So I met with Dana and Kent. They have a bit of debt and a lot of equity. They wanted to sell, rent some place and pay off their debt. That's all well and good, but not realistic. First, they don't have oodles of debt. They have enough debt to be annoying. Second, they don't have so much equity they could buy another home for cash. Third, what they would pay in rent is considerably more than their mortgage payment. Essentially, they want to stop the short-term bleeding by chopping off their hands.
As much as I would love to sell their home to cover Buckaroo's insane grocery addiction, it isn't in their best interests. And that's one of the reasons some real estate professionals get into trouble--sometimes they work in their own best interests. It gives all of us a bad name.
Now, I am not virtue grandstanding here. In fact I really, would have rather offered them a listing contract. But the meeting just happens to be blog fodder. And more to the point, I do believe in Karma. I also believe in Heaven. Both of which I want on my side. Knowing what I know and letting them think that selling their home so they can do better wouldn't sit well with my conscience.
Though it isn't really my job, sometimes what I do falls into the nebulous catchall category of "provider of common sense." I told them that I strongly suspected even if they refinanced, if they don't fix their current money habits they will be right back where they started a year from now. This originally didn't land well, but as the conversation continued, they seemed to agree: they needed more than a short-term band-aid.
The way we left our chat was threefold. First, they needed to refinance and pay off what they could. I got them in touch with a loan officer, who took their application and is helping them weigh their options. Dana and Kent will still have equity if they go this route, refinance and pay off their debts.
Second, I suggested they search for better paying employment, as it seems to me that might a significant reason their issues are what they are. In fact, I suggested if they didn't feel like improving their primary income, perhaps a second job for both of them for the next few months until they get back on their feet might be something to consider.
And third, I recommended Dave Ramsey. I like his podcasts. I am not a super-big fan of all of his methods, but he gives some pretty reasonable common sense approaches to how to live life within one's means. And if Mr. Ramsey wasn't their cup of tea, look around for other options to learn how to manage their money. Because managing money is actually a learned skill. I was pleased to see Kent spend a moment on Google looking up Dave Ramsey before I left. Hopefully they will get on the right path soon.
Thursday, January 10, 2019
Wednesday, January 9, 2019
Wackiest Real Estate Story of 2019
This didn't happen to me. It happened to another agent here in the Valley.
So the buyers of a home are licensed Arizona real estate agents. They are in their 10 day inspection period, but they have not told the selling agent when they will be conducting their inspections. The selling agent calls, texts and sends a carrier pigeon but no response.
That's ok. It isn't the selling agent's job to manage the buyers.
The owner of the house just wanted to know so that they could schedule their life around when the buyers would be showing up. They still had some items left in the house, and went back on a regular basis to clean up and pack.
So last week, the sellers show up to grab a carload of their possessions and find the buyers (mind you, they are real estate agents) inside the home with a home inspector. And, they were doing their laundry! Yep, the seller's washer and dryer were humming along.
When the seller saw this, the buyers (did I mention they are licensed real estate agents in the State of Arizona) said, "I hope you don't mind. We needed to get our laundry done."
The sellers minded. A lot.
I have no idea what will happen from here. Ok, I have a few ideas. First, I am sure the buyer's broker was informed. I will recognize this broker by the bruise on his or her head where the desk met their forehead. Second, I would bet my last Pop-Tart that the buyer is probably no longer asking for any repairs. And third, the High Inquisitor Squad will recognize the buyers by the squeaky clean clothes they will be wearing at their hearing.
So the buyers of a home are licensed Arizona real estate agents. They are in their 10 day inspection period, but they have not told the selling agent when they will be conducting their inspections. The selling agent calls, texts and sends a carrier pigeon but no response.
That's ok. It isn't the selling agent's job to manage the buyers.
The owner of the house just wanted to know so that they could schedule their life around when the buyers would be showing up. They still had some items left in the house, and went back on a regular basis to clean up and pack.
So last week, the sellers show up to grab a carload of their possessions and find the buyers (mind you, they are real estate agents) inside the home with a home inspector. And, they were doing their laundry! Yep, the seller's washer and dryer were humming along.
