I Worked Last Week

So last week, I did my hair, slapped on some mascara and threw caution to the wind and--dare I say it--put on lip gloss. Then, I went out and showed homes to a client. 

We had to wear masks (sorry lip gloss) while viewing. One seller had a camera in their home and watched to make sure we donned hand sanitizer and booties--though I can't tell you how viruses are spread by shoes. I know this because the selling agent called me and told me her clients were pleased we followed protocol. 

In addition to that, we viewed new builds. Of course, one just doesn't simply walk into a new build. One calls, makes an appointment, gives the medical history of every member of the buying party (including children and the agent--though we aren't given the medical history of those working in the new build showroom). We are told we have one hour for my buyers to make a more than half-a-million dollar buying decision before our germs contaminate the model homes (through our masks and hand sanitizer) and must leave. 

I was spent before I arrived. 

New builds right now are a bit tricky. First, there are "lot premiums" on most every new home being built. A lot premium is extra money the builder can charge that is not included in the sales price. It has to be paid in cash. It is non-negotiable and it is slapped on over and above the price of the home because people are willing to pay it. 

Second, there are waiting lists for homes. So, my clients would have had to prequalify with the builder's lender and only then they could be put on a waiting list to decide which of the three plots of land they might want to buy (with the $10,000 lot premium). Most likely if my clients went this direction today it would be January or February before it was their turn to select a property. It is utterly maddening. 

As it turns out, my fabulous clients have decided that maybe they will sit out the latest market frenzy. They apologized for "wasting" my time. But they weren't wasting my time. They are lovely, gracious people and, as always, I enjoyed every minute with them. Plus, I got to put on lip gloss.

Learning to Teach

I should preface with Beth loves teaching zoom classes. She doesn't have to leave her house. She doesn't have to drive anywhere. I hate teaching zoom classes. I can't read the students' faces to know if I've gotten through to them. I don't like not being able to have an interactive discourse. The students check out and play on Facebook if they aren't interested or don't understand. 

Last time I taught a class online, I got crap reviews, partially because the students didn't find me relatable (my words--their thoughts). The class was a cluster, but that was for a lot of reasons, and me not being relatable was a byproduct of the entire day. However, I could have done a few things better to not have that situation. But it would have been easier had I been able to be with them in person. But I digress... 

 So Beth was the chair of some committee commissioned by the Dept. of Real Estate to make online "zoom" classes a permanent thing. When she got the appointment she went ape. This was a dream come true. And she and her committee made the most of it. 

Today I sat through a, "how to teach adults via zoom," class that basically blew. First, we are required to find 5 ways in a three hour time frame to interactively engage students. This ranges from breakout rooms to polls. Now tell me, when teaching BRAND NEW agents the 10 page residential purchase contract, why would I put them in a place all by themselves to discuss what they don't know? And what would a poll do? Decide via vote what the best way to handle the earnest money would be? The class I teach is a lecture, question and answer class. Though there is "interaction," most of it comes through discussion and real-world legal examples. One can't have a discussion with 30+ adults in the online format. I know. I've tried. 

Oh yes, in order to take attendance, we have to give a "secret word" at some point every hour. At the end of the class, students are to e-mail all secret words to the instructor so they can get credit for the class with the Department of Real Estate. Hence, if a student is taking my six hour information-overload class on the purchase contract and they miss one of the secret words because they are taking notes on a boatload of concepts, they don't get credit for the class and have to redo the six hours again. Yes, you read that right. 

There are still to be monitors in classes of 50 or more people (really, you need a monitor after about 10 people). Even our group of Real Estate Instructors needed a monitor, as I saw a few people doing questionable things. There were 30 of us. And by the way, I'm guilty too. I sent a couple of texts to my friend Kay, who was also in the class.

We were also taught lots of tricks on how to make zoom more--and I am not making this up--"fun." This included raising our hands, using chat and annotating--but my version of Zoom did not include an annotating feature. So instead I watched the other 29 participants do an online word search and write anti-Dodgers graffiti during our "annotation session." 

Though I am certified to teach online, I think I will do my level-best to wait until the classrooms open up again. I am more interested in teaching and helping new agents understand what they are doing than playing with technology. Not that it matters, Beth hasn't invited me to teach since July.  

