San Antonio's Rockstar Turned Realtor®

photo courtesy of StuSeeger

Are online friends your friends?

Last week I wrote a post at AgentGenius about connecting with clients and consumers on a more meaningful basis than just business.  That article, prompted a response by AgentGenius writer Ken Montville, "Your Client Doesn’t Care: A Contrarian View" about how the consumer doesn't care for your friendship - they just want a great real estate agent.

He's right, most consumers want to hire the best real estate professional the world has ever seen and little more.  But during that time, they have a basic human need - that of connection.  They don't necessarily want to be your best friend, but a great acquaintance will have more value than a stranger who happens to be the greatest real estate agent in the world.

Read the full article at AgentGenius - "Why Can’t We Be Friends? The Lost Art Of Acquaintances."

photo courtesy of eflon

You'll need to do some homework.

In order for this post to make much sense, you'll need to read up first.  Please read Larry and Sheila Agranoff's post "Should We Even Respond To This One?" (a featured post from 12/21/09) - if you're not a member of ActiveRain, the post will not come up for you as it is marked "Members Only."  Be sure to read through the comments as this is what my post is based on.

So what would you do?

I hope you left a comment while you over there, but let me ask you this: did any of the comments you read through rub you the wrong way?  Do you think the commentors made excellent points or not?  Would you respond?  If so, how?

As I read the comments last night (I just re-read them this morning), I actually felt a little disheartened.  A few notes... First, I'm not here to tell anyone how to run their business or act like I know it all.  Second, I don't know the prospective client and any of the details of any other contact with them, I also don't know the Agranoffs, so I'm not sure what they're all about either.  Third, many of you have years more experience than me and I recognize I can sometimes be a bit idealistic.  Fourth, I am in no way implying that any particular comment is the problem or that Larry and Sheila shouldn't have posted this, in fact I'm thrilled that they posted it.  And lastly, I know there are times when it's best to walk away (I just had to do it recently).  Okay, now my disclosures are out of the way, let's get into it, shall we?

As you can see from my comment on the post, I don't think the answer is to cut off communication or end any dealings with the prospective client.  I'd even add a bit to my comment in terms that, I would probably see if they'd like to sit down and discuss real estate and their experiences (perhaps over a cup of coffee in a location other than an office).  I love to hear the consumers point of view and at one point in my life as I have pointed out many times on this blog, I disliked all Realtors®.  It only took one bad experience.  It also only took one good experience and a memory of a prior good experience to bring me back and wind up becoming one myself.

Realtors® (and non-Realtor® agents as well) and the industry have a bad rap with some segments of the population.  We know this as fact.  The National Association of Realtors® pours a lot of money into trying to change that perception.  We fight it everyday in our business.  We talk about it here and on blogs all across the internet.  We'd be foolish to deny that a rift sometimes exists and sometimes that rift seems a bit more like the Grand Canyon.

So (based on the post alone and no other knowledge of what has transpired between the two parties), we have a case of a prospective client who most likely has had some bad experiences with agents in the past and thinks we're all the same.  Are we all the same?  Do you run your business like I do?  Do you think and say the same things Larry and Sheila do?  The answer is probably yes and no.  We might agree on this or that, but have a complete opposite approach to something else.  As long as we're within the letter of the law, we can do our business how we please (and how it pleases our clients).

What disheartened me the most I think is the willingness of many of the commentors to make a judgment to get out rather than discuss anything with the home buyer.  I'm not dumb enough to think that every consumer will be won over by your explanations of why you're different from the other agents they have had experiences with, but I'm also passionate enough to give a damn about what they think.  I think we could all benefit from seeing this as opportunity, and not just for our own pockets, but for the overall standing of our industry with the public.  Sure, the efforts may crash and burn, but they also might just work.

The part that I disagree with most is the "answer with silence" style answers.  As if the public don't already think we're impossible to get a hold of and never return our calls.  This is a huge issue with consumers and I know we all miss a call here or there or perhaps even don't answer an email, but the more we do it, the more this perception will stick with us and tarnish our profession.  The consumer of today wants it now and it doesn't always happen that way, so I predict this will continue to be an issue no matter what we do to adapt our habits and make ourselves available or educate the consumer about how we operate (how do you tell a consumer how the industry operates, when we are all so different?).

