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

For my huge readership (there's an echo in here, hello?), so much has happened since Independence Day:

Two Broker exam crash courses. A real estate broker exam. 8 painful days of waiting for results followed by 11 days of even more painful waiting for official licensing by the state. The wife and kids went to Pennsylvania without me and I'm out of clean t-shirts and undies (okay TMI). Tax Id #. Check. Fictitious biz name statement. Check. Business license. Check. Department of Real Estate broker licensing fees. Check. Paid everyone with a check. Check...

So I'm one of California's newest real estate brokers, big whoopee. Well, to me it's huge and if you're a broker, old or new, you might have had the same feelings of accomplishment followed by the sound of crickets and the question, "now what?". I promptly started asking a ton of questions of my local broker brethren. Everyone had different answers, some had words of encouragement while others were wondering if their short sales would ever close. Some didn't have time to talk since their new motto is "What recession?" - they're pretty damn busy with bank owned properties or some other unknown niche (Mona Vie? Send Out Cards? Goji Juice...?).

Then there was this one old friend, Jason G. Two years ago he was exactly where I am right now. New broker, confetti and ticker tape needing a serious picking up, and the "now what?" question staring him in the face with his new broker's license in hand. At the time I had no idea what he was thinking but then again I never asked. He was (and continues to be) a great salesman, only back then it was residential resale homes, primarily listings. But now it's property management for Jason. And after a small metric ton of hard work, he's quite successful as a one man outfit.

He was gracious enough to answer my basic broker / new company set up questions and of course we discussed property management. I hadn't considered property management until now. One thing led to another, Jason offered me a position to help build his company's presence since he was the only licensee in the office. But I knew what he was doing, he was offering me an opportunity to succeed. It made so much sense to me - in order succeed I had to broaden my horizons, to add another act to my real estate repertoire, an item to my menu of services or rather, another feather in my cap.

To make a long story short, I'm a property manager now. I'm a broker associate working in a small independent office where the only way to go is up. I'll still sell homes. But in this market and in this economy, this change in direction is a welcome change. I'm excited and anxious at the same time. I will keep you updated.

Cheers.

Marvin

www.signonsandiego.com/feature/fourth-of-july/

Happy 4th all!

Marvin

Yes 15 months. Don't ask. Now it's all done and this came in the mail today from one of the Navy's finest west coast aircraft carriers, from my client Larry. It made my day and validated why I'm in business.

This card is on my desk. Next time I think about whining I'll have my good friend and client Larry to remember.

Have a great weekend.

Marvin

Once the report is out, be familiar with what the damage is and how it's fixed. This will obviously make you smarter down the road. Know the definitions of dry rot, subterranean termites and drywood termites. Heck, just ask your favorite termite inspector for a quick lesson. Know the procedure if any repair or fumigation is necessary. Is the buyer required to acknowledge the work? Know especially if there is any prep work necessary prior to the termite killers arrival. Ask what their time frame for starting and stopping work is. Know ahead of time exactly how they will conclude their work - clean up and issuing of a clearance.

Here's the part we as agents need to pay attention to. Termite control companies kill termites. No kidding, Sherlock (my wife and kids read this, rated G). They also might make a mess in the yards and if the seller didn't prepare the plants next to the house for fumigation so they might either be moved or cut by the termite killers. Also, termite control companies are not painters or fine woodworkers, so if certain pieces of wood are damaged and need replacement ask how the wood will be finished. Some companies are more professional than others and will not only prime the wood but color match the paint - in my opinion this is above and beyond the call of duty. Lastly, How tidy is the company? Do they clean up any debris, tidy up the planter boxes they trampled or do they re-install the fences they had to take down in order to fumigate?

We need to protect your buyers and sellers - get smart on termite protocol and ask the termite company a ton of questions before they are dispatched.

Have a great week!

Marvin

So I'm back from vacation, I'm ready to close a listing (I'm representing the seller) in the last three days of the escrow period and I get this call from the buyer's agent. "My buyer has been laid off from work and needs to cancel this transaction. Oh and by the way, she wants her deposit back."

Welcome home...

The tough part for the buyer is she didn't know she had lost her job until her lender received the Verification of Employment stating she had no future employment with the company. She was a single mom, working as a nurse's assistant for many years with the same company. Meanwhile, she had already fully committed to her purchase and removed all contingencies. Her deposit was fair game to request release of it to the seller. So the predicament was, should the seller take the buyer's deposit?

I spoke with my client (seller) after verifying the buyer's misfortune. We both agreed that in the San Diego market and economic climate, giving the deposit back felt like the right thing to do so, she did.

We already have another offer in negotiation with a new buyer, life is good. The only thing lost was time. We are experiencing multiple offers and overbids (on low prices) so it still has all the makings of a happy ending for my client.

But I'm curious, fellow agents out there, what would you have done?

Although it was sunny and cold, I'm glad to be home from camping on the beach...salvaged another deal and happily remembering Raphael's first day in the sand. 

Have a great week folks!

Marvin