When the seller saw this, the buyers (did I mention they are licensed real estate agents in the State of Arizona) said, "I hope you don't mind. We needed to get our laundry done."
The sellers minded. A lot.
I have no idea what will happen from here. Ok, I have a few ideas. First, I am sure the buyer's broker was informed. I will recognize this broker by the bruise on his or her head where the desk met their forehead. Second, I would bet my last Pop-Tart that the buyer is probably no longer asking for any repairs. And third, the High Inquisitor Squad will recognize the buyers by the squeaky clean clothes they will be wearing at their hearing.
Tuesday, January 8, 2019
Perhaps a Subscription to Dave Ramsey is in Order
Dana contacted me. Throughout the course of 16 years, I have helped her, her ex-husband and her current husband move a total of six times. So, I kind of know her. Anyway, she wants to sell her current home. She bought it at the exact right time and has at least doubled her equity. However, she is "in debt" and has decided to sell.
Now I would love to help her and sell this house, but I also want a place in Heaven. Selling this house is not going to solve the long-term issue. First, her mortgage is super-low. Did I mention she bought this house back in 2008 and paid almost nothing? Second, anywhere she rents or buys is going to cost her more than what she is paying for her current mortgage. She said her budget for rent is $1000 a month. I can't find anything for rent in a neighborhood she wants to live in for under $1000. Third, her debt isn't really that much. Of course, it is a small fortune to her. I get it. And fourth, she has done this very activity before with her now-ex husband. It didn't resolve anything then.
What truly has to change is behaviors. I know this. It isn't me being self-righteous. It is just an independent observer on the outside looking in. Dramatic shifts, like moving, will pay off the debt and leave her with extra, but it won't really resolve the poverty mindset. She has to do that on her own.
Tomorrow I am meeting with her and her husband. We are going to sit down and see what makes sense. And if this makes me the worst salesperson on Earth, so be it. I would love to have the listing but I think they would be foolish to move.
Now I would love to help her and sell this house, but I also want a place in Heaven. Selling this house is not going to solve the long-term issue. First, her mortgage is super-low. Did I mention she bought this house back in 2008 and paid almost nothing? Second, anywhere she rents or buys is going to cost her more than what she is paying for her current mortgage. She said her budget for rent is $1000 a month. I can't find anything for rent in a neighborhood she wants to live in for under $1000. Third, her debt isn't really that much. Of course, it is a small fortune to her. I get it. And fourth, she has done this very activity before with her now-ex husband. It didn't resolve anything then.
What truly has to change is behaviors. I know this. It isn't me being self-righteous. It is just an independent observer on the outside looking in. Dramatic shifts, like moving, will pay off the debt and leave her with extra, but it won't really resolve the poverty mindset. She has to do that on her own.
Tomorrow I am meeting with her and her husband. We are going to sit down and see what makes sense. And if this makes me the worst salesperson on Earth, so be it. I would love to have the listing but I think they would be foolish to move.
Monday, January 7, 2019
Case Two, Three and Four
The last three cases we heard were all related and it was motioned (and seconded) that they be combined for "judicial expediency". Otherwise, if the way these are written is any indication, the High Inquisitor Squad will need to mark off six days on their calendar.
Case One reads like a diary at a 13 year old girl's slumber party: Buyer's agent filed a complaint that seller's agent was mean. Her complaint alleges lots of different items, none of which fall under the category of a code of ethics complaint, but do make him sound like a pluperfect asshat. Being an asshat isn't a violation. However, her issue was that the selling side wanted what they wanted and the buying side didn't. The selling side's want was not in the final contract. But the selling side didn't care and behaved like it was in the contract, ignoring what was legally binding. This caused all sorts of turmoil and confusion. There were code of ethics violations based on what evidence she alleged, beyond her accusing him of him being a jerk.
