San Diego Cal Homes

Friday, March 18, 2011

WHY DOES EVERYONE HATE REALTORS?

I have a tendency to give long preambles before getting to the point associated with my headline, so, please have patience, and continue reading.

We live in a fascinating age of technology and advancement –so much so that, it has surpassed my capabilities to stay current. I have reached that numerical age where I have to say “I give up, it is overwhelming to me”. We are so lucky to have so many conveniences and tools to help enhance the quality of our lives. We take so, so much for granted … especially in the USA. I can attest to this since I have traveled all over the world.

I am not sure why I have been doing so, but within the last few weeks I have been compelled to research my family origins. This is a difficult task since all of my ancestry relatives are deceased with the exception of a few distant Aunts and Uncles. Growing up, my family avoided answering questions about our migration, and truthfully, in my younger years I was more distracted with career and family. So, I was satisfied by the vague responses. However, now that we have fee-based Internet service vendors that provide nearly everything, including several companies that digitize old-world records and make them available to us, it is now easier to search for family origins.

I am a little apprehensive as I unveil the fragments of information – hoping that I do not discover some gruesome details that will cause me shame or embarrassment. I never inherited gobbles of money, so that likely eliminates any hopes of descending from wealthy industrialists. My family name was never one that could be pronounced correctly, let alone popular among the paparazzi, so that likely shatters any dreams that fame would be in my lineage. So… in the obvious absence of fame and fortune, I am expecting to discover ancestral people who were humble, yet honest, hard-working, loyal, ethical, devoted, and basically the “salt of the earth”, and hopefully not gypsies and horse thieves who were escaping their countries of origin to flee from capital punishment . Well … life is relative!

For me, it is a bit bone-chilling to look at a digitized copy of the census report from the early 1900’s and find the names of my relatives. Although limited in information, the census reports for those times, provide some insight into the age, names of family members, their country of emigration and language(s) that they spoke. And oddly as it may sound, as I stare at these records, I become distracted in my thoughts, and begin to consider the vast differences between their lifestyles and mine, with only about 120 years apart.

Amazing as it might seem, and more-so to our children than ourselves, our ancestors lived comfortable lives for the standards of their day. And imagine, they did so without Internet, or GPS, or iPhone. Gosh, how did they survive … I mean, I can’t find my own bathroom without using GPS. We would never think to give merit to their “old fashioned” means of socializing and conducting business, mainly because by our standards today, their methods of “face-to-face” conversations, neighborhood town meetings, and personalized assistance would seem far too inefficient. I mean people today would rather text message while driving. True story – I once had a boss who insisted to email me even though he was in the office directly next to mine. I wonder … has efficiency replaced effectiveness? Think about that and let me know your true answer the next time you call a major company with a product defect, and get their automated attendant. I can assure you that the digital voice on the other end of your phone has taken control of your time and does not care about your problem.

If we stop to think about our world today, it seems to me that, we really have so little at our control. Everything that is affecting us and those things and people around us, are getting further from our control. It reminds of a saying I heard many years ago … “if you hold water in the cup of your hand, the more tightly you close your fist to retain the water, the more the water will escape from you”. Try it – it’s true! We have so little control over the economy, politics, housing market, wars, job losses, foreclosures, terrorism, drugs, etc., that I think we are driven to find something that will restore some power of control to our lives. To this end, we look toward our technology. The Internet gives us the control to purchase what we want without a salesperson intruding upon us when we shop, we can assert control on Facebook or Twitter or emails by writing what we want, and then exercising more control by pressing the delete key to eliminate any contrarian views, we can use our phones as control to hang up on callers. But, through our efforts to gain more control, once again we are actually forfeiting control, yet we do not realize it. We can be traced wherever we go, and by whatever we search via our computers, phones, and GPS devices. Ironic, isn’t it!

So, what does all of this rambling have to do with Real Estate. Well, as of this writing there are 462,809 licensed Real Estate agents in California, down from 529,979 only 2 years ago. This reduction is actually a good thing, because, in my opinion, there are a lot of incompetent and / or unprofessional agents who practice at Real Estate, many who are only dedicated part-time, and as such have contributed significantly to the low public image associated with this profession. And I do say “profession” proudly, because we are service providers who can offer great value to our clients… if only our clients allow us.

