Real Estate Investing

When you think real estate, many people believe the glamourized versions they see on television are reality.  One show features Miami agents who deal with upper end, millionaire  clients.  If they need advice, they’ll hop on a boat and zip across the water to meet with their broker who is kicked back wearing a wide-brimmed hat and drinking margaritas with a sultry crowd surrounding him.  The broker usually yells, “Figure it out!  Or you won’t make it in this business!  Shoo-shoo!”

Realistically, being a real estate agent can be very dangerous.  I shared over at Shak & Jill my experiences last week with a seller - there were times I was very fearful when I was around him.  In the latest The Real Estate Professional magazine, Bruce Benham writes about safety, prefacing his tips with horror stories of two agents found murdered this year in vacant homes.

In fact, real estate - because it is considered a “sales” job - is in a Top 10 list of most dangerous jobs.  In 2002, sales jobs were at #8 according to an MSN article, but dropped off a 2007 list by Classes & Careers (replaced with “Military Service”). But enough of statistics!  What can we do to stay safe?

• Meet potential clients at your office first before showing up at a house with a stranger.  Remember, stranger danger isn’t just a catch-phrase for children to remember!  It’s also okay to ask a client for a copy of their driver’s license.  If they won’t give it to you, fake an emergency and don’t go with them.
• If you feel uneasy, ask another agent to accompany you.  You can pay back the favor sometime!
• Leave a listing of your scheduled showings either with a family member or at the office, particularly if you’re going with a client you don’t know.
• Always always drive yourself unless you are personal friends with the buyer. 
• Check in with your office or a safety-buddy colleague regularly while showing houses, sitting at open houses, or on listing appointment.
• Scope out the exits in any home when there.  If you can, make sure all exits are unlocked.
• Keep your cell phone with you at all times!  Keep your car keys in your hands at all times because many have a “panic button” you can push to sound the horn and call attention to yourself.

My favorite tip came from Mr. Benham,

If possible, put the home’s garage door opener in your pocket. If you feel threatened or in danger, discreetly open the garage and say the owners must be returning.

Genius.  Except for meeting with my seller who was angry about paying a commission, I’ve really only felt threatened one other time.  I was holding an open house on a new construction property and two men came in.  In hindsight I believe they were spies for another builder (!what nonsense!), but they had me in a corner looking at blueprints.  I quietly stepped out of the “corner” and let them look at the house plans on their own.

Though a little dated, this article in the Florida Real Estate magazine is a MUST read for all real estate agents.  (Photo from there, too.)

It can be a scary world out there.  From real estate agents to everyone else, being aware of your surroundings is always the best idea.

Oh my it’s hot outside today.  Luckily, we’ve only reached 102 degrees so far this year and with the high clouds billowing up right now, we may be in for rain and relief.  Even with our thermostat set at 74 in my building, I still have my oscillating fan cooling my office because I’m on the second floor which is harder to cool.  At home, I’ve discovered a few tricks to help keep my house cool without my electric bill being hot under my collar!

1. Make sure your windows and doors have good weather sealing - update those weather strips and caulking!
2. When you have two or more stories, make sure the door at the top of the stairs is closed, if possible.  This will keep the worst of the heat at the top of your stairs without it invading the second floor.
3. Turn your thermostat up two to three degrees - this could save as much as 5 percent on your energy bill.
4. Use ceiling fans or oscillating fans to stir the air so you won’t feel those extra two to three degrees you’ve lost by raising your thermostat.
5. Keep your blinds and curtains pulled during the heat of the day to help keep the cool air in.
6. Change your filters on a regular basis because this makes you heat/air unit run more efficiently thereby reducing the strain both on the unit and your bill.
7. Turn your thermostat on the water heater down to 105 degrees (from 140 range) to save energy.  You won’t notice a difference in the shower, but you will on your utility bill.
8. Use compact fluorescents for your lighting because this reduces the power you use, plus the bulbs put out less heat.  A 23-watt compact flueorescent puts out the same light as a 150-watt incandescent - that’s bright!  Watts equal heat, so on a 23-watt you can touch, but a 150-watt will take your skin off from the burn, therefore your energy bill is reduced.
9. Turn your computer off at night and unplug from any power cords because computers (along with the refrigerator and water heater) are your bigges energy users.
10. Install a time clock on your water heater that only turns on during the hours you are home (on at 4:00 a.m, off at 8:00 a.m.; back on at 5:00 p.m., off at 10:00 p.m.; or whatever fits your schedule).

If you have more ideas, please share and we’ll feature them in a future post!

An always fabulous agent I work with told me recently about one of her closings.  She found a home for her buyer that had first been on the market for $145,000.  Following the market downward, it was reduced after several months to $130,000 in order to remain competitive.

Her buyer wanted this home, so they wrote a contract.