We Are Reading Better News! … Is The Real Estate Market Improving?

We’ve been teased by market surges before during the past eighteen months, but there seems to be a different feeling this time. Yes, things are getting better, and in some cases much, much better. We have seen the entry level market, up to $225,000, getting tremendous activity lately. That includes many showings, offers – in some cases multiple offers on the same property, and offers greater than the asking price. More than half of the listed homes in some of those markets, i.e.- the Gardnerville Ranchos, are now in a Pending status. That means the owners have accepted an offer and they are in escrow.

Other price points have not seen the surge, but it could be coming soon for a couple of reasons. The first is the obvious, as the move-up Buyer is finally able to sell they will be actively shopping. The move-up Buyer has been teased watching the prices fall on homes in their desired neighborhood, but unable to act because of the lack of activity on their home. That is changing, and they will soon be shopping.

In the past few days the terms on Jumbo loans were greatly improved. Lenders had clamped down on Jumbo loans when the debacle started because they didn’t want the risk. Rates were two or more points higher than a conventional loan, and qualifying was a nightmare. That slowed the upper end market to a crawl … one of imperceptible motion if truly analyzed. With the new terms just being announced it will take some time to see their effect on the market, but it is likely that it will create new activity after the word gets out about it. Homes that were once appraised at $1.6 million now available for under $800,000 is too much of an attraction to the qualified Buyer. The Market will be there now that reasonable financing is.

Another Market changer is the Lenders new attitude about and their responses to short sale offers of late. This is having a significant impact on the Market as it is slowing the amount of foreclosures. Short sales are better for neighborhoods as the property remains in good condition while the owner continues to reside in it. That means there will be fewer bank-owned properties dragging the values down so far and fast as they have been doing. This is a change from what we’ve experienced over the past 18 months, one we’ve been hoping would occur. The process has been enhanced by special short sale services of some escrow companies that are getting good results from their communication with the lenders, something that agents came to loathe before this attitude change.

Our Advice: It is apparent that the First Time Home Buyer Tax Credit incentive is having a positive effect in our real estate Market Place. If you qualify for that and are thinking that it might be a good idea to buy a home now … quit thinking and start doing! The Market is changing and as it gains traction the pricing will also change. You have great interest rates and pricing available to you, but now you have competition in the Market place. Good old capitalism (remember that?) is again in play. The same dynamics will soon occur in the other price ranges for a variety of reasons. If real estate is on your mind be sure to update your expectations … you might be pleasantly surprised.

Don’t hesitate to act now if you are timing the Market … you may just be outfoxing yourself instead of the Market and Sellers! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

What’s Up With Sneaky Buyers and Sellers?

To have effective representation you must have good honest communication with your agent. It is surprising how many people don’t tell their agent what’s on their mind, or even answer questions in an honest manner. When you go to the doctor’s office and are asked, “Where does it hurt?”, do you stay mum and have him push, pull, twist, prod, and poke until he finds where you are hurting? Of course not!

Walking in to a real estate office and not being candid about your wants, needs, abilities, and overall situation is no different in its absurdity, but it is truly amazing how often that happens. Most agents will quickly ask you a simple question, “Are you working with an agent?” You might have been, but aren’t happy with the service. If so, explain it just that way. You might not like what the other agent told you, or how you were treated - explain it that way. If an agent won’t show you certain properties, if an agent only shows you listings from their own office or won’t show your listings from a specific other office, or if an agent doesn’t hear what you are trying to tell her … you have good cause to change agents. Share your frustration with your new agent – don’t keep it a secret.

If you simply don’t like what you are hearing from that agent, though you know it to be true in your heart, you aren’t being realistic. In that case you aren’t being fair to you and your family, or to either of the agents involved. You can’t escape the truth by agent shopping. If you find an agent you can push around, or one that says only what you want to hear, you’re setting yourself up for frustration and failure.

It’s okay to be cautious with personal information until you reach a level of comfort with the agent you’ve just met, but be truthful when your agent is asking qualifying questions. Qualifying questions are what the good agent asks about you and your situation so she can get an understanding of how she can help you. The weak agents don’t ask the hard questions because they are afraid of the answers they will hear. The good agent knows that they need the information in order to properly assess your situation and match it to the market. Without it they would be like a doctor that gives you a pain pill without knowing your broken bone is in need of repair.

