I move a lot. But sometimes, I don’t want to ever move again.
A Quiet Sunday
Are you working with another agent? A ramble on REALTOR® Ethics and Agency
I have to ask this every time someone calls me, in an open house, or when I follow a lead to a potential client. Sounds odd, right? Why wouldn’t I just jump on a potential and try to get their business. After all, they called me instead of their agent for a reason, right?
Well… yes, but… no.
You see, I can’t.
It’s not illegal or anything, but it’s crummy.
REALTORS™ are supposed to work under the National Association of Realtors® Code of Ethics and Standard of Practice. It’s a long, exhaustive list of do’s and don’ts that can be equally summarized with the words that I hope everyone lives by: Don’t Be A Jerk.
I’m not a jerk.
I hope.
I run my business in non-jerky ways, at least.
Stealing clients is crummy and I don’t do it. What I do, however, in response to a caller that already has an agent, is say, “Honestly, I’m not going to be able to find anything more than your agent does when she searches for you through RMLS. Since you said that you’re not getting the results you want, you may want to talk to your agent about expanding your parameters and maybe go up in price or further out in location. It was great talking to you, bye bye.” If I’m feeling particularly benevolent that day, I’ll even call the agent and give them a heads up to do some client education.
When can I work with someone else’s client? 1) If I have the agent’s permission, say if I am helping with her business when she’s on holiday or in a jam or 2) if the client is no longer wanting to work with her agent and “fires” her. That means that she’s not in an Agency Relationship anymore and isn’t someone else’s client.
I like 2 better, though never want to be the reason an Agency Relationship is severed. Karma, you know?
There’s a very subtle emphasis on “Agency Relationship” up there. What’s that all about? You know that paper I give or email you when we meet? It’s called something fancy like INITIAL AGENCY DISCLOSURE PAMPHLET and is about three pages long. I tell you, when I do it, that I am instructed by the state to give it to you to explain how this client/agent thing is supposed to work. It’s true. The great State of Oregon says that I need to give you that paper at the first reasonable contact, be it by phone, email, or in-person so that you know about our legal relationship. It isn’t like we’re getting married, but it is important for you to know. If an agent doesn’t give you that piece of paper, that should be a tip-off that there may be an issue.
How’s it work?
Having an agency relationship means that I work for you, kind of like an employee. My job is to be honest and timely, to disclose what I know, obey your lawful instructions, keep your confidence, direct you to an expert if a matter is not in my area of expertise, and fulfill my Fiduciary Obligation to you.
Feduci-wha?
As your “employee”, it’s my JOB to take care of your money, even though getting more money out of you in the contract is to my benefit because my commission goes up. It’s my job to make sure that you keep as much of your money as possible. It’s the other agent’s job to make sure that her client keeps as much of his money as possible. We help you negotiate the terms of your contract so we meet somewhere in the middle of everyone protecting her clients’ money, if possible. Again, I’ll say it: it does not matter that when the selling price of the house goes up, I make more money. It’s my JOB to keep money in your pocket.
I like to think that I’m pretty good at it because I know that buying and selling a house means that you’re hemorrhaging money for a couple months. I don’t want you to bleed out. I promise. I really don’t. Blood scares me. Dollar bills sitting on the table scare me.
That’s a BIG job.
It requires a lot of ethical behavior and a trustworthy mindset.
Ethical, trustworthy people don’t steal other agents’ clients. That’s why I ask, right up front, if you’re working with another agent. If you are, I can’t talk to you about real estate unless you terminate your relationship with the other guy, first. Them’s ‘da rulez.
Want to read that NAR Code of Ethics? I warn you, it’s totally boring.
Want to read a sample Agency Pamphlet? You can download a copy here.
Mmmmmm Pie
Because I am from Georgia, I have been hearing about using peach cobbler and vanilla ice cream as a marketing tool (don’t ask me, I don’t get it) for about two months. I’m not going to shove pie down your throat, BUT, these recipes REALLY do look delish. What do you think? Will you make them for your next family feast?
