Industry News June 19, 2013

Embracing the Changing Westchester Real Estate Market

This past Monday I was honored to moderate a panel of local industry leaders at the Women’s Council of Realtors breakfast entitled “Embracing the Change.” The panelists were Jason Wilson, manager at Julia B Fee Sotheby’s, Chris Meyer, president of Houlihan Lawrence,  Leah Caro, broker at Bronxville Ley Real Estate, Gary Leogrande, past HGMLS president and principal at Keller Williams, the tremendous Laura Scott of Douglas Elliman, Marcene Hedayati, broker owner of William Raveis Legends Realty, Joseph Rand of Better Homes and Gardens Rand Realty, and Wayne LoFranco, manager at Coldwell Banker. 

Now that’s a panel folks. And they did not disappoint. The subject matter covered the changing market we are experiencing  how technology has affected our industry, market and consumer trends and how we can collectively raise the bar in the industry. The audience of 173 people were treated to some thought provoking, insightful messages from the panel, and it was an experience to behold. 

I could actually write a book about the wide subject matter, but two things impacted me the most. Chris Meyer made a great point about how to best train the new agent. All too often, we as brokers and managers key in on generating clientele for new associates and not enough to have them understand their business, their market, and the process they must guide their clients through. I couldn’t agree more. What good is “lead generation” if you can’t help the clients you attract? And without knowing how to best help them, how are we best serving them? 

Joe Rand also made a good point about consumer responsibility that I myself have written about recently as well. He asked the ladies in the audience if they would ever use the “up” person at the hair salon instead of their preferred stylist. Of course, no one would take that chance. Why then, he asked, do consumers trust the largest transaction of their life to the “up” person in the real estate office without serious research into how to get the best representation? 

It was over an hour of real brain food. I was honored to preside, and hope the dialog will continue from this event.  

I also hope that the next time they ask me to moderate something that they get a smaller podium. 

That's me on the right, barely peeking over the podium.

That’s me on the right, barely peeking over the podium.
Photo courtesy of Carol Dorado

Active RainUncategorized June 16, 2013

Father’s Day 2013: The Notebook

Dad and me, around 1969.

Dad and me, around 1969.

While I am known as a guy who is never seen without a gizmo in my hand, I actually think better sketching my thoughts on a yellow legal pad. Typically, when meeting with people they’ll see my iPad, smart phone, and computer closely followed by that very old school pad and pen, and only then can I work as well as I know I can. Not long ago, I was caught almost naked in my very own office without my legal pad in my bag, and as my mouth went dry with worry, I started going through my desk and filing cabinet looking for something to write on. I found it in the bottom of the small filing cabinet behind my desk: an 89 cent notebook purchased at Big Al’s. It looked a few years old, but that didn’t matter. I needed to find some blank pages to use. 

As soon as I opened it, I knew this was a rare find. You know that phrase “this isn’t your father’s ____?” Well, this was my father’s notebook. 

From 1988. 
When he studied for his own real estate license at the age of 67. 
His notes (in pencil).
His doodles. 
All in that filing cabinet drawer for 25 years, never found before. It had been in my office for 5 years, and at my house for 20 prior to that, and no one had ever cleaned out that bottom drawer. 

I do recall that in the winter of 1988, when I was a junior in college and my father had been retired for 5 years, he went for his real estate license. He never did anything with it, but he also hated sitting still. That was something about my dad. He had long since earned his privilege to veg out, but he wanted no part of that. He worked his way through Fordham in the Great Depression. He served in the South Pacific in World War II and then earned a Bronze Star in Korea. He raised 4 sons with my mother, all of whom graduated college although I was still a year away from my BA. He had an MBA from NYU (GI Bill) and was an accountant for over 30 years before being forced to take early retirement at age 62. He still had gas in the tank and wanted to do more. 

None of that was on my radar at the time in 1988. I was off at Villanova doing what college kids do, and it never occurred to me what it would mean decades later to find a piece of my father’s efforts. Youth is indeed wasted on the young. 

And here I was at age 45, still a year younger than my father was when I was born, finding this notebook and looking at his notes. He was doodler, and I could tell when he was bored based on how he wrote things and what he drew in the margins. I could see what he underlined and emphasized as important for future reference. And in between the lines, I could still smell the aftershave of a 67 year old man who wanted no part of being put out to pasture. He pressed the pencil hard. 

Dad never sold a house. It wasn’t for him, but like many he got his license just in case it was. Two short years later, my healthy father who never looked his age was diagnosed with a liver ailment (ironic; he never drank), and after almost three years of fighting like hell, he died a few months short of his 73rd birthday. 