Real estate is multi-dimensional … it is not a black and white business. You have personal Past Experiences, i.e.- grew up in a two story farm house; future Goals, i.e.- want horses; present Needs, i.e.- want kids in certain elementary school … all which must be understood and applied by your professional real estate practitioner to the market. If you don’t share and they don’t ask you are both in the process of finding the proverbial needle in the haystack – a waste of everybody’s time.

Our Advice: Whether buying or selling, it is more important now than ever to have competent professional representation in your real estate transaction. Your agent can help you keep the right perspective and separate fantasy from reality. Understand that there are those that will abuse your candor so proceed with caution as you develop your relationship with your agent. Your honest agent will listen to you and serve your needs based on what you are saying … sharing their thought process along the way.

You’ll know when you are in the hands of a professional. Its then that buying and selling real estate is a magical process as your dreams manifest. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

How Do We Compare Homes By Comparing Price Per Square Foot?

It is common practice in this region to compare and buy homes on a square foot basis, but that can often lead to some confusion. If you are looking at a 1,500 square foot home, for example, you can find anything from two to five bedrooms. The garage can be non-existent, or have a three car capacity. And of course there is the matter of location.

A 1,500 square foot home in Monte Carlo will cost you $6,630,000! In Dayton that can be under $150,000 today. Minden – roughly $255,000. Location does matter! Some local location aspects to consider include: a. street frontage … is yours a busy street? (If you are a Buyer, remember, busy relative to our local market, not the big city you are moving from.) b. Distance to medical, schools, and shopping.

The spectacular price per square foot they get in Monte Carlo, $4,420, is even more astounding when you consider the average home is on a very small lot, the proverbial “postage stamp” lot. In our region one can easily find a home on five acres as on a quarter of an acre. When comparing per-square-foot prices in this area one must consider the size of the lot and allowable uses. Can you have horses? Can you store your RV on your lot? Conversely, can your neighbor – not all positive answers here are positive to all people.

There are many intangibles that impact the value in a very real manner such as the C.C.&R.’s of your development, if any. Are you in a Homeowner’s Association and, if so, how is the management? Are they oppressive? Is it expensive? What government structure affects you – not only County, but TRPA? Improvement District? Regional Action Committee?, etc. All hard to measure, but definitely can add cost to your ownership, or affect the manner in which you, or your neighbors, utilize your property. This can be good, or bad, depending on the property and what your intended uses are.

Our Advice: Don’t rely simply on the numbers, it is important to interpret them. Garages aren’t included in the square footage figures, but there is certainly added value if you have a two car garage versus a carport. A 2,400 sq.ft. “toy box”, shop, certainly adds value, but it isn’t reflected in the price per square foot number unless you interpret it to understand why that home is higher priced … if it is. If it isn’t … can you spell v-a-l-u-e? New paint & carpet; granite vs. formica; landscaping vs. dirt - all must be considered and compared before making a buying or selling decision. The square foot price will get you close … your agent will get you closer by working with you to gain a better overall perspective on “true” value for a specific property.

Prices are relative to your market. A 3,500 sq.ft. home in Monte Carlo will cost you $15,470,000. It won’t cost you that much here … but how much are you going to pay … and what will you get for it? Have fun … that is the challenge of buying in our wonderfully diverse regional market. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Prices Seem Great And Then They Drop. What’s Happening With Our Local Real Estate Market?

Interesting times these are! Yes, we are seeing fantastic prices on properties … and then they drop. The pricing frenzy reminds us of the time we were returning from a hunting trip in O’Neil Basin in Elko County. Access to the Jarbidge Wilderness from the east is via a very long dirt road … a good opportunity for an eight year old to get some driving experience. We told our oldest son, “keep up with Uncle Jerry” and he did that as we followed his uncle and grandpa along the road. After about 15 miles we noticed we were doing 40 miles an hour … with an eight year old at the wheel and a huge turn approaching.

We implored him to “SLOW DOWN”, but reaching the pedals was difficult for an eight year old. Finally we skidded to a stop behind his uncle as they, too, had decided to stop. It was then that we found out that grandpa had told uncle to, “stay ahead of Adam”. That situation is like today’s real estate market. Sellers are being told to “stay ahead”, or “keep up”, as we speed down this perilous economic course together… the windy dirt road. When we agreed to travel around 25 miles an hour we had a reasonable trip to the highway. We believe a reasonable “25 miles an hour” approach will help Sellers and Buyers find their way in this Market. Until that happens keep your cool in the chaos.

