Today was a first since I started my brokerage in mid 2005. I did something that I actually think more brokers and managers should do on occasion. 

I informed an agent that they would no longer be with our company. I fired someone. 

I’d love to say that it was difficult or that I was conflicted about the cut, but I was not. It was absolutely the right move, the company is better for it, and I haven’t scintilla of a doubt about my decision. Frankly, I am glad I terminated the person before they did something that would harm the reputation of the company or, worse, harmed the best interests of a client.

Back in October, I wrote a post entitled How Salespeople Can Prevent Their Broker From Premature Gray Hair. I undertook that one because one of our part-time agents was, inexplicably and for reasons I’ll never understand, unresponsive about fixing a relatively benign issue. If you ignore that small minor toothache it eventually becomes an abscess. And that is what happened.

The details are unimportant. What is important is that our firm has standards, and when Ann observed that we could never sleep at night if this person pulled this stunt on a client instead of with us, I knew I had to act. So I did.  Every opportunity was extended to make things right; it was to no avail. We are now a 25-member firm instead of 26. And I am completely at peace with that.  I have dealt with brokers and managers who demurred taking decisive action when their agent did something incredibly crappy. It’s like they could never part with anyone who brought in a dollar, like you can’t find someone to replace them who is better.  I will never be that milquetoast. 

I love growing my company and my brand. But only with good solid people. I’ll never sell out. I’d never hire or retain someone just for numbers, or, worse, just for money. Anyone who doesn’t share our values can do so from afar, but never under my roof. I am glad I did what had to be done before this person could let a client down. 

Pop quiz:
In the State of New York, if I as the listing agent bring my own buyer to the closing table, does that automatically make me a dual agent?  

If you answered “yes” you’d be wrong. If a New York real estate agent sells their own listing to their own buyer they are NOT automatically a dual agent. As a matter of fact they probably shouldn’t be.

Dual agency is one of the most misunderstood and controversial topics in the real estate industry. Part of the problem is that even professionals can’t agree because the rules vary greatly across state lines. Earlier today, on a discussion board on improving industry standards and practices, a licensee from another state wrote that if a buyer who had no agent called to buy one of her listings that she would refer them to another agent. In her state, she would be doing the right thing.

I would assert that in Westchester County where I work, if a buyer were hot for one of my listings and I did anything short of scheduling a showing with the intention of producing an offer for my seller, that I would be acting contrary to what my seller client hired me to do. My seller want me to get that buyer to commit. As a matter of fact my seller client should want me to bring my own buyer. And not because of the urban myth that there will be a commission savings. 

The reason my seller should want me to sell their listing myself is, pure and simply, advocacy. The seller hired me to sell the house when they list. They are the client. I am their advocate by statute. If we get a call on a sign or Internet entry on a listing, that guy is a customer. He didn’t hire me. I am not his advocate. He just wants to see the house and doesn’t have an agent. I owe him fairness and honesty. But I don’t work for him. When a buyer deals directly with me as the listing agent, he has no advocate. 

What are the advantages to the seller? 

• There is no buyer agent. The buyer has no counterpart to me working for him. 
• There is no buyer agent. I don’t have to call that agent for an update and wait for them to call the buyer and then call me back. I just call the buyer. 
• There is no buyer agent. There is no one with MLS or broker access to the comparable market activity to educate the buyer. 
• There is no buyer agent. The buyer is negotiating the largest transaction of his life with me (and my 500 transaction background) with no professional help. 

Are you getting the picture? This is why we tell buyers they need an agent to represent them, because the listing agent may well eat their lunch! But when a guy walks in cold off the proverbial street to see one of my listings, that act alone does not hire me as his representative. He is a customer. The seller is the client. This makes exclusive buyer agents and consumer advocates cringe, but the consumer I work for is the seller client. If the buyer chooses to not be represented, he does so at his own peril. 

Sometimes I regret asking a question because I hate the answer. 

Just this morning, I saw that it was the last day to submit an entry into The One That Got Away blogging contest, and I asked myself if I could recall a good story on the theme. Unfortunately, my answer came in an email tonight. 

Background: 13 months ago, I listed a true fixer upper for a very nice seller client. It was a gut job that needed everything- heat, electrical, windows, floors, baths, kitchen, you name it. It would need either an all cash buyer or a rehabilitation mortgage. It didn’t sell  in the first listing contract, but I earned an extension from the seller. We got our buyer this past June. 

The buyer’s agent was, from the sound of things, inexperienced. The buyer’s attorney…well, she was REALLY out there. She not only went on the home inspection (never heard of that one), she attempted to renegoiate the terms of our deal after contracts were sent out. Can you say “bad faith?” The icing on the cake was that the mortgage loan officer was really unresponsive. For months we asked for updates and got nothing from the lender, all while the attorney assured us that their mortgage application was proceeding. 