Case Two is the selling agent (the pluperfect asshat) against the buyer's agent (the preteen girl) in rebuttal to the first case. It reads like the diary of Central Casting's 16 year old bully or a pluperfect asshat. He even rebutted her claims with handwritten words like, "Wow! I am so glad I am not her." Through the 257 pages of obnoxiousness, we did find one area where the buyer's agent may be in violation of the code of ethics.
Case Three is the seller against the buyer's agent. The seller is angry she didn't get her way and blames the buyer's agent. Why this is the buyer's agent's fault, I don't know. We all agreed that the selling agent didn't educate his client better. It looks like it was written by the selling agent and pretty much is a reproduction of what was said before. Except in every paragraph the seller mentions she has a heart condition. Every paragraph. Anyway, because it is related to the two other cases, it is going to the High Inquisitor Squad.
It is sad this case is getting this far. I see a few areas where, if this ever is my situation, I hope I make other choices based on what I know now. One obvious choice was that the agents could have picked up the phone and discussed a lot of the challenges upfront. Another choice is to not let things escalate to the point where the police are called (I read the police report too). This education for me alone was worth the 257 pages of obnoxiousness. I wish them all the best.
Case One reads like a diary at a 13 year old girl's slumber party: Buyer's agent filed a complaint that seller's agent was mean. Her complaint alleges lots of different items, none of which fall under the category of a code of ethics complaint, but do make him sound like a pluperfect asshat. Being an asshat isn't a violation. However, her issue was that the selling side wanted what they wanted and the buying side didn't. The selling side's want was not in the final contract. But the selling side didn't care and behaved like it was in the contract, ignoring what was legally binding. This caused all sorts of turmoil and confusion. There were code of ethics violations based on what evidence she alleged, beyond her accusing him of him being a jerk.
Case Two is the selling agent (the pluperfect asshat) against the buyer's agent (the preteen girl) in rebuttal to the first case. It reads like the diary of Central Casting's 16 year old bully or a pluperfect asshat. He even rebutted her claims with handwritten words like, "Wow! I am so glad I am not her." Through the 257 pages of obnoxiousness, we did find one area where the buyer's agent may be in violation of the code of ethics.
Case Three is the seller against the buyer's agent. The seller is angry she didn't get her way and blames the buyer's agent. Why this is the buyer's agent's fault, I don't know. We all agreed that the selling agent didn't educate his client better. It looks like it was written by the selling agent and pretty much is a reproduction of what was said before. Except in every paragraph the seller mentions she has a heart condition. Every paragraph. Anyway, because it is related to the two other cases, it is going to the High Inquisitor Squad.
It is sad this case is getting this far. I see a few areas where, if this ever is my situation, I hope I make other choices based on what I know now. One obvious choice was that the agents could have picked up the phone and discussed a lot of the challenges upfront. Another choice is to not let things escalate to the point where the police are called (I read the police report too). This education for me alone was worth the 257 pages of obnoxiousness. I wish them all the best.
Sunday, January 6, 2019
Case One
I can't write the particulars about each grievance complaint, but I can give a broad idea.
In case 1, a loan officer has been the target of social media bashing by a real estate agent. The person in question (a real estate agent) has been accused of using an alias and saying lots of untrue, ugly and unkind things about the loan officer. And though this agent used an alias, there is strong evidence to link her to the e-mail addresses and names.
Anyway, making untrue comments is a violation of the code of ethics. The High Inquisitor Squad will be hearing this case.
If you are interested in my take on bearing false witness, hit me up. But you may want to set aside an hour or two.
In case 1, a loan officer has been the target of social media bashing by a real estate agent. The person in question (a real estate agent) has been accused of using an alias and saying lots of untrue, ugly and unkind things about the loan officer. And though this agent used an alias, there is strong evidence to link her to the e-mail addresses and names.
Anyway, making untrue comments is a violation of the code of ethics. The High Inquisitor Squad will be hearing this case.
If you are interested in my take on bearing false witness, hit me up. But you may want to set aside an hour or two.