Home prices are falling as Buyers are making offers and Sellers are accepting them. It takes a willing Buyer and willing Seller to make Market Value, and not all Sellers are “willing” these days. Though they accept offers, we feel that prices are actually lower than value in many cases due to many Sellers’ varying levels of what can only be called duress. A property may be worth more, but the Sellers can’t realize a higher price right now. Given the dearth of Buyers the lack of demand is like having diamonds on a desert island … they have value, but ….

Many homes are bank-owned and we know that banks sell by the numbers, not emotion. Good buys to be made there. A few are Short Sales, usually priced artificially low to attract a Buyer. Traditional Sellers are competing if they can … if they have the equity and motivation to do so. Pricing can no longer be a “let’s try it … we can always come down” approach. Properties must be aggressively priced to get sold … today. Watch for the turn, however, as it is looming. Not right away, but the indicators are out there that it is coming.

Our Advice: It’s a great time to be a Buyer, but it’s hard to say how long this will last given the many changes that seem to be on the horizon. There is an effort in Congress to double the first time homebuyer incentive and forgive the payback. There have also been governmental efforts to lower interest rates to 4 or 4.5%. As these and other incentives or stimuli are implemented to turn real estate around look for real estate pricing to get some traction. When it does the free fall will stop and Buyers will have competition for the good buys. Act now while its great and don’t try to time the market … we all know that is like catching a falling knife.

Whether first time home buyer, moving up, or investor … look hard at your options right now … you’ll like what you see. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Our Home Hasn’t Sold … Should We Hold An Auction?

Real Estate auctions have been around a long time, but rarely have they occurred in our market … until now. We participated in two different local real estate auctions last weekend. Are they a substitute for a traditional selling process? That depends on your specific ownership status and property situation.

One of our bank-owned listings was part of a 300-plus home auction based out of Las Vegas. Advertised opening bids were low - some in Southern Nevada as low as $500 and $1,000. Our listing opened at $89,000, list price is $229,415. The low opening bids generated interest, but the proverbial “fine print”, the Terms and Conditions, revealed the “catch” - an undisclosed reserve. A reserve means that the Seller has a minimum price they will accept. After substantial advertising, three weekend open houses, and a lot of fanfare … it didn’t sell at Saturday’s auction.

We attended another auction last Saturday that did result in a sale. The property was spectacular -10.7 acres, magnificent views, over 3,775 square foot home with a 3,775 sq.ft. basement, 2,400 sq.ft. shop with four roll up doors, etc. Well constructed and maintained, the property cost the Seller over $650,000 to build and was owned free and clear. After extended traditional marketing at well over $700,000 without a sale the Seller hired an auction firm from Missouri to hold an absolute auction. An absolute auction means the property will sell at the highest bid price with no minimum, reserve, or other “catch”. The auctioneer worked with a local real estate agent in marketing, staging and conducting the auction.

The absolute auction attracted around ten bidders including our investor/friend that we were representing. The auctioneer did a great job of disclosure and informing the participants of how the process would work. At the advertised time, 10:07 a.m., the sale started. After bids stalled at $350,000 there was a three minute break so people could consult with their real estate agent, spouse, partner, etc. Bidding resumed and soon there were but two active bidders. The successful bid was $400,000, effectively $440,000 as the Buyer had to pay a 10% auction fee (5% in the auction for our listing – pay attention to fees!). The Seller sold his house.

Our Advice: If you are considering selling or buying a property at auction do your homework. As a Seller you need to decide what kind of auction you will hold, reserve or absolute, and what the ramifications of each will be. Ideally, auction frenzy will grip a bidder and they will pay too much … isn’t that why you are thinking auction? Your home hasn’t sold at a realistic market value so you want to find the greater fool? Buyers at real estate auctions are quite savvy and are actually looking for something better than what they can get in the traditional marketplace. We were pleased to see the number of people with money to invest. Sure, they were typical Buyers in today’s market looking to make a great buy … but they were there with money in hand ready to spend it. That’s refreshing.

Different than foreclosure or tax sales, themselves auction-based sales processes, these real estate auctions have a different feel to them. Your personal situation and property specifics will determine if such an auction will work for you. Consult with your real estate agent to see if it will help you meet your objectives. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

It's Not Every Day We See Our Critters In The Newspaper! Corky Makes Her Debut!

Oh! The Joys of Country Living!

We live in a small community in Northern Nevada just 15 minutes from Lake Tahoe and an hour south of Reno.

