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.

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556   
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037


Google Keyword = Homes in La Jolla CA
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.   

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556     
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037
Google Keyword = Homes in La Jolla CA
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


Saturday, February 19, 2011

Recent Home Values in San Diego

Without much discussion, I’ll tell you that the Real Estate market is dominated by conditions for which we have no direct control. The market is forecasted for a slow recovery, but for now, consider it a potential buyer’s paradise. Just keep in mind that, in spite of the market conditions, we all have choices as to whether, and how to buy and sell homes.
Simply stated … the market as it is, presents opportunities for buyers, and challenges for sellers. A few of my thoughts for your consideration appear below, followed by a few statistics of interest relevant to the San Diego market as a whole, and also for a few  surrounding neighborhoods.
Opportunities for Buyers :
1.    Market values are 30% less than at the peak in year 2005 / 2006.
2.    The supply of homes is adequate
3.    The inventory selection is good-to-excellent, with premiere properties available, and many being sold at equity sale – my advice – stay away from short sales or foreclosures
4.    Interest rates are still very favorable, and more money in all categories is becoming available
5.    Escrows are typically closed from between 20 to 30 days from opening
6.    Upgrading in a down market sometimes makes great sense
7.    Great investment prospect with potential for future gains
Challenges for Sellers:
1.    Listing your home at market value to cause it to sell
2.    Updating and maintaining the appeal and functionality of your home in preparation for sale
3.    For Sale by Owner (FSBO) – not a good idea – hire a competent broker
4.    Websites such as Zillow and Truila can be deceiving and often suggest purchase prices to on-line seekers at 5+% below market value
5.    Neighborhood foreclosures and short sales that drive area sales prices downward
6.    Reducing you listing agent’s commission rate – not a good idea

###################################


Full-Year 2010 (Units except for $’s)

Beginning Inventory                            15,147
New listings                                         56,557
Sold                                                    (31,522)
Expired/Cancelled                           (26,851)
Adjustment                                            1,244
                                                                                _________
Ending Inventory                                  14,575

Inv. Months-on-Hand                               5.6          

Average Days on Market                           76
Avg Listing Price                         $ 433,077         
Avg Selling Price                         $ 418,086
% of Price Sustainability                 96.5%           

###################################
                                    Market Value Ranges
Neighborhood          Average $ / Square Ft

North Coastal                                              
   Oceanside                   = $ 185 to  $ 205      
   Cardiff                          = $ 430 to  $ 476
   Carlsbad                      = $ 246 to  $ 272      
   Encinitas                      = $ 319 to  $ 353

South Coastal                                             
   Solana Beach             = $ 444 to  $ 490
   Del Mar                        = $ 566 to  $ 626
   La Jolla                        = $ 530 to  $ 586
   Pacific Beach             = $ 427 to  $ 471      
           
North Coastal Perimeter                            
   San Marcos                 = $ 185 to  $ 205      
   Vista                             = $ 174 to  $ 192      

South Coastal Perimeter                           
   Carmel Valley             = $ 316 to  $ 350
   Rancho Santa Fe       = $ 400 to  $ 442
   Sorrento Valley           = $ 271 to  $ 299
   UTC                              = $ 297 to  $ 329

Inland                                                                        
   Escondido                   = $ 169 to  $ 187
   Poway                          = $ 252 to  $ 278
   Rancho Bernardo       = $ 241 to  $ 267
   Rancho Pena              = $ 244 to  $ 270      
   Scripps                         = $ 243 to  $ 269

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556      
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037

Google Keyword = Homes in La Jolla CA

Main Office:                           (858) 357-9814
Sattelite Office:                      (858) 459-0501 ext. 319
Home Office # 1:                   (858) 750-2578
Home Office # 2:                   (858) 412-6082
Mobile:                                  (858) 449-8250

Monday, February 14, 2011

Real Estate – Fantasyland ? Reality ? Where is the answer?

