Email ElizabethReal Estate Tips
Is Syndicated Real Estate Writer Jim Woodard a Dingaling?
Pricing a home too low is pretty much impossible.
Usually I enjoy reading syndicated real estate writer Jim Woodard in the Sacramento Bee. His real estate articles are distributed nationally by Creators Syndicate, and even Realtor.com has picked up his columns. Although I suspect you’re unlikely to find his recent Open House column titled Setting a Realistic Asking Price for a Home on any Realtor website because it’s so skewed. This is what happens when a non-Realtor gives real-estate related advice. Sometimes writers get it wrong. Sometimes they look like a dingaling.
Perhaps other real estate agents don’t read his columns? Otherwise, many busy Sacramento Realtors would be up in arms about it. Which is why I’m sharing it with you today because I have many professionals who subscribe to my blog. There are glaring errors in his advice about choosing an asking price for a home. I have bolded the incorrect statements below:
“If it’s too low, the property will probably sell fast but at a price lower than its market value. If it’s too high, it may sit on the market for a very long time. Then it might finally sell, after reducing the price several times.
“Many owners follow the advice of their broker in determining the price. That’s often good advice, but keep in mind that the broker makes no money until a sale is consummated. A low price will expedite his commission payment.”
Only a dingaling would say something like this because it’s not true. For starters, it paints a broker with a tainted brush. It basically says you cannot trust your real estate agent to tell you the truth. In fact, it implies your real estate agent might be lying to you and pushing you to price a home way below market value, just so the agent can get quickly paid. This is an insane statement, it’s crazy nuts. It’s misleading; it gives readers the wrong impression about real estate agents; and it perpetrates a myth that agents are dishonest and / or only looking out for themselves, their own paycheck, which makes me want to throw a cream pie in the face of Jim Woodard.
Where would real estate writer Jim Woodard pull such a completely false idea from? Don’t answer that. We know where. It makes no difference to an agent if she is paid one week from now or next year. We do not price listings based on how quickly we receive our commissions.
Further, we are in the midst of a super hot seller’s market in Sacramento, like many parts of the country. Because of this type of real estate market — which is limited inventory and high buyer demand — smart agents might suggest a lower than market value in order to drive multiple offers. One simply cannot price a home too low and sell it below market value because vast exposure increases demand, and receiving multiple offers for an under-market price tends to push the final sales price into the stratosphere.
It’s impossible to price a home too low, especially in a seller’s market.
Perhaps real estate writer Jim Woodard is superimposing his own thoughts into his writing? Perhaps if he actually sold real estate, was out in the trenches — and I don’t think he is — he would do that sort of thing. Perhaps he would be dishonest? Maybe he would try to push sellers to price low to screw over clients. How else could he pull such a false premise out of thin air? Such a dingaling thing to write. So insulting. I suppose the logical answer is it’s possible that conviction is lurking deep within Woodard’s personal make-up but it’s certainly not in the heads of Sacramento Realtors nor the standard practice of any other Realtors in the nation.
Woodard, you owe us an apology.
Realtors put their client’s interests first and foremost.
What Exactly is a Real Estate Client in Sacramento?
Not every person who calls an agent is a real estate client.
Working primarily with sellers as my specialty in Sacramento real estate, I can honestly say that each and every seller I represent is my real estate client. Of course, I spend more hours with some clients than others because not every client needs a lot of personal attention, but some do, and I’m happy to provide that service. In addition, it is common to represent a real estate client who does not understand the entire home selling process, so it can take more time to explain protocol and what will occur.
During this time with a real estate client and all through the showing process and escrow, I am generally in constant contact with my sellers. I send them feedback from showings, let them know about market shifts or changes that could affect their sale, and I try to make myself consistently available for chats when needed.
By the time escrow closes, I often know a great deal about each real estate client. We have an established relationship that is not only fiduciary while in escrow but it can be personal after closing.
On the other hand, you’ve got the buyer’s agents and their so-called buyers. Many of my sellers come to me through referrals. These referrals are from my previous clients and from other Realtors. Buyer’s agents don’t always have that luxury of referrals. Sometimes they find buyers because a buyer happened to slam a cart into them at the grocery store. Or, they met a potential client at an open house.