Consider this. I allocate a significant portion of my weekly work schedule to prospect for new clients, whether they be sellers or buyers. I conduct this prospecting by making phone calls to people who previously listed their homes but have allowed their contracts to expire, meaning that they were once motivated to sell, to people who want to try selling their homes by themselves (also known as FSBO’s), or I host open houses to meet and speak to potential buyers. Consider this as a possible unique idea. The next time I call you, why not take the time to actually have a conversation, instead of exercising that control called the “reflex no”, and then hanging up, or the next time you stop at my open houses, why not ask about the market or housing inventory instead of pretending you don’t see me. You might actually be inviting control over the aspects of your life by engaging in a stimulating conversation, and at the same time, learning more about the dynamics of the market, how I can help you to buy and / or sell a home using my services, and ultimately how you can win by reaching your goals. Again, you could, of course, hang up the phone rudely, or walk away from me if I ask you a few questions. But I wonder, would you walk away from your doctor or lawyer, or car mechanic who was asking you a few questions? They ask questions because they are trying to pre-qualify and understand your situation, and then to offer to help you. I would suggest as an experiment, you trying hanging up or walking away from your doctor, and then let me know how that works for you.

When it comes to talking to a Real Estate agent, do realize that many of us have transitioned from other careers – I for example am a Certified Public Accountant and a former Chief Financial Officer for a global manufacturing company. So, I may be able to offer you far more insight into a Real Estate transaction than you might think, mainly because I have a solid analytical background - an attribute that has the potential to offer significant value. So, why not try stepping back in time, and practice what our ancestors did … we could actually talk to each other, face-to-face. Yikes, it might be a little scary at first, because we have abandoned the practice of having a dialogue , but it is harmless … it is just people talking to people. And I promise… if you call me on the phone or stop by at an open house, I will not say “please enter your 656 digit account number”, or “marque dos para Español”. Remember … buying and or selling begins with people talking to people. So … try not to hate REALTORS!

If you want to put a smile on your face, go to our website at www.San-Diego-Cal-Homes.com, click on “My Profile” to advance to the second page of the website, then click on “Travel Pictures”.

Main Office: (858) 357-9814

Satellite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578

Home Office # 2: (858) 412-6082

Mobile: (858) 449-8250

http://realestate.yahoo.com/California/San_Diego

Wednesday, March 9, 2011

Buyer-Broker Agreements

I have been blessed by being able to travel all over the world. I am truly a person who loves diversity. I appreciate the differences in culture, language, food, religion, arts, and so forth. In Real Estate, a great benefit to hosting open houses is the chance to talk with as many people who are willing, in return, to talk to me. To this point, I have noticed a significant increase in the number of people originating from elsewhere around the world, who now live in this country. I often ask them, “so what impresses you most about this country”. Without fail the two most common themes are (1) freedom and, (2) the overwhelming burden of legal documents. Sounds somewhat contradictory, doesn’t it, yet to which I respond… “welcome to the United States of Litigation”.

So… what is a buyer-broker agreement, and why is it becoming more popular. Obviously, assisting people to buy and sell houses is my business, and I am delighted to help people to achieve their goals and bring happiness to their lives. Having said that though, then abiding by my standards of service, I do request that my clients review and sign a buyer-broker agreement. There we have it again … the freedom to choose a Real Estate agent, but one who requires a signed document.

The minute that people hear the words contract or agreement, they tend to get nervous and concerned. I watch them push away from the conference table as if they just smelled something really nasty. They generally look at each other, look at the ceiling, pretend they don’t see the agreement, check their watches or cell phones, and then after the “pregnant pause”, will ask why they have to sign a document, when after-all, they only want me, to take my valuable time, to show them some properties.

Let me briefly explain. The buyer-broker agreement simply creates under California law, an agency relationship. This means that you have selected me, the agent (employee), to represent you, the principal (employer), during the search phase to find a house, and thereafter to present offers and to negotiate the terms and conditions of the purchase contract, and then, all-the-while to protect your interests throughout the transaction until escrow is closed. So, you see, as with so many other laws in our country, this as well, is meant to provide protection to the consumer. By civil law, I have certain responsibilities which obligate me to discharge my duties according to the principles of care, obedience, accountability, loyalty, and disclosure.

