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Elizabeth Weintraub
Why We Need Humans to Navigate the World of Real Estate
If you ask some companies like Bluenuts or whatever why we need humans to navigate the world of real estate, the management at Bluenuts will tell you we don’t. That’s because they find warm bodies, somehow get them through the real estate exam, and then try to compartmentalize real estate like they were shoving a Model T out on the assembly line. But when these new agents catch on, I imagine they go elsewhere to sell real estate, where the money is better. I’ve never met a veteran Bluenuts agent but that doesn’t mean they don’t exist.
Lately, I’ve been thinking about why we need humans to navigate the world of real estate. There are a handful of new companies hitting town that offer less and charge less, which causes concern among some agents that they will be replaced by robots. I can’t say that I’ve heard anybody express how much they love dealing with automation over human interaction. Have you?
Not even Fox Mulder. We watched an X-Files episode, Season 11, Episode 7, about artificial intelligence and automation, mostly about what can and does go wrong. It really hit home. You can’t trust technology to always work correctly. This is why people are uneasy about driverless cars. We still need and, dare I say, crave, the human touch.
For example, the other day I had a couple hours I could get away from my computer, so I decided to do a bit of targeted spring shopping at Nordstrom. I texted my personal shopper to say, yes, I know it’s fast notice, but I would arrive at the store in 15 minutes. She wasn’t even working that day. Yet, you know what she did? She jumped in her car and met me there. On her day off! With her assistance, I bought what I needed and left. I could not have accomplished that without her help. I don’t have all day to shop or even all afternoon.
Another example, over the weekend, my husband and I went to Lowe’s to buy a new grill. Since we have a grill in Hawaii, I now find the charcoal vs gas grill debate has carried over to Land Park, and we need a gas grill at our house here. I also needed a planter hanger doohickey since one of the hangers supporting our basket of four elephant foot plants broke. We searched the entire store and I finally found a bag of four metal hangers sitting alone on a shelf of planters. It didn’t match anything and had no skewer.
My husband insisted Lowes would not sell that to us because it had no skew number. But he underestimates the power of dealing with humans. I approached the cash register, handed the bag to the clerk, explained I really need that plant hanger, including the fact I was aware there is no skew. I offered something he could not refuse. Said he can charge me whatever he liked. I need to buy it.
He just gave the hangers to me. No charge. Free. The power of dealing with humans.
The same thing applies to the principles behind why we need humans to navigate the world of real estate. No matter how savvy a seller or buyer believes they are, they do not have 40 years of experience in real estate in sales like I do. My knowledge helps clients to avoid costly mistakes, streamlines the escrow process, assists with pricing, and whatever happens, they know I will be there for them with a solution. Perhaps several solutions. Robots can’t give you that.
Do I like pumping my own gas? Do you?
Further, if automated checkout lines worked so well, why do employers hire clerks to stand there and watch?
Enjoy humans while you can. Because businesses will continue to try to get rid of them. But I firmly believe you’ll always want to rely on a knowledgable human to assist you with buying and selling Sacramento real estate.
Isle of Dogs and West Coast Pop Art Experimental Band at Tower Theatre
All righty then, I admit the draw to Tower Theatre to see Wes Anderson’s new stop-motion animated movie Isle of Dogs was the music from a 1967 album by the West Coast Pop Art Experimental Band. I heard the song “I Won’t Hurt You” from the movie trailer, and it immediately transported me to a head shop with a back room on the corner of Lake and Nicollet in Minneapolis called Psychedelia. While in high school, I used to hang out in the back room at Psychedelia. It was a dark room studded by blacklights illuminating pop art posters. Kids sat on the floor and grooved out to piped-in music.
Only one thing was not allowed and that was song requests. Especially coming from a 16-year-old kid. You could drop acid, smoke pot, didn’t matter, just don’t treat the front room guys like a DJ. Yet request songs I did, and I routinely asked the guys to play the West Coast Pop Art Experimental Band. You didn’t really get any more psychedelic music than Shifting Sands or Help, I’m a Rock. We’re talking about lava lamps, slowly moving bodies and waving scarves in the air.
So naturally, I begged my husband to go with me on Sunday to see Isle of Dogs. He likes dogs; I like dogs, even though we have 3 cats. We both like animation and are partial to all things Japanese. You know, you think the French have a handle on enjoying life, but it’s really the Japanese. They have refined daily activities to an art form. Ever since I tried those $4,000 toilets that Asian clientele demand at high-end resorts, I can’t help but covet one of those.
Everything in a Japanese home seems to have a purpose, a use and a ritual. Even our bath towels are from Japan. They don’t look like bath towels, either. They are very thin yet absorbent material that quickly dries. But I’m getting away from myself here. Back to Isle of Dogs.