| Peach Cobbler6 large fresh peaches, pitted and cut into eighths 1 lemon, zested and juiced Batter: 1/2 cup unsalted butter, at room temperature 1 1/4 cups white sugar 1 1/3 cups self-rising flour 1/3 cup rolled oats 2/3 cup whole milk Glaze: 1/4 cup white sugar 2 tablespoons cold water, or as needed to wet topping sugar Directions 20 m Cook 45 m Ready In 1 h 35 m Preheat oven to 375 degrees F (190 degrees C). Place a baking sheet on the rack under the middle rack to catch drips. Generously butter a 2-inch deep (2-quart) baking dish. Place peach sections into prepared baking dish. Sprinkle with lemon juice and zest. Stir butter and sugar together in a mixing bowl. Mix until creamed and resembles a sugary, buttery paste, 4 to 5 minutes. Add oats and flour; stir until flour and oats are incorporated into the butter-sugar mixture and mixture resembles coarse crumbs, 4 to 5 minutes. Pour in milk; stir until mixture is wet and creamy, like a thick spreadable batter, 3 to 4 minutes. Drop batter by spoonful on top of the peaches. Spread batter evenly over the surface of the peaches. Sprinkle 1/4 cup sugar on the batter. Spritz with water until sugar is wet and surface glistens. Bake in preheated oven on middle rack until browned and crispy, about 45 minutes. Let cool at least 30 minutes before serving. Footnotes Chef’s Note: If you don’t have a water spritzer, you can use a pastry brush to moisten the sugar topping. Nutrition Facts Per Serving: 371 calories; 12.6 g fat; 62.3 g carbohydrates; 3.3 g protein; 33 mg cholesterol; 279 mg sodium. |
| ‘Nilla Ice Cream Ingredients 1 1/2 cups heavy cream 1 cup whole milk 1/4 cup sugar A pinch of kosher salt 1/2 vanilla bean (or 1 teaspoon vanilla extract) 5 large egg yolks 1/4 cup sugar Preparation Combine 1 1/2 cups heavy cream, 1 cup whole milk, 1/4 cup sugar, and a pinch of kosher salt in a medium saucepan. Split 1/2 vanilla bean lengthwise and scrape in seeds; add pod (or use 1 teaspoon vanilla extract). Bring mixture just to a simmer, stirring to dissolve sugar. Remove from heat. If using vanilla bean, cover; let sit 30 minutes. Whisk 5 large egg yolks and 1/4 cup sugar in a medium bowl until pale, about 2 minutes. Gradually whisk in 1/2 cup warm cream mixture. Whisk yolk mixture into remaining cream mixture. Cook over medium heat, stirring constantly, until thick enough to coat a wooden spoon, 2-3 minutes. Strain custard into a medium bowl set over a bowl of ice water; let cool, stirring occasionally. Process custard in an ice cream maker according to manufacturer’s instructions. Transfer to an airtight container; cover. Freeze until firm, at least 4 hours and up to 1 week. Yield: Makes about 3 1/2 cups |
How Selling Your House Is Like Making Lasagna
How many layers are there in a lasagna?
There’s no right or wrong answer to that. Other than, “more than one” probably. Even two is pretty skimpy.
So, let’s say three is minimal for argument sake. (But, four or more is better.)
The number of layers probably just boils down to using up all the lasagna noodles and sauce you have, or getting to the top of the pan you have to use. No exact amount. Use what you’ve got.
But, if all you’ve got won’t stretch to make three layers in the size pan you have, perhaps you should use a smaller pan. At least have the three layers.
This isn’t a lasagna lesson.
You could say that it doesn’t really matter how many layers there are, as long as it tastes good.
And, there really isn’t any rule that you can’t have a one or two layer lasagna. So, you’d be “right”.
It just wouldn’t look exactly right. Not a big deal. It’s lasagna.
But, this article isn’t really about lasagna, it’s about real estate. Specifically, the critical “layers” you need to have when you list your house for sale.
Like we were talking about above with lasagna, for the sake of argument, you definitely need three layers. More would be better.
So, let’s look at the three most important layers when listing your home for sale.
The 3 layers
The three “layers” you need to have when you list your home for sale are:
1- Price
2- Exposure
3- Ease of access
Price
The price of your home is the first, and most critical layer when you are listing your home. If you don’t nail the pricing, the next two layers won’t matter a whole lot.
It won’t matter how much exposure your home has if the price isn’t in line with the market. Buyers have a good handle on values, and they won’t waste their time looking at a house if the price is way out of whack.
There’s certainly a little room to be on the “high” side. You don’t need to “give your house away”. But, you really need to be priced well against the current competition, and justifiable against similar homes to yours which have recently sold.
Exposure
Exposure has gotten easier over the years because of the Internet. But the easiest way to ensure you reach every single buyer in the market is to make sure you’re on the local multiple listing service (MLS).
Beyond that, you want to make sure your listing “populates” or “syndicates” to all of the real estate sites out there. Again, the easiest way to do this is typically to list your home on the local MLS. Most agents have a system that then allows your listing to be picked up by more real estate websites than you can imagine.
