What's it worth to you?

There is an urban legend involving Picasso I thought of today. As the story goes, Picasso was in a restaurant dining with a friend when a woman approached him. She apologized for the interruption but told him he was her favourite artist. She begged him to sign her dinner napkin and promised she'd pay him whatever he asked if he would just take a moment to do that. She repeated that she would pay him whatever he asked. Picasso signed the napkin and when the woman asked him what she owed him he told her $20,000. She gasped, "but it only took you 30 seconds to do that!" To which he replied, "No, it took me 20 years."

Sometimes people think Realtors get paid too much on a successful sale. After all, if you broke it down into hours it seems a disproportionate amount. What is underestimated is the amount of training, knowledge, experience and accuracy a great Realtor brings to the equation. What is also underestimated is the understanding that a Realtor generally does not get paid until and unless they're successful! Just because they work hard does not mean that they receive a dime until and unless they've done their job.

Are there lazy Realtors just in it for a quick sale? Of course. There are duds in any profession. But you will hear me say again and again, a great Realtor is worth their weight in gold. They will make you money, save you money, steer you in the right path to optimise one of THE MOST IMPORTANT investments you ever make. They will lose sleep finding you the most perfectly suited home for you and your family...and your critters. They will hold your hand, fill you in and advocate for your interests like a badger on steroids.

A great Realtor is not a one hit wonder; they're invested in you and your future. They are educated, experienced, superb negotiators, knowledgeable, know their area and most importantly know you! If you don't think in terms of having a Realtor in the same way you think of having an accountant or a doctor or a dentist, you certainly should!

Jumping from pillar to post with one hit wonders in the real estate profession is no different to your long term goals than if you had a different investment counsellor every time you made an investment decision. You stay loyal to the investment guide who knows you, knows your goals, knows your capacity for stress, knows your tolerance for risk, knows your family. As a great investment counsellor a great Realtor is with you in the good and bad market cycles advising on timing and strategy.

Given the amount of risk, stress, uncertainty, drama, learning and liability a great Realtor lives with every day it does not take them several hours or days to successfully market your home. It does not take them hours or days to successfully find you a home. It takes them years of experience gained long before you ever met.

What's it worth to you to have a great Realtor? It's priceless.

A Class Act!

In the past week I became aware that clients who had been working with one of the Realtors from my office had a shift in loyalty. This happens, usually due to a misunderstanding and no fault of the great realtor they started with.

To appreciate the story know that after a close chance to sell their home and purchase another one, the buyers intending to purchase the client's home (which would set the domino reaction) couldn't complete; so the home listing expired, unsold.

As it happened, the original buyers came back with an offer a few months later since they were able to now access the necessary funds. The clients were presented with this offer again and the chance to buy their dream home. Unfortunately they decided to shut out their original realtor and use one from another company that had helped them almost two decades ago.

The second realtor was completely within his rights to think "sucks to be you" in reference to our office realtor. After all, the home had been expired over 60 days and the original realtor had no claim on any proceeds even though she was the one that initially negotiated the deal on both the sale and purchase for these people.

The Class Act part of this story is that the successful second realtor not only contacted our office to update everyone of what the status was; he also referred the lion's share of the commission on the sale of the clients home to the original realtor. And, beyond that, he also referred a portion of the new home purchase to our office realtor. What a Class Act! Makes me proud of our profession.

By being so above board, generous and clear, this colleague earned immense respect and good will; not to mention the ongoing wish to do business with him.

In circumstances good and bad we always have the opportunity to be a Class Act. The impact of such actions is a living legacy. All too often short sighted greed rules the day. In this case, the fine realtor who was so generous doubtless asked himself the golden question: "if I was on the other end of this, how would I want it to be handled."

Some say what goes around comes around and I think that's true. By taking the long view, the kind and honourable action I believe we set in motion all manner of great future returns -- not to mention the immediate gift of feeling great and building friendships!

"Don't piss on my leg and tell me its raining."

"Don't piss on my leg and tell me it's raining!" I heard these words spoken by Billy Ray Cyrus in some sappy doctor show he used to play on years ago. I love this line! And, however crude, this expression often comes to mind when I'm with someone who is dancing around the truth.

I know this comes as a shock to you; but I make mistakes. I know, right? Shocking. What's more, I know you also make mistakes. Don't you find that when someone simply admits to a mistake and apologizes you are ready to accept that? It's when anyone tries to weasel out or shift the blame that our b.s. detectors go off (as they should) and make us wonder what else the person is not honest about.