We were informed that a commitment was issued in August, but it was subject to an appraisal. How could they issue a mortgage with no appraisal? Again, no answers from their loan officer. After the appraisal, we were assured that the “clear to close” was imminent. 

Then, the hammer came down. The bank revoked the commitment. The appraisal cited water seepage in the basement and disqualified the collateral. How can you disqualify the house in a rehab loan? When you apply for the wrong loan. The loan officer, who was now not only MIA but being covered for by other colleagues, put the applicant into a steamline loan and not a full bown renovation loan. They applied for the wrong mortgage. The lawyer and agent didn’t catch it, and their loan officer was out to lunch.  

Since  commitment was issued, our position was that the buyer either needed to re- apply for the correct mortgage or forfeit the deposit. They were unresponsive for weeks. 

Outcome: Tonight, my seller emailed me and asked to be released. Shooting the messenger? Absolutely. Just yesterday I was on the phone with the owner of the other brokerage discussing how to get his buyer to stop stalling and proceed. I made it clear that the deposit was in jeopardy, especially in light of the attorney’s reassurances that the mortgage process was proceeding well (pretty crazy when she didn’t know her buyer applied for the wrong loan). But my seller had enough. She wants to start anew with another broker. 

The Lesson: Deals are either green and growing or ripe and rotten. Leaving the success of the loan in the hands of a rookie agent, a moonbat lawyer and an inept loan officer was the formula for losing the deal and as it turns out, the listing. Even though this was not my buyer and not my client, I should have asserted myself and either caught the mistake or flushed out the deal earlier. Even if that resulted in the loss of the deal it would have saved time, money, and certainly my standing with my client. 

Never again will I tolerate unprofessional behavior without a fight. Never again will I let a rookie learn the ropes on the back of my client. I won’t care about feelings, diplomacy or complaints. If advocacy means making waves, surfs up. 

You might notice in the Sidebar of my blog that I have some excerpts to client reviews I have received with a link to my Zillow profile and ratings.

When Zillow announced their agent ratings system, I voiced some understandable skepticism. However, Sara Bonert, whom I like and respect, gave me some rather convincing reassurances that safeguards would be taken against system gamers and fraudulent reviews from the unscrupulous. I then published a post, to be fair, that Zillow was going about this ratings system in a responsible way. I wish it ended there. It doesn’t. 

I have to tell you that as an owner and operator of a company, this is a seasaw that I wish would stop moving.  A few days ago, I received an email that began with the following:

A review was submitted for your Zillow profile indicating that you did not respond to the Reviewer’s inquiry. Consumers who contact you through Zillow or otherwise have the opportunity to share their experience by submitting such a rating and review.

Since we realize that things outside your direct control could have contributed to this, and because we assume that you have every intention of following-up with leads, we are extending you a “Free Pass” and will not publish this review on your Zillow profile. Please note that this is a one-time courtesy and that you will not receive a “free pass” for similar reviews submitted for you in the future. We kindly ask that you follow-up with any and all leads that come your way, and that you ensure your Zillow profile is kept updated with your most current and reliable contact information.

Let’s set aside the reference to inquiries as “leads.” So, apparently, not just clients or customers can rate us. Anyone with a keyboard and Internet access can. Some guy somewhere inquired about something on Zillow, presumably to me, didn’t hear back and attempted to give me a review saying I ignored them. That would very likely to damage to a 5-star rating that I have earned through hard work and dedication to my clients in the sidebar. This is ridiculous.

First, anyone that knows me will attest to the fact that I follow up on all consumer inquiries pretty zealously. It is how I built my company and why I sell the volume that I do (an “off year” where I only rank 22nd in transactions out of 6500 in my MLS, putting me in the top 0.3% in ubercompetitive suburban New York). I don’t need Zillow’s bot wagging it’s cyber finger at me to do my job.

Well, I do my job. There are just too many variables at play for a random consumer inquiry to have the same power to review me that a past customer or clients has. As you might expect, many consumer inquires through online portals like Zillow are from people with emails with typos or phone numbers like (000) 111-2233. Not everyone that is asked for their contact information will give it. Moreover, even in the cases of well meaning consumers, responses can be sent to spam folders, overlooked,  or otherwise missed through no fault of mine. And anyone who has spent 30 minutes in the real estate business will attest to the fact that a huge number of answers to consumers go unacknowledged. If I had a dime for every email and voicemail that went to black hole hell I’d retire. It is the business. How am I supposed to know if my response got through? And if you pester people, they get annoyed and time is lost from more fruitful endeavors. 

We can argue all we want whether a brokerage like Redfin, a 3rd party aggregator like Zillow, or anyone for that matter should rightly be a conduit for agent reviews. I for one am fine with it- so long as the execution is done correctly. This is absolutely not done right, and it flies in the face of the assurances I was given. I was given a mulligan this time, but what about next time? Any creep can tank my hard earned ratings? Seriously? 