Coincidence I'm Sure

I noticed my Broker-Pal, Sally's house is under contract as of yesterday! I'm really glad. That was a tough sell. I'm really happy for her. 

On an--I'm almost positive--unrelated note, there are 5,384 single family homes for sale in Maricopa and Pinal Counties. The least expensive one I found in the Valley is on McDowell and 35th Avenue. It is listed at $185,000, with multiple offers received. The remarks said the electrical and plumbing have been completely stripped in the house. If you don't want to live on McDowell and 35th Avenue but want under $200,000, might I suggest Kearny, Mammoth or Arizona City? 

Maybe I Can Tell Him After 25 Years

I got a text from JC Monday afternoon. After consulting with their financial planner of 25 years, a man he trusts with his life (JC's words), they have decided not to take on a mortgage at this phase of their lives. It would be too much of a burden. Therefore, they will not be moving. 

Translation: the $900 a month land lease on the property they were looking at wasn't factored into their initial budget and Carley--who hated the house JC wanted--finally explained to JC the house wasn't for her. 

However, they would do better if they purchased something, even in this phase of life. It would be less expensive than what they are paying in rent. I didn't explain the above to them. They aren't ready to hear that from me. 

On another note, I was invited over once the pandemic subsided. I happily accepted the invite. They really are nice folks. 

I Don't Want to be A Grievance Committee Case

My very first clients in my brokerage were this couple: JC and Carly. They rented a house with a bit more drama than they expected, even though I'd given them fair warning of what the rental market was really like. We have stayed in touch on and off over little things, like clauses in their lease, and should they move to another rental? 

JC reached out to me yesterday. You see, they want to move. They are so motivated to move that they went house hunting with another agent over the past two weeks. When I asked them why they didn't call me, he said--and I'm not making this up--"I didn't want to bug you." 

Now, they have have found something they love. The home is simply perfect! And can I help them out? Well, no. I can't. 

You see, there is this thing called, "Agency." It means if you are working with one agent, find the home of your dreams, another agent can't come in, swoop down and steal the buyers and write the contract. You would be surprised at the number of Grievance Committee cases we see on this particular issue. Even if the client fires the first agent before the contract on that wonderful home is written, it doesn't change the fact the first agent DID THE GROUND WORK. Therefore, anything I do from this point forward is an ethical violation. 

Now then, if JC and Carly don't like the houses they have seen thus far and don't want to work with that particular agent, I can come in (provided they haven't signed anything binding them to the first agent--which I am told they didn't). I would be happy to. It wouldn't be a bother. It wouldn't be bugging. It would be my job and the way I feed my family. But I suspect this won't be happening. JC has his mind made up. They found "the house." Carly, however isn't so sure, but said she could live there for a few years and then maybe move if it didn't work out. 

Our conversation was cheerful. To their credit, they sounded disappointed I wouldn't be representing them. And we parted as friends. This morning JC even sent over his lease, asking me to take a peek, just to make sure he can get out of it early if they decide to to buy. Well, why not. Maybe they will think of me first when they want to move again in a few years. 

Grievance Committee Meeting

 We had our Grievance Meeting. It was a rather long one with 9 cases to hear. The dude who was mad his agent didn't explain the contract or today's market to him didn't really have an ethical case. He got the house, mind you. He just feels he overpaid--which he probably did--because it was a multiple offer situation. Buyer's remorse isn't a code of ethics violation. 

The agent whose clients didn't get the rental home of their dreams is out of luck. The property manager doesn't work for this dude and this dude's clients. He works for the owner. The owner didn't want the potential renters. It isn't the property manager's fault. Nor is it an ethical violation for a property manager not to work weekends. 

There were two cases that made us sick. The first case was an agent who forged a document, entitling himself to a significant money from the seller's proceeds of the house. However, the case was more than 180 days old. And because of the rules on this particular situation, we could do nothing. I think I speak for my committee members when I say I really wanted to make a few exceptions to the 180 day rule. This agent is walking away, unscathed, with a hefty bank account. 

Then there was a horrible case. To summarize, there is a man who doesn't speak English, who is now homeless because his agent took advantage of him. He has been evicted and doesn't understand why. The agent deserves worse than just what we as peers can do to her. If the High Inquisitor Squad finds her guilty, she will be walking away with at worst with a fine and a suspended license. However, the man she burned has lost a lot more.  