Buyers and sellers call us all of the time. They want, or expect, that we can lead them to the secret hiding place for all of the best housing deals. Sellers for example, call and expect that we have the magic wand to sell their houses for prices well above market. Buyers, on the other hand, call us and want to know if we have a special inventory of low-priced, high value homes that we are reserving just for them. How interesting! It is amusing and yet challenging all at the same time. Let’s face it - the real estate market is just plain
whacky!

When sellers call us, we realize that they do not understand that, because of the multiple methods we employ, then attempting to estimate the best market value to sell their home, takes several hours of research and calculations. Usually, the seller calls with great anticipation in their voice, then nervously begins to articulate every cent they spent to upgrade or maintain their home – and then, afterwards, casually asks us … so what do you think is the best price I can get for my house? Most sellers have no clue as to what factors drive market pricing – and that’s ok, because we do, and we can help them.

Homeowners are driven by the emotional attachment associated with the purchase price they paid, as well as the loving care and attention given to their home  -  and not logic. Logic is rarely an element in home sales transactions. Here is what we encounter often. Many people who purchased their current homes in say 2005 to 2006, just at the point when the market peaked, have an expectation that they should be able to sell their homes for at the least the same price they paid. Well… we empathize with this – we really, really do. However, like it or not, the market has declined by 30% over the last few years, and therefore the likelihood of selling your home for that inflated price is… well… zero. This tells us that some sellers are either disillusioned that they can find the one uninformed buyer who is willing to overpay for their home, or maybe they are simply in denial that they will have to forfeit equity in exchange for moving onward with their goals and desires. Another group of sellers, are those who purchased their homes prior to the peak, and are willing to defer their selling decision for a year or so, with the expectation of a full market recovery, and then, scoop up those unrealized gains that they now wished they cashed out, at that peak period.

 Some buyers are equally out of touch. It is not uncommon for buyers to search in the more prestigious neighborhoods, hunting for houses having the best features and benefits, expecting to snatch them up at ridiculous bargain prices. I mean come-on … we appreciate a good value as much as anyone, but buyers today are looking for turn-key, move in condition, ocean-view properties and at prices well under market value. Sure… there are fantastic values in the market today… but bargains … well, just think about the phrase “bargain basement”, and what images come to your mind. Yeah right! Generally, you get what you pay for, and we just hope that you try not to forget that!

The Real Estate market, conceptually is the same as the stock market. Buyers and sellers come together and exchange value for value via a broker. Some win and some lose. Here is something to consider. You see … many segments of the economy today are characterized as a buyer’s market, and Real Estate is no exception. Worse yet, is that consumers are concerned about the uncertain future of the economy, overall fiscal growth, jobs availability and security, and as such… consumer confidence is negatively impacted. Buyers today do not want to be caught purchasing a home with a looming threat of further declining home prices. So, to some degree, we have a hedge market, except that buyers are hedging on the downward side. Buyers are very well informed these days – so as a seller, we would not place much faith in finding the single moron willing to overpay. Buyers know that the market values have declined by 30%, and to hedge against any further near-term market declines, they are considering offers at 40% to 50% below recent peak-time prices. This represents a throwback to year 2002 price levels.

It is easier to understand at this point why many Real Estate experts are predicting a slow recovery. The gap representing the difference between the seller’s perception of value and that of the buyer, is not narrowing. Pardon us if it seems as though we have personified buyers and sellers as if they are specific personality types – not our intention. Remember, in most cases, you may be a seller in one transaction, and immediately thereafter, a buyer in the next transaction, so your position will easily waiver from selling at the highest, to buying at the lowest.

 So … here is the point. If you are a seller, get in touch with the key issues that are driving your motivation to sell, and then evaluate the benefits to you and your family, to moving forward with your life’s goals and dreams. If you are a buyer, experience the gratification that you can achieve your goals and dreams for yourself and family, and stop waiting for the deal of a lifetime. Ironically, as consumers in the greatest nation in the world, our decisions are often paralyzed by having an over abundance of selections.