We learn far more from our mistakes and failures than from successes; but that's a blog for another day.

Recently I had someone ask me to e-mail them forms to extend their listing. I promised to do so on Monday as I had to access their hard copy file in my office. Obviously I didn't cue a reminder on my outlook calendar because on Tuesday I received a curt e-mail saying no form had been sent. Now, how childish was it that I first thought of an excuse? Ummm....having trouble with my computer.....What, am I six years old? Of course I simply said, "I am SO sorry; I forgot." Done. Sent the paperwork and all proceeded.

As I write this I ponder on the host of knots professional and personal that would be smoothed out by a simple admission of a mistake and a simple apology for any negative impact the mistake made.

Another great statement from gypsy fortune telling cards: "Lies have short legs." As concerns real estate someone always finds out what the seller might be hoping to hide. (Neighbours are often a treasure trove of information!) And, heaven help us all when a client tries to hide information from their Realtor! One of the beauties of organized Real Estate is that Realtors bind themselves and their clients to truthful information with property disclosure statement and properly written contracts.

An awesome Realtor will always err on the side of disclosure and questions. The fearful always avoid asking the hard questions. An awesome Realtor as your advocate stands between you and anyone trying to "piss on your leg and tell you it's raining."

Life and business are far easier and far more lovable when authentic and honest. It serves no one to be a know it all, never make a mistake kind of nutter. It serves no one if a mistake or problem is uncovered to try to duck and avoid doing everything possible to aid in fixing what's broken.

"When people are crying, you should be buying"

"When people are crying, you should be buying! When people are yelling, you should be selling!" So goes the sage and time tested advice of Warren Buffet. In theory everyone knows the best time to buy is when prices are soft and home owners are crying about having missed the height of sale prices. In reality lurking fears whispering "what if prices drop more?" often keep buyers sitting on the fence. (As an aside, sitting on a fence is a most uncomfortable place.)

If buyers have been waiting for a sign I don't think the neon could be any brighter than available financing for under 3% for a 5 year fixed term or under 4% for a 10 year fixed term. That's as certain and as low as she goes, folks! If buyers still aren't convinced you may want to know that in December in the Okanagan 21.8% of homes purchased were purchased as revenue/investment properties. This means that investors are already jumping in.

Prices held pretty steady last year even though the number of sales was lower in the Okanagan. Would this not suggest we're in the valley bottom? I think it does.

Since last year I've been advising my clients to buy, upsize, pick up revenue property now before we ramp up again (as cycles in real estate invariably do) to another phase of a seller's market.

Over and over again Realtors see the two biggest barriers to everyone living where they want to and buying when they should: greed and fear!

Buyers, don't be afraid. Good grief, some of you renters are paying someone else's mortgage anyway! And sellers, if you've owned your home for any length of time, you're already going to be making a very decent profit. Don't hang on to a home that no longer suits you! Make the move you know you should.

Off the fence, people. Off the fence!

Do you want to be happy or do you want to be right?

Year's ago a friend of mine; a retired psychologist living in Arizona, surprised me with this question. "Do you want to be happy or do you want to be right?" Yes! I thought; to both. But sometimes they are not mutually achievable.

Speaking with my colleagues we are often amazed by some of the factors that foil a deal. I am a principled woman and understand that a line in the sand based on ethics is honourable. But a line in the sand based on stubbornness is just, in my dear departed mother's line, "cutting off your nose to spite your face." Deals go sideways because someone won't leave a washer and dryer in the home; or is taking the pump to the koi pond. Deals go sideways because sellers and buyers get within 500.00 of a 1/2 million dollar purchase and refuse to budge. Deals go sideways often because someone gets nervous and makes a big deal out of a little thing.

The end result of such failures to launch may give someone a sense of self righteousness -- but doesn't deliver a happy; or moved; or onward in their life's adventure, seller or buyer.

A great negotiator is almost always a great diplomat. I love to present my own offers to sellers rather than simply scan them to their listing realtor. This gives me the chance to outline why our offer is what it is; why there is flexibility in some aspects of the offer and not with others. It gives me a chance to gauge what is paramount to the sellers.

And, silence is a great tool in negotiations! Trust me, I'm an Irish gal raised in New Jersey; if I can learn to let silence settle you certainly can! Some of the roadblocks in relationships and deals are simply a result of too much talking.