Although we have lived and worked in Carson Valley for a long long time we just moved “out” to the country 5 years ago. Leaving our ”in town” home of 25 years to relocate on to 5 acres was a long term goal for Lisa. Jim … with the bribery of a new Kubota tractor to “farm” with … was a fairly easy convert.

This morning, a quite country Sunday, we opened out local small town paper to find a good sized photo of our newest miniature donkey smiling at us from the second page! Apparently someone on the Record Courier staff thinks she’s as cute as we do!

For All you Carson Valley Real Estate or to look through all our Northern Nevada Real Estate Listings … Search the Entire Northern Nevada MLS …Click Here

Something Good Happened Yesterday At the Office … We Were Busy!

Could it be that we are off to a great start? Something good happened yesterday at the office … we were busy! Yep! January 2, 2009 was a busy day!

Well … OK … not 2005 “BUSY” ; but, busier than we have been in quite some time. Regular people walking in the office to ask about real estate possibilities, other agents calling to set up showings of our listings, RE/MAX agents in their offices meeting buyers and sellers! Yeah! Real business going on!

We definitely have a long way to go … but this is a very good start!

Experience is Priceless! Call Lisa and Jim for all your Northern Nevada Real Estate needs! If we can’t help you we know someone who can! Email carsonvalleyland@hotmail.com or dpwtigers@hotmail.com 775-783-6854 or 775-783-6855, cell 775-781-5472 fax us at 775-782-4117.

51 Comments on The Cheapest Trick in the Book!

Our last posting produced many comments from our associates across the country, here is a sampling of their response.

51 Comments on The Cheapest Trick in the Book!

It is so embarrassing to read that agents still use these old, old tricks to get a listing. Of course, I wonder why any owner would fall for that line, "I have a buyer, but. . . ", but, they still do.
The more things change, the more they stay the same. I've heard of that old trick since I've been in this business.

I remember when I had a house listed for sale in MD in 2005, I was approached by just about every sleezy opportunist agent in the county. The listing for my house disclosed that the owner was an agent/broker. Apparently they didn't read that part. I just referred them to my listing agent.

Thanks for writing about his subject. Perhaps it will make a few agents think twice about using such disgusting tactics. TOTOH, it could give some ideas.
Oh well.


12/18/2008 05:05 AM
by Lenn Harley Homefinders.com MD & VA Real Estate


Thanks for sharing with us - great advice ----
12/18/2008 05:29 AM
by Norma J Elkins Realtor Elkins Home Selling Team ( Exit Triple "E" Realty)


They should lose their license for such actions. Why regulate a profession if you don't intend on weeding out the bad ones.
12/18/2008 05:41 AM
by Greg Bell (Bell Inspection Service)


This is a great topic to write a post on. I recently went on a listing appointment where the 1st agent said the home would sell for 760,000 and I thought it needed to be priced at 650,000. Imagine the look on the seller's face. The sellers got an appraisal and called me back & said it appraised at 650,000. I did get the listing.

It doesn't pay to be dishonest in this business & we should work to get our seller's homes sold not list a home to improve our inventory in the market!
12/18/2008 05:50 AM
by Laura Karambelas-Chicagoland Real Estate (Baird & Warner)


"Sharks don't feed on Sharks", that's what an attorney told us long long ago. Most of the time it's more trouble and more work than it's worth to report these slugs. Add to that , its a lot of negativity and who needs that in this business climate?

12/18/2008 05:53 AM
by Jim Valentine (RE/MAX Realty Affiliates)

Whne I worked at a franchise office I watched an agent making those calls from the office. His line was "we just sold the home at so and so address and we have still some ready buyers looking in that neighborhood".
What a crock
12/18/2008 05:53 AM
by Fred Pickard Innovations Realty Inc


We have that kind of situation. We are adjacent to an "Upscale" Resort community just 15 Miles west and up the hill, "Lake Tahoe"- you might have heard of t. Some of the Agents up there like to tell sellers in the valley below that they are a better choice as a listing agent because they are accustom to deal with the high end buyers.
Funny ... the MLS statistics show that most of the upper end sales in our market are NOT orginated from those Brokers.

