SACRAMENTO AT ITS FINEST!

This is an aerial view of my native city of Sacramento. In front of the city is the confluence of the American and Sacramento Rivers.  The background is the Sierra Nevada Mountain Range.  We have more trees per capita than any other city in the world.  You have to admit, it is beautiful!

WHY YOU LOST MY BUSINESS...

I don't ask for much from a business that I patronize. Treat me fairly and professionally. So, here's how you lost my business:

• You changed your business hours to something most working people would find hard to accommodate.
• When I showed up during your business hours, you had a sign on the door saying you would be back in 15 minutes.
• You weren't.
• When you did show up, you helped me find the product I was looking for, but then told me you were out of it.

There is an expectancy from the public to the service industry to show consistency and quality.

• Consider that the restaurants you patronize week in and week out are the ones that have consistently good food and service.
• The barber or hair stylist that you are loyal to always give you the result you wanted.
• The employer that you feel loyal to is the one that is consistently fair and appreciative of your work.
• The grocery store that you favor is the one that always has what you are looking for at a price you are expecting.
• The Realtor you use consistently gives you their full attention and represents you well.

Customers only want the service that they have a right to expect. Don't give them a reason to find someone else who will pay attention.

SELLER NEEDS TO UNDERSTAND FLAT FEE, DISCOUNT BROKERAGE PROGRAMS

There are a myriad of service levels a seller can opt into when selling their home, with a payment system to match. There are flat fee commission based services, percentage based commissions, discount/limited service commissions and full service commissions that can vary in percentages, depending on the negotiations that take place between a seller and agent.


Realtors must be very careful in their role in the process, being sure that they perform their fiduciary responsibilities as promised in the Agency Disclosure. Sometimes the line between representing their buyer and a seller who chooses a limited service brokerage can get very blurry.


As an example, we have a buyer who chose to purchase a home which was listed by a limited service, discount brokerage. Our agent brought the sellers their offer (as instructed in the MLS). The sellers didn't know what they were suppose to do if they wanted to counter and were very open about their confusion. Our agents gave them a counter offer form, explaining that she could not advise them on how to complete it without violating agency. They got through that hurdle and the offer and counter were accepted. Required disclosures were another huge hurdle....the sellers didn't have any. Reluctantly, our agent provided the sellers with blank disclosures to complete.


Sellers who do not understand what is required of them present buyers agency with a dilemma. While the agent wants their buyer to get the house, they do not want nor should they do the work of a listing agent or seller. It presents huge liability issues since the agency representation becomes very gray.


Sellers who choose a discount and limited service brokerage need to have an understanding of the responsibilities they take on when doing so. They should not rely on a buyers agent to walk them through the process by default.

TOO MUCH TALK CAN COST THOUSANDS!

I had an interesting experience today...I attended a media training class in preparation for becoming the Sacramento Association of Realtors 2014 President. My story isn't about me, but about what I learned.

The main thrust of the class was tell enough, but not too much. Be articulate without sounding rehearsed. Know your facts and tell your story...not necessarily the reporters story.


...and now comes my story.


I showed my clients 7 houses on Saturday. We whittled it down to 2. When I called on their first choice, I learned that the agent was literally on her way to present another good offer. My clients were set to write a competitive offer and then, upon reflection, decided that their second choice really was a better house for them.


I called the agent to find out if there were any offers on the table. Yes...there were 2 offers that had been countered but did not require a response until the following Monday. My clients decided to attend the Sunday open the agent was holding to confirm what they liked about the house.


Now..here is what we learned in our conversations:


When I called the first time, the listing agent asked if we would be offering over $500,000 and I said yes. In that case, he said, go ahead and write the offer. The house was listed for $535,000. Now I knew that instead of writing the higher offer I thought we would have to write to be competitive with two other offers, I could write a lower offer.


When my clients attended the open house the following day, he shared his concerns of having a contingent offer from one of the other agents. Now I knew why he did not like at least one of the offers.


Of course, we wrote a lower offer than we had originally planned. I called to let him know it was coming and he asked if I would tell him what our offer was. I gladly told him and his response was, with 2 minor changes, consider the offer accepted. Now I know that he speaks for his clients without consulting them, so future negotiations will be approached with this in mind.


This agent just cost his clients at least $10,000...just by talking too much. I feel badly for his sellers, but am thrilled for my buyers.


How does this tie into my class? It's okay to have a conversation, but remember who you are representing and what information you may be sharing that can be used.