Or maybe the buyer called on one of their listings and it was sold, so they converted that lead into a buying prospect. But the point is these “clients” are often strangers. Just some guy off the street who says he wants to buy a house. So when a buyer’s agent calls to say his real estate client would like to make an offer, I may ask how the agent knows this buyer. I’m trying to figure out if the earnest money check is gonna bounce. Many do.
How long do you have to spend with a buyer for that person to become a client? It varies among agents. Some buyer’s agents call a buyer a real estate client after one telephone conversation. I’m pretty sure that’s not a client. That’s a person inquiring about buying a home. A potential prospect. A lead. It’s hard to put a lot of credence into a buyer’s agent statement about a buyer if that buyer is not what you or I might call a real estate client.
Every agent says: “My client loves the home,” when what they mean is I would like this offer accepted so we can try to close. Not only may the buyer NOT love the home when it comes time to negotiate, it might turn out that the buyer is not a real estate client after all. This might be an agent who showed one home and scribbled a contract. Does that make the buyer a real estate client in Sacramento?
When You Know the Sacramento Buyer is Not Buying a Home
Experienced agents can tell when a Sacramento buyer is not buying a home.
When you know the Sacramento buyer is not buying a home, it’s not fair to anybody to pretend otherwise. Regardless of how much a buyer may yearn for a home, not every buyer will end up a homeowner. How do I know this? Because I speak with first-time home buyers who want to buy a home nearly every day. I listen to their wants and needs. From this information, I determine whether these buyers are realistic and motivated. See, a buyer can possess all the motivation and determination in the world, but if a buyer is stuck in fantasy land, the odds of buying a home are dramatically reduced.
I try to be non-judgmental. I know that buyers are not professional real estate agents and don’t possess intimate knowledge of the market. Part of my job is to educate buyers. Especially those who rely on Zillow or other websites that often provide inaccurate information. Armed with knowledge, a buyer is then able to make an informed decision.
A few weeks ago, a buyer called to say she was unhappy with her agent because she wasn’t getting results. Since agents are generally in the real estate business to make a sale, it was entirely possible the problem did not lie with the agent. The buyer asked if I would research a particular home in Elk Grove. Her agent had shown her the property. She had not made an offer nor signed an exclusive buyer’s broker with this agent.
As a favor, I called the listing agent. The agent had 5 offers, several of which were all-cash offers, and those all-cash offers exceeded the list price of $400,000. As with some listings in today’s market of low inventory, this listing was priced to drive multiple offers. It makes little sense to compete in these types of situations if a buyer is unwilling to offer over the listed price.
The buyer asked if she could buy this $400,000 home for $300,000. Without laughing, I explained all of the reasons why this type of approach was not going to work. On top of which, this home was was highly desirable and unique — which means those other buyers aren’t going away. It’s painful for an agent to realize that a Sacramento buyer is not buying a home.
A few days later, the buyer emailed me to confess that she had gone back to see that home again with her agent. She was so overwhelmed with desire that she wrote an offer on the spot for $100,000 less than the list price. She asked if I would still work with her and show her other homes while she waits for an answer from the seller. I know, beyond a shadow of a doubt, that the buyer is not buying this home.
Now, I am not in the business to swipe other agent’s clients. There’s enough business in Sacramento for everybody. I had explained earlier how real estate agents work and why this buyer should decide which buyer’s agent she wants to hire. She told me she really liked her agent but did not feel her agent could perform. Yet she wrote an offer with that agent.
I suggested she stick with her agent, the two seem like peas in a pod. I didn’t refuse to work this buyer simply because she wrote an offer with her agent, although loyalty is paramount. This buyer performed contrary to her own best interests. I was forced to turn her loose because she could not, would not, did not listen to good advice.
Being a Realtor isn’t for everybody. Nobody wants to point out that a Sacramento buyer is not buying a home. It’s often best just to move on to those we can help.