12/18/2008 06:01 AM
by Jim Valentine (RE/MAX Realty Affiliates)

Jim, I had one here recently called the seller and you know the rest. I explain to my seller what should happen next time if the agent call's. Well you know the agent called again. I then called her and told of the problem I had with these types of actions. You know she called again to the seller. Now we are handling it between brokers. If she does it again it will time to call the Board. If you have a offer bring it so we can all make money and sell property.
12/18/2008 06:19 AM
by Frank Rubi -Louisiana Real Estate- (7824 Real Estate of Louisiana, LLC.)

It is agents like this that bring a bad name to other ethical agents. Good post.
12/18/2008 06:51 AM
by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES (ReMax Centre Realtors)

Jim, the list of scams pulled by some Realtors is a long one and unfortunately it only adds to the bad image of the good Realtors. I think every Ethical Realtor unfortunately faces these scam things all to often in their career, not only have I received the calls you mentioned in your post but I've actually been out on appointments and been told these things by Sellers. The problem for me has been that since they don't know me yet, they tend to believe the b*ll sh*t from the other Realtor(s) and many times they list with them.

Do I get the deal after the Listing Expires, usually not since the Seller is either embarrassed to contact me when they expire and they list with someone else or their house eventually went under agreement during the first Agents time.

12/18/2008 06:52 AM
by Christopher Bonta,Realtor/ Integrity and Honesty (Better Homes &Garden/Masiello Group)


Posting this is a good thing.
Shining the light on unethical practices helps all of us.
Educating the client and setting expectations helps a lot.
12/18/2008 07:11 AM
by Erby Crofutt, the Central Kentucky Home Inspector, Lexington KY (B4UClose Home Inspections & Radon Testing (www.b4uclose.com))

Jim - Some agents will do anything to get a listing; including the unethical. The consumer needs to be aware of these deceptive ploys and be wary of agents that use them. Unethical agents give everyone a bad name.
12/18/2008 08:28 AM
by Jon Wnoroski, Summit County Realtor (Geneva Chervenic Realty, Inc.)


It's very interesting that this is such a common problem and that its experienced by agents all over the country. We should all be working to clean up our industry. We'll admit,we have been lax in following through with this in the past. Maybe if we all took a firmer stand we could make a difference.
12/18/2008 09:37 AM
by Jim Valentine (RE/MAX Realty Affiliates)

I would rather have 0 listings than a listing that was owned by a client who felt like I cheated, lied, and basically hated me!

I may satisfy your transaction and years down the road you forget my name, but remember "He was good". But a disgruntled client will remember you always. Somebody will ask them for the name of an agent and they will reply "I do not know of a good agent, BUT I can tell you NOT to call (insert name here).

12/18/2008 10:00 AM
by Chad Baird (Re/Max Spirit)


We see this around here. Sometimes agents use the one party listing to segway into an exclusive right to see. Other agents may suddenly develop a run of buyers to show a specific home to a week before the listing expires, just to leave cards on the counter a couple of times just before expiration to get a food in the door for a listing.
12/18/2008 10:34 AM
by Brenda Carus (Re/Max Towne Square Realty)

Chad - we agree with you! Our reputation and good name is much more valuable than a 6 month listing contract.

Brenda - How about this one! The agent that writes a note on the back of their card to the Seller while on MLS tour saying, "Call me when your listing expires." Ever had that happen? We have.
12/18/2008 11:13 AM

by Jim Valentine (RE/MAX Realty Affiliates)


Jim:
Yes it is an old trick, unfortunately in this market sellers are desperate sometimes. It like preying on seniors. It seems that those the most in need get the worst treatment. Usually, that type of agent only gets business in a dishonorable manner.
Richard
12/18/2008 12:59 PM
by Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates)


The sleaziest one happened to my mother. About a week after my Dad died a Realtor called my Mom and said she had heard that her husband had recently passed away and wanted to know if she was ready to put her home on the market because it was to big for her to take care of on her own.
12/18/2008 01:07 PM
by Denise Gray (Coldwell Banker Stucky)


Thats some of the lowest BS I have ever heard.......I would have to bring this up to the board...
12/18/2008 01:15 PM
by Scott Stulich (Home Selling Assistance Platinum)

Could be an ethics violation... Realtors MUST be honest and ethical with all parites... does not sound like they were to me???
12/18/2008 01:31 PM
by Mark Ryan, Broker, CRS, ABR (Mark Ryan Group / Re/Max Victory)


Where do these agents learn these techniques? From brokers with less than stellar standards...
12/18/2008 03:10 PM
by Gary Waters -Real estate agent Viera Suntree Melbourne and Rockledge FL (Century 21 Baytree Realty www.moving2brevard.com)


I don't understand that logic. If you really have a buyer... I (as the seller) am happy to sign a contract that gives you a co-operative fee, if you sell it... in fact I'll sign a "one time showing" before you show it.

