There’s always something to howl about.

Author: Cathleen Collins (page 2 of 3)

Realtor, Staging Consultant

Dual Agency Smack-Down: Collective truth? Fifty million Frenchmen can be as wrong as one . . .

I doubt that even Jeff realizes this, but I am the provocateur of the Titans’ duel over the pros and cons of dual agency. It started when Greg and I met Russell Shaw. The man is a font of knowledge, and he’s very very generous with sharing the “secrets” to his success. Already we have been enriched by his friendship. As we discussed the different aspects of our industry last Tuesday night, conversation led to our stand on dual agency, which I am largely responsible for.

Dual agency has not even been an opportunity for me yet… so far I haven’t had a buying client who would have been interested in any of my listings. But I’ve seen Greg serve as a disclosed dual agent, and as promised by Russell and Jeff the successfully closed transactions were probably more successful for his clients because Greg handled both sides. In all but one of the cases I can think of, the buyers and sellers were investors. The exception was with an extreme pet lover who needed an agent to find her a buyer without using the MLS (someday Greg will have to write this Realty Reality story). But then we had the dear friend failure and when we evaluated the philosophy of dual agency, we established our No Dual Agency policy.

This policy has not been easy on us. It certainly hasn’t given us a market advantage, because the typical home buyer or seller doesn’t pay that much attention to the philosophy of our industry. In fact, we end up shedding prospects who come to us through avenues that other brokerages use to drum up new clients. When I hold open houses in areas where open houses actually bring in potential buyers, I always try to find an agent from a different brokerage to sit the open house with me, so that agent can try to turn visitors into clients. When we get sign calls, we’ll show the house, but when the prospect starts making buying signs, we’ll suggest that they get an agent to represent them or offer to refer them (and we Read more

How I almost wasn’t an e-Pro: Why you shouldn’t wait to the last minute to do your homework . . .

Shhh. Come closer. I have a confession to make. This past week I became an e-Pro! It took me an entire six months to become one — not because it was so difficult, nor because I was so very busy, but because I wasn’t motivated. Then why, you might wonder, particularly if you are in the techno-crowd who subscribes to RSS feeds and reads this weblog, would I have spent $359 and any precious time at all to earn my tinfoil badge?

About the time I enrolled Greg and myself in the e-Pro program, I was finishing up my GRI courses and Greg had just earned his CRS and ABR designations. I had taken the ABR courses with Greg, but couldn’t earn the designation yet because I didn’t have enough buyer sides. In fact, the only NAR-recognized designation left to me at that point in my career was e-Pro. And, as I explained to Greg while twisting his arm to join me in getting the designation, it was just plain silly for the two of us to not be able to promote ourselves as being technologically astute. Other Realtors who hadn’t even known email basics before taking the e-Pro course were able, with NAR’s blessing, to promote themselves as

highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services.

Further,

Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.

Now, I can’t come close to Greg or even Cameron when it comes to IT proficiency, but I left a job as an IT consultant at PerotSystems when I began working as a Realtor. So if a consumer of real estate services wants someone with technology skills to help buy or sell his house, and believes that the e-Pro designation is the industry’s endorsement of a Realtor’s IT competence, and we didn’t have the designation, we might be missing the opportunity to meet the very type of people whom we could serve best.

So, I enrolled us both in the e-Pro course, and by the end of the week Greg had begrudgingly earned his designation. He just sat Read more

Realty Reality: Service above and beyond mere real estate with Katie and Bob . . .

I’ve been trading email this week with a client whose house I listed and sold last week. She’s been under the weather, and I’ve been checking up on her via email and text messaging.

Katie was 19 years old, just barely old enough to sign a contract when she asked Greg to help her find a home two summers ago. I wasn’t a Realtor yet, but remembered her from the stories Greg would tell about how impressed he was with the financial finesse for one so young. He helped her find her house, a charming condo in Scottsdale. He helped her write the offer, so that she was able to buy that house with nothing down and even walk away from the closing with a few hundred dollars left over from her earnest deposit. And after she owned her new home, he accompanied her to meet the head of the self-governed HOA at a meeting they called to greet their newest member and to make sure she understood the “rules.” One of those rules, believe it or not, was that she not get pregnant! Greg introduced the HOA to the Fair Housing Act, so they backed off, but I think the whole experience tarnished Katie’s first home ownership experience.

