Pat Kennedy - Your Washington, DC Real Estate Connection

Evers & Company's Art Director, Piers Lamb, has made his blogging debut on Active Rain!

Each time we get a new listing, Piers does a photo shoot he can head back to the office to create a wonderful flyer and post cards to mail out to the neighbors or our sphere of influence.  And he is really a gifted photographer and layout guy. 

And lately, he's gone beyond that, helping each of us with branding ourselves and finding innovative ways to market us and our listings. 

When I first spoke to our broker and company owner, Donna Evers, about the possibility of coming to work for our firm, it was Piers' marketing pieces that immediately convinced me that it would be a good idea.

He accepted Catarina Bannier's invitation to blog, and he will be bringing us great tps on how to take better photos.  And I'm sure he'll come up with lots of other fun stuff, too!

So Piers!  Welcome to Active Rain!  And blog on!

In the late 1980’s, I adopted an “alternative” business plan.  I was working for Shannon & Luchs, which was one of the two largest firms in the area, and I decided to make buyer brokerage the mainstay of my business plan.

My broker freaked,

“You’ll get us sued!” she exclaimed when I told her of my plans.

Then I explained that she was in far less danger of being sued by one of my clients than a customer of a traditional agent who represented the seller with only a perfunctory disclosure of that relationship to the buyer.  This was especially true if the “sub agent” acted in a way that established her as a “non-disclosed dual agent”, the actual business model for many agents of that day.  Then an irate seller might (and often did) sue.

Today, buyer brokerage is pretty much the normal way of doing business, but there are other alternative business plans cropping up, I Am Not A Dinosaur! as the Internet helps to rewrite our business models.

Tuesday, I wrote a post about limited service companies, and I noticed in the comments that a lot of the people on Active Rain don’t have a lot of use for these guys.  But think about it for a minute.

There is nothing inherently wrong with offering cheap, bare bones services to potential real estate consumers.  While I don’t choose to go this route, I recognize that there are folks out there who would prefer to do a lot of the legwork themselves to try to save a few dollars.

Now, I’m not sure that consumers, whether they are buying or selling, do in fact save money this way, but I respect their right to try. 

As for the agents who provide the bare bones basics, I don’t have a problem with them either.  I believe that they provide a service that some people prefer to mine.  There should be a wide variety of price and quality options out there.

And I have three “buts”. 

First, I don’t want to do their jobs for them.

Second, if they are doing business on my turf and want to get paid, they better be properly licensed. 

Finally, it is crucial that the consumer understands the nature of the services, especially what the agent will not do for them.

I once went out with a man who was a complete dog, but he was totally honest about the relationship ground rules he played by.  And he was attractive, funny and charming – not to mention a wonderful date.  His secret with women, I think, was to set very, very low expectations and I’d think, “You know, he’s better than I thought!  I won’t dump him this week” 

And I think this is the approach that the limited service agents will have to take if they are going to make a go of it.

It's easy to imagine how an Internet based real estate company in, say New Jersey, could get licensed in Nebraska and have clients who list their houses.  It's really kind of a hybrid FSBO for the seller.   The seller gets a hefty discount on the brokerage fees, and in return agrees to do a lot of the showing and advertising.  The agent may or may not be the contact person when an offer comes in.  They put the listing on the multple listing service and handle any of the paperwork with email or fax.

But it's different when you are buying.  I can understand making it work when the buyer is working with a local limited service agent.  The buyer gets the listings, does drive-bys or Sunday opens, and when they narrow it down to a few houses, their agent gets involved. 

But in this case, if the buyer is using an agent in a faraway city or state, they will have to rely on the seller or another local agent to get them in the door, unless the place happens to be open.  But what if Dream House is listed by an agent who does not believe in Opens? 

Let's say that our buyer in question calls the listing broker's office in Omaha.  The buyer explains to the agent on duty that he is working with OnLine Homes, and that his agent is located in Bayonne.  He makes a request that the agent show him the home.

The broker is representing the seller, and by refusing to let the buyer in, they are not exactly working in their cleint's best interest.  But the buyer has disclosed a relationsip with Mr. Online Homes.  If this person buys the house, will the duty agent be compensated?

Or can the duty agent, or for that matter, the listing agent just say no, unless the buyer agrees to cancel the deal with Bayonne?

Or does the limited service agent have to fly to Omaha to show the house and write the offer, since that is what the listing company is offering a coop commission to the selling company to do?

It would be fun to hear from some of the limited service agents out there.

I've had a couple of clients recently who have been, yes, smokers.

Now, I must admit that I, in fact, used to smoke.  I finally had to quit when I went to work for Ralph Nader after I finished college.  He actually sent me to SmokeEnders, and it stuck except for a couple of times when I smoked briefly between husbands.