Without such an agreement, you are at risk of not having your interests properly represented. Here is what often happens. Buyers in this do-it-yourself world, conduct their own market analysis and then present an offer to the listing agent thinking they will avoid paying commission. What is important to understand, is that the listing agent, by a similar agency relationship created via the listing contract, is an agent for the seller, and therefore is obligated to protect the seller’s interests – not the buyer. Does that make sense? If this happens, then you are purchasing a very, very expensive asset without the guidance and representation from a qualified Real Estate agent. Also realize that, by going directly to the listing agent, the buyer has fulfilled the dreams of that listing agent, since the listing agent will likely be able to “double-end” the deal, meaning they double their commission split. Now, in exchange for signing a buyer-broker agreement, the buyer’s agent is due to receive a commission for their endeavors, provided they bring a willing and able buyer to the transaction. All too often without such an agreement, agents spend time and money to search, schedule appointments, and show property, only to learn at a later time that the client, on their own, saw an open house, and in a state of uncontrolled emotion, made an offer directly to the listing agent. Sad as it is, without an agreement, the agent then representing the buyer does not receive a commission. And by-the-way, in most cases all commissions are paid from the seller, and not the buyer.

The truth be told, if either you or the agent are dissatisfied with the business relationship, you will likely be able to mutually terminate the agreement. Be aware however, that, if and when you choose to associate with another Real Estate agent, whether it be with or without a buyer-broker agreement, you should definitely mention that a prior buyer-broker agreement was in force. Should you purchase a home that was shown to you by the previous agent under a buyer-broker agreement, you may have liability for the payment of commissions to that agent.

In addition to what has already been said above, the buyer-broker agreement allows the agent to seek out homes for you, by using non-traditional methods. Most agents will simply “plug-in” search parameters to a MLS (Multiple Listing Service), and view the results. This often works adequately. However, some home buyers, and especially in the current market, are looking for homes that are turn-key and move-in condition, and at a price that is below market value. An aggressive agent will seek out houses through networking, phone prospecting or door knocking in an attempt to determine if a home owner would be willing to consider a sale. An aggressive agent using these non-traditional approaches can legally do so, because they have an agreement from the buyer to provide representation.

So, consider that the next time a Real Estate agent asks you to sign a buyer-broker agreement, you should do so with enthusiasm, because this most likely means that you have found a competent, hard-working, professional agent willing to provide you with a level of service several clicks above all the rest. As a caution, and this stands true for anything you sign, be sure to read, and ask questions about the agreement before signing.

Almost certainly, a car dealership, electrician, plumber, lawyer, dentist or physician asks us to sign an agreement before they proceed with their services – and we simply do so automatically without question.

Main Office: (858) 357-9814

Satellite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578

Home Office # 2: (858) 412-6082

Mobile: (858) 449-8250

http://realestate.yahoo.com/California/San_Diego

Thursday, March 3, 2011

Motivation … Motivation … Motivation

Anyone living in the United States has probably heard of this buzz phrase a thousand times when considering the purchase of Real Estate – “Location, Location, Location”.

Right?

Consider this! Have you ever listened to a speech or lecture and hear someone use the same word repeatedly? After hearing a word for so many times, it seems as though the brain begins to block all other thoughts from our attention, and focuses only on that one word. It doesn’t take very much time until you find yourself repeating the word by its syllables, or trying to say it backwards, or you begin singing it silently to yourself until you start to tell yourself to shut-up, shut-up, shut-up. Then you begin to play games like, I bet you can’t go 10 seconds without thinking of that word. C’mon admit it – you’ve done it.

Well, every week on Wednesdays, I attend a morning meeting of local Real Estate agents and brokers. The purpose is to listen to the pitches by other agents and brokers for all new properties being listed on the market. And … in many cases, especially in this whacky market, agents boldly and proudly announce that they have finally beat down their sellers, to obtain concessions on price reductions. Yeah, well that’s great, however, it usually means that the agent took an over-priced listing to begin with – meaning they did not do a good job to fully convey the market conditions to their client, and to get an agreement on a listing price that would cause the home to sell. So anyhow, what I hear week … after week … after week, is that sellers are motivated to sell. Motivation is the repeat word here.

The reasons are cautiously humorous, ranging from “the seller is motivated to sell in order to avoid foreclosure”, - well, yeah that would probably motivate most of us. Or “the seller has just purchased a new home for $11,000,000 and is now motivated to sell”, - like we should all have such troubles in our lives. Or “my client is 93 years old and is motivated to sell before they die”, - well … ok, but sounds like poor planning to me. Or “my client finally realized that the market value declined by 30% from 5 years ago and is now motivated to lower the price to sell”, - they could not possibly have been in denial could they. Or “my client just bought a new house and now realizes they have 2 mortgage payments to make” – now there is a financial genius.

