The big distraction in real estate sales

Yesterday a woman called our Sutton office and her call was put through to me. Now, this might have been a competition bureau call where they pretend to be a possible client. Regardless, the question she asked was what our office charged for commission. She was commission shopping; the biggest distraction affecting our profession right now. My answer went something like this:

I believe the better question for you is this, "what is the most effective way to get my home sold for the most money with the least stress?" And, while on a roll, I mentioned that the biggest distraction in our area is wondering who's cheapest or who is making what. Trust me, if my financial planner is making me money, I hope he is also profiting from the experience. He doesn't need to discount his services -- I'm glad to pay and happy for his professional skill that is guiding my humble nest egg in trying times.

If a professional delivers spectacular results and nets you a great price for your home -- all the while giving you the utmost service and communication. Do you really care what they make? Since when did we reward cheapness? Are we all doomed to worship at the shrine of the Walmart models of business?

Why do we allow ourselves to become distracted by the shiny prospect of paying as little as possible for professional services? Do you choose a dentist, lawyer, electrician, handyman or any other valued specialist based on how little they charge? Or do you rather choose based on the value of their service, the long lasting benefits and better result?

If a race to the bottom of attempted to get a cheap service instead of a great service continues the end result is going to be very costly.

Selling your home isn't like putting your used civic car on kijiji......it is likely the largest asset you have. So, here is my suggestion when looking for a Realtor that will, in the end, make YOU the most money.

1. look around and get as many recommendations as possible about the skill set and approach of the Realtor

2. look at and meet with a few Realtors (with an ear to hear more than how little they get paid.)

3. look for a full time Realtor -- with their head fully in the profession.

4. look for a Realtor well respected by their colleagues (as in, their colleagues LOVE showing their listings)

5. look for a Realtor who advises wisely (even if not the popular or easy route)

6. look for a Realtor who is invested in the community and gives of their money, time and talents to make YOUR community a better place to live.

7. look for a Realtor who is a skilled negotiator (hint....if they can't negotiate a good compensation for their own skills -- do you think they'll be the best at negotiation the highest price for your home?)

8. look for a Realtor who is true to their word -- they say what they mean, mean what they say. This person is going to call you when promised and communicate as promised.

9. look for a Realtor who is a resource before, during and after the sale -- not just a one hit wonder sales person out for the quick cheque.

10.  look for a Realtor who will not string you along (taking your listing at a price they know it won't sell for and then badgering you for price reductions. We call that "buying the listing.")

I could go on....but you get my point. Choose wisely, you owe it to yourself to focus on value and net results not in the distraction of trying to pay as little as possible for professional services.

Dangers of Real Estate T.V.

Call it a busman's holiday, but I enjoy watching real estate shows on t.v.  To a point.  They also worry me because, while you can pick up some good ideas on renovating and how real estate works, you can also be misled.  A couple examples:


Putting in or receiving an offer on a home does not make it sold!  (Except in the VERY, VERY rare instances of a subject free offer.)  So, when the cute guy comes along and based on a verbal acceptance of a buyer's offer price, asks who wants to put the sold sign up -- well, that's just phoey.  (You understand "phoey" is a polite term for something you don't want to step in.)


Ditto the drama encouraged in those shows about the way clients speak to their Realtor or renovator.  Again, except in VERY, VERY rare circumstances where it might be justified, it's also just phoey.


I can tell you truly Realtors understand much of what we do involves working with people under stressful conditions.  This does not mean most would carry on with an abusive client.  No way, no how.


Also, no Realtor in their right mind would show a client a home 300,000 above their spending limit as a reality check.  Are you kidding me?  "Let me show you something you can't get, so you will hate everything you can afford."  I don't think so.


Another reality check.  Renovators are VERY, VERY rarely designers!  You're going to be lucky to have all the sawdust and gyp rock dust gone.  Don't expect that you're going to come home to a staged, designer produced "reveal."


So, enjoy the shows, enjoy the homes....but understand these shows are designed as entertainment not documentaries!

Referral repercussions

Here's the thing about referrals; whatever the performance of the person you refer turns out to be, that blows back on you!  If they do a great job, you're a hero; however if they're a slouch or poor communicator, guess who is also tarnished?  And rightly so.

Sometimes referrals are much too cavalierly handed out.  In Real Estate there can be instances of someone referring a Realtor, in another town, that they have not researched in the least.  Then, once the client ends up with the out of town Realtor they can feel compelled to use them even if they don't click well.  Worst case scenario they leave the Realtor you sent them to and you too!  Serves you right!

Referring a Realtor to a client in another town can be done very well and very respectfully.  Its amazing what you find out about someone by doing a little homework.  If I'm going to refer you, you need to show me that you:

1.  are a great and prompt communicator
2.  will bend over backwards for my client
3.  will not take the referral and pass off the client to someone else
4.  will ALWAYS put client ahead of your paycheck or mine!
5.  will keep me in the loop as appropriate

And, from my end, it is my job to communicate with my client to see how they are fitting with the referred Realtor and, if needed, to intercede to make any necessary adjustments.

