1. A listing agent is indebted to a negotiator and when "shortages" come up in negotiations the buyer is often the first person asked to cover the shortage.

2. A listing agent asks the buyer and/or the buyer's agent to pay the third party negotiator's fee. This one bothers me.

Question. Why should my buyer client pay a listing agent's hired negotiator? Someone please help me understand this...

I was speaking to an attorney recently, he happened to be a real estate broker. We seemed to agree on the following:

1. It is part of the broker's fiduciary duty when properly authorized, to conduct negotiations on behalf of the seller.

2. That broker and seller are responsible for the outcome of negotiations between bank and borrower (seller), period.

3. Any broker that hires a third party negotiator either does not have the time, knowledge or motivation to negotiate for their client. The scary thought is it could be all three.

4. A third party negotiator exists purely for the convenience of the listing agent, contrary to their attempted justification e.g. "Our negotiator has a 100% success rate."

Listing agents that claim a better success rate employing a third party negotiator don't realize they are implying they would have less probability for success if they did it themselves. This places a question in my mind about their capabilities as an agent overall, in my opinion.

Am I off base here? I'm a short sale listing agent / broker as well and I charge no one separately for my negotiating services. It's my job and even if I did hire anyone else, I would pay them myself. This is called work, extra work. Any broker that believes the buyer (or their agent) should pay their hired help should reimburse the buyer's agent for time and effort expended in showing dozens of homes prior to submitting an offer on this one short sale property (if accepted of course). I think that's fair.

Feel free to call me nuts for working for my commission AND handling all of my other responsibilities for all of my other clients while not passing on the fees to someone else. What are your thoughts? 

"When one door closes, another opens...". Well a door didn't really close, I've moved to a new company however my good friend Jason Gire at Noble Real Estate Services still has my highest recommendation for property management of rental units. So you investors out there, let me know if you need Jason's info.

I'm now with Trident Realty Group. It's owned and run by old friends in the biz, Mike Chiesl and Dan Chapman. The story behind Trident is it has a Navy/Marine Corps slant. A trident is a symbol relating to King Neptune, both of which have their ties to the U.S. Navy. Well, so do Mike, Dan and I, the first two being Naval Academy graduates and Marine officers while I'm the Naval representative. It made so much sense to join their company since the majority of our clients are military service members. It helps to know the special needs of our clients through direct experience - we know the loan programs available to them, we know how often they need to move, we understand their income; we've been there.

Of course my focus is still truly the same - I'm focused on residential real estate selling 1-4 units throughout the greater San Diego area. It's the same for Mike and Dan. We are now teamed up to share what we know not only with fellow uniformed service members but to all clients that need to buy or sell. What is the biggest benefit for our clients? A higher standard, a higher level of commitment to mission completion and the same core values that are necessary in any profession (military service or real estate sales): Honor, Courage and Commitment. It's a new company for me, but it feels like the right place.

Meticulous details in this home featuring :

• Remodeled kitchen with granite counter tops, stainless GE appliances, cherry wood cabinets.
• Master suite added on first floor, perfect for guests.
• Pool, spa, barbecue bar and ample lawn area, perfect for entertaining.
• 3 Car garage, RV parking on a LARGE lot at end of cul de sac.
• TRADITIONAL EQUITY SALE. NOT A SHORT SALE OR BANK OWNED FORECLOSURE!!!
• Largest home in the development!

Contact me for details.

Thanks,

Marvin

Completely Remodeled Must See.  Newly tiled entry, new tile flooring, new carpet, complete interior/exterior paint, new baseboards and acoustic ceilings removed. New kitchen modernized with new cabinetry, granite counters and breakfast bar with all stainless appliances plus wine refrigerator. All baths remodeled in great detail. New backyard including landscaping with breathtaking westward sunset view. Near major freeways, shopping and the coast.

This one is worth a walk-through.

Thanks,

Marvin

Contact me for details.

Have a great week!

Marvin

1281 Dos Hermanos Glen, Escondido

Call if you have any questions.

Thanks,

Marvin

Have you ever been in a conversation with another agent and wonder who trained them? Now granted, I'm not the self proclaimed expert know-it-all that has every single answer to all real estate scenarios, but sometimes I wonder how some agents formulated the most basic of understandings when it comes to real estate procedure, contracts, protocol and professional courtesies. Here are just a couple of knee slappers that I found rather entertaining.

At the offer stage of my short sale listing, buyer's agent says, "My client will have no problems closing on this house. I’ve been in business twelve years and I know this transaction will be very smooth for you and your clients.” This particular transaction has not been smooth. The agent has a hands-off approach in understanding his client’s loan progress. To add to my amusement, this agent claims to have extensive short sale experience. Judge for yourself.