There are ton of celebrities in this movie, voicing the dogs. From Bill Murray to Bryan Cranston to Yoko Ono. The premise is the evil mayor of Megasaki banishes all canines to Trash Island, while the mayor’s ward, a 12-year-old boy named Atari takes off for Trash Island to find his dog, Spots. It’s sorta bittersweet, and the beginning of the movie was so sad. But it perks up and leads us on a hilarious romp. You don’t have to see it on the big screen to appreciate the movie. If you liked The Royal Tannebaums and The Fantastic Mr. Fox, you’ll probably like this movie, too.
If you’re like me and in real estate, you can catch the 12:00 show at the Tower Theatre and be back in time for Sunday open houses starting at 2 PM.
Do You Need Smoke and Carbon Monoxide Detectors to Sell a Home?
Everybody and their uncle knows you need smoke and carbon monoxide detectors to sell a home in the Sacramento region . . . or . . . do you? First place to look, of course, is the California Residential Purchase Agreement. Paragraph 7 B1 lets the preparer of the contract check a box as to which party will pay for smoke and carbon monoxide detectors. Agents who are on the ball will specify the buyer will pay for those items when the home is sold AS IS, but not every agent is on the ball.
Now, state and local laws require a carbon monoxide detector be installed on every level of the home. Some appraisers count every level, even a one-step-down family room as an extra level. They might note basements as an extra level. The danged things are only $20 a piece, and they don’t have to be wired into anything, just plugged in. But what happens if you don’t install carbon monoxide detectors? Will firefighters ax down your door? Will the CO cops break into your home dressed in haz-mat suits to arrest you?
What happens is the buyer’s appraiser won’t release the appraisal report and /or the lender will call for carbon monoxide detectors to be installed before the loan will fund. Or, the way I explain it to sellers: shit rolls down hill. The appraiser will look for the carbon monoxide detector immediately upon entering the home. If they don’t see it, they will often leave and charge the buyer for a return visit. The buyer will then complain to their agent. Their agent will then call me to complain. See where this crap rolls?
So do I naturally call the seller and complain? Are you joking me?
Because I’ve already explained it upfront and if a seller chooses not to install a carbon monoxide detector, I am not the CO police, either. Hey, I ask you. Whose fault is it the buyer doesn’t have cash and needs to get a loan? Is it the seller’s fault? As solely a listing agent, I realize agents who represent both parties do not share this attitude, and, in fact, find it shocking, from their own biased point of view.
Our state and local laws require a smoke detector in every sleeping area; however, an appraiser’s definition of a sleeping area might be different than yours or mine. Smoke detectors are also required in every hallway and on every level. If the smoke detector features a removable battery, the unit must contain a non-removable sealed battery good for 10 years. Which excludes every smoke detector in my house, now that I think about it.
Sometimes, on my AS IS listings in Sacramento I include a clause in the listing agent’s AVID that states the buyer is responsible for installing smoke and carbon monoxide detectors. It is not really legal because buyers must sign receipt of that document and may not agree, but I stick it in there anyway. When there is no loan, then it becomes a matter of whose responsibility is it to install smoke and carbon monoxide detectors (sellers), who will pay for it (buyers or sellers) and, most importantly, who will enforce it.
And I think you know the answer to that last one.
An additional seller consideration, though, is a signature on the Transfer Disclosure Statement (TDS) does state the seller promises the smoke detectors are installed in accordance with the law.
This matter should be discussed by the listing agent with the buyer’s agent beforehand, just to avoid misunderstandings. However, most buyer’s agents are trained to look for smoke and carbon monoxide detectors when they first show the home and make notes in case the buyer decides to make an offer. If agents aren’t providing this service for their buyers, they should.
Did You Pick the Wrong Sacramento Realtor as Your Listing Agent?
Sellers believe they will never pick the wrong Sacramento Realtor to list a home but it happens. It almost happened to one of my clients. He was all set to sign with a discount agent. Instead, he started searching the internet to see if maybe, just maybe, he could find a better agent. Something in his gut just didn’t sit right, I imagine. I’m not sure exactly why he began a search for a different Sacramento Realtor but that’s how he found me. I’m everywhere. You really can’t get away from Elizabeth Weintraub online no matter where you go.
Some sellers say they did not pick the wrong Sacramento Realtor because they chose a friend. Doesn’t make a lick of sense to them that might not be wise because perhaps that agent doesn’t really sell much real estate. Never occurred to them they should instead choose a veteran full-service agent. They feel their agent friend is a person they can trust. Well, you can probably trust your gardener but you wouldn’t want him selling your home, would you? An agent who sells a home here and there often knows only the basics. Like how to put a home in MLS. But an agent’s duties to her seller goes way beyond that.
