My First Real Estate Transaction: As an Agent

I WENT TO SCHOOL:

I just relocated from Kihei, Maui, Hawaii to Las Vegas, Nevada. Prior to moving from Hawaii, I just finished the real estate sales person course and even passed the state and national real estate licensing exams. Regardless of my move, I still wanted to practice real estate so I started the process from scratch in Nevada.  In about a month, I had re-taken the classes, passed the licensing exam and joined what I thought was a forward thinking brokerage firm.  I immediately started taking classes and getting mentored. I was ready to take the new fangled techniques I was learning and put them to use on my first client. ME.

I decided on an area of town that was highly sought after, but still had moderately priced homes available. Those of you who know Vegas, Green Valley was the place to be in 2001.  I found a great house in the multiple listing service, I confirmed the property was still available and we went to look at the property. It is perfect from my prospective … it had all I wanted in a home as far as amenities and all that I had been taught made a property a good buy. I had done my research and knew the property was priced well for the market AND I noticed during the viewing the sellers were highly motivated to sell. So I write up an offer, call listing agents (it was a team of two ladies) and let them know I would like to present my offer to the sellers. They arrange to meet with me and the sellers for the offer presentation.  I get there meet everybody and we sit down at the kitchen table and I go to work. I present my offer, answer questions from sellers and agents and meet each objection with a valid counter point. Then I say to the agents, “There is a Starbucks down the street, I am going there so you can discuss the offer with your clients in private. I will call you back in 15 minutes for your clients’ decision.”

The look on the agents face was ASTONISHMENT. I know if we had not been in the presence of their clients I would have gotten at least a couple of choice words. They tried to back me down and buy more time, but I just remembered what my broker said to me…BE FIRM. So I was firm and won the battle. I go to Starbucks wait 15 minutes then call, we negotiate a little and we have a contract! I AM ESTATIC for now.

I GOT TAKEN TO SCHOOL:

During the contingency period of the contract we get down to the last hurdle the appraisal. Well, the house does not appraise for the contract sales price. So now, I have to go back to negotiate the price down further AND keep all the stuff I was asking to the seller to concede. Again, it’s me the sellers and their agents at the kitchen table. I explain what happened with the appraisal and the available options. We begin discussions on the NEW sales price and the listing agents are doing some quick math to make sure the sellers can walk away and at least break even. Then in my attempt help, I start going over all the costs that would be taken from the sellers proceeds at closing.

HUGE MISTAKE!!! I mention home equity loans and the sellers start glaring at the listing agents. The listing agents start stuttering away, the listing agents had not let the sellers know during the listing process that all liens on the property have to be paid by closing including home equity loans and lines of credit. I had made the listing agents look bad. It was an accident, but I still had done it.  Yes, this was a listing agent error but it was my error too.  If I had taken the time to read the property tax record BEFORE making the offer I would have realized the number of recorded liens against the property and their amounts exceeded the actual list price of the house! So the deal was DEAD. I AM DEFLATED for now.

IT ENDED WELL:

It all ended well. I found a great new construction home for my family. It was in an up and coming community called Blue Diamond Ranch. I bought standing inventory and closed in 30 days and made my first $6,000 commission. I still used my new real estate education and techniques to locate this house in an area I thought would appreciate drastically. And did it! This little 1600sqft spec home with no upgrades allowed my family to make a little over $100,000 when we sold it less than 2 years later. Who knew buying property cheap in an area which used to be in a 100 year floodplain would be profitable? I did, thanks to all the information that was available to me. I am so thankful for this experience. It taught me early to make sure you have as much information as possible about the property and area you are working. It also taught me it is okay to be uncomfortable as I learned the business.

LESSONS LEARNED:

1. 1.       Never make another agent look bad in front of their client. I don’t care what happens.
2. 2.       You can have all the great new techniques available, but if you don’t KNOW the basics it won’t matter.
3. 3.       All experiences can be good experiences if you let them, sometimes you simply learn what NOT to do.
4. 4.       Failure is not an option.

By the way, if you came into my office right now there are literally hundreds of property tax records that are printed out. This practice is the foundation of my business and has helped keep my feet out of hidden traps and dangers.