After short sale approval, escrow opening and buyer’s home inspection, “My client wants you to present their request for repairs directly to the short sale bank, bypassing the seller.” In my mind I could hear the thud of a negotiator hitting the floor after falling off her chair in a fit of laughter. Call me crazy but this is a new one to me.

“I normally leave the loan officer alone and trust they will do a fine job.”  Well, I trust my clients’ loan officers too. However, this statement came after the loan officer discovered buyer does not have verifiable funds for the agreed upon down payment, 20% of purchase price. Buyer’s agent was unaware of this before I found out, simply by asking the loan officer how things were going. You see I have this wonderful, inexpensive, innovative tool I often use. It’s called a phone.

 Here’s a double whammy.

“When are my clients due to remove their contingencies?”. 

“Today”, I  answered.

“Today?!! I didn’t know that!”, says the twelve year veteran.

Since I wasn't in business then I’ll assume agents kept track of contractual  timeframes by little strings tied around their finger for 17 days or so. Who needed a  calendar back in those days, right? 

 Here's my favorite. 

“Of course we asked for a 30 day escrow but that is many times never accurate so I’ve learned it’s okay to close late, ‘things’ happen.” In CA our contract states “Escrow shall close on…” and buyer can pick a date or an amount in days after acceptance that buyer shall close escrow. Call me crazy again but in every contracts class I’ve been to, this is a hard date, not an advisory date, not “on or about”, nor is it when the buyer ‘thinks’ he can close. Couple that with a short sale lender’s approval with a ‘close-no-later-than’ date and you’ve got more reason to stay on track.  “It’s not okay, it’s not okay, it’s not…” as I rub my temples thinking of how I can find this agent’s trainer to toilet paper his house with a note saying “Things happen on this paper too”.

I’ve gotta laugh at my own frustration since I know no one is perfect, myself included. I understand this is just business and as long as I’m doing the best I can professionally for my clients’ sake and safety, I can sleep well at night. Even though all of this happened in one amusing transaction I’m reminded that as much as I know, it’s never enough. As much as I guide my clients, I must keep an eye on the guys on the other side of the deal. In addition, I can never assume that all agents are trained the same or hold the same professional standards that I do.

As a former aviator I often say, “Be safe”. Do your clients a favor, friends. Keep learning, even the basics and by all means, be safe.

Marvin

I'm following my own advice from my previous post as a listing agent: Short Sale Listing Agents Are (Not) Jerks!!. We're writing offers on day one of the listing, many times over list price giving the seller control of services (even though in California buyers are allowed a say in whose services are chosen. Yeah right, when pigs fly!). We're signing an umpteen page addendum and following the bank's checklist of hostage situation demands. My clients are nearly willing to give up their soul and my commission to close on a house, but to no avail and again I say, at least not yet.

Here's what's happening, or at least what I think I see (feel free to chime in if you see otherwise). Investors are coming out of the woodwork and have been for quite some time. Inventory is tight. Banks and listing agents that have control of the REO and short sale inventory are helping set the pace and the buyers are chasing them rabbits (houses) like greyhounds out of the gate. As in all races there's only one winner of course. I've met buyers that have untouched equity lines on their primary houses looking for deals to flip. I have clients that have saved for 10 of their working years to put down 20%. And then I have buyers with liquid, cold, hard, cash money. Where they got it, I haven't gotten that far with them yet. I just see the "Two Comma" account balances/statements when we submit the offers, an accomplishment we all aspire to attain I'm sure. Note - there are two commas in $1.0M.

To top it all off, we are getting beat to the punch by other buyers. Inconceivable! What is it? Are my buyers not quick enough? Not strong enough? Their agent not schmoozing enough? What? Well whatever it is, I know we will strike gold, find the needle in the haystack, get lucky, whatever you want to call it. I'm just glad my clients are patient and adaptable.

I'd love to hear what you're experiencing out there, tell me I'm not alone. For those of you hitting it big or often please, share your thoughts would you?

Thanks, good luck out there!

Marvin

So I listed another short sale on Monday in Chula Vista and by last night I had received 17 offers, yes, 17. It's amazing how in any given room of people you see who the professionals are and who the slack jawed mouth breathers are. Same goes for some of the offers I've seen come through my email. Now without taking personal snipes at anyone, I'll just poke holes at the offers that came through in the form of what I feel a buyer's agent should do to get their client's offer noticed and first, accepted by the seller then second, worthy of a favorable response from the negotiator at the bank.

Caveat. For those of you actively selling short sales, you know the routine in being ready not only for the normal part of the listing but being ready administratively for the bank (authorizations, financials, woe-is-me letter, whatever they want, etc.). Assuming you're ready, let's help the buyer's agents, shall we?

In no particular order nor weight of importance, possibly not a complete list:

1. Be first. I launched my listing at 1900 hours (7 pm for you non-prior-uniformed-services types) and got an offer by 1947. Impressive! Sure, they're subject to inspection but geez Louise, that guy was quick with a firm handshake and a smile.