She never came to feel a part of her community. But inside her own horizontal airspace, Katie made a lovely home for herself and her beautiful new kitten, Bob.

Bob was just about two years old this past summer, when Greg heard from Katie, asking for help selling her house. She had waited patiently as she saw the amazing housing market of last summer, then watched the prices flatten out and even go down a little from what houses were getting last summer, before she was able to sell her house without paying taxes on the capital gain. She had one figure in mind that she thought she could sell her house for and be happy with the profit. But Greg and I encouraged her to ask for more, and about a month later she accepted an offer for that higher amount plus $100 :).

Katie Read more

Looking for a neat trick to make a house sell in a slow market? Clean it!

In last week’s Blog-off Greg addressed the importance of cleaning your house before listing it in no less than three of his posts: #43, #78 and #98. When you’re posting over 100 articles in one day you don’t have the luxury of putting a lot of thought into your posts, but keeping your house clean while it’s on the market shouldn’t require a lot of thought. This should be obvious to everyone… It should be obvious to those of us who make a living marketing homes, of course. But this isn’t a trade secret. This is a precept that every seller, represented or not, should take to heart.

So when I was showing a buying client houses this past weekend, I was surprised to see these comments in the Remarks field of the listing:

This house is priced right and just needs cleaned up.

The remarks go on to highlight the features of the house. And everything that was promised in the remarks was dead-on accurate! It’s a wonderful floor plan in my favorite Surprise community, priced $22,000 under the most recent sale of this same model in the same subdivision. The only discernible difference between the higher priced structure, which went under contract only two weeks after it was listed earlier this year, and the house we saw Friday, which has now been on market for six and a half months, is the higher priced house had “fresh paint,” and Friday’s house “needs cleaned up.”

I had warned my clients before we entered, and told them that the seller was paying, with a low list price, for someone else to clean the house. The house is vacant, so I expected dirty walls that need painting, a dirty perhaps pet-soiled carpet, maybe some nicks or dents in the sinks or on the dishwasher. I had expected the type of problems that maybe a down-on-his-luck seller couldn’t afford to invest in fixing. But the house is only five years old, and as I said, empty, so I had hoped for better.

Instead, we were faced with an empty home filled with trash. Nothing big, nothing that would Read more

If you thought Greg had a lot on his plate in the Blogoff — I almost got locked up!

Responding to Dustin’s offer to help Ardell during the Sellsius 101 Blog-a-thon (Yikes, Dustin! I know it’s the home team and all but 1. that woulda been cheating; and 2. you shoulda had more faith in Ardell; and 3. you don’t write like Ardell; and 4. that woulda been cheating!), Ardell nobly responded that she was so busy she never even saw his offer till after she had reached her goal, and even had she seen the offer she wouldn’t have accepted.

The risk of having RCG go down in the middle of competition was weighing heavy on me. Also, it wouldn’t have been fair to Greg, unless he allowed Christine in, and then we’d have to deal with Dustin wrote 35 % and Christine wrote 33% translating into something that would cloud the achievement.

She was right, of course, even if she did get my name wrong ;). But for my part, I wouldn’t have tried to help Greg out even if Dustin disguised as Ardell (picture that in your mind’s eye!) had peppered himself throughout Ardell’s Seattle Area Real Estate Blog. Why not?: 1. that woulda been cheating; and 2. I have absolute faith in Greg doing what he says he’ll do; and 3. I don’t write like Greg; and 4. somebody had to do some money work around here on Tuesday.

Actually, beyond helping out with his desk work on Tuesday, I did pitch in to wash the puppies out of the Technorati tags when those pesky critters showed up instead of Sellsius 101. But at about the time Greg was posting his 72nd entry, I was walking out the door to go to an inspection.