Zillow needs to do the right thing and give the power to rate agents only to those people who have actually worked with the agent, not to any random guy who sent an email once. There is too much room for the abuse that I was assured would not occur. 

The town of Cortlandt has many moving parts: The villages of Croton on Hudson and Buchanan, the Hamlet of Verplanck, Cortlandt Manor, and right in the middle, the separate municipality of the city of Peekskill. Croton and Peekskill have their own school districts, so the vast majority of Cortlandt is served by the Hendrick Hudson and Lakeland school districts. This is the November 2011 market report for single family homes in Cortlandt covering Hendrick Hudson and Lakeland separately. 

Hendrick Hudson Schools

November 2011- 6 homes closed at a median price of $427,500
November 2010- 2 homes closed at a median price of $610,000

11 homes under contract at a median asking price of $369,900
64 homes active at a median asking price of $407,000

Lakeland Schools-Cortlandt

November 2011- 6 homes closed at a median price of $302,500
November 2010- 6 homes closed at a median price of $295,000

18 homes under contract at a median asking price of $259,000
72 homes active at a median asking price of $334,9000

In both districts buyers have enormous options and plenty of available choices at asking prices that are below the median asking price of the sold inventory last month. The Hendrick Hudson school district, centered in Buchanan and in the southern part of the town has seen volume rise because more people are acting on the lower priced inventory. In the Lakeland school district on the north side of town, more people are also taking advantage of the lower priced homes. 

With 11 homes under contract in Hendrick Hudson (“Hen Hud” to the locals) and 18 pending sale in Lakeland, it is clear that the market will be active going into the winter. 

What can you get for around $300,000 in Cortlandt? We have a 2100 square foot contemporary on almost an acre with 4 bedrooms and 2 baths priced at $299,900. That was unthinkably low a few short years ago. 

If you’d like to find a nice home for yourself in Cortlandt or the surrounding areas, register for a free Listingbook account and search the MLS like an agent. 

All information is taken from the Empire  Access Multiple Listing Service. 

I knew Irene and met her a number of times at Blog and social media events. She was very warm friendly, and would have given you the shirt off her back. She also LOVED to kid around. There were some videos she used to do where she’d do a “commission check dance,” really her tongue in cheek version of the person at the party that doesn’t know they can’t dance! 

We corresponded a little, and were friends on Facebook. I noticed her going “quiet” about a month ago- I reached out to her on Facebook, and then saw in her last blog post that she had been diagnosed with cancer. It has only been a few months. 

Her battle must have been private, and her blog has been taken down at the request of her family. I’ll miss Irene an awful lot. She always made me smile, and you know this was a person that made the world a better place. 

My thoughts and prayers are with her family at this time. 

I don’t get  to out of town conferences much.  I eat up local stuff, like the New York City REBar camp, two Raincamps and those sorts of things, yes, but I have yet to go to NAR or other more far away events because it is hard to get away. One pilgrimage I am making for the third time, however, is Triple Play in Atlantic City, a joint convention of the New York, New Jersey and Connecticut Realtor Associations. The simple reason is that it is a chance to shift from working “in” my business to working “on” my business. 

In 2009 I came down for a day to check it out. I hardly recall the sessions I attended, but I did run into the triumvirate of Scott Forcino, Stephen Fells, and the late great Joe Ferrara, all of whom I knew from a few sessions at the Lucky Strikers Social Media Club. I was relatively new to real estate blogging, and Joe, whom I considered a celebrity, was complimentary of my writing. WOW!! I ended up staying the duration and spending quite a chunk of time with those three, and I took a renewed commitment to my writing from the event. Sometimes, the best part of a professional convention is the conversation you have in the hallway or over a beer. That was where the red meat was for me that year. 

Last year I returned, this time to soak up as much as I could from the sessions. I got to experience Nicole Nicolay, Darryl Davis, Bill Lublin, and Amy Chorew among others, all of whom were simply awesome. I broke bread with Patrick Healy, Joe Sheehan, and Dawn Bricker, all of whom I consider friends. The Keynote speaker, Stuart Varney, was absolutely electrifying. It was another excellent experience where I took tools back to my business and applied them.

I am proud of the results since that week. While so many firms are closing or merging with larger enterprises, our firm has grown to 26 licensees. Barring a catastrophic collapse of pending transactions, I will personally, for the 5th year in a row, close over 40 deals and qualify for my association’s highest sales award. In a depressed industry where progress seems borne of trench warfare, these are good things to note. 

The point is not that one conference provides an epiphany that works magic. It is that learning and a commitment to understanding new things and skills is crucial to survival, growth and staying ahead of the curve. That is one of the reasons why I am so against the New York State exemption from continuing education for brokers no matter how many years they have been active, and why I drove 3 hours in the fog last night to get here. 