2. Be strongest. Run the comps first but write the offer with the best price/terms you and your lender/appraiser can reasonably recommend. Note: DO NOT BE A BLOWFISH! If it's listed reasonably at $300k and it comps out accordingly, don't write the offer at $400k to control the property knowing your lender (underwriter, assuming there's financing involved) will shoot it down like a lead Zeppelin due to a low appraisal. Listing agents can see through this tactic, it's pointless. Remember, it's a Short Sale, the banks aren't dumb. Cash, different story.

3. Be squeaky clean. Use an electronically generated form, no crayons please. If emailing, have it all in one place, instead of 3 separate emails/attachments. Some of us have efax (converts to PDF file), place the copy right side up - shows you're smarter than the machine. Use Docusign (this is not a professional endorsement but it sure is a great tool!). Use Spellcheck, even for your own client's last name.

4. Follow directions. Okay so some of us forget to update the MLS confidential or showing remarks, but some of us don't. Before you submit, read the listing again. There might be a nugget in there like "Make appointment with seller at least 1 hour prior" or "No drop ins, please" or "Dog not known to bite. Do not go in back yard or risk death by licking / sniffing...".

5. Know the Short Sale process. If your client's offer is accepted, please don't call the Listing Agent on this trip to the Grand Canyon every other day asking, "Are we there yet, are we there yet, are we there yet, are we there yet, are we there yet...?". Have patience my friend. I'm not at the computer picking my nose, building a farm or ridding the world of mafiosos on some social networking site all day long. Im weeding through 17 offers for Pete's sake. Understand what the Listing Agent has to do to get this done - field a bazillion calls, rotate upside down PDF files, decipher crayon scribble, sit on hold for hours, listen to the negotiator's assistant say "What fax?", and so on...

6. Be loyal to the purchase. If your client is shotgunning offers out there hoping one will stick, just know that the seller and their bank really would like some loyalty. They really would like to sell the house to your client but if they're out to pollenate the entire garden, we all might not see the flower in bloom.

I hope I entertained and helped you. Truth be told, tomorrow I'll be a buyer's agent with yet another client and I'll have to practice what I preach.

Good luck!

Marvin

I started with the easy prospects, all of my past clients and old Navy buddies that weren't tired of my targeted email campaign and quarterly "How ya' doin', who do you know?" phone calls. Then I went to the co-op agents and brokers that I thought didn't want to throw me off a tall building for a less than pleasant transaction. Many of them I knew did not manage residential property so I wagered they'd be happy to pass on a headache.

And then came the tough ones, the cold calls. Now back in the day I was a cold call cowboy looking for listings - no business and fearless on the phone since I knew it was physically impossible for a potential seller to reach through the phone and throttle me. I was pretty damn good if you ask me, a legend in my own mind. It did however, comprise a solid third of my business early in my San Diego sales career. Cold calling is a lost art, especially calling 'For Rent by Owners'. Getting past the first "Hello?" can be a challenge in itself, aside from finding out if: a) the house is still available to rent, b) I'm speaking with the owner/decision maker and c) I'm not speaking to another property manager. "Hi this is Marvin de la Vega, I'm a Broker with Noble Real Estate Services. I'm calling about the house for rent, is this the owner? Good, is it still available?" Then, with quick thinking, a smooth tongue with a mouthful of marbles, I'd have a millisecond to get my schtick out, "When will you interview a professional property manager for the job of managing your property?"

"NEVER!!" Click.

"I can manage on my own thanks."

"I'm a sales agent and I'm doing it as a favor to my client for free..."

Let the jousting begin, or at least a fake conversation with a dial tone. Being in the residential resale market for several years has made me clear on one thing. If anyone is advertising their home for rent (or sale), they need help, and many needed help YESTERDAY!! As professionals we need to rise to that calling. Overcoming objections is part of our job. I'm also finding that the owners needing to rent and owners needing to sell have generally the same objections. I am just back at a point where I need to re-frame those rental objections that used to be resale objections.

"How much do you charge? Will you do it for less?"

"I'll just manage it myself."

"I've got a friend in the business that will do it for me."

"Can you get top dollar for me?"

"Property managers don't do much for what they are paid."

The list goes on. One of my personal faves that breaks the ice is, "Can you imagine having to deal with the Caesar's Palace fountain spewing out of your tenant's toilet at 3 AM on a Saturday?". Sometimes the imagery of a toilet fountain, a late night phone call and maybe even plumber's crack are deterrent in nature. 

For those of you in the resale biz, this might be a good reminder, sharpen your objection handling skills.  For those of you in property management, I'd love to hear your experiences. Please chime in.

Next post I'll go over some of the conversations I've had with potential tenants. Till then, have a great week!

Marvin