And about the time he was writing his 76th post, I was sitting on the side of the freeway, praying that today of all days, I wouldn’t be carted off to jail!

You see, I recently got new plates for my car. My new Pet Friendly plates cost more than the old plates. The difference goes to a fund to help defray the cost of spaying and neutering cats and dogs whose owners are having trouble affording Read more

Zillow gets the address right . . .

You can’t be too careful. So, when I received a call from a man who introduced himself as the appraiser for my client’s condo, which is under contract for an October close, I wanted some proof he was who he said he was. My client is a pretty young woman who lives on her own, so I don’t give out her phone number indiscriminately. I confirmed the inspector’s information with the Arizona Board of Appraisals and my client scheduled an appointment for this past Saturday, when she could be home and grant him access herself.

I just heard from the appraiser. He thought it was strange when he got to the condo that no one was home. But, the door was open. He figured the owner had had to run out unexpectedly, so he let himself in. He hadn’t expected the distinctly masculine decor and level of housekeeping he discovered as he went through the home, and was especially surprised by the absence of women’s clothing but abundance of men’s when he opened the closets, but we’re an enlightened society…

The good news, he reported, was that the home appraised for the sales price.

The bad news was that he had appraised the wrong condo!

So Zillow might not have the accuracy advantage of feet on the ground, but, up in its ivory tower, it gets the address right!

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Project planning in the real estate industry: Putting the client first . . .

Responding to my post on the spec-home I’m working on right now, John Keith commented

I still don’t get where you guys are coming from. Is it the actual dollar amount that bothers you, the percentage, the feeling that agents don’t add value equal to their commissions, or what?

How does Bloodhound Realty do things, and how are they different?

I might add, at most agencies, you wouldn’t end up with $12,000 off a $200,000 sale. The company might take up to 50% of the commission.

Again, is it the size of the commission, the rate, or the entire commission structure that is the problem, and what are the solutions you suggest?

It is the compensation structure. And probably the fact that the “company might take up to 50% of the commission.” And of course there’s a problem with “agents not adding value equal to their commissions.” None of these is the main point, but each is certainly an issue. And, I don’t think it’s a matter of where us guys at Bloodhound are coming from. The grumbling and discontent is out there in general. Anyone who doesn’t hear it isn’t listening.

There are people, lots of people, who are emotionally invested in the idea that our profession should just disappear! I know that it would not be a good thing for the consumer if everyone who wanted to buy and sell a house had to manage the transaction for himself. But there’s a big pool of should-be prospects out there who don’t see it this way. Why do so many people mistrust our profession? What does the public think is broken? How can we fix it?

In my corporate life, before entering real estate, I was the buffer between IT and the end user… at different points when implementing different applications, I might have fulfilled the roll of systems analyst or project manager or user support. Too often I saw a technology being readied for implementation without listening to the end user and basing the product on his wants. Instead, the project was driven by what some pompous leader wanted the end users to want. If Read more

Realty reality: Calculating the value of effective new-build buyer representation . . .

Greg just posted an email he received from a West Valley broker, Joe Bourland. I want to respond to his last paragraph:

Maybe you should look into your established practices of real estate. There is an immense value in representation. Hopefully, the educated buyer you warn will realize the disservice you promote for clients.

Mr. Bourland,

Specifically, what disservice have you identified? Let’s assume that the base price of the home is $200,000. If the builder is offering me, the buyer’s agent, 6% for bringing my buyer into the community, I could look forward to a $12,000 payday when the sale closes! What is the most effort and money I could possibly do to earn that money? Well, I am in process of such a transaction at this very moment, working with numbers close to these. Let’s see what I’ve done and what I plan to do to earn this money:

At the beginning of this process, I introduced the couple to a few lenders who I thought would be a good match for them. They loved one, and she worked up a couple of Loan Status Reports (a loan document referenced in the Arizona Department of Real Estate’s standard contract language for Residential Resale Real Estate Purchases), depending upon whether we found a free standing house or a condo that the couple wanted to buy. (Ardell did a great job of explaining why this is important yesterday on Rain City Guide.) This filled in an important parameter of what we could look for.