We preach every day about educating our clients, yet in these comments, very few spoke of educating.  (By the way, we talk about educating clients so much at times, that I wonder if the consumer thinks we think they're all completely in the dark when it comes to real estate.  Not true, but based on some of the things I read about client education, I might get that idea.  I guess that's another post for another day.)  The prospective client in question (again, based only on the knowledge I garnered from the post) seems to definitely have had some problems with agents in the past.  So what's our answer to that?  Don't respond?  I say, speak to them, show them, help them understand the differences between the apparently incompetent agents they've dealt with in the past and you.  Treat them well.  Perhaps it will still not be enough and it will turn into a nightmare - if that's the case, then you may need to reconsider continuing down the client-agent relationship path, but to throw in the towel before it has even started?  I just don't see it as sensible or helpful to you or the industry as a whole.

I'd love to see Larry and Sheila post this again quietly in six month or a year from now.  No fanfare, no mention of it being a repost, just throw it up on their blog as if they wrote it in 2010.  But I'd like to see one difference.  I'd like to see them make it a public post.  I'd be willing to bet that some of the comments might not be the same.  Even though we all know it's not hard for a consumer to sign up as a member on ActiveRain so that they can read everything, I often wonder if some members forget that fact, as it seems "Members Only" posts tend to take on a different tone at times.

Donna Galinsky isn't the only one.

Donna's post about homes that are under marketed or poorly listed is something I've spoken about before with clients, agents, and brokers.  I see it happen too.  Seems we all see them from time to time.  What many non-Realtors® don't know is that the Realtor® Code Of Ethics prevents us from telling that homeowner what we think or violating the client-agent relationship in any way (this is why no agents knock on your door when the sign goes up in your front yard and why all those postcards you get in the mail mention that they are not a solicitation of business if you are currently working with an agent).

I encourage you to visit Donna's original post and read through the comments, but I thought I'd leave mine here for you to read as part of the re-blog:

Donna - This has to be my biggest gripe with the Code Of Ethics.  I know the theory of the Code Of Ethics and why it exists and agree with most of its tenets, but I often feel that it winds up protecting Realtors® who aren't really taking great care of their clients.  Now of course, without the code, we'd have a flurry of people who use it to destroy their competition, right or wrong, with tactics that that would be more than questionable, so I see a need for it.  But I can't help but wonder what would happen if we were allowed to step in and tell a homeowner how they're not getting what they could be.

Based on some of the things I've seen, I can imagine my business would certainly grow if I could show those sellers the difference between me and their agent.  It's frustrating to say the least.  I often want to tell them and then tell them of 4 or 5 agents I would trust to do better - since I wouldn't want to be seen as just doing it to generate business for myself.  I'd rather someone else had the business and did it right, than someone do it poorly.

Perhaps I should give up my license and build a business around this fact.  Without a license (and membership in NAR) the Code Of Ethics would no longer apply to me.  Of course, then I wouldn't be doing what I love, so that wouldn't work out well.  Perhaps we need an independent third party business to do this for us...a listing auditor basically.  That idea fails as well though, because in an attempt to monetize that business one of two things would happen - a) the game of favorites or b) an exorbitant referral fee or sale of leads back to us.

Oh well, for now the status quo will remain.

photo courtesy of Truth Went Trendy

Ever done something that made you say "Oops"?

Lucky for me, although I have, this story isn't about me.  I'm involved, but I didn't hit send too quick.  I've been involved in negotiations for my buyer this week and today, I received an email from the listing agent about our last counter offer.  It was yet another counter.  Reading the email, I noticed it continued on past the agent's signature.  What did I find?  Communications between the sellers and their agent.  Private, confidential conversations.  I admit, not much was revealed that would be considered dangerous, but the fact is, the sellers' confidentiality was violated just enough to make me wonder - does the agent realize what they did?  There is just enough in there for me to feel confident with our counter to their counter offer.  The question is, did the agent reveal their hand?