So often people get sidetracked on short term tactics. Rather than hire a great negotiator that in the end will put way more money in their pockets they take the cheapest priced commission. Rather than listen to great advice from their seasoned realtor about where to yield and where to stand firm they make a large issue out of a small item.

Find a realtor you can trust. Then trust! Be happy. Be moved. Be onward with your life's adventure.

She may be a beauty queen; but she lives in the slums

Don't make me say, "I told you so!" 5 or 6 years ago I was asked my thoughts on a home owner's idea to renovate their home with the idea of adding value for a sale. This home was across the street from the waterfront, in an area perpetually boasting possible commercial, tourist development. Around the home were more old cottage style homes and along the street a fair bit for sale in hopes a developer with deep pockets would swoop down.

My advice to the owners was to do nothing. If anyone wanted their home at the value they were hoping for, it would only be to demolish it and incorporate it with more properties to have a base for a hotel or business. I cautioned that if they spent too much money and time overdeveloping their home, they would not see the return because of the neighbourhood and future of that area.

Sadly they chose to ignore my advice and sunk a ton of money into a lovely renovation. Their home sat on the market on and off for two years and last time I drove by there was a sad little for sale sign out.

When I was trying to sell it for them; almost every buyer's feedback was that it was a beautiful home....but didn't fit the neighbourhood. And, from a developer's standpoint, they'd snap up the old cottages before they'd touch a 600,000 home.

It gives me no satisfaction to say, "I told you so."

Do yourself a huge favour. If you're thinking about doing a renovation with the idea of adding value to your home sale price, first consult a straight forward Realtor who will give you a reality based opinion! Often the best reno for sale is no reno! Buyer's often would rather buy a home that needs some upgrading for a lower price and do the work as and when they can afford it.

Unless you're doing it solely for your pleasure and living enjoyment, don't overdevelop! You can create a beauty queen...but if she lives in the slums her prince charming will never find her.

A great Realtor will always give you the "big picture" view and you are never "bothering" them to ask their advice.

Awesome is as awesome does

Remember that great line from Forrest Gump? "Stupid is as stupid does." I add to that "awesome is as awesome does." A few days ago a colleague added me to a facebook group entitled "Awesome Realtors." This is an eclectic group representing less that 10% of the Realtors in the North Okanagan. As I was added to this group by a realtor I've always respected and enjoy doing business with I was honoured of course. Then it got me thinking about the qualities in any profession, but since I'm writing this let's pick real estate, that earns the label awesome. So, here are a few things that would be prerequisites for making my awesome realtor list:

1. Caring, cooperative and communicative not only when a deal is coming together, but when a deal has problems.
2. Respectful and reasonable with a view of what's manageable for all involved.
3. A strong advocate for their client without resorting to snotty tones or lectures.
4. Knows the market and knows the area.
5. Writes a clear contract.
6. Is happy to answer questions and address any issues post sale.
7. Has a great sense of humour.
8. Creates interesting marketing.
9. Is competitive in a way that encourages all to "strive together" for excellence
10. Is generous about helping to be part of the solution (i.e. helps pay for carpet cleaning if place left with stains, etc.)
11. Works creatively and uniquely to facilitate a deal coming together.
12. Portrays a property honestly (nothing like driving 45 minutes to a "lakefront" property that fails to mention there's a major road between the house and the lake!)
13. Creates excellent working relationships with colleagues!
14. Is above board with any shifts in client loyalty.
15. Sees the big picture.

I'll think of more, but that's enough for now!

Over the long run it is the awesome that will prevail! Not only prevail, but flourish and not only flourish, but have fun! In my mind, if you are not a great person, you cannot have a great business. The world demands the genuine goods.

Before I became involved in real estate, I remembered a gentleman who was a realtor in the Cariboo. He had been so kind to me in a goofy golf tournament that when the time came, 5 years later, to hire a realtor, there was no doubt who to call.

Wow your world with excellence at every turn. Each of us, in our chosen fields, have the chance to model the very finest possible example of what that looks and feels like.

"Stay Hungry. Stay Foolish" thank you Steve Jobs

Every morning when I fire up my computer my outlook calendar reminder throws this Steve Jobs quote at me: "Stay hungry. Stay foolish." I heard this following Steve's death from one of his commencement addresses at a university that was circulating on line. For me, it reminds me to take risks, follow my instincts, to not be afraid of failure, adventure or censure.