Over the next couple of weeks I researched on MLS, looking for new and resale houses that fit the criteria that the clients gave me. I drove the wife around for about 20 hours total, and during this period I was better able to refine our search, based upon her reaction to what she was seeing. Once we had narrowed our search down to houses that would truly please her, the husband joined us to exercise his veto power. Finally, we found something they could qualify for, which satisfied both of their wants and needs, in a new home development.

The house Read more

Information wants to be free — and browsers just want to shop without being hassled . . .

On 360 Digest Gary Hodges asks Marlo Harris about the wisdom of letting people search from the IDX system on a Realtor’s web site without registering on the site:

Now, knowing that this service probably cost thousands of dollars to provide; shouldn’t there be some way to “enroll” them in this service, with the hopes that the “searcher” will make contact with that agent and/or mortgage broker?

Gary (and anyone else with this point of view), what you can do instead is make your site sticky, and then use that to build loyalty rather than trying to capture it.

Some people have the opinion that people won’t value anything that they get for free, and to a certain extent I agree. But, we’re not selling information. It’s already available for free. We’re building relationships. I think prospects can be frightened off by having to blow their anonymity on your site, just to get something another agent’s site will give them free access to.

As in Marlow’s case, someone who comes to our IDX page to search the full Phoenix/Scottsdale-area MLS system needs to submit an email address only if they want to have listings sent automatically when something new comes up with the features they identified. People can understand that if they want something to be sent to them they need to give us an address to send to. But I expect most people want to browse listings without having that ever-present worry that an agent is going to start bugging them, which of course is a concern anyone has as soon as personal information is requested… make that required.

Instead of quid pro quo — you get to see my information (homes listed on MLS) if I get to see yours (contact information) — we want for you to feel free to freely browse listings from our site. Curl up in your chair, sip a cup of tea, and browse on BloodhoundRealty.com all day… for months if you want. While you’re at it, take a look at other buyer tools BloodhoundRealty.com has to offer. And then browse on over to the BloodhoundBlog to get to Read more

Back story: How we evolved our policy forbidding dual agency . . .

Someone commented on Greg’s recent post regarding dual agency. I thought I’d give you the “back story” so you can understand how we came to this position.

Just this past May three events converged to make it crystal clear that dual agency was, in general, good for no one except the real estate agent — who doesn’t want to shake loose those extra dollars he can get from both of his clients by serving neither of them well:

One of the classes I attended to earn my GRI (Graduate of Realtors Institute) was taught by Cec Daniels and Don Martin, past president of Arizona Association of Realtors. For two days we learned from Cec all about how practicing dual agency was unfair to our clients, and Don was all over the idea of the liability dual agency creates for the brokers. During this lecture, one of the instructors wore a baseball cap embossed with a capital B (ostensibly for Buyer) and the other a cap embossed with a capital S (Seller). When they stood together in alphabetical order their caps spelled out another term for dual agency. πŸ˜‰

At about the same time, Greg was representing a dear family friend in the sale of her house. He got a sign call from someone who didn’t think he needed buyer representation… he was shopping on his own and making sign calls. (He told us that the primary reason he was interested in our friend’s home more than any other was that Greg was the only agent who had returned his sign call!) By this time we were already convinced that it’s practically impossible to avoid dual agency when representing a client if the customer (a party in a real estate transaction who is not my client) is unrepresented. The party without representation is sure to rely on us for advice — even though we cannot advise a customer without creating an undisclosed dual agency. Thus, since we would be the only professional representation when half of the parties weren’t represented, we had made it policy to sign limited dual agency agreements with each party. Read more

You might think it’s just real estate, you might think it’s just work, but this Labor Day we’re celebrating three labors of love . . .

Labor Day is a day ostensibly set aside in our nation’s calendar to celebrate America’s workers by… taking off work. This has never made sense to me. Fortunately, Greg is of like mind, and so we celebrate Labor Day by working! We truly love our work, and this year, this week I am blessed with so many reasons to rejoice in the work we do.