There are times in life when I wish I could still talk to my dad. I wish I could ask his advice. I wish I could share his grandchildren with him. And I’d love to show him that all the things he worried about me didn’t stop me from growing up and making something of myself. I can’t do those things, and as I get older and memories fade he slips further away. Things like this bring him back. I’m not too sensible to believe that these things are like a wink from the other side, to let me know he still watches, still cares, and will never stop being my dad. 

Of all the things I could have found of his, something real estate related. Yes, I think that was my dad winking at me. 

Happy Father’s Day. 

Notebook

CommentaryFor Agents June 10, 2013

My Cell Phone is (914) 450-8883

My mobile phonesThis is one of those posts that I write for strictly therapeutic purposes, so please indulge me. Unlike some agents who keep their cell phones a state secret, mine is not. As a matter of fact, when I hear a licensee talk about how they “value their privacy” and prefer that their mobile number not be public, I have to wonder why they are in the business. If you want a career with privacy, try calligraphy. In real estate, fortune does not favor those in hiding. We have to be reachable in real time.

I’ll take it a step further: when I tell someone that I am out and about all day and that the best way to reach me by far is my mobile number, it feels almost  passive aggressive when they leave a message at my office, especially if it is accompanied by frustration that they can’t reach me. Baloney! Text me. Lower your eye an eighth of a millimeter on my card and there’s my cell number.  Use it. You might get voicemail, true (I have been known to use the bathroom or attend the odd meeting), but I do return calls and texts.

Real estate is not a private career pursuit, nor it is one that is conducive to bankers hours. I’ll be the first to admit that many in our life take it too far and sacrifice too much of ourselves at the expense of family time, rest, and perhaps even sanity at times. That is curable. State secrets aren’t. Being reachable, communicative, and accessible are part of our value propositions to our clientele and public (you didn’t think it was access to listing data, did you?), and if it is more important to you to have time to yourself instead of answering my call to let you know that the key is no longer in your lockbox, you are pretty much obstructing me, my client, and your client from getting things done.

I have stood in the rain or snow with a client staring at a combination lock box when we were told to expect an electronic device. I have witnessed burst pipes, exploding toilets, freshly vandalized property, squatters, home inspections on a home we were told had no offers, and dozens of other scenarios where speaking with the listing agent was not just desired, it was urgent. This business requires agility and access. It would be nice if we could unplug more often, but that’s the job. Weekends are prime time, evenings are when clients are free, and we’ll never be Ward Cleaver.  Moreover, Westchester and suburban NYC clientele can be demanding, and rightly so. They deserve fast answers in 2013. If I am trying to reach you, I am trying to help you earn money.

I will readily admit to being more hardcore than most, with a man purse containing two cell phones, a portable charger, spare batteries, an iPad mini and enough wires to jump start a Prius.

Unfortunately, as the market gains health and more properties will sell as a matter of course, more agents will start being secret agents because that’s what they are being told by their life coaches or business gurus. “Start running your business like a business” is one of those abused anthems we hear, justifying non real estate paradigms on a business that has some pretty immutable (ironic term huh?) principles of its own.

I run a company. I have 40+ listings of my own, 30 agents with the firm and growing, and more than my own share of pipe dreams about a day with no calls where it doesn’t cost me. I still have my mobile number out there so I can serve my clients and cooperate with my colleagues.  If I can do it, you can do it. I just hope this doesn’t fall on too many deaf ears.

 

 

Commentary June 8, 2013

On Do It Yourself Real Estate. FSBO, No Buyer Agent- Smart?

I have started to “vlog” or video blog, and this is something I recorded to day about an article in the Journal News on people trying to save money in real estate transactions by not using a broker. My comment on the article was as follows:

You can save quite a bit of money by performing your own vasectomy too. If you goof what is often the largest transaction of your life as the sale of real estate is for most people, there are no do-overs, and the cost of the mistake can be catastrophic.

99% of of the real estate problems I have seen in my practice come in the aftermath of the consumer either using no agent or a poorly qualified one. I have always been surprised at how consumers will research almost anything BUT getting the right agent: Schools, commute, local amenities, crime, demographics, WALK score, you name it, and then use their ne’er do well uncle or the first slob they meet at an open house to represent them in the transaction.

Choose your agent wisely, and you’ll end up ahead.

Uncategorized May 22, 2013

Small World Sometimes. Very, Very Small.

Birch Court in Ossining, the former grounds of Briar Crest Nursing Home.