So often in my real estate world we line up dates for possession of homes and create many other conditions of the sale based on keeping everyone comfortable. Or as comfortable as possible. But, let's face it, moving is stressful and a pain in the arse any which way you do it.

Change is generally occurring outside of our comfort zones. I believe that's also where adventure and renewal happens.

Sometimes I quiz home sellers with this question: If someone was willing to pay more for your home for a quicker possession, would you endure the inconvenience? The answer more times than not is positive. When someone says they couldn't possibly move in a short period of time they pass on a potential sale. In a hot market, not such a big deal. In a buyer's market, a brutal choice.

It's odd that it would be considered by some radical to hire movers, store their stuff and either go on a vacation or bunk in with family for a few weeks. But, what if the same scenario (or any scenario) was approached as an adventure? Rather than resented stress, it can be motivating, enlivening stress! Funny too that we can look at investment statements drop 5,000 and simply sigh...but pull out hair at the thought of spending 5,000 on ourselves to move ahead with our dreams!

As much as I ask you, I ask myself....how stuck am I? How many restrictions in movement, adventure, change and growth do I miss in an effort to stay in my comfort zone? How many times do I think or say, "I know I should" instead of taking the first step to initiate and embrace change?

Some of my favourite clients are seniors and we often continue our friendship beyond the sales process and have regular lunches or coffee. Over lunch with a dear pal in her 80's I asked her if she had regrets. She misted up and said she had many, many regrets. Not one regret she named had anything to do with things she'd done. They were all to do with things she wished she'd done and that now will never be done in her lifetime.

Richard Robbins is a real estate coach and international speaker I enjoy. His mantra is "It's a beautiful life; make yours count."

Looping back to real estate, home sales and moves let's pinch a phase from Nike. JUST DO IT! And, to Steve Jobs, thank you for the instruction. Stay hungry. Stay foolish.

Really? You're going to cheap out with so much at stake?

Lord love a duck, where do I begin? OK, I'll start with a true story. Last year I was referred to an oral surgeon in Kelowna (stay with me, this ties back into real estate in a second). In my local dentist's opinion, he was the man to see. Before peeking at my pearly whites the Doctor's office manager explained to me that his fees were higher than what most insurance plans would reimburse patients and I could find someone to do surgery cheaper. Now, do you think I left the office? Of course not, it's my mouth and my smile, I want the best. And, to come with his recommendations I knew that in the long run there was far more VALUE in paying a bit more up front for something that would last and last.

(An aside for the ladies...you know how long a cheap pair of shoes lasts!)

If I could cement one thought in your head, one reminder it would be this. BE SMART ENOUGH TO CHOOSE VALUE OVER PRICE. In the end, when you do this, you always end up making more money and saving more money.

Somehow, at least in my area, people started thinking it was a good idea to make choices in Realtors by looking for the cheapest commission. Really? When any company can sell you something far cheaper than another it is always based on volume. If you're listing a home based on a company interested only in volume of sales do you think they might push on you to undervalue your home for a quick sale or pressure you to make a quick buy? Just asking. Do you think that there could be a mindset of "What do you expect from me now? You already paid peanuts for my service." (When I go to Superstore I sure don't expect help or someone to carry my groceries out! Ha! I go knowing I will receive little to no meaningful help.)

Beware too of the broad stroke statements. "Only 3%!" Well, what they don't say is that all commissions are negotiable and in the main if you see higher commissions they are just on the first 100,000 of sale price. In addition what most low commission companies don't tell you is that they are QUITE happy that most brokerages pay cooperating brokerages more than the lowest rate possible, because low commission folks love it when they quietly make a lot more money from sellers who buy homes using their services that are listed with other full service, quality brokerages. If you choose to work with a company advertising how low their rates are make sure and ask them to credit you the balance if you're then buying a home where the brokerage rewards cooperation more generously. But you didn't hear me say that...ahem....

It's a smokescreen, people! Beyond that, do you really want to "Walmart" your home sale? Do you think it might more than make up for the few thousand more it might cost you on the front end to have a great realtor that will price and negotiate for you to receive optimum value for your home? Time and again I see it play out that the best Realtors, the best after sales service Realtors, the best Realtors for negotiations always end up putting more money in the pocket of their sellers and saving more money for their buyers than one who fools you into thinking all Realtors are created equal and we're interchangable.