I met Jurij and Tatiania in June 2005, as the madly escalating Phoenix housing market was racing through its two-year crescendo. I was representing buyers who were relocating to Phoenix, previewing houses for them, and Jurij and Tatiania were selling a house that had been, at the time, listed for about two months in a market where houses were looking long in the tooth after only two weeks. I was really green in this business last summer, so I couldn’t figure out why their charming house wasn’t moving… and it had already been through two price reductions, when everyone else’s houses were selling for more than asking price.

I ended up finding my clients a house that was much better suited for them, a beautiful old Craftsman bungalow that they are still thrilled about and which should eventually be very profitable for them when the time comes for them to move on. But before we found that one, my clients had me returning to Jurij’s and Tatiania’s house again and again to explore that possibility. Jurij was usually at home when I got there, and during my several visits to photograph and measure his house and yard, we formed a bond over our love of dogs. He has a wonderful, playful old Yellow Lab, Jake, who became my fast friend, and Jurij loved my business card, on which a photograph of our Bloodhound, Odysseus, is prominent where other Realtors typically have glamour shots of themselves.

Jurij and Tatiania’s home languished during last summer’s sizzling market, and then went through another, different, unsuccessful listing… both times, I now understand, without ever having been conscientiously represented, without ever having been actually marketed. At the expiration of their second unsuccessful Read more

Let The Day Begin . . .

Taking allowance from recent posts here and on other favorite sites that have quoted lyrics, and inspired by having just heard this on the radio, I want to celebrate the joy that is communicated by The Call, in band member, Michael Been’s song Let The Day Begin (covered on The Best of the Call – The Millennium Collection):

Here’s to the babies in a brand new world
Here’s to the beauty of the stars
Here’s to the travellers on the open road
Here’s to the dreamers in the bars
Here’s to the teachers in the crowded rooms
Here’s to the workers in the fields
Here’s to the preachers of the sacred words
Here’s to the drivers at the wheel
Here’s to you my little loves
With blessings from above
Now let the day begin
Here’s to you my little loves
With blessings from above
Now let the day begin
let the day begin

Here’s to the winners of the human race
Here’s to the losers in the game
Here’s to the soldiers of the bitter war
Here’s to the wall that bears their name
Here’s to you my little loves
With blessings from above
Now let the day begin
Here’s to you my little loves
With blessings from above
Now let the day begin
Let the day begin
Let the day start.

Here’s to the doctors and their healing work
Here’s to the loved ones in their care
Here’s to the strangers on the street tonight
Here’s to the lonely everywhere
Here’s to the wisdom from the mouths of babes
Here’s to the lions in the cage
Here’s to the struggles of the silent poor
Here’s to the closing of the age
Here’s to you my little loves
With blessings from above
Now let the day begin
Here’s to you my little loves
With blessings from above
Now let the day begin
Let the day begin
Let the day start.

And isn’t this what most of us are about? Those of us who have jumped on the Real Estate 2.0 bandwagon, blogging and building community and talking about transparency and working always toward the best interest of the client. It’s not just about making our mark in the market, though of course that’s important on so many levels… it’s about doing good first and then doing well as a consequence. So,

Here’s to you Greg
Here’s to Read more

Greg Swann can be an insufferable bastard sometimes — but that doesn’t mean he’s wrong . . .

Okay. I’ll admit it: Greg is more efficient than I. Of course, that will surprise no one. He is able to communicate great big ideas with an economy of words… prolifically. While I have to sweat out each word, then use too many to get my point across. Sweat might just be the difference. Greg doesn’t sweat the small stuff, but I’m always flitting here and there to make sure I have everything covered. Don’t misunderstand – Greg nails all the detail on his real estate transactions, but that’s because they aren’t small stuff… they’re the kind of stuff that does matter to Greg. Just don’t leave it to him to see that our water bill gets paid! Those are the types of details he won’t sweat. He leaves those to me.