For one thing, an experienced agent know how to price correctly. She knows her market, buyer’s preferences, understands stats and develops custom strategies for each client. A top agent figures out what the market will bear over what the comps reflect. One of my clients called me last month just as he was about to pick the wrong Sacramento Realtor. We discussed pricing and one of the unusual aspects that came out of our conversation was the fact agents had been telling him to list about $50,000 less than I suggested.
Now I know how that looks to seller. They think: whoa, she’s so far off on her pricing! How can she be right and all of those other agents wrong? That’s a normal reaction. I had a seller in Carmichael last year ask the same thing. Yet, I sold his house at list price, which was $100,000 more than other agents in Carmichael told him to list at. I have an ability that apparently other agents do not.
In a blog he read that led him to call me, I had explained the standard real estate commission in Sacramento. He could clearly understand why I get paid a little bit more than many other agents. Because my clients tend to make more money by choosing my services.
I looked this guy straight in the eye and warned: do not list with any of those agents. You will lose $50,000. Not only that, but you have an older home. Which means you’ll never survive the inspections and they will take you to the cleaners. My experience will help you to smoothly navigate your escrow. Besides, you know why my sellers who post 5-star reviews say I exceed expectations and work miracles? Because they are happy.
It’s a good thing he listened to me and did not pick the wrong Sacramento Realtor to list his home. We are closing escrow next week, and he got exactly the price he wanted. No renegotiations after inspections, either. Smart guy.
5 Professional Tips for Selling Fixer Homes in Sacramento
As a veteran Sacramento Realtor, I’ve sold real estate for decades without encountering the peculiar subset specialty of selling fixer homes in Sacramento. But the market crash and all of the short sales / foreclosures from 2005 to 2011 took care of that situation without any deliberate effort on my part. I just fell into the pool of selling fixer homes in Sacramento. At one point, I recall managing on average 75 escrows at one time, mostly all short sales. That was an insane period of time in my career, and let’s just say I didn’t get a lot of sleep. So glad those days are over.
However, I came out of those experiences having learned a lot about selling fixer homes in Sacramento. My entire focus then, as it remains today, is on my sellers and doing what is best for them. Most sellers tell me they want to maximize their profit potential. I don’t hear very many sellers in Sacramento today offering to give away their homes or sell them for less than market. Every once in a blue moon a seller will admit she can’t deal with the situation and will take any offer that gets her out of home ownership, but that is an uncommon occurrence.
If you’re a seller hoping to dispose of a fixer home in Sacramento or a Realtor who has never sold a fixer home, here are a few of the things you can expect to encounter. All sorts of people crawl out of the woodwork to buy a fixer home; some are real slime-balls. But make no mistake, while selling fixer homes in Sacramento is a hot commodity, it’s not a walk in the park. Not in heels, anyway.
- First, realize every buyer has an agenda. That agenda is to buy the property as cheaply as humanely possible. Some purchase offers will likely be offensive. Don’t take any of it personally. Just focus on what you want to do and what is best for your situation. If your agent pushes you to accept a lowball offer, question that listing agent’s motives. Is it commission based or client focused?
- Not every buyer will be honest with you. Buyers might swear they are experienced flippers and they know how to compute construction costs. Then, suddenly, in the middle fo escrow, that ability will vanish. They will claim they know nothing and had little idea of what they’re getting into, despite their professional status. Except, whatever the perceived defect, it will be very expensive to fix. They often will expect the seller to renegotiate halfway through the transaction. Don’t take it personally nor be victimized. If buyers refuse to abide by the contract you may have a right to cancel the transaction.
- All buyers of fixers in Sacramento are not equal. Some buyers will claim their overhead and material costs are too high. Therefore, the argument is they want you to lower the price. It is not your fault they do not have access to inexpensive labor nor wholesale materials. Sellers are not required to foot the buyer’s construction costs.
- Owner occupants will generally pay more than investors. There is no reason to limit your marketing solely to flippers or investors. Owner occupants who don’t mind a little sweat equity might be your perfect target audience. Many first-time home buyers would love to spend less and buy a home that needs work. Some will even do the work themselves, which tends to lower their rehab estimates.
- There is always another buyer. Always. Especially in our spring Sacramento real estate market. This is a seller’s market, limited inventory and high buyer demand. I have never come to the end of ready, willing and able buyers wanting to purchase a home and build equity. The downside to selling fixer homes in Sacramento is yes, sometimes we need to sell that home several times while only getting paid once. But that’s why we are professional listing specialists, guided by an ethical compass, and not out to make a fast buck off the backs of our clients.