Sometimes people join referral groups; a great idea!  However just because someone is in your group in a chosen profession, does not mean they're good at what they do!  Again, if you don't have first hand knowledge, do some homework before referring.

I am so thankful to have many people refer my services.  I'd never let that be taken for granted!  If someone is kind enough to refer you; make sure to loop back and thank that person -- it doesn't matter, ultimately, if the person they refer buys, sells or not!  The gesture of referring has already happened and deserves thankful recognition.  Of course, if a client does end up buying or selling, that gives another occasion for a generous thank you!

In any profession, it is wise to be so thoughtful and careful about recommendations.  That said, if you know someone is GREAT, shout it from the rooftops!  Tell everyone you know!  Post it on facebook!  We can all celebrate the fine professionals of the world!

Has your dream become a nightmare?

To begin, let me say I'm a sucker for the sentimental value of property.  When homes have been handed down in families or developed from scratch I totally "get" the attachment that can develop.  However, as with all attachments, sometimes their burden can be overwhelming. 

This blog might have easily been entitled: Let someone else take the dream higher!  Along the way a beautiful example of this was with a home in a lovely neighbourhood in East Hill.  I represented the buyers; a young family just trying to get into a real home.  The owner had been there for ages, but recently needed to go somewhere to receive extended care.  He lovingly agreed to let the home go for what we offered because he knew his beloved home was going to be continued to be enjoyed.

Sometimes I find people holding on to larger homes and properties way past their time of being able to manage or enjoy them.  The dream acreage or 5+ bedroom home becomes a drain on time, energy and resources -- making the once enjoyable tasks a nightmare of duties.

If two people are working full time in a family managing a huge yard and gardens needs to be carefully considered!  Likewise for parents managing a huge home for the one time a year the adult children might all be there at the same time.  Or, how about the "hobby farm?"  If you like to travel and don't have help, you should really carefully consider how long after your kids have grown up you want to keep the critters.  But, the hobby farm might be the perfect fit for a young family!

Retirees sometimes fear selling the family home is the next step to the grave!  Yet, what retirees that downsize often realize instead is another time of youthful freedom!  Free from chores and maintaining a large home and yard they travel, play and generally have a great time!

Of course its not an all or nothing proposition; there are many wonderful people out there to employ to help garden and clean.  (Although it is also amazing on how relatively few people ever hire home help!)

The best example of pro-active movement I've heard is a friend, Hugh, from Ontario.  His m.o. is to stay 5 years ahead of the curve so he is never forced to sell.  He and his first wife sold their large family home and moved to a strata on one level.  Sadly, his wife fell ill and passed.  They were, however, already in a perfect living situation so avoided the added stress of selling and moving.  He's since remarried and he and his wife spend lots of time travelling.  I have no doubt as they age he'll research any new dwelling he thinks might be needed and move again before having to.

I have seen pressure in families too from grown children toward their parents to "not sell the home I grew up in."  Rubbish!  Are the kids going to help pay the bills and do the chores?  Each of us owes it to our family to want only what is best for them at this point in their lives -- what is happy, manageable and right for this stage of their lives.

Rather than cling to the past; let's create bright futures!  As we appreciate our homes and their histories we let go and let the dream continue.

If you wanna dance, you gotta pay the band. Sellers beware.

This blog is not for anyone who is convinced they're educated and cleaver enough to buy and sell real estate in B.C. without the help of a great Realtor.  (Although before you leave the blog you may wish to ask any great home builder, investor, mogul or land baron if they use a Realtor!)

This blog is for all those savvy sellers and buyers who need no convincing on the value of working with a great Realtor.  Over and over again we prove our worth both by saving you heartache and pain from a bad property and in your wallet by knowing the market and negotiating the best possible prices for you.

Gaining some momentum in some towns is the discount business models.  In this model, it is assumed that the listing brokerage can drive down the remuneration of the Realtor who has worked diligently to bring a qualified buyer.  This has been propelled by the thought that buyers don't pay commission.

Guess again!  You are going to be seeing more and more buyers' agency contracts which assures the hard working Realtor that they will be paid in accordance to their worth and in most cases, what they offer to the other Realtors working to bring buyers to their listings! 

What will this do?  Simply, when your Realtor not getting the amount they charge through the home sale, buyers will be asked to top up the amount. 

What will happen?  Buyers will bid less on the home knowing they might be financially out of pocket by buying this property?

What else might happen?  Buyers will decide that it is far easier to work with listings offering their Realtor a generous commission so that through the sale proceeds everyone is happy.  In this case, the buyer will be guided to bid accordingly.

You do get what you pay for!

You listing clients who think your saving money by listing at a budget rate may discover that in the end, your home sells for less, sits on the market longer and you are asked for a premium rate commission by the buyers' anyway!

But we're going to let the market decide!

Seller's beware.

Ain't nothing like the real thing, baby!