If you "need the listing" in order to sell it to your buyer (in order to double side it)... I say... Sayonara, Heigh-dee-hoo, There's the door, See ya later, and all sort of other ways to say "hit the road".
12/18/2008 03:13 PM
by Alan May Coldwell Banker, Evanston, Realtor® (Evanston, IL)

Yep, it's used a lot around here also. We don't do a lot of buyer agency in these parts, but if I have a buyer for a FSBO, or expired listing, we have a conditional listing agreement for the buyer only that we can use.
12/18/2008 03:24 PM
by Gabe Sanders, Stuart Florida Real Estate (Premier Realty Group)

Jim.
Thanks for pointing that out. If there is one thing I teach my agent clients, students and practice myself with prospects is to NOT use that old hand-me down BS. Gone are the days of slick car salesman tactics.This was really a great post to read.....confirmed my thinking exactly.Good work!TD
12/18/2008 03:30 PM
by Tamara "The Real Estate Therapist" Dorris (Top Producing Techniques)


There are a few agents in our town that try that trick. It always comes back to haunt them, but I think it makes us all look bad. It is so much better and easier to be honest!
12/18/2008 03:55 PM
by Jean Groesbeck - Jean Groesbeck & Assoc. REALTOR, Assoc. Broker, e-PRO, ABR, ASP (Coldwell Banker Deception Pass Realty)


No matter how much we hate it, there will always be a few agents out there using deceptive practices and making the rest of us look bad. Listing a home higher than others would have, "buying a listing', happens all the time but hopefully sellers will be smart and choose the best agent not the one who would price it the highest.
12/18/2008 03:56 PM
by Dan and Amy Schuman,e-Pro,ASP (Keller Williams Realty Greater Cleveland)


Dear Jim,

Great article!

Barbara
12/18/2008 04:34 PM
by Barbara Delaney (Park Place REALTORS, Inc.)


Jim;
Not only what you said, but it never amazes me how some agents that work "Expired" listings also have a buyer.

If I have a listing that's about to expire, and the seller chooses not to re-list with me - I prep them for the "Expired" calls.

I suggest that they ask the calling agent where their buyer was yesterday.
12/18/2008 04:59 PM
by Larry Bergstrom

Hi Jim - For as long as I have been in the business (22 years) this has been going on. It is kind of incredible though that sellers still fall for it.
12/18/2008 05:04 PM
by Bill Gassett Metrowest Massachusetts Real Estate (RE/MAX Executive Realty)

We had a seller contact us in a similar situation where they felt they were being pressure to see to the buyer way under market. The seller were right and we listed the property at market value and the buyers vanished.
12/18/2008 05:19 PM
by Richardson TX Realtor Mindy&Jay Robbins Richardson Texas Real Estate Specialist (Robbins Real Estate Group www.teamrobbins.com)


Complaints should filed to your local board about agents like this, especially the one going to the seller when the property is still listed. After a few agents are put in front of an ethics committee things like this would stop in a hurry.

I know we can't be bothered to file an ethics complaint, then expect this kind of behaviour to continue. If you aren't willing to do something about it maybe you are part of the problem.
Think about it

12/18/2008 05:34 PM
by Alan Brown (Coldwell Banker Montrose Colorado)

This was a great post, I've enjoyed reading the other comments and their experiences too. It's just amazing what some agents will do for business. I live in a relatively small community and you'd think that some of this behavior would come back to haunt them. Sorry to say that some of the "big guns" here practice some of those techniques.
12/18/2008 05:39 PM
by Erika Rogers (St. George GMAC St. George Utah)

Before I was a realtor, at the hight of the market, I use to get "the call" that went something like this.

Hi, this is so and so from XYZ Realtors. Is this ______________.
"Yes, how may i help you?"
"Well Mrs. _________, the purpose of my call is to find out if you were thinking about selling your home now or in the near future. You see, I'm working with this nice, young couple and I promised them I would call the neighborhood because well, we look at a lot of houses and they haven't found one that they like to buy. Have you thought about selling now or in the near future?"