Beyond that, it doesn’t hurt to have some other exposure in terms of marketing. This will vary from agent to agent, and company to company.
But the bottom line is this — your home needs to be easily found. And since most buyers are actively looking online, make sure it’s on there as “everywhere” as possible.
Ease of access
Your home needs to be easy for buyers to come and see.
Sounds simple enough…
You want your home sold, so of course you figure you’ll make it easy to come and see.
But not everyone does. More people than you can imagine make real estate agents and buyers jump through hoops to schedule a showing.
Saying no to a showing, or trying to corral every showing into a tight window of time during the week is going to hurt you.
So, just make sure you keep your house ready to show at any given moment, and say yes to any request to come see the house. (Within reason, of course…)
If you just do all three of those things, you’re in pretty good shape to get your home sold for as much as the market will bear, in as short a time as possible.
But, it won’t necessarily be as good as it could be if you were to add just a few more layers to your “listing lasagna”.
The “extra” layers.
While the first three layers are more or less non-negotiable, and will most likely get you as close to the highest offer as possible, as quickly as possible, you may want to consider these extra layers.
Adding these into your mix will increase your chances of getting the highest and best offer possible, as quickly as possible.
1- Hiring an agent who knows and understands the market.
2- Hiring an agent who is a strong advisor.
3- Hiring an agent who can negotiate.
4- Hiring an agent who keeps things together.
Knows and understands the market
It’s easy enough to hire a real estate agent. There’s plenty of them. But, you should really make sure to hire one who truly knows and understands your local real estate market.
You want one who can analyze the activity on your house, and the overall market, so that the agent can…
Advise you
There’s a lot of talk about selling homes “as quickly as possible”. The key words there are “as possible”.
Sure, you and your agent want your home to sell, and sell quickly. But “quickly” depends on the market. And you want an agent on your side who, after analyzing the market and activity, can advise you on what to do…
Should you stay firm on your price and just be patient?
Should you lower your price? If so, how much?
Is there something you can change about your house that buyers are getting hung up on? If so, is it worth doing, or will the cost be too much for it to make sense?
There’s way more than that to list, but those are just a few examples of advice your agent should be relied upon for, and be able to provide to you.
Negotiate
This is another thing that gets a lot of lip service. But an agent who negotiates well is a huge asset.
Sure, you want one that will negotiate a “win-win” enough to make a deal come together. But, you really want one that gets you the fatter end of the win. And that isn’t always just about price.
A good negotiator will get you the best price and terms.
And, more importantly, it’s important to have an agent who will…
Keep the deal together
There’s a lot of time, and a lot of things that can lead to a deal falling apart between signing the deal and a closing.
Things go wrong. People get cold feet. Buyers get greedy and ask for credits and repairs, or threaten to bale on the whole deal. Appraisers throw their opinion into the mix.
Again, just to name a few examples… but there are so many things that can make a deal fall apart.
Having a strong agent on your side, who can almost predict and nip problems in the bud before things get out of control, is a huge layer to add to your listing lasagna. And, if things do get dicey, you want an agent who can wrangle it all in and get things back on track.
Looks can be deceiving.
People often look at selling a house as pretty simple. And the truth is, it is pretty simple…in terms of the first three layers.
But that doesn’t necessarily make the best “lasagna” possible. It might look OK enough to be called lasagna, but it’s not gonna be quite as tasty as it could be, if you take enough care to add the next four layers.
And, as promised on my Facebook page, here’s my mom’s lasagna recipe.
This creamy Italian dish came from a family friend while we were living in Milan, Italy. The key ingredients are the besciamella and the sofritto in the Bolognese sauce.
Bolognese sauce
2 tbs. olive oil
1 onion, chopped
4 carrots, sliced thinly
4 stalks celery, sliced thinly
1.5-2 lbs. ground beef or veal
1 can chopped tomatoes (or a similar substitute)
2 cans tomato sauce
1 tbs. oregano
2 cloves garlic, chopped finely
1/4 tsp. cinnamon
1 tbs. thyme
1 tbs. basil
2 tsp. salt
2 tsp. pepper
1 bay leaf
Saute the onion, carrots and celery until onion is tender but not golden. This is called a soffrito. Add the garlic and saute briefly. Add the meat and brown it. Drain the fat. Add remaining ingredients and one can of water. Simmer 1/2 hour. Remove bay leaf.