Stop the presses, Nelly, I've found our dream house! Most of us will have had the experience of getting very excited about a property that looks JUST right for our needs!  We go wild with glee, start looking at all the photos and floor plans and are already packed in our minds.

Sometimes every manner of question is asked of the listing agent from water source to wiring.  Realtors can spend hours researching and reporting.

Then you take one step on the property and know within seconds that it's not for you.  Reality and imagination just don't meet.

Nothing can take the place of being at a property in person -- the way it feels and smells and "seems."  For all of the logical reasoning, it either fits emotionally or it's off the list.

Once again, a great Realtor is worth their weight in gold.  When you've established a relationship with a Realtor who truly knows you they can help you find the hidden nuggets you might not ever see on your own.  Great Realtors always go on new listing tours on your behalf -- they follow the "hot sheet" of new listings every day. (Realtor's have the first head's up on new listings via their internal postings.)

In addition to knowing what your hard criteria is, your Realtor also knows your lifestyle and what you especially liked in a variety of past homes.  They can save you countless hours of combing through mls sites and real estate advertising!

Ain't nothing like the real thing, baby!

If you're the smartest person in the room, you're in the wrong room!

"If you're the smartest person in the room, you're in the wrong room!"  I saw or heard this recently and it led to a great pondering on the implications of this statement. 

Likely from our school days when we got a gold star and praised in front of the class for "right" answers most of us like to appear intelligent and learned.  The trouble with this of course is a.) that nobody likes a know-it-all and b.) if you're busy seeming smart, you're not asking "dumb" questions (which may hold the key to unlocking all measure of success!)

How teachable are we?  I know some people in the real estate field that I never thought would make it because of the vast amount they did not know or seem to understand.  But, you know what?  The ones that were not afraid to ask questions and were not afraid to ask for help are doing very well indeed!

Who doesn't like being asked for help?  Don't you willingly share your ideas and experience when someone genuinely wants help?

Pride can be a very two edged sword.  Proud people tend not to ask questions -- especially ones that might sound stupid.  Proud people would never consider asking someone with less experience then them how to do something, or for another view on how to succeed.

Floyd Wickman (great veteran real estate trainer) once commented that one of the reasons women sometimes make out better than men when showing a home is that they don't think they have to know everything.  A client asks a man, "so what do you think that wire is for?"  Most men feel it a measure of their manhood to come up with a plausible explanation for the wire.  Most women might rather say, "I'm not too sure, what do YOU think it could be?" 

Our answers can either come across as a lesson or the beginning of a conversation.  Another example my broker mentioned the other day speaks to this.  She heard a trainer mention that rather than say "great or lousy" or launch into a training session when someone merely asks what the market is like try simply saying "it depends."  Because it does depend on many things!  And because that answer invites a two way conversation!

I'll venture to say that the happiest and most successful people in any profession are the ones who are the most humble about what they know and the most hungry about learning.  Learning from anyone about anything; being genuinely curious about how someone is generating more business or their approach to the tasks of the trade...this marks an interesting person to be around!

This take me full circle to Steve Jobs admonition that I have my calendar bring up each and every morning:  "Stay hungry. Stay foolish."

And it makes me laugh about another statement on learning my cowboy pal, Wendell Monical, said.  "You know Beth, there's something you can learn from everyone...even if it's how not to do something!"

If you have to eat a frog, there's no sense in staring at it all day.

"If you have to eat a frog, there's no sense in staring at it all day."  This was a great line Floyd Wickman used in a real estate training course I took along the way entitled "Sweat Hogs!"  He was referring to tackling the unpleasant aspects of our lives that need to be dealt with -- the awkward phone call, telling someone bad news, dealing with unwieldy situations and the like.  His point, of course, is that you're better off doing first what is otherwise just going to overshadow your thoughts anyway.

I don't think any sane person likes to be the bearer of bad news.  (I cannot imagine what doctors go through on this score...)  It is hard to tell someone that their home sale collapsed or that the home they wanted got scooped up by a faster buyer.  It's hard to say an inspection revealed foundation damage or that there is evidence of a grow up; it's hard to let someone know you've discovered a lien on their title.  It's hard to ask for yet another price reduction to get someones home sold...but these big jagged pills we have to swallow are part of the job.  The best we can do is to deliver bad news clearly, kindly and patiently.

In the forewarned is forearmed category in preliminary talks a great Realtor will often go over possible stresses.  But, it's impossible to imagine all the situations that might arise when buying or selling a home.

It is true that it is best to deal with the least pleasant tasks first and clear our heads for other responsibilities of the day.  It is not fair to anyone to procrastinate (okay, you don't break the news on Christmas or birthdays!).   The sooner the issue is tackled, the sooner we can work on a course of action to move forward.

Most importantly in bold caps when delivering bad news should be the news that "I'M HERE TO HELP!"  You don't have to deal with this on your own!  So it is also VERY IMPORTANT that you don't shoot the messenger!  Otherwise...who is gonna help?

As long as you stick together with your Realtor the bad news will pass and a success story will form!  Hang in there.  Keep breathing, it will all work out fine in the end.