Birch Court in Ossining, the former grounds of Briar Crest Nursing Home.

I am one of those brokers who vocally opposes the practice of using appraisers who do not possess local knowledge of the area they work.  I have seen too many sales scuttled by robotic, ill-informed appraisals which lack the context that local, more accurate information brings. Out of area appraisers often are less engaged, and are there by economic necessity than local expertise. It is a problem.

So you can imagine my consternation this afternoon when I met an appraiser at one of my listings when he told me that he came from 90 minutes away in Kingston, New York. That is closer to Albany than it is to Ossining.

It was too late for sour grapes, however, so I instead engaged him on the property and what it had under the hood. I had to focus on that, because otherwise I met get emotional. Not because I need the sale. The subdivision was built in 2007 and stood on the former grounds of Briar Crest Nursing home.  I worked there the summer of  1986 after freshman year of college, and  my father died in hospice care at Briar Crest on July 8, 1993. I can’t drive by the street and not think of him.

But I  had no time to get into any of that before Peter, the appraiser, told me “there was a nursing home here, you know.” I knew, I said.  And I then learned that Peter’s father was at the very same nursing home before passing away himself in 1991. The conversation of course, took a different direction at that point, and we shook hands in solidarity at losing those who mattered most to us literally yards away from where we now stood.  Peter had never appraised a home in this development, but he always watched it. He knew it inside and out because of the obvious significance of where it was and what it meant.

Suffice to say, I have zero doubts about this appraiser’s knowledge of the locale. And I seriously doubt he’ll be robotic on this one. Sometimes these deals occur close to the heart, and you never know when the world will suddenly shrink to the seize of a few village lots.

Dad and me, around 1969.

Dad and me, around 1969.

Selling May 21, 2013

Does Using Lock Boxes “Lower the Bar?”

One of the Facebook discussion groups on real estate I frequent is the aptly titled “Raise the Bar” forum where we discuss best practices and making the industry better. Because real estate is local and customs and laws vary by region, opinions often vary. Many themes resurface from time to time, among them the the question of whether a listing agent being present for showings helps or hurts their clients’ chances for sale. 

Rob Hahn, a very respected voice in our industry, asked the question of lock boxes specifically; if their eradication would not be a good thing. Rob made the case that, as a seller, having his advocate there for showings would be a help. The listing agent, after all, knows the house best, can tell the home’s story, and feature it’s many features and benefits. The buyer agent may have never seen the property before and would therefor be at a disadvantage. 

The counter to the argument was twofold: having the listing agent present for all showings would be inefficient, and that buyers prefer to not have the seller or their agent present for what should be a private tour of the property.

My opinion, as I have stated before, is that it is better for the buyer agent to have privacy with their client free from the background noise (or more intrusive, in some cases) of the listing agent. 

Here is one of the several comments I made: 

The logical outcome of eliminating lockboxes would be one of two things: Forcing agents to pick up keys elsewhere, or forcing listing agents to accompany all showings. In both cases, it would be a logistical nightmare, with the latter having showing agents answer lots of questions with “I don’t know but will find out”. 

There might be some anecdotal instances of the listing agent “selling” the place, but in general people don’t buy if it doesn’t feel like home, and nothing an agent says will create that feeling. Ask anyone why they bought their home, and the least-heard reason will start out with “the agent said…”
Buying a home is a personal experience. Intensely so. I have often drawn the comparison of being in a clothier’s dressing room. It is you and the mirror. People want to be alone with their thoughts and their peeps, not have an outside voice telling them things that may or may not even be important.

Sales is identifying a need and filling it. Knowing the house is half the equation. Knowing the buyer is more crucial. Just because a listing agent knows the house doesn’t mean they can strike the necessary (and often intrusive) connection to the buyer to adapt the home to the buyer. The buyer agent knows the client better and what their needs are. They should be the ones conducting the showing, and if there is a story or unseen benefit of the home, it should be neatly typed on a piece of paper for them to use at the showing, alone with their clients.

There are no lock boxes used in Manhattan, just a half hour south of me, so I am keenly aware of how hyper-local the practices and protocols can be. And I fully recognize that in the cases of multi million dollar properties in Westchester, the listing agent will often  accompany -although that doesn’t always work out too well.

I believe that lock boxes, especially the Sentrilock system we use which is all digital and far more secure than old-style combination lock boxes, work best for my clientele. For those that feel otherwise, they are free to conduct their practice as they best see fit. It is not a one size fits all industry. 