In negotiating a contract, I have been told all sorts of things by agents.  Little pieces that allowed me to take advantage of the situation and get my clients what they want and need.  And it's not just email, I've been told things over the phone (some were monumental) that allowed me and my clients the same.

What do you reveal in negotiations?

Everyone thinks they're a master negotiator.  Not many are.  I do my best, but I know I have a lot to learn.  What I don't do is reveal much about my clients.  I've had people fish, I've had people ask, and I've had people drop hints.  I keep my mouth shut whenever I can.  I don't offer that which isn't asked for and once it's asked for, I make sure it falls within the realm of information that needs to be known.  I most certainly don't reveal any information that is over-the-top confidential (although there are no rules about levels of confidentiality, I think we can all agree that there are levels of revealing information that could have different impacts on the situation - although they are all violations of our responsibilities to our clients, the consequences can make them much more worse).

I decided to drop the question on Twitter to see how some of my fellow real estate agents would respond to the hint of what I had just seen happen.  My question?  "RE agents: would you ever reply to an offering agent's email with a new counter and all of your conversation with your seller still intact including your advice "I think we should counter one more time"? (I know my answer, what's yours?)"  In moments, I had some responses:

Next time you reply to a counter offer and you're sending email, stop and think!

In this case, nothing terrible was said, but enough was said in order to make me think a little harder about our counter offer.  Don't be the agent who blows your clients' position in a negotiation.  My first deal ever?  I got a parcel of land for my buyer for half of what it was listed at.  Why?  The agent told me more information than I had asked for.  I knew their client was looking to dump the property and didn't care much about what they got for it.  Don't tell me what your client paid for the property, don't tell me how much money they have or need, don't tell me anything.  Keep it between you and your client.  If you tell me, I'm going to use it and my client will know everything you tell me.  That's my responsibility to them.  Remember, I owe you (as an agent) nothing other than an offer.  I want us to be friends and happy together, but I will throw all of that away to get my client what they want and need.  I'm not here to make friends with other agents (but I'm not about to be confrontational), I'm here to please my clients and continue a business relationship with them.

photo courtesy of bgilliard

I hate this sort of phone call.

I'm picking up the phone in just a moment.  It's the sort of phone call I hate to have to place.  I have to let a client know some news that changes everything for them today.  As of this morning, they were happy people.  This afternoon, they won't be.  We've been looking for a property for them for two weeks now.  We're looking at foreclosures mostly and we finally found one that was going to serve their needs.  We wrote a very strong offer after I did my research on the property.  Full price because we didn't want to lose out and we knew the seller's situation thanks to their listing agent.  We wanted to go in strong to secure the home for us.  We sent the offer in and received a counter.

Yes, a counter offer.  On someone who was heading down the path to foreclosure.  Seems the agent miscalculated the payoff amount.  This seller is desperate to sell to get through this with barely a scratch and we were willing to help them (and get the house my clients wanted).  The note came last night and I spoke to my clients.  They weren't pleased, but they agreed to work it out.  We made a verbal counter offer and I received email notification early this morning that we were good to go and I could get counter-signatures.

Then the emails came.

The first one asked me if we could make the option fee as a money order because the listing agent's client didn't have a bank account set up yet in their new hometown.  Ok, fair enough.  I arranged it.  Signatures and money order will be in place today at 2:30.  Sweet.  *Beep beep*  My email again, better check it.  Ugh.  Seems the agent not only miscalculated the pay-off value, but also didn't find out that the bank have moved to foreclosure status and assigned a lawyer to the case.  Suddenly, we're now looking at a short sale.  My clients aren't interested in the short sale wait.  I guess we'll find out what my client's think when I pick up the phone.

Agents - stay on top of the foreclosure process.