Telling the Buyer the Truth
Real estate agent handing over keys after telling the buyers the truth.
Telling the buyer the truth is difficult for some. I know a lot of agents who are afraid to lose the sale. It’s tough out there right now for many real estate agents. Some are struggling, writing tons of offers that don’t get accepted, getting paid half as much and some aren’t doing any transactions at all. For these agents, I suspect it’s even harder to tell a potential home buyer that perhaps buying a home is not the best direction for them to move.
I’ll share a story about a buyer who was ready to go into contract. He had a viable counter offer in front of him at a price that was agreeable. The counter offer contained two points, however, that he fixated on. One was the seller wanted him to split a selling fee. It wasn’t the amount of the fee that he objected to, I came to discover, it was the fact that the seller had asked for it. The other stickler was the seller stated in the counter offer that the appliances carried no guarantees.
“All homes in Sacramento are sold ‘as is,'” I explained. “It’s already in the contract.” He wanted to see where it was written in the contract, and I showed it to him: Seller makes no warranties regarding the above items. I was hoping he could understand that I was telling the buyer the truth.
The buyer decided the seller might be hiding a defect. He argued that the words “guarantee” and “warranties” were not synonymous, although they were in that situation. We discussed his home warranty plan — we talked about the home inspection and his right to cancel — we pondered places to buy a used appliance. We even discussed the possibility that if an appliance was defective, how the seller might be willing to repair it.
During our 90-minute discussion, it became apparent that the buyer had a laundry list of objections to the contract, which he had already signed. It was clear that those concerns had been discussed among his family members. He wanted to see the seller’s confidential documents that do not pertain to the buyer. He asked for standard verbiage in the contract to be altered which, for a variety of reasons, was not feasible.
The buyer proposed that the seller was being unreasonable by requesting that the buyer split a small fee. He said it made him uncomfortable. Even if I offered to pay that fee for him, he was unhappy. Further, he was certain the stove, which most likely had a value of $200, was broken. I seized that opportunity to point out in the most sincere manner I could muster that if the seller could see him right now, the seller most likely would feel that HE was being unreasonable.
I pride myself on my communication skills, and integrity is my cornerstone in this business. I tried to explain technicalities in several different ways, using layman terms, but I was beginning to feel like I had somehow failed in my mission. Then the light bulb went off. I laid it on the line: “I’m hearing from you that you do not trust real estate agents; you don’t feel that I am being honest with you. You do not trust the verbiage in the contract that protects your rights. We can’t maintain a business relationship if you question my ethics, integrity and honesty. You might want to consider either working with another real estate agent or hiring a lawyer to represent you.”
Then I went a few steps further and suggested that perhaps this buyer was simply not ready to buy a home. He appeared to be uneasy with the entire process. Maybe he should withdraw his offer and forget about buying this home. Not everybody should buy a home, and that’s really telling the buyer the truth. He could be one of those.
It’s not my job to strong arm a buyer to make a decision he could later regret. My job is to represent the buyer to the best of my abilities, maintain our fiduciary relationship and protect his interests. Always, my belief is 100% geared toward telling the buyer the truth.
Never Let Them Tell You No When the Answer Should be Yes
Never let them tell you no, especially when you know they do not care.
Never let them tell you no. Although my husband may disagree with what I’m about to say, that’s his prerogative, but I think of myself as a pretty easy-going and mostly unfazed person. It takes a lot to rile me up. Like most people, I suppose, I do get my knickers into a twist when I’m dealing with unethical behavior, injustice or discrimination. But lousy customer service, hey, I live in California, so I’ve pretty much comes to terms with the fact that we have too many people to serve and underpaid / untrained staff to adequately serve consumers.
In my own business, for example, keeping my clients happy and content is my foremost concern. But larger corporations seem to have lost that intimate touch with the consumer. Well, you see some companies putting more emphasis on making that good first impression by changing the name of their receptionists. They now call them Directors of First Impressions. I wish only they would consider the same service after the fact such as when a customer calls for assistance after purchasing a product. I’m thinking they should change the name of customer service reps to Director of Last Impressions. Because how a customer is treated after the sale is just about as important as the service one receives before the sale, but I’m getting ahead of myself and need to address why I say never let them tell you no.