The one thing that cured me was the really awful smell - even if you only smoke a few a day, it gets into clothing, hair, and sheets.  And no matter how many mints a smoker chews, they don't work to eliminate smokers' breath.

Yesterday, I was with a smoking client, and we stopped at his favorite haunt on Capitol Hill to write an offer on a house he had seen.  For the first time in ages, I came frighteningly close to bumming one. 

I didn't.

My grandmother's voice was whispering in my ear, "Kissing a smoker is like kissing an ashtray, dear!"  I looked at the ashtray on the table, and yeah, that would be pretty gross.

And as I was fighting off the urge to snatch one out of his pack of Camel Lights, I remembered they were never my brand, even when I was mooching.  And I remembered another client, a little old lady who smoked Virginia Slims, who reeked of stale smoke and Estee Lauder, a particularly deadly combination.

So, while I successfully resisted the temptation, it amazed me that I was tempted at all!

Yikes!

It was a pretty cute house, vacant and on electronic lockbox.  Box near the side door on the right side of the house facing the street. 

OK, that sounds pretty easy.  I meet my buyer at the house, pull out my little magic lock box opener, and wait!  I see a combination box on the rail by the side door.  And there is no electronic box in sight.

So I call the first listing agent.  On vacation.  Her message says she's in Europe until mid-June. I feel a little jealous.  Where is she?  Paris?  Rome?

Next I call listing agent Number 2.  She's out of town and left the number of the guy covering for them. 

Then I call cover guy.  No answer.  No message to welcome me to his voice mail.  When I called the office, the agent who answered the phone was kind enough to give me his email address and said he was compulsive about his Blackberry.  So I emailed him.

I felt myself metomorphizing into an angry green tinged type-A wacko agent! 

Neighbors came out and tried to find us the key that they had under somebody's door mat, but no luck!  And then, as I was about to do a type-A pollen dance, cover guy called me. 

"Look on the exterior hose bib on the west side of the house," he said.  And I couldn't find it.  He finally walked me over the phone to the lockbox location, and there it was!

Now, they forgot that there were bulbs planted all around the hose bib.  They've been growing like weeks with the Seattle style rain we've been having.  They were eating the pretty blue electronic lockbox, and it was really hard to find.

So, all you listing agents, if you want to put the lockbox in a "discreet" location, put better information in your showing instructions, like

"Bring your machete!"

It's Saturday night, and I'm at home reading The Missing Manual for Office 2004 for Mac.  I bought the book this week to learn more about Entourage, the contact management program that is part of the Office suite of programs.  And it occurred to me that, gee, it might be time to join the Get-A-Life Club.
 
Still, Entourage is s a pretty cool little program. Until I completed the Challenge for the week one's Makeover 2 Takeover contest, I had no idea it was even there. And I have to wonder what else is lurking on my little MacBook.
 
I have a few programs that I use a lot.  But what about the others?  There's Movie, which some friends really rave about and might (or might not) work for videos.  Then I have Photoshop Elements, which I haven't taken the time to learn - IPhoto is so easy to use and does most of what I need.  There is another that does business cards.  And there's a bunch of stuff that I don't even know is there.  If I want improve my French, I've got help from Berlitz that I rarely tap into.
 
It's a lot easier to get hooked on programs you don't use with a PC, because there is so much out there that works, or not.  With a Mac, there's not as much stuff, but it all works.  So it probably saves you money in the long run!

Right now, I am single.  And I sort of forgot to have children.  So other than my cats and Willie the hyperactive Labradoodle puppy, I don't have any serious domestic responsibilities.  And I often feel on verge of being overwhelmed and over-committed.

And as I read through some of the posts tonight, I felt in awe of some of the Active Rain moms who manage to juggle successfully a lot more stuff than I can ever imagine doing.

Katerina Gasset  is a Realtor, blogger, coach and homeschool mom, and I was really impressed reading about her attending the homeschoolers convention in Orlando.  

Catarina Bannier,  my colleague at Evers & Company and my Makeover2Takeover mentor, is juggling in-laws, a kid’s birthday party, her new listing, and checking over my contest homework before she turns it in.

When do these people sleep?  At the moment, I’m feeling a bit like sloth

Over the past decade, Whole Foods has built a reputation for being a totally trustworthy source of organic food around the country.  Last night, a news report by our local ABC affiliate raised questions about the trustworthiness of the chains "organic" label on some of its frozen vegetables.

The report showed bags of organic frozen spinach, snap peas, and (of all things) a “California Blend” that had, in miniscule type on the back of the package, “Product of China”.

So the same guys that brought you toxic toothpaste, lead paint on toys and tainted pet food are now supplying Whole Foods consumers with organic veggies.  And the problem with the whole “organic” thing is that China has not set up a good system for monitoring the farms to ensure that standards set by the USDA are, in fact, being met.