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556       
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037

Main Office:                           (858) 357-9814
Sattelite Office:                      (858) 459-0501 ext. 319
Home Office # 1:                   (858) 750-2578
Home Office # 2:                   (858) 412-6082
Mobile:                                   (858) 449-8250

Thursday, January 20, 2011

Upgrading in a “Down (Real Estate) Market”

No! This is not a contradiction in terms.
On average I make between 400 to 500 phone calls each week in my attempts to prospect and to talk to people about buying or selling a home. One of the questions I try to ask… that is before the caller disconnects from the conversation, is, would you consider to upgrade to a larger and better home. The answer is almost always something like, “are you crazy, why would I consider to sell my house and to buy another house in this crappy market? Well… I understand the sensitivity for those people who have either lost absolute dollars, meaning, perhaps those people who bought at the peak of the market in 2004 / 2005, or even those people who have lost what they consider as unrealized gains.
But, all bitterness aside, think about it. If you were contemplating an upgrade a few years ago, now may be the time for you to benefit. First, loan rates are at a remarkable low. Second, let’s just say that your home was valued at $850,000 in 2005, and is now worth, oh, let’s say about $625,000. At the same time, let’s suppose that you were interested to upgrade into a home valued at $1,250,000 also in 2005. Well, the value of the upgraded home might be valued closer to $900,000 now. This example is typical of the San Diego Real Estate market. So, while your current home lost $225,000, your next dream home lost $350,000, or a benefit of $125,000, meaning more house for less money. Third, and since everyone hates the thought of paying their hard-earned money to taxes, think about the lesser property taxes to pay on that upgraded home that now costs less to purchase than several years ago. And fourth, with all things being relatively equal, and without regard to any re-financing on your current home or other special circumstances, then your monthly principal and interest payment may not be much more on the new home, than you are paying on your existing home. Check with your lender or financial advisor first. And finally, fifth, when the market does rebound, which everyone hopes and expects it will, you will then be in position, ahead of the curve, to gain substantial increase in equity.
Why complain about the market when it is not within your control. Rather, consider how you can make a move and use the market changes to your advantage. Now … if you do not make a move in this market, my question becomes … when will you know the right time? What signs will you look for to help you make a decision at the optimum time? Or … will the market catch you by surprise and rise above the point when you cannot afford to make a move? So … while you bark at every REALTOR® who calls upon you now, listen to what we say … we are looking out for your interest as well as our own.  
We are here to help you, but first you have to be open to ideas, willing to consider possibilities, and motivated to pursue your dreams.

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556         
Broker Associate
Prudential California Realty