Years ago I bought a printer for about $300. The supplies, on the other hand, cost about $600 a pop, which amount to four color cartridges and an imaging drum. My printer was humming along nicely until it wasn’t. It sort of sounded like the printer was about to throw a bearing or maybe explode on the spot. What the heck, I kept buying supplies and keeping my fingers crossed it would keep chugging along.
Wouldn’t you know it — the morning I was scheduled to leave on a trip to Austin for an About.com conference — the printer stopped working. I couldn’t even print my boarding pass. It simply refused to print. Thumbed its nose. It cycled through all the lights, moaned and tried to spit forth a document but seemed, well, constipated. I asked my husband to take it apart while I was out of town to see if he could find an object, maybe cat food bits or plant debris, the normal things that fly around my desk, stuck inside.
His prognosis to me later by email was the printer had died a quick and pain-free death. OK, says I, then please buy me a new laserjet because I knew once I returned home, I’d have to hit the streets running taking care of my Sacramento real estate clients. I wouldn’t have time to drive to Office Depot to buy a new printer, dispose of my old one, hook up the new printer and spend several hours reading instruction manuals written in broken English.
My husband is a saint. He performed as requested, and I was delighted to find my new printer already in place and ready to rock-and-roll when I got home.
But then I remembered that I had four cartridges and an imaging drum sitting in their respective unopened boxes in my closet. So, I called HP to order new supplies for my new printer and asked them to pick up and refund the cost of my old supplies. Seemed like a reasonable and logical thing to do, right?
HP: No, you cannot return your supplies. They were purchased more than 21 days ago.
ME: But, you see, it’s not my fault your printer up and died on me. I bought a new printer from you plus more supplies today.
HP: Sorry, you can’t return the old supplies. It’s our policy.
OK, never let them tell you no.
ME: I’m hearing the word no from you, and that is not the word I want to hear. I want to hear that you care enough to make your customers happy. Right now, I am not happy. I would describe myself as an unhappy customer.
HP: We’re still saying no. But you could sell them on Cragislist. Or eBay. Even if I wanted to refund your money, my computer won’t let me input the return.
(I really liked that reason. It’s the computer’s fault. Hey, never let them tell you no.)
ME: What I hear you saying is, Elizabeth, you were a dummy to buy a new HP printer. You should have gone to XEROX instead. I’m also hearing you say that I should buy supplies for my new HP printer from your competitors, companies that also charge less than HP charges; is that right? You’re telling me that you do not want me for a customer any more, right? Maybe I should talk to your supervisor.
HP: My supervisor will tell you no, too. (Well, put the supervisor on the phone.)
HP SUPERVISOR: No, we cannot refund nor take back your supplies. Look at this way, if you bought a new Mercedes that the dealer filled with gas and, say, it broke down on the road. If you took it back to the Mercedes dealer and asked for a refund on the gas, Mercedes would refuse. This is no different.
ME: That’s where your logical is flawed. Mercedes WOULD refund the cost of the gas because that’s the way Mercedes works. They also give me free car washes and anywhere in the world my car breaks down, Mercedes is there at no charge to me to tow it and fix it. Mercedes believes in customer service, which it appears, HP does not. I need to speak to a person at HP who will refund my money. Who would that be, because it’s obviously not you, and I don’t want to waste any more of your time.
After being transferred to a dozen different individuals, all of whom repeated the HP mantra of NO, I was finally connected to a case manager. I explained my situation and guess what? HP does refund the cost of supplies. If this happens to you, here is what you do:
- Locate the serial number of your old printer, you will need it
- Call technical support
- Ask to speak to a case manager. Nobody else. Just the case manager.
From now on, I am not buying printer supplies more than one day in advance from HP. And I suggest you don’t stock up on supplies from HP either.
But don’t ever be a person who accepts “no” as an answer when you feel you are being treated unfairly. Never let them tell you no.