Saturday, January 5, 2019
The Grievance Meeting
This past week I went to my first Grievance Committee meeting. There are actually two Grievance Committees. I am on the one which meets on the odd months of the year. The reason there are two, is to avoid conflict of interest issues (such as if El Jefe files a claim it would automatically go to the other committee). I was concerned the group would be cliquish--mainly because I am a social maladroit and have no business doing anything in a group of three or more. And, it was cliquish in a strange way.
The chairwoman is someone I met at Broker school. She was one of my instructors. It turns out we liked the same author and I gave her some of the books I finished which were collecting dust on my shelves. A few months later she called me to thank me. She had finished the books. Some time later, she called me again, left a voice mail, telling me there was no reason to call her back. What she wanted me to know was this author would be at a local Tempe bookstore (with bad parking) if I might want to show up. Then the author's new book came out a few months ago. I read it, and sent it to her. She wrote me back, congratulating me on my brokerage and thanking me for the book. Now, the only way she could have known about the brokerage was to do a bit of research. Though that wasn't part of the plan of reaching out to her, my ego was pleased.
Anyway, the reason it was slightly cliquish is because I walked in and realized this woman was the chair. She greeted me like a long-lost sister with a warm hug and saved me a seat. She also whispered that she hand-picked me when she saw my name on the list of potential candidates.
I was pleased to see everyone took their role seriously. We all were dressed up and everyone was prepared. Our chat was polite and formal. The entire process lasted an hour, with a few housekeeping mentions: like that fact I am required to take a few classes and what our roles and responsibilities happen to be. This looks to be a fun year, if you are into nerdy contract-law types of things like I am.
The grievance committee is like the grand jury of real estate arbitration. Our job is to politely and professionally discuss each case and see if, based on only what was submitted, if the Realtor Code of Conduct had been violated. If we reach a conclusion that there was a violation, the case is then sent to the arbitration committee, also dubbed the High Inquisitor Squad. We can add people to cases, we can add and remove violations too. It was an interesting day and I found it to be a great exercises in professional development. I will write more on the cases--all which are being sent to the High Inquisitor Squad for trial.
Incidentally, the Grievance Committee and High Inquisitor Squad members' names are secret. Our meetings are closed-door and we are to turn in our notes on the way out the door so they can be destroyed. Interesting stuff.
The chairwoman is someone I met at Broker school. She was one of my instructors. It turns out we liked the same author and I gave her some of the books I finished which were collecting dust on my shelves. A few months later she called me to thank me. She had finished the books. Some time later, she called me again, left a voice mail, telling me there was no reason to call her back. What she wanted me to know was this author would be at a local Tempe bookstore (with bad parking) if I might want to show up. Then the author's new book came out a few months ago. I read it, and sent it to her. She wrote me back, congratulating me on my brokerage and thanking me for the book. Now, the only way she could have known about the brokerage was to do a bit of research. Though that wasn't part of the plan of reaching out to her, my ego was pleased.
Anyway, the reason it was slightly cliquish is because I walked in and realized this woman was the chair. She greeted me like a long-lost sister with a warm hug and saved me a seat. She also whispered that she hand-picked me when she saw my name on the list of potential candidates.
I was pleased to see everyone took their role seriously. We all were dressed up and everyone was prepared. Our chat was polite and formal. The entire process lasted an hour, with a few housekeeping mentions: like that fact I am required to take a few classes and what our roles and responsibilities happen to be. This looks to be a fun year, if you are into nerdy contract-law types of things like I am.
The grievance committee is like the grand jury of real estate arbitration. Our job is to politely and professionally discuss each case and see if, based on only what was submitted, if the Realtor Code of Conduct had been violated. If we reach a conclusion that there was a violation, the case is then sent to the arbitration committee, also dubbed the High Inquisitor Squad. We can add people to cases, we can add and remove violations too. It was an interesting day and I found it to be a great exercises in professional development. I will write more on the cases--all which are being sent to the High Inquisitor Squad for trial.
Incidentally, the Grievance Committee and High Inquisitor Squad members' names are secret. Our meetings are closed-door and we are to turn in our notes on the way out the door so they can be destroyed. Interesting stuff.
Friday, January 4, 2019
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