If you're going to list and work with foreclosures, short sales, and cases where it's getting close; please keep up on the property.  I know we're dealing with sometimes irrational and logic-defying banks, but this has wasted my time, the client's time, and probably frazzled them one last time.  My clients did all they could to help your client.  My clients were willing to go above and beyond what they wanted to initially do.  They actually were trying to get a new house and to help your client (yes, they really cared).  All of it?  For nothing.  Now we're faced with the truly irrational and logic-defying status of a short sale.  We're going to see if we can push it through anyway, but had the listing agent just stayed a little more on top of the case, I might not be making this dreaded phone call.

In a city like San Antonio, we have far less foreclosure (or near) inventory than many cities.  If we work hard, we can clean this inventory up.  But only if we work hard, smart, and efficiently and stay on the ball with the status of our listings.  So please, I beg you, check where your listings stand right now - and update, correct, or change if necessary.

photo courtesy of sscornelius

I read something the other day and a crusade was born.

I am going to kill something.  I am going to bury it so deep in the ground the world will forget it ever existed.  I am going to see to it that it is destroyed and removed from this world.  I am on a mission and none of you can stop me.  I am not an angry person in general, but I have reached my limit and the only answer is that it has to pay.  And its death is the only way to resolve the issue.

What am I talking about, you ask?  What could make my blood boil enough to throw words like kill, death, and bury around?  What is my mission?

Its rather simple folks.  I am going to destroy an age old real estate-ism.  Something I heard in school while taking my licensing classes.  Something I have heard in the halls of offices and in conversations between agents thinking they are alone.  Something that reared its ugly head  and gnashed its sharp teeth in a post by a fellow AgentGenius writer (*please see my note below about that) the other day and made me firm in my belief that it must be wiped from the face of the earth.

That thing my friends is a phrase.  A phrase so ugly and insidious it makes my skin crawl.  The phrase?

"Buyers are liars and sellers are too."

(Also sometimes said as "Buyers are liars and sellers are worse.")

Are you kidding me?

Some of you in the non-Realtor® public might have your jaws on the ground right now.  I don't blame you.  I'm as flabbergasted as you that this phrase was ever used and has been allowed to float around for years.  Is this how we view the home buying and selling public?  If so, we deserve a much worse reputation than we get at times.  I'd call for the head of any agent who used the phrase and round up a posse with torches and pitchforks in an old fashioned monster hunt.

This phrase has been allowed to live on in the real estate lexicon for too long and it is now my mission to get it listed in the real estate phrase book as archaic.  I would love to say it already is as there are many great agents out there that are as disgusted with this as I am, but there are still those out there that will whisper this to their friends as some sort of private inside joke.  To them I say, no more.  Forget our industry for two seconds and let's just think about the public.  What are we saying to them if we whisper this behind their backs and then smile at them and say "just sign here, I'm your friend."  Would you trust someone with a purchase as big and complex as a home if you knew your agent was saying this?  Of course not.  So stop thinking it, repeating it, and tossing it about like its some sort of trite joke.  This isn't a joke.  Period.

Of course, our industry could use a bit of a face lift too and there are those of us out there that are trying to change the state of real estate one client at a time.  Bringing the "service" back to the "sale."  Putting clients' interests back where they belong - in the number one spot.  Making sure that things go smoothly - not so we get paid at the end of the month, but because there are people's lives involved.  Real people with real dream, real desires, real problems, real hopes, real money, and real estate.

There are plenty of agents that have always felt this way. I know, because I've been helped by them in my own buying and selling.  Not every agent is the enemy, but there are those that have allowed this kind of self-centered thinking to perpetuate and they must be told that this will not work anymore.  It won't be tolerated and it won't be looked kindly upon by the consumers or the agents that have made it their career to help them.

Its time, so gather your pitchforks and torches and let's put this monster to rest...once and for all.

*I don't think Brian, the writer at AgentGenius meant anything bad when he said it, but it was said and that's what upset me.  It shouldn't be said unless its in the context of "Hey, remember when real estate agents used to say that?  How stupid was that?"  I'm actually glad Brian said it as I had forgotten about it since the last time I heard it.  If he hadn't said it, I might not be on a quest to conquer it.