to our supply and demand capitalism, the prices will go up.  Now the tent manufacturers will make masses of money.  The Occupy people will probably protest them for being too rich...

and on it goes.  I'm just sayin'....

These times can test ones priorities.  Are we here for our clients or for ourselves? 

I don't think, in the 16 years I have been a Realtor, I have ever had such an on again-off again year.   I would feel really awful if it was due to some action I took, but it wasn't.  It was because my clients had good news that prevented them from completing their real estate transaction. 

They were remodeling the home of their dreams.  It was going to be their last house...their retirement home.  It had acreage to grow grapes.  It had space to continue their daycare business.  And then, health issues arose and the dream became a logistical nightmare.  It was time to fish or cut bait, and they decided the best move was to cut bait.  We put the property on the market and had lots of interest, but no offers.  A month goes by and the health issues start to be resolved.  There is light at the end of the tunnel.  They don't want to sell their dream anymore and feel terrible about pulling it off the market.  I am thrilled for them...they get to keep their dream!  Great news!

She is about to have a baby and wants to purchase a home before the blessed event.  She also wants to be a nurse and has had an application in to a highly thought of program for a long time.  We found their perfect property and were in contract. We had completed the home inspection and resolved most of the issues.  Then, she gets a letter....she has been accepted into the nursing program. However, she can't work, have a newborn and go to nursing school. She has to quit work and can no longer qualify for the loan.  The good news is that she has been given the opportunity to follow her dream.  The bad news is that we have to cancel the escrow.  I am thrilled for her being able to follow her dream (and she had her baby on 11/11/11)!

Her father passed away and left a very nice duplex in a high-end neighborhood in Sacramento.  They really don't want to be property managers and so we put the property on the market.  It is truly an owner-occupied type of duplex so there is a limited number of buyers.  After several months, they get the chance to have both sides rented, but the new tenants don't want to move in with the chance that they will be evicted soon after.  I agree that their best option is to take it off the market until next year, so it is withdrawn.  They own it outright, so it is great that they will be able to have an additional income.

She turned the single family home that I had sold her into a legal duplex, and did it well.  Now she wants to get out from under a student loan and selling the home would make a good dent in her debt.  I list the property and get ready to put it on the market.  However, there is a chance that one of the tenants might want to purchase it and she discovers work that the property needs before selling it.  We decide that now is not the time and to revisit selling it in the spring.  She is happy to have the reprieve until she has more time to deal with it.

Often, our own interests come into conflict with what is best for our clients.  We need to know that what is most important is what is right for the people we represent.  Their lives are changed by events like what I have described.  We just get a little less income.  Priorities are pretty easy to assign when looking at it from the perspective of our clients.  I am thrilled that, ultimately, it was better for my clients to not need me right now.

Saying "Sacramento is a destination" may not be what travelers may have heard.  What is more commonly heard is "Sacramento is a great place to start from".  Even native Sacramentans may have come to believe this...we hear it quite often.

I beg to differ.  I defy anyone to identify a city that has more to offer than Sacramento. 

• We are at the convergence of 2 beautiful rivers: the Sacramento River and the American River.  Some may dispute the Sacramento River as being beautiful since it contains a heavy dose of run-off from farmlands north of it.  However, navigating the Sacramento Delta will prove its scenic qualities.  The American River is popular for rafting and fishing.
• Sacramento is the City of Trees, boasting more trees per capita than any other city in the world.
• Sacramento is enjoying a growing industry...the wine industry.  Just across the Sacramento River is a multitude of wonderful, award winning wineries.  Travel into the foothills to enjoy wonderful family-owned wineries galore.
• Besides the obvious offering of professional sports like the Sacramento Kings and the minor league RiverCats, Sacramento offers a plethora of recreational sports such as softball, baseball, soccer, swimming, basketball and more.
• Sacramento is just a little over an hour from the world-renowned city of San Francisco for those who wish to visit or shop.
• For the skiing enthusiasts, travel up Highway 50 or Interstate 80 for an hour and a half to have world-class slopes of Heavenly Valley, Squaw, Boreal, Sugarbowl, Kirkwood, North Star and more to enjoy.
• Ocean lovers can bask in the sun after traveling just an hour from Sacramento.
• Jazz enthusiasts from all over the world converge on Sacramento in May for the Sacramento Jazz Festival.
• Boating enthusiasts can travel 45 minutes to Folsom Lake, just a few minutes to the Sacramento River or American River or, if they like a chill in the water, to Lake Tahoe.
• World-class restaurants have sprouted up in the past few years to offer those who enjoy a comfortable evening out an memorable experience.
• Sacramento has a strong artistic flair. The Crocker Art Museum is the oldest art museum in the West and just finished a beautiful, state of the art addition.  Every new construction is required to contain funding for art within its venue. There are several offerings for the performing arts, many of them offered throught the California Community Theater.