Bescimillia sauce
1 pint heavy cream
2 cups milk
4 tbs. butter or margarine
4 tbs. flour
1tsp salt
1tsp white pepper (if available, if not use black pepper)
1 tsp. nutmeg
Melt the butter and blend in the flour, salt and pepper. Add the cream and milk. Increase heat to high and whisk constantly until mixture boils. Remove from heat and stir in nutmeg.
Assembling lasagna
15 lasagna noodles
1 cup Parmesan cheese
Boil 3 quarts of water. Determine how many noodles will fit in one layer in your pan. When water boils, cook that many noodles until they are flexible, but not quite al dente. Use tongs to lift them from the water and place in a layer in the pan (this assumes a 10 x 14 pan). Layer 1/3 of the meat sauce and then 1/3 of the bescimellia sauce. Repeat twice. Top with cheese. Bake in a 350 oven for 45 minutes.
First Thursday
Join me for First Thursday on 2/6 at RE/MAX
with Karen Swallow and MY art!
Just wanted to wish you a Happy New Year…
…and say that I hope that 2020 brings you everything you need and love.
“For last year’s words belong to last year’s language
And next year’s words await another voice.
And to make an end is to make a beginning.”
(Little Gidding)― T.S. Eliot
I’m sure you’ve heard the argument…
Someone says, “Happy New Years!!!”… with an “S” at the end.
And then someone goes and corrects them…
“It’s not plural. It’s just Happy New Year!…no “S”
But really, either way it’s fine by me. It’s the sentiment… not how someone says it to me.
So, if the “S” at the end makes you cringe… I wish you a very Happy New Year, and may your 2020 bring you happiness, health and wealth.
However, if you like it with the “S” …Happy New Years to you, and may 2018 bring you happinesss, healths, and wealths.
Hmmmm… I’m starting to think maybe there is a benefit to putting an “S” at the end of Happy New Year… LOL!
HAPPY NEW YEAR(S) TO YOU!,
Christy
503.793.3345
P.S. You know what else I like an “S” at the end of…the word “referral”! But even one referral would be great! So, if you or anyone you know is buying or selling a home in 2020, please refer(s) them to me!
Dr.Martin Luther King Jr.
At the center of non-violence stands the principle of love.
~ Dr.Martin Luther King Jr.
This year especially, we as a people must actively focus on working for equality and justice for all Americans, and not assume that our leaders have our best interests in mind when making and enforcing our laws. It’s up to each of us to help make sure that all Americans have the same rights that we were promised – justice for all.
Fill in the blank…
“I have a _________…”
It doesn’t take a psychic to know what word you chose.
Was it “dream”?
Good chance it was. We all know this line from Martin Luther King, Jr.’s famous speech. So when we hear those first three words, it sort of naturally comes to mind.
But what many people aren’t aware of is how much he affected the lives of real estate agents, buyers, and sellers.
It was his death that gave Congress the last push needed to pass the Fair Housing Act, back in 1968. It’s pretty involved, but to put it simply…
This was put in place to ban racial discrimination in housing. You can’t be refused the rental or purchase of a house, based on your race (and now several other “protected classes”).
Seems simple enough to most people now. A given, if you will. But it didn’t happen overnight. And believe it or not, it still can and does come up.
But guess who is a big part of making sure this Act is followed…
On the front lines, it’s real estate agents. We’re tasked with making people aware that discrimination based on race (and many other things) is not acceptable, and we must refuse to work with anyone who wants to do so.
Real estate agents, like me, are proud to be a part of this ongoing history.
Today is the day where we take a moment to reflect and pay him respect. It’s also a good day to share some insight into how much more responsibility real estate agents have than meets the eye
International Coffee Day
Bad coffee should be illegal, so let’s get some good stuff together!
International Coffee Day is today, September 29. (Not like every day isn’t “coffee day” for some. It’s pretty much Realtor fuel lol.)
Anyway, I feel like I’m always saying to myself, “We should grab coffee sometime!” You and me.
And then I don’t reach out because we’re so busy all the time.
Today was the perfect reminder for me to reach out. So instead of grabbing and guzzling our coffee solo, you want to actually sit and sip together and catch up one of these days?!
If so, let me know a good time and place for you…
How REALTORS Get Paid and What For
Oh. My. Gosh. How crass can she possibly be?
I know, right?
I hate doing it, but I think that a lot people are confused about how real estate agents get paid.
We are, by and large, independent contractors, associated with our brokerages. We are not “employed” by the brokerage. I am not a RE/MAX employee. I’m not even a RE/MAX Select (the franchise) employee. I’m an IC.
I Do Not have a salary or hourly pay.