Industry News May 8, 2013

On the Ending of Corporate Titles for Agents and Brokers

Late last month, the New York Department of State issued an interesting opinion that effectively ended the practice of brokerages giving corporate titles such as “Executive Vice President” and “Managing Director” to their licensees. It was a practice mainly done in Manhattan (and we did name a VP once in full disclosure), and became so prevalent that it almost lost its meaning; you’d walk into an office of 100 agents, and 50 would be vice presidents. From the letter:

If an agent advertises falsely that he or she holds a corporate title, it would be considered “dishonest” and
“misleading” because doing so would lead the public to believe that the brokerage entity has appointed
or elected the agent as an officer or to a comparable management position.

I can see how a consumer might be mislead by thinking that if they were working with a Vice President that they were working with an actual executive of the firm on a salary when in fact they were just a licensed salesperson with a 1099 independent contractor agreement.

Kind of.

I think most people know that a lady blowing up a balloon for an open house and or a guy crouching down to show a sink’s drain trap is not an actual member of the company’s managing board or possessed voting stock. It just became over done- it seemed like every 3rd licensee I ever dealt with in Manhattan was some sort of  Vice President.

In my experience in sales in two industries, “Vice President” has always been more of a rank of management. And I have walked into many bank branches and dealt with a head teller on a paltry salary with “Vice President” on their card. I never believed for a second that guy in the bank sat on the actual board of the bank. If they didn’t, what were they doing counting my jar of quarters for?   But my opinion doesn’t matter. We have to abide by what the DOS (Department of State) thinks, and the titles are all gone.

So what now? Does an industry that specializes in marketing and self promotion just embrace boring? Or will we see more creativity in titles, just of a non-corporate nature?  I don’t doubt for a second that creative titles will embellish Licensed Salesperson and Associate Broker on business cards very soon. Ironically, as founder and owner of my firm I never used the title “President,” although I could. I could start to, just to press my new advantage, but I know my colleagues will get competitive in the title department somehow in the very near future.

A few suggestions:

  • Overlord
  • Potentate
  • Viceroy
  • Despot
  • Czar (or Tsar)
  • Nabob
  • Kaiser
  • Jedi

I even created a proposed card with a another idea or two. Think I should order 500?
New Title

BuyingMarketUncategorized May 5, 2013

Buyers: I’m Not Lying About Other Offers on my Listing

OK

 Three times in the past two weeks, we have had listings go in bidding wars. Three times in the past two weeks, we have had buyer agents tell me that their buyer client did not believe me that they had competing bids. In each case,  those buyers all lost the house. In my own company, we have also had buyer express doubt that there were other offers on a home they wanted to make an offer on, and in those cases too, they didn’t get the home. 

Bidding War: Briarcliff Manor
Bidding War: Yorktown Heights
Bidding War: Ossining
Multiple offers: Yonkers, Garrison, Carmel, Hopewell Junction, and probably a few others. 

The assumption that a listing agent is lying or fibbing is rooted in the old stereotype that real estate agents are deceitful and will say or do anything to make a sale. The joke about being like used car salespeople often has the punchline of “hey, don’t insult used car salespeople.” The problem with that is that it is untrue. For every deceitful real estate agent you can show me, I’ll point you in the direction of 99 decent, honest and upstanding licensees. Liars don’t last, especially in the market we have seen the past 5 years. 

Just think about it pragmatically. An agent lies that there are other offers. You call his bluff and don’t proceed. If he or she is lying, the home remains active and available. Who wants that kind of egg on their face? And what about the liability that might result? No thanks. Instead, what is happening lately is that the home goes to contract quickly, and the cynical buyer is back out there trying to find a home because they didn’t believe  what they were told. 

From my own point of view, lying would be suicide, if only for practical reasons. I have over 30 agents, the firm has over 60 listings, more than 20 transactions in process, and  the permutations of interactions, messages and conversations with other agents, lenders, lawyers, appraisers and the like would mean that my frazzled, overworked and sleep deprived self would have to remember two versions of every conversation in order to protect a fib. I’m 45. I have a wife and 4 kids at home. Life is easier when you have one version of anything to recall. Inadvertently being caught in a lie would be a huge danger with all those moving parts. I don’t even know how I’d keep it all straight. 

It is all out there in the media. The bust is gone. Loss of value is gone. Prices have stabilized and risen in some cases. If a listing agent claims to have other offers and you don’t believe them, I suppose you could verify with something in writing from their client or broker, but I would err on the side of trust. Things move quickly in a busy spring market, and the balance of leverage has shifted in many cases to the advantage of the sellers. 