All Realtors are most certainly NOT created equal. You deserve a great one and you deserve the knowledge, patience, grace and VALUE of working with the best.

No doubt I'll light up this powder keg again from another angle in a future blog. For now, just remember, please to ALWAYS CHOOSE VALUE OVER PRICE, whether you're buying shoes, hiring a lawyer, getting plastic surgery or selling your home. The bigger the amount of money and risk the MORE you should adhere strictly to that rule!

Don't marry your realtor til you know you're in love!

In BC some Realtors representing buyers will ask clients to sign an exclusive buyer's agency form. What prompted this, of course, was to help create loyalty with one realtor rather than using the services of countless ones (all not knowing about the other). In theory, it is a very sound practice to use the services of one trusted realtor. That's why MLS is so wonderful because any realtor can show you all listed properties regardless of the listing brokerage.

Where this fails is if you're rushed into signing this form prior to having "courtship" time to see if you in fact love the realtor! If you sign right away, then discover the realtor doesn't "get you" or listen to what you need, you are still legally bound to use their services.

Personally I don't use these forms although the industry is leaning heavily in the direction of using them.

While on the topic of loving your realtor I would encourage you go with your instinct on whether any particular realtor is right for you. I can't tell you how many times I've heard people say that at the listing presentation they were so impressed....but once they'd signed a contract they never heard from their realtor until it was time to sign and extension....no feedback, no communication about the process. Even WORSE are the Realtors who, once paid, can never more be reached!

When I managed an office I often remarked that if you were ever lonely you need only let an office supply company know you're thinking about a new photocopier! My, my, what upfront attention you get! The proof of the pudding however is in AFTER SALES SERVICE! Who is standing by you when you need them?

My recommendation to you as buyer or seller is to look for:
1. A full time realtor
2. A realtor with exceptional and timely communication skills
3. A realtor who wants a marriage not just a wedding (in it for the long haul through thick and thin with you)
4. A realtor who is well respected with their peers and colleagues. (Do you really think the smart ass bully has established good rapport with Realtors on the other side of your deal??)

Don't just buy "the spiel" use your sound judgement and feel free to ask the questions that are meaningful to you! And, until you're confident that you've found someone who views this as a service profession don't marry them! There really are plenty of fish in the realtor sea!

pull the trigger for crying out loud!

Damn the paralysis of analysis....I showed a women roughly 25 homes over about a 3 month period; I was liberal as she wasn't sure whether the home was for her or her and her adult daughter. As we progressed she decided it would be just for her and we zeroed in on her needs and wants. The last home we saw had that "aha" factor in spades! She was aglow with joy at finding one that suited her taste, budget and area. I mean she loved this home.

Did she jump on it? Did she instruct me to write up an offer? No, of course not. She said maybe next week she'd drive by with her daughter. That was the last home I showed her. Why? Because she's in the firm grips of paralysis. Will she buy something. Maybe. Eventually. But once you've seen the perfect place (which in the meantime has sold) all other properties will pale in comparison. She has become someone else's taxi passenger.

Pull the trigger when you know you've found the right spot, for crying out loud! And lord help us when one partner of a couple really loves a place if the other partner is an analyser....since it's illegal to shoot devil's advocates most Realtors grin and bear it.

Really, is it your single handed job to make sure to deflate any joy and enthusiasm about a new home? Must you be the know it all that scares up every horrible thing that could possibly go wrong?

There is a magical, unmeasurable pull toward certain properties and a perceptive realtor will know when you've found "the one." You will already have tons of due diligence to make sure its a sound home. For the love of Pete, don't take 6 weeks to run a spreadsheet and have it sold out from under you!

When you know it's right. Act. Now.

Thanks for listening!
Beth

Help me help you!!

I don't tell my accountant how to do my books and tax returns; I don't tell my financial planner how to most effectively make me money; I don't tell my naturopath what to give me. I respect that the professionals I employ know WAY more than I do in their field.

If in selling your home, you just want a realtor to agree with your price, methods, opinions and marketing and you find someone willing to do that you're both idiots.

Look for someone that's great at what they do and for god sakes don't cheap out and hire the budget realtor. Good lord. But that's a blog for another day. Look for someone who knows their stuff, has the good sense to lead the process and gives you the straight goods. It's not a popularity contest. You want the most for your investment. That's my job. Don't tell me how to do my job -- help me help you.

That's it for today!
Beth