Still on the Market

I haven't heard from my Broker-Pal, Sally since I gave her my feedback on her listing. It is still overpriced. It is still active on the market. Both of those things tell me either her sellers aren't listening to her or she didn't really want my opinion when she asked me to review her listing. Possibly both. 

Hopefully it will sell this weekend. I know she is ready to be done with this sale. I also know her clients are ready to move on. 

Grievance Committee Reviewing

I am reviewing the nine cases that are in front of the committee this week. I am half-way done and needed a break before I tackled the last five. There are a few takeaways: 

• Agents don't understand property management. I'm sorry you had to wait an additional 90 minutes to get a response from the property manager for your client. Maybe the property manager was busy and couldn't get back to you right away? It isn't an ethical violation. I'm sorry, after your clients submitted applications to rent, the property manager discovered your clients are lying. That is not an ethical violation for the property manager. What it was is crappy clients for you and a waste of your time. That sucks.

• Going after selling agents for not disclosing something they don't know isn't an ethical violation. Nowhere does it say in the code of ethics that real estate agents must retain a psychic at all times. 

• Harmed clients tend to go after the wrong party. Your agent screwed up but successfully covered his butt. Therefore, someone is going to pay. It must be the other agent! But usually it isn't. Getting lawyers involved who clearly don't understand Arizona Real Estate law does not make for a stronger case against the wrong party. It just makes the lawyer's bank account bigger. 

• Referral fees to the general pubic is a no-no. A big one. (I think it is a Class 6 felony, but don't quote me on that one.) Anyway, if you say to your friend, "I know a good agent let me call her and see if she will represent you," you AND you aren't a licensed real estate agent, I can't give you a referral fee. Feeling you have been wronged by an agent who (allegedly) agreed to give you a referral fee doesn't make that fee magically appear. Especially when that agent has denied from the beginning of every e-mail you submitted as your evidence of an ethical violation that they can't give you a referral fee. 

My head hurts. 

The Secret Shopping Expedition

My broker pal, Sally, called me. She needed a secret shopper to go to her listing and then give her feedback. Easy enough. Agents do this for each other all the time. This isn't my first secret shopper excursion and I've asked many agents for similar favors. 

Anyway, Broker Pal Sally has this listing. It is about 1,600 square feet, with 3 bedrooms, 2 bathrooms and this weird upstairs loft area that has no reason to exist. Oh yes, in order to get to the loft, one must risk their lives, ascending up super-steep stairs. In addition to all that, the homeowners have very little understanding of home maintenance and what it takes to actually stage a home for sale. Sally has gently nudged them on a few items, they responded with quick fixes that actually made things worse. So now she wanted someone else to provide anonymous feedback so she wouldn't have to be the heavy. 

I should also mention, Sally has already gotten more assistance out of them than she expected. For example there is only one bed in the master bedroom now. And they actually mostly-sorta cleaned the bathrooms. Additionally, the sellers are absolutely certain Zillow is the Lord's Gospel Truth and just know their home is worth $40,000 more than it is. Anyway, Sally has this place listed for $350,000. I sold one in March in the same neighborhood, bigger and in much better condition for $325,000. But what do I know? 

Here's the thing about being a secret shopper. It is like being an outsider to a dysfunctional family picnic. You may recognize that Brother James is a wackadoodle, but it isn't appropriate to say so. Nobody picks on Brother James except family. You, as the outsider need to grin and nod. I did not. 

Instead, I gave Broker Pal Sally the blunt truth. The place smells like a wet dog. There is (hopefully) water leaking from an exterior door, there are brass doorknobs, brushed nickel faucets and oiled bronze ceiling fans. The carpet is ripped in one place and weird green slime in another. The tile is circa 1986 and hasn't been cleaned since. Neither has the stove. There is too much furniture, and if they are moving anyway, perhaps they could move some of it now? I also suggested removing--and I am not making this up--the organ from the master bedroom, securing the staircase railing and investing in gallon jugs of Febreze. 

Anyway, Broker Pal Sally did not take well to my feedback. It appears I overstepped. She was looking for the glossed over version of me saying, "It will sell." And it will. But not at $350,000. The fact that it is still on the market and there are no offers after this weekend is evidence enough even in this market (5,700 homes Active) Buyers aren't that desperate. 

Here are a few pictures. You can't smell them. You're welcome.