I mean in this business, you have to really mean it to make this call. But its dialogue that the gurus teach. I've heard it on tapes and it gives people false hope.
I mean when I got the call, I was excited. It meant to me that my neigborhood was desirable. For a sec, I thought about selling. Then, I reminded myself, I wasn't looking to move.
We are amazed that people still fall for it. but why won't they? If they didn't fall for it, they wouldn't trust us, which means we are burning a bridge when we list and don't bring in any buyers. We burn bridges when we fail to do the promises we made in general.
Good Post. It makes me think some of the gurus need to change the dialogues/scripts they teach.
AP
Http://www.Bizintros.com


12/18/2008 05:41 PM
by Audeliz Perez (Weichert, Realtors)


Early on in my career I lost a listing to an agent who did this....I now know that it is the oldest trick in the book...back then...I had no idea how to combat that.
12/18/2008 05:49 PM
by Konnie MAC Northern Virginia Real Estate (Konnie McKee )


We are in a small town market as well and you would think the word would get around, but we too have expierenced a "big gun" who has used these improper techniques for years.
12/18/2008 06:31 PM
by Ron Spanton (RE/MAX Real Estate Associates)


Jim- Well some people just never learn that this is so tacky and do not understand that sales is about relationships. They never get ahead for long. We had one agent tell our seller, your agent has not sold your house in over 560 days! Well, she was so dumb she did not even know how to read the mls on this 2 million dollar expired listing, BTW- he relisted with us today, he could not believe their dumbness. He told her, apparently you have not studied my property before you called me, my agent had it for a 180 days and in this market, it will take a while to sell a property like this. Katerina
12/18/2008 06:39 PM
by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.)


I closed on a home today after another agent pulled the same stactics. After having it listed a few months, I took her the offer and had to convince her it was not a bogus contract! These type of listing agents will not be forgotten. Honesty is always the winner!
12/18/2008 06:46 PM
by Kay Van Kampen, Broker, Springfield Missouri Real Estate (RE/MAX Solutions)


It amazes me when I hear stories like this. How do these characters get their license in the first place? Maybe we should have some sort of background check.
12/18/2008 08:33 PM
by Darla Jensen (Edina Realty)


These really are the oldest tricks in the agent's books. Good blog.
12/18/2008 08:56 PM
by Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage)


Alan in Colorado - Yep! You are right ... we deserve what we get if we don't police our own industry! We say that and we don't always do that! Sometimes it's easier to let the bad penny slip away. That doesn't mean it's right ... that just means it easier.
We have notoriously obnoxious Agent in our market that every shudders when he enters the room ...we look the other way but don't step forward and deal with him because no one wants to get his slime on them. Right ... NO! Easier ... Yes!
Who makes that call? It happens alll the time!
12/18/2008 09:02 PM
by Jim Valentine (RE/MAX Realty Affiliates)


I have had a buyer who wanted to view a home that was off the market or newly expired, rather than take the buyer to see the home, I asked the seller to sign a ONE day listing with me before I took the buyer into the home. because I have been taken advantage before from the seller trying to negotiate me out of the deal when I brought them the buyer. NOT COOL.
12/18/2008 09:32 PM
by sonny kwan

Maybe Ethics should be taught more often! I can't believe some of these tricks. I was listening to an older set of guru tapes and they were doing some techniques that I thought were fairly close to being unethical and just chose to overlook it.

I think we should all report brokers who pull these dirty tricks, especially when the house is under contract. When realtors violate ethics, we need to hold them accountable because it makes our whole industry look bad!

A background check is required in Oregon, but that doesn't stop people from being unethical, but it is a good idea- some states don't require it?

12/18/2008 09:40 PM
by Kim Hamblin (Bella Casa Real Estate Group)


With the prospect of loosing your license over this I cant see anyone taking that risk doing something so unethical. I might be naive but I cant see anyone doing this, These agents have guts.
12/18/2008 10:19 PM
by Wayne Warshawsky (RE/MAX Four Corners)


Actually even with the possibility of losing the license this does not surprise me at all... One, most likely wont get caught... Two, desperation makes people do strange things... sad but all to true
12/18/2008 10:45 PM
by Mark Ryan, Broker, CRS, ABR (Mark Ryan Group / Re/Max Victory)


I hate sleazy tactics. It gives us all a bad name.
12/18/2008 11:14 PM
by Overland Park Homes & Real Estate:: Michael Russell (Overland Park KS Realty Executives )


Jim: I have heard this over and over for the past 10 years in this business.. I HATE it when I hear someone mis-leading a home owner in hopes of getting the listing..
12/18/2008 11:40 PM
by Roland Woodworth "Clarksville-Fort Campbell Area Realtor" (Exit Realty Clarksville)

Some agents are the products of the brokers who teach them. We have seen this over and over. These agents "grow uo" in the business (so to speak) learning these shifty habits and really don't know any better because that is the business model they think is normal.