1299 Prospect St.
La Jolla, CA. 92037 

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578
Mobile: (858) 449-8250

Thursday, January 13, 2011

Why Do We Avoid Listening to Our Inner Voice

There is a quote that I heard many years ago when I was a CFO for a major company. It was at a time when this particular company was launching a new product into the marketplace. The opportunity existed to “do things right” by spending a few more months and a few hundred thousand dollars more to adequately test the product, and to make a few extraordinary modifications and enhancements. Against advice to the contrary, an aggressive and ambitious CEO made the decision to beat their competitors to the marketplace with this new “secret weapon”, and thereby dominate with market share, earn substantial price margins, and as a result, boost profits. Well … in the end, the product failed in the marketplace with serious quality issues. And rather than creating value and goodwill, the company spent multiple times earnings to recall and dispose of the failed products. The company subsequently made the modifications and improvements that it previously deferred.  Sadly, rather than beating its competition, they destroyed their good reputation that had previously taken over 50 years to build. Oh yeah … the quote is … “We never have the time to do it the right way, the first time, but we always have time to do it the right way, the second time around” – think about that for a minute!. 
So how does this short story relate to selling homes? Well… most home sellers, although knowing that the right thing to do to get their homes sold, is to list with an active and aggressive Real Estate agent like myself, will, none-the-less, attempt to sell as a FSBO (For Sale By Owner). Or they will list their home with an agent promising to blast-market their home all over the digital and print world of advertising. I mean … how cool is it to have fantasyland pictures and descriptions of your home plastered all over glossy magazines, classified advertisements, personal websites, and social media sites – kinda makes you feel like you are finally in the “spotlight” – doesn’t it. You can send out all kinds of text messages and Facebook messages to showcase your home to all of your friends and family, just like a proud parent.
Well … in a manner of speaking you are in the “spotlight”, albeit a far-less-than desirable venue. Just imagine…  there are a lot of people scanning the Internet looking for your advertisements…  and as a result…  you are potentially exposing yourself and your family to strangers of questionable ethics and principles, and, to strangers who now have access to more information than you intended to publicize. I mean, why not just include in your advertisement, the secret location of your hidden front door key, or the hours that your home is vacant, and therefore open your life to home invaders.
Regardless of those dreadful images, consider that passive selling techniques such as those mentioned… like magazines, and websites do not generally produce immediate or satisfactory results. These methods transfer control into the hands of others, to use as leverage in negotiations against you. Why? Because most people regard For Sale By Owners as being desperate or cheap. You are unknowingly, sending out a message to the world that you are possibly in financial need, that your skills at negotiating are weak, that you prefer to conduct your business deals in secrecy, and that you do not have the confidence and strength in your home’s worth, or your credibility. And, because you want to save on the sales commissions, you are contrarily sending out a message that you are willing to bargain . And for this reason, independent buyers, and especially bargain hunters and so called “bottom feeders” will expect you to forfeit at least the 3% that would have otherwise gone to the Buyer’s Broker in a traditional sale. And …  before the deal is finished, you will likely have diluted your equity by 12% to 15%. Further they may assume (and they are probably correct) that you over-priced your home on the market. On the other hand, there is a high probability that by listing with an agent who resorts to some of the same methods as a FSBO, will likely cause your home to remain unsold for many months. This will either cause you to lose on the opportunity to purchase your next home, or worse, you may be caught with 2 mortgages for a significant period of time. If you choose to move onward to your next home, without first selling your previous, then that home, now vacant (no furnishings), will not show its true value in the eyes of the buyer, and you can expect to add 6 more months to your selling time, and expect a reduction of at least 10% in your listing price. Houses are indeed selling in this down market, however, with there being a 7 to 8 month inventory supply ( no discussion here about the pending release of foreclosures into inventory), competition is strong. If your motivation to sell your home and move onward with your plans is high, then you need to seek out a powerful Real Estate agent, like myself, who will work aggressively to get your home sold.    
There is another quote that I like, and I believe there is truth in it, and it goes like this … “generally, you get what you pay for”. It is a very simple thought, yet sometimes our minds do not allow us to believe it.
How many times in your past life can you think when you should have paid a little more for something that you absolutely knew was of greater quality, yet you opted for the inferior product or service, only to be remorseful later. How many times in your past life had you proceeded to do something in a manner that was not up to your capabilities or standards, yet you chose the low road, so that only at a later time and after greater stress and expense, said to yourself “damn-it, I am going to do it right this time”.
When it comes to buying that next home, or selling your current house … make that commitment from the very beginning that you will hire an active, aggressive, and competent Real Estate agent to get the job done – do it right the first time, and you will likely be happier, more productive, and have more money. Have the peace and comfort that you listened to, and acted on your inner voice!

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556         
Broker Associate
Prudential California Realty

Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578
Mobile: (858) 449-8250

1299 Prospect St.
La Jolla, CA. 92037 

Friday, January 7, 2011

I Would Like to Apply for the Job of Being Your Real Estate Agent

That’s right! I would like to apply for the job opening to be your Real Estate agent.
Do you have any idea how most people go about selecting a licensed Real Estate agent to assist them to either sell their home, a home which is likely their most valued possession, or to help them to find a new home, an asset which is likely their single most significant investment? Sadly, most people choose a Real Estate agent without considering the candidate’s qualifications, and the result is often a poor selection. As I have written in previous blogs, there are approximately 472,000 licensed Real Estate agents in the State of California. Having a population of nearly 37,000,000, then by mathematical supposition, 1 in 78 residents of California has a Real Estate license. That is pathetic - it is almost as easy to get a Real Estate license as it is to get a driver's license - but can they all, really be qualified to sell Real Estate? Think about that comment for a minute.
Here is what happens. There is a high likelihood that everyone knows a licensed Real Estate agent, and because of that, rarely will anyone actually take the time and initiative to interview agents - they simply call an agent who happens to be a friend, family member, affiliate of a religious group, or neighbor, etc.
Here is what is interesting! Before choosing Real Estate as my second career, I was a senior-level finance executive in the world of international manufacturing. Throughout my 25 years, I witnessed hundreds of people being hired by managers who used all of the wrong criteria, such as friends or family, people who attended the same college, people with like-minded  sports interests, people with similar personality types, or just people who would not represent a future threat to that hiring manager’s career. The sad reality is that, while we have a near 10% nationwide unemployment rate, it is highly likely that qualified people are the victims of corporate reductions, while at the same time hundreds of thousands of unqualified misfits are still roaming the corridors in our American corporations.
So, why do I raise the issue of jobs in the corporate environment when I am requesting to interview with you for the job of being your Real Estate agent? Well … If you have ever attempted to search for a job within the most recent 10 years, you may have noticed that most employers are more focused on how well a candidate will market themselves, rather than assessing the substance of the candidate's skills and talents and how well the candidate will actually perform. This is because most of American businesses do not understand effective hiring and interviewing. And guess what? Pay attention to this statement -  homeowners and home seekers are no different – they do not understand how and what to focus, in order to hire the right Real Estate agent.
Let me help you to select the right Real Estate agent. Listen to what I am offering to you. First and foremost, place yourself into the mindset that you are the hiring manager - after all, you are indeed hiring a professional to provide you with a service for which they will be compensated. Second, make the conscious, yet difficult decision that you will not hire any friends, family, or close associates – let them know, if necessary, that you value their relationship above the risk of jeopardy. And further to this point, do not accept any agent referrals from friends and family. Top Producing agents in any Real Estate Brokerage firm, while widely sought out, may not be, and probably will not be, a good choice for you. Now why would I suggest that you not seek out those regarded as, “the best”. Any Real Estate agent / broker achieves their success by applying the “numbers game”. Let’s face it – the more listing contracts with sellers, and the more buyer-broker agreements with buyers, the more probability that they will close transactions, and therefore generate commission revenue. The underlying problem for YOU, when playing in this “numbers game” is that, not every seller or every buyer, is a winner. Often times, the secret to getting as many listing contracts as possible, is to avoid be truthful with the seller about the market value of their home, and the result is a home that remains unsold for 6 months or longer. Can you afford that? Often times the secret to finding buyers is to give false promises of finding their dream home, without any attempt to assess your needs or to ascertain what you really want. Don’t let an agent play with your mind or your emotions.
Third, make a simple list of the “must-haves” - and this is not only critical, but probably unexpected from what you were thinking up to this point. You need to look for; (1) Agents who use active selling techniques, not passive marketing techniques. (2) Agents who invest in themselves to improve selling skills that will bring value to you. (3) Agents who have business experience and the diversity to know and understand negotiating skills, contract preparation, and can bring parties together for a “win-win”, and (4) Agents who take the time to learn and understand your needs and expectations. One caution here – avoid interviewing more than 3 agents.
My business partner and myself invest thousands of dollars monthly to improve our skills and techniques. As former business executives we know and appreciate the power of investing, and the resulting dividends that yield to our clients.  We absolutely know the value to providing excellence in service to our select clients, and from that, the benefits that accrue to all parties associated with us. Truth, honesty, and integrity have always been, and will always be, the foundation and strength by which we operate our business.
Of those 472,000 Real Estate agents licensed to operate in the State of California, only a small percentage actually have the commitment and drive to aggressively pursue self improvement and skills upgrades to service their clients’ better interests. We are among those minority Real Estate agents who have such devotion and confidence.

Our goal is to help and guide people to buy and sell San Diego Homes:  Contact us soon - and let us apply for the job of being your Real Estate agent.

Charles M. Schevker (CPA)
DRE # 01875556         
Broker Associate
Prudential California Realty
Sattelite Office:(858) 437-8400 ext. 248

Home Office: (858) 750-2578
Mobile: (858) 449-8250

1299 Prospect St.
La Jolla, CA. 92037