I could go on forever, but it would become overwhelming for the reader to take it all in.  Come visit us!

AS strange as this sounds, it has been suggested at several meetings of late.  Just imagine qualifying someone who, other than a short sale or foreclosure, has perfect credit.  They pay their bills on time....some even doing so until they are told that they have to have a late or non-existent payment in order to qualify for short sales.  They are stable other than this one issue...the short sale or foreclosure.  Can you imagine the number of qualified buyers we would have out there and how quickly the housing industry would recover if these people could purchase sooner than 2-7 years?

Now, it would not be perfect.  I think anyone who did a strategic foreclosure or short sale should not be able to qualify.  I am speaking of people who, for one reason or another, simply were forced to move.  These would include people with health issues, job transfers, or who were forced to take less to keep their jobs.  These are the people who are responsible, who deserved a break...and I think we should give it to them.

It's an interesting thought, isn't it?

As we all acknowledge, emotions run high during the search for a home, the negotiations that must take place and the hurdles we must jump.  As a result, many times the events that take place are very personal.  Sometimes we need to be reminded that, while the relationships are personal, the decisions are not.

This post was inspired by an escrow my client is in.  The property is a 5 unit income property.  The owner is a Realtor, but has a fellow Realtor listing the property.  For all intents and purposes, the owner is the listing agent since I have only spoken to the listing agent twice.

The structure is sound, but there is quite a bit of deferred maintenance.  Leaking faucets, furnaces unable to be lit, so testing not possible, window latches broken, air conditioning units not functioning are just a few of the major issues.  My buyer and I wrote a Request for Repairs, only asking for the property to be in functioning order...no cosmetics.  Only an hour after sending the request, I received an angry call from the owner.  "I am very upset.  In fact, I need to call you back after I get over my upsetness" (yes..he did say "upsetness".  That was 2 days ago and I haven't heard back.  I am meeting him this morning to get inspections on the plumbing, heaters and windows.  Needless to say, I am not looking forward to it.

This was not an "as is" sale.  Asking for an income property to be in working order is not a personal affront.  In Sacramento, we have city inspections of rental properties.  I just had one completed at a duplex I had listed while it was in escrow.  The seller had to do the required city repairs.  There is no reason my client should assume the repairs that the present owner did not address. 

He is angry, because he took our request personally.  It is not personal.  It is simply good business.

I have some very nice clients...in fact, they are so nice that they are apologizing for making me work.  They feel bad when they "bother me" to show houses.  They feel bad when I offer to give them comps for the house they want to make an offer on.  I have explained that this is my job; this is what I get paid for.  So, to be very clear, here are the things I expect to do for my buyer clients:

• Give referrals for lenders, inspectors, insurance companies, escrow and title companies, etc.
• Provide a list of homes that fit your wish list.
• Show you as many homes as it takes to find the perfect property.
• Advise you as to the pros and cons of each home.
• Write a strong offer that will compete with any other offer to get you the home.
• Negotiate the contract with the other party.
• Make appointments and meet any and all inspectors necessary.
• Negotiate any repairs necessary.
• Oversee escrow and title to ensure proper charges and documentation
• Work with you lender to be sure contract dates are adhered to.
• Be with you during signing in case any questions arise.
• Do a final walk through to be certain the house is in the same condition or repairs have been made prior to close.
• Provide you keys to the property once it records.
• Be available for any future issues that might arise after recording.

Now, please, use me!

I'm grumpy...or maybe anxious is a better description.  I am on my way to get a biopsy on my throid.  I am not a nervous person, but this type of thing always makes me a bit cloudy.  On top of that, I am thinking about our family business.  We get along very well, but as in any family business, there are always hiccups.  I am trying to figure out how to deal with this one and really not finding a great solution.

Anyway, as I rise up on the freeway onramp to my doctors appointment, the most beautiful sunrise appeared over the trees of Sacramento.  A brilliant sun fronted by a few strung out, fluffy clouds.  God spoke to me.  It's a new day and a fresh start.