We get paid on commission. That means that only when a house is SOLD, papers signed, keys turned over, deed recorded – only then, do we get paid.
Here in Oregon, the real estate fee is usually paid by the seller. For example, the agent and seller agree that the agent will receive a percentage of the sales price as compensation. Normally, the selling agent shares half of the commission with the buyer’s agent, called the BAC (Buyer’s Agent Commission).
Consider the following hypothetical:
“Idaho Broker”, says “Breaking it down a little further:
Assume a $1 fee is charged to list/sell a home:
50 cents (half) might go to the agency selling the home leaving 50 cents for the listing company;
Take off franchise fees (if any they vary so take 6%) of 3 cents leaving 47;
Assume the agent is on a 75/25 split with their Broker that would leave the agent with 35 cents.
That $0.35 is essentially the agents “gross” income out of the $1.
Pay IRS estimated 25% leaving $0.26; (will be different based on itemized expenses);
Pay self-employment tax since you have to pay both sides of social security contributions of 15% leaving $0.22 to start paying expenses with!”
What Does a REALTOR® Do To Earn Their Commission?, by Andrew Fortune
Before I get to take my check (that my broker writes, minus all of my office fees) home, I have to write a bunch of business checks, first, because practicing real estate and helping people find the perfect home is really expensive.
All that time researching prospective homes, advertising your house to sell, gasoline, driving you around to see houses, our professional fees like the lockbox key, personal advertising, assistant payroll fees, access to the forms program, the forms signature program, and the time and expertise for all of those emails, phone calls, questions answered and solution mining, contract forms written, etc. comes out of our own pockets until you actually buy or sell a house and that’s after our commission split, mothership fees, office fees, insurance, and transaction fees are deducted.
The point: we get our feelings a little bent when we work hard with a client, showing houses, giving real estate 101 lessons, providing moral support, staying in constant communication with both client and lender, and building a clear idea of what the buyer is seeking, and then they decide to work with someone else to write their contract. Does it happen? To everyone? Heck yes. It’s just a part of doing business for us, but, please, be kind because we are giving you our time and energy for free and the hope that your sale closes.
By the way, here’s the Law:
Commission and fees are always negotiable.
We cannot and do not discuss the commission we charge our clients with other agents due to the Sherman Anti-Trust Act.
Only licensees may receive commissions or referral fees.
REMEMBER: I don’t get paid until your house closes.
References:
“How much do Real Estate Agents really make?” Andrew Edwards, June 20, 2015 http://tieronerents.com/how-much-do-real-estate-ag…
CALCULATING COMMISSIONS BASED UPON “NET SALE PRICE” Michigan Realtors® December 2009 http://www.mirealtors.com/Portals/0/Documents/Calc…
“Eight Ways to Justify Your Commission”, Michael Soon Lee, RISMedia, Dec 29, 2007 rismedia.com/2007-09-19/eight-ways-to-justify-your-commission-2/
“How Do Real Estate Agents Get Paid?” by Tom Davidson, September 28, 2015 https://www.realestateexpress.com/blog/index.php/h…
www.rebac.net/Teach/CIPS/Business/CIPS_BUSRE_Chapt… Page 66.
“Idaho Broker”, http://www.city-data.com/forum/real-estate-profess…
What Does a REALTOR® Do To Earn Their Commission?, by Andrew Fortune http://lightersideofrealestate.com/community/cafe/…
Yet Another Blog
Well, we’re going to give thing thing another try and I hope against all hope that it actually works! Previous blogs have been thrashed, trashed, and generally ouchified. This one will work, though, darn it!
I am constantly reminded that if I have my systems properly set, such problems never happen. I am now redoing all of my systems! Blogging, marketing, even presentations are all getting the 2020 overhaul (stop laughing!) I have determined that I am disorganized and thus have hired a lovely lady (say hi, Cheryl!) to assist me solve my work vs. time issues. It’s true. I have an assistant. It’s a lovely, lovely thing to be able to just ask her to figure it out and explain it to me in small words while I dash to the next appointment. She’s magical! It just happens! I am so keeping her in a pumpkin shell.
I am so happy to end this quarter and begin the next with a good outlook because everything is running as it should. It gives me the time to do what I love best – and I’m best at- serving my clients! Did you hear that, world? I have time! It’s amazing!
If this post works – and cross your fingers – I am going to ask Cheryl to slam in a bunch of my old blog posts so they aren’t lost forever. Of course, she did that with the one I kinda, sorta accidentally killed. Erk. Sorry!
Best,
Christy