12/19/2008 01:27 AM
by Jim Valentine (RE/MAX Realty Affiliates)


Oldest and cheapest.....and one that was taught by the first brokerage we were "parked" with....THEN they will list with you....and THEN can you sleep at night ?
12/19/2008 06:21 AM
by Sally & David Hanson Realtors WI Residential-Commercial-Short Sale (First Weber Group)


Oldest, cheapest and still used on a regular basis...sometimes by really successful agents. I can look out my window and see a house whose listing was obtained by that method 6 months ago, no buyer and still overpriced! Lisa
12/19/2008 05:53 PM
by Lisa VonBargen GRI, CRS, e-Pro, NAPP (The Yellow Mailbox Real Estate Services)

We had one like that, the seller's elected to list with the agent who told them what they wanted to hear, not the truth. Now, one year later, they are still in the house, it's worth even less that it was a year ago. They weren't able to go on with their moving plans and have tlost the opportunity they had to buy a great property in the community they wanted to move to ... where's the sense in all that?
12/19/2008 06:04 PM
by


We have thought about this situation several times. What to do? Contact the sellers who rejected us before and try and revive the business relationship once their "BAD" listing expires? The sellers need us now more than ever. Will we look silly or will they just reject us again because they made a poor choice the first time and now they want to validate their last decision? What is the right thing to do?

One seller called us and said, "OK ... you were right! Will you list my property again?" That doesn't happen very often.

12/21/2008 06:37 AM
by Jim Valentine (RE/MAX Realty Affiliates)

With Virtual Tours And Great Photos Do I Really Need To Look At A House Before Buying?

Our industry has certainly changed in recent years, and one of the most dramatic of all the changes is the manner in which we market properties. Most real estate agents have websites where they post the properties they have listed for sale. Most have many photos of those properties, and many have virtual tours of their listings. A virtual tour is a series of pictures stitched together so they look like a video. You can actually see the best features of a home sitting at your keyboard.

With so much visual information available it would seem like one could look at a property online and not have to take the time to physically look at it before making a buying decision. The reality is that one must beware when relying on photos. There are many things that can be done with photos that could disappoint a Buyer that didn’t visit the property before finalizing their contract. An ultra-wide angle lens can make a room seem huge, but if you really need the size you think you are looking at you might be disappointed with the real room when you get in it. Hint: look for converging vertical lines in the picture – cheap ultra-wides don’t stop such distortion in the picture.

Photos also don’t always have the detail necessary to make an informed decision. When we asked our assistant about a showing the other day her comment, “they did a really good job with those pictures”, said it all. The home looked superb in the MLS photos, but was actually creepy to walk through because of its deteriorated condition. The opposite can also be true – an agent can take marginal photos of a wonderful property. Don’t eliminate a property that suits your wants/needs based on poor visual marketing efforts – make sure it really, really won’t work for you. You might be delightfully surprised by taking the time to view the property.

What makes good and bad pictures? Lighting, subject matter (don’t you just love looking at a picture of the commode instead of the back yard?), and quantity (some only have one outside picture – no detail photos). Things you can’t see in a picture are odors, true room size, true colors, neighborhood sounds, i.e.- road noise, condition of neighboring properties and their impact on the subject property’s value, flow of the floor plan, mold, water damage, etc.

Our advice: Don’t be the victim of a Photo Shop artist. We have been told of photo doctoring that makes a property appear differently than it really is. You can get an idea of what a property consists of from a good website presentation, and you can even make an offer based on that information, but we highly recommend that you have a clause that provides for an onsite inspection before you reach the point of no return in the transaction. There is nothing like approaching a home, looking up and down the street, walking up the front walk, and entering what may be your new home. How does it feel? What are you seeing? Does the floor plan flow with your preferred lifestyle? Agents present the highlights of a home in their best light. It is your duty to find the converse aspects, if any, and how they will affect your buying decision. You will know if the home is “It” when you see it.

Shop at your desk and then go enjoy the home you found. Some things will only be discovered with a Pest and/or Physical Inspection, but you will get a good idea of what a home offers you by visiting it. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com