This comes up again and again in our life. Early this morning when we awoke, Greg made a beeline to his iMac, and I dashed outdoors to find out how many feral cats I had trapped during the night. You see, while we’re both great animal lovers, Greg is perfectly satisfied knowing and loving the ones that are known and loved — the ones who have names. While I’m always on the lookout for the nameless ones, the ones who have been lost, neglected, forgotten. So one of the organizations I’m involved with is AZCats, which lends me traps to catch feral cats and helps me to get them spayed or neutered, so I can turn around and release them and care for them (as much as a feral will permit) and know they won’t create even more feral kittens. One who I caught during the night was a kitten, too young to be neutered. So after I rounded up all of the traps and took the older cats to the vet’s, I took the tiny kitten to a neighbor to see whether she would take him in. She did. All this before breakfast. Greg was still sitting, working, writing at his computer when I settled in to work. He wasn’t interested in the kitten; it was just one in Read more

Be it ever so humble, investment value takes time to accrue…

Yesterday, a counterpoint frequent-visitor asked me, by commenting on my Is the Blame Game best played solitaire? article,

So tell me, should one buy a home in Phoenix right now if they know they have to sell it within three years?

To which I replied

Now is certainly a good time to buy in Phoenix… We’re enjoying a buyer’s market, which as you know means there are more sellers than buyers, and interest rates are still relatively low, as low as they’ve been since April, and at just over 6%, they’re in the zone of what we’ve come to expect over the past five years. I’m not talking about creative financing… I’m looking at 30-year fixed rates, which are actually too conservative for the typical home buyer, who doesn’t plan to live in the same house for 30 years.

If you’re going into an investment with the thought that you’ll have to sell it in three years, I’ll suggest that you talk the investment over, whether it be an investment in real estate, stocks, bonds, fine art, etc., with your financial advisor. And then, if you are satisfied that you can afford to invest in anything that doesn’t have a guaranteed return, that is if you can afford to take on some risk, I will be honored to help you find a home that is likely to appreciate over the next three years, where you should end up selling for a profit after costs. (And, you weren’t paying rent over those three years.) Of course, whenever you consider investments, there’s always risk – risk of being too aggressive or risk of being too conservative then kicking yourself down the road because you didn’t take advantage of that golden opportunity…

But in real life most people don’t buy their homes knowing going in that they’ll have to sell in three years. Most people buy homes with plans to, well, make homes of them.

Today, Free The Drones points to CNN’s Asset Allocator calculator, which — to no one’s surprise — puts the minimum time frame to cash out in the 3 – 5 year range. I Read more

Is the Blame Game best played solitaire?

In case you missed it yesterday, Jonathan J Miller from Matrix gives us a truly great mental image in his posting, The Housing Blame Game. As a real estate professional, of course all of this has been on my mind. While all of our buyer clients have done very well in the Phoenix market, I’m aware that a big part of their success is that they bought without intending to flee the market if and when it changed — and they used good sense funding the houses they bought. Our sellers, too, have done pretty well in general. Certainly those who agreed to list their houses at the right price in the first place have achieved their goals. So, I admit that I have found myself guilty of playing the blame game a bit myself. With all the oracles out there writing articles that foretell the doom of the real estate market, I keep hearing a mental replay of FDR’s voice warning our nation in the depth of the Great Depression that the “only thing we have to fear is fear itself.” In contrast, here we are living in a wonderfully prosperous nation, having just gone through a period where more people probably than ever were able to realize the dream of owning their own homes. And yet so many doomsayers are wringing their literary hands that things must get worse for those homeowners, based on the simple fact that things have until just recently been so good!

I am not unsympathetic to the fact that some of those new home-buyers or mover-uppers may have gotten in over their heads. Some may be going through life changes that create a need for them to move before they are able to stay in their new homes long enough for the new-home smell to have faded. But, in general, anyone who must sell in this market who has owned his house for at least two years, will be able to sell and make a handsome profit, as long as he didn’t make poor decisions regarding refinancing during the past year, and is not making Read more