Industry News April 28, 2013

Marketing Wars in the Twitterverse

Inman News, the nominal online trade publication for the real estate industry, ran a contest last week for innovative marketing ideas on Twitter under the hashtag #MadRESkillz. It sounded like a bit of fun, and at the encouragement of Inman reporter Teke Wiggin, I offered a few of my own suggestions; I wrote about using a QR code to have consumers see a video of a listing on their cell phone right in their car without having to call or text anyone, and several others. 

One idea, the concept of pricing property with a crooked number at the end instead of -900 and -000 was selected as a finalist. 

MadRESkillz

The other finalist was a brokerage in New York City that stated that 36 of their agents had the firm’s logo tattooed on their body. 

The body art won. 

This week, I was encouraged to participate again, and I did, but was not selected as a finalist. The selections were a flirty yard sign and a photo of a presumably dead bare foot sticking out of a doorway. The screenshot is below. 

Inman Twitter contest

Inman ran a story about the contest a few days ago and none other than Ann Faranda was quoted, saying 

“Tattoos are nice and fun on their own but within the real estate industry I’m not sure that send the right message or image out to potential clients — kinda like seeing your attorney with a tattoo of his/her firm on their arm,” wrote Ann Lee Faranda, co-owner of J. Philip Real Estate.

But Faranda is not exactly an unbiased source. Her husband Phil Faranda, the other co-owner of J. Philip Real Estate, was Rapid Realty’s opponent for this week’s #madREskillz. He submitted the marketing idea opricing listings according to their area codes.

I seriously doubt that if I were a consumer that I would care about my agent having a tattoo of their brokerage on their body, and I’m pretty sure that I wouldn’t want a photo on my listing suggesting that someone is sleeping in the buff or demised in my bedroom. But I do appreciate that some brokers have some creative ideas for making their listings stand out, and it is clearer still that things have improved in the market enough for some of us to have some fun again. It has been a rough 5 years, and morale is up. And if the licensees are happy, I am sure their clientele is doing better as well.  

 

Company News April 20, 2013

The Broker’s Wife

The Broker's WifeAmong the pitfalls of running a business with your spouse is the perception that the less gabby prominent or public half of the team is any less important or vital to the success of the organization. I am sure that this is the case in some businesses where the missus or hubby help on weekends and stuff some envelopes or file widget invoices. It is not the case in mine our firm. The Broker’s Wife in our company  is one of the key reasons for our success, and her business chops are stellar.

The Broker’s Wife in our little enterprise has an undergraduate degree from Columbia University. She has an MBA. She has worked for huge multinational corporations. She has collaborated on the non profit side with Nobel Prize winning projects.

The first time The Broker’s Wife hosted an open house, she sold it to the eventual buyer. When she suspected that the buyer was trying to work around their buyer agent, she virtually did forensics to confirm her suspicion. Then, instead of trying to earn both ends of the commission on the back of an unfortunate colleague at another firm, she made sure that the other agent got their well-earned credit and broker fee. Our reputation, she stated, is more important than any monetary gain.

The Broker’s Wife seethed when snooty receptionists at other firms (it is ironic to be snooty when you are working banquet waiter hours on a weekend morning, by the way) acted dismissive, disrespectful, territorial or hostile when they hadn’t heard of her husband’s firm or treated us like interlopers. She seethed, but held her tongue (mostly) and worked on making sure they knew us the next time we crossed paths.

While she still has the odd male flirt with her in grocery lines, this isn’t the Broker’s Wife’s first trip to the rodeo. As a teen, she stood between an armed robber and a shopkeeper in New York City, winning a war of nerves until the coward gave up and left. Her organizational skills notwithstanding, her backbone is awe-inspiring.

The Broker’s Wife does the books and taxes for tens of millions of dollars in transactions brokered. She is the administrative genius that sees to it that the maelstrom of 60+ listings, 30+ agents, dozens of pending transactions, and thousands of details are attended to in an efficient, businesslike and professional manner. Her ability to do the details allows me, the broker, to focus on the big picture. She does see the big picture too. She made sure that the first dishonest agent we ever had was promptly terminated, stating clearly that this time they cheated us, but what if they cheated a client?

The Broker’s Wife is the Chief Operating Officer of the company. She is the reason the company has grown, she is the secret weapon, and nothing that the broker gets all the credit for could be done without her extraordinary abilities. We won’t get into the 18 hours days, the 5 languages she speaks, her piano playing, the four children, including one with autism she cares for like a champion, and the exponential factor of foibles that she puts up with in her husband and business partner. That’s not the focus here.

This Broker’s Wife, Ann Faranda, is an executive.