So … I began to focus in on this word “motivation”. What does it really mean to be motivated. A classic definition is “the driving force which causes us to achieve our goals”. Well … ok, in this whacky and crazy market, I can understand some of the motivating or driving forces that inspire sellers … but what about buyers?

My business partner, Natasha, and I, have hosted oodles and doodles of open houses for other listing agents. And in the process, we have spoken to literally thousands of people who have visited our open houses. Now, there-in-lies another comedy routine that I wish I could write books about. There is no more rewarding feeling in the world next to schlepping these damned open house signs around in the car, posting them on sidewalks to direct traffic to the open house, staging the house like turning on lights, opening windows, placing odor eaters, cleaning and flushing remnants in the toilet, etc., setting up all the junk which includes tables, flyers, maps, etc., putting on a suit and tie, running to the front door with a smile on your face and a firm handshake to greet people, only for them to say … “oh no, thanks, I am just looking”, or “I had nothing else to do today so I brought my dog and 12 kids to run around in your open house”, or “gosh my 118 year old mother is in the car with my newborn, and I just wanted to peek”, or “ I hated the people who lived here and I just wanted to see what kind of trash they had for decorating taste”. Ok! Some points are slightly exaggerated, but more interesting is when we ask people questions. We, as Americans have what is referred as, the “reflex no”. Some researchers claim that beginning from the time we are born, we are told “no”, by parents, teachers and the like, up to 147,000 times, or on average, once for every single hour of our lives, until we reach 21years of age. So… the question of … can we explain the features of this house to you – answer – “no” … so, can we give you a flyer – answer – “no” … so, what are you looking for – answer – “I don’t know, but I will know it when I see it” … so, do you know how much house you can afford – answer – “no” … so, my name is Charles, what is yours – answer – “no”… so, are you looking for a house in this neighborhood – answer – “I don’t know … so, are you looking for a house in this area – answer – “I don’t know” … so, are you looking for a house in this county – answer – “I don’t know” … so, are you looking for a house in this State – answer – “I don’t know”. Real Estate life is rather glamorous, isn’t it!

So … I could draw the conclusion that buyers are not motivated. Rather I am convinced that there is a hidden motivation, however, they are unwilling to reveal. Why? Answer - “I don’t know”. I suspect it is because we as Americans are taught that the better negotiating tactic … is silence. In many other countries throughout the world, bargaining and bartering is a way of commerce. Yet, another possible explanation is that, we are so vigilant to prevent identity theft and spamming that we choose as a defense, to keep all of our thoughts from strangers. While somewhat admirable, the social detachment caused by our modern day technology like Internet, iPod, iPad, iPhone, iThis, iThat – see the pattern … it is becoming an iWorld, as in me, me, me, and further, along with this behavior of conversational alienation, the gap only widens in our society and the ways in which we choose to deal with one another. As it is, it is very difficult to negotiate deals when a broker is involved – I can’t imagine why anyone would want to sell a house as a For Sale By Owner. Just shoot yourself now.

Another interesting factoid in Real Estate life is that, less than 2% of all open house visitors actually buy the open house. So … as an alternative purpose, besides wasting the Real Estate agents’ time, why do we visit open houses? Answer - curiosity! Americans are also gossipers, window shoppers, and now we are in love with reality this, and reality that. But sometimes we shield our real intentions, because hidden behind all of those “nos” and “I don’t nos” , buyers do have motivation. What buyers are not telling us, although obvious, is that their motivation is price. Low interest rates are nice, but they are not causing buyers to herd off to the market.

The wants of the seller and buyer are the same, meaning they both want to trade on the same item … however, motivation, that driving force I previously mentioned, will likely always be at odds. Real Estate agents are not typically qualified as Psychologists. We do not have the time to patiently unravel the mysteries of childhood dysfunctions, nor do we know the right questions to ask from that field, nor do we get paid $250 an hour to listen. We are motivated to assist people to achieve their goals – and yes, our driving force is the expectation to get paid at the completion of our work. However, none of this can happen, if sellers and buyers refuse to reveal their true and honest intentions, and then allow us to be an integral part of finding a solution … a better solution … a comfortable solution.

Main Office: (858) 357-9814

Satellite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578

Home Office # 2: (858) 412-6082

Mobile: (858) 449-8250