Learn, apply, adopt and adapt. Rinse, repeat. I am eager to discover what I can take back home and use to help grow my company and make more clients happier. 

Hi all, for those of you who are in New York, Pennsylvania and New Jersey, and are planning on going to Triple Play, I’d love to catch up in person. I blogged about it earlier, and I know it is pandemonium when you get there, but let’s carve out some time in the rain. 

NY, NJ and PA Rainers: How About a Triple Play Meetup? 

Raincamp earlier this year had a great after party at Toga Bar at Caesar’s. If we meet at 6pm we’ll avoid the craziness that starts when music and dancing commence at 10pm and actually hear each other talk. My cell phone is (914) 450-8883 . Anne Costello is also on board, so reach out to either of us. I’ve created a Facebook event for the meetup also. 

http://www.facebook.com/events/284487508254836/

Text or email me anytime. 

Prices are down, but volume is up according to the data for single family homes in the Ossining school district for November 1-30 2011. All information is taken from the Empire Access Multiple Listing Service. 

This past November, 11 homes closed at a median sale price of $332,000. 
In November of 2010, 8 homes closed at a median sale price of $367,500. 

It is consistent that lower prices would yield a higher volume of closings. With the winter and end of the year coming, more sellers might be willing to discount their price for expediency. I counted several homes that sold considerably below asking price by percentage, with 7 selling below 90% of asking. Buyers did very well last month. 

30 homes are currently under contract or pending sale, down from 37 last month.This is normal, as activity tends to slow down around the Holidays. My experience is that while activity is lower this time of year, those that are in the market tend to be more serious.  

The median price of those 30 homes is $379,200. Last month, the median price of pending homes was $449,000, so the more expensive homes had an easier time closing. This is also not unexpected- lower cost homes, typically bought by first-time home buyers often hit more roadblocks than higher cost homes where financing is typically less of an issue, and even cash terms are seen with some frequency. As a matter of fact, 2 of the 11 closed sales were cash, including one for $1.975 million. 

119 homes are available for sale, which is only down 2 units from last month. People must be taking my advice and not hibernating for the holidays! 

One thing that remains a constant is that buyers remain in the superior position as winter approaches. The good weather is also a factor, coupled with strong inventory, so we may see spring arrive early in Ossining real estate in 2012. 

Prior posts on Ossining.

Find a home in Ossining with the Listingbook Home Search!

Anyone who is in sales and management learns over the years how to manage the styles of personalities we encounter. I have dealt with all types and consider myself fairly adept at interacting with people smoothly. The one that still gives me trouble, however, and probably you too, is the Jekyll and Hyde type- they start out pleasant, then suddenly become aggressive without warning or cause. I encountered just such a person today. 15 minutes of pleasantries, then 5 awkward minutes of moonbeam, loony tunes arguing and inexplicable confrontation. Mercifully, this is rare, and this one had a flare for the dramatic exit, which was also quite welcome.

There is seldom if ever a chance of winning kooks over to my way of thinking-nor would I wish to try- but the one thing I can happily do is address some of their looney arguments in my blog. Today’s jerk decided that since he owned more than one house, he was the expert in the room. Because, you know, he has bought and sold a few houses.

I have owned 11 cars. I would never pretend to be a mechanic. 

Real estate is a very expensive place to make a mistake. I have seen misfortune in real estate end marriages, cause financial ruin, and even cost people their health. Weekend hobbyists and DIY enthusiasts are better suited to ant farms or decoupage. 

In the state of New York, all that is required to be a licensed real estate salesperson is a 75 hour licensure course. That doesn’t make you an expert. It makes you a rookie. If you spend 15 years in the industry, sell almost 500 homes, found your own brokerage firm and throw in 5 years of mortgage origination, you might be getting warm. But even someone with that experience knows that in the shifting sands of this industry there is always more to learn. 

It is therefore patently ridiculous for a consumer who has bought or sold 5 or even 10 homes to assume that they know better than a broker how banks, for example, should dispense with their defaulted assets. Short sales, as an illustration, are often counter intuitive. Cash offers are not an advantage and can actually flag the transaction as a possible investor buying below market value. Now, explaining this to a guy that can’t get his kids to not touch a piano or piece of furniture is a lost cause. I feel better just typing it, though. 

My older brother jokes that he knows a lot about Rugby and a little about Wall Street. I know a lot about the New York Yankees and a thing or two about real estate. But I would never tell my mechanic how to fix my brakes, nor my doctor what ails me, or even my landscaper how to operate his equipment. Smart people play their position and defer to the professionals. That is why George Washington appointed his cabinet, and that is why wise consumers listen, learn and never assume they know more than the professional.