Whole foods kicked the news crew out of the store, and no one from the chain spoke on camera for the story.  It didn't look good!  To boot, they filmed at the Dupont Circle store, probably the one with the pickiest demographic in the nation!  They were interviewing people coming out by the front door.

I found the report disturbing enough to rethink my food purchase habits.  When we shop at a store like Whole Foods, we are paying for eggs from happy hens and meat from animals who lived like kings on farms where they got great food and no drugs.  The fresh produce is supposed to be fresh and not nuked to extend its shelf life or ripened in a tank car of ethalene gas - or so I imagined.

But their food looks pretty much the same as the stuff they sell at Safeway!  So, like real estate agents, all Whole Foods has is its reputation.  And they can argue that it’s one funky little thing involving frozen vegetables, but when you’re talking about integrity, the consumer can never tell whether it’s really just the one little “out” or whether the whole organization has issues. 

P.S.  Sorry about the commercial lead-in to the video!

There are almost as many ways of approaching real estate as there are people in the profession.  And I was especially amused reading some of the comments on Catarina Bannier's last post last week about hating the "sales" part of the business.  Like maybe agents like her should find another way to make a living?

I don't think so.

Many of the most successful Realtors I know do not feel comfortable in the old real estate "sales person" paradigm.  And a number of major trainers, including Brian Buffini and Joe Stumpf, have built their systems around losing the salesman side of the business.

In our popular culture, sales has a bad rep.  Salesmen (and women) are pests.

They harass us by cold calls, junk mail, knocking on doors or strong arming us at PTA meetings.  Get one in your book group, and look out!  Whether they are trying to sell us life insurance, used cars, Avon, or houses, they make us think of unwelcome intrusions and we feel the pain of stretched muscles as they twist our arms into buying something we don't think we want.

Then, when we say no, they begin to argue with us, trying to overcome objections.  And believe me, that can wear thin awfully quickly.  A dab of this magic goop will make your waddle disappear.  Even though you don't have children, you need life insurance to cover Willie the hyper active Labradoodle puppy who just might outlive you.  You don't like that dress' color?  But it makes you look so thin!

And when we say no, really, they make follow up calls to try to change our minds.  How about those lovely telemarketers who won't take no for an answer when we tell them we will not participate in any of their lead generation programs.  And they keep calling and calling, knowing they are exempt from the "Do Not Call" regulations.

They follow the old "ABC" gospel of selling - "Always Be Closing", whether or not it is appropriate to do so.

In the introduction to my book, "The Irreverent Guide to Real Estate", I talk about my own struggle with telling my friends and colleagues about my new career move.  There was something a little unsavory about blatant selling.  And in the early 80's, before the days of buyer brokerage, selling was definately the major part of any Realtor's job.

But I think that has changed.

The best agents I know do not see themselves as "sales" people.  At least they are not selling houses.  They are always selling themselves, but not that in-your-face stuff.  They are quiet experts.

    * These agents are probably someone the prospective clients already know or someone who knows and loves the agent said “Call Pat!”  Or whoever.
    * They know their territory very, very well.  They are familiar with the inventory and what houses should sell for.  If you are selling, they can steer you away from being overpriced.  If you are buying, they can help you avoid overpaying.
    * They listen to what you want and need, and they know what questions to ask that will help you figure it out - if you haven't already.
    * When you find "The One" they will use their knowledge and expertise to make it happen.
    * If you make an objection, they will listen and help you work through whether or not it's a real issue or natural resistance that can stop a buyer from moving on a great home.  If it's a real objection, they'll let it go.
    * They know when it's appropriate to give a client a gentle nudge and when to back off.
    * They never do anything to people that they don't like done to them - telemarketing (cold calls), door knocking or spamming.  They don't have to.
•    They can be old pros or well-trained newbies.

Once I went to a party, and a lot of my clients were there.  And a little cluster were in a corner, and I overheard part of the conversation.

It wasn’t about “Pat sold us our house.”

I overheard several of them talking about how I helped them buy their houses.  It was about how I showed them a bunch of stuff, and when the found “The One”, I made it happen.

Over twenty five years, I've only met one buyer who wanted a place that was dark.  She said there was some astrological influence that made her avoid bright sunshine.

She is not typical of most buyers.  Most of them want lots of sun.  The more the better!

During my first days at the old Shannon & Luchs Academy of Real Estate, they taught us all about the importance of making our listings as light and bright as possible.

You have to live a little differently when your house is for sale.  For example, those window treatments you paid a fortune for?  Be sure they are pulled wide open or raised high. 

If you "don't do windows," then call a professional who does and make sure they are really clean.

The only exception to the rule is if your view is truly awful.  Like bricks, or a huge dumpster or the city dump - in which case you will have some very serious issues selling your place. 

Good natural light is a strong selling point for a home.  And this is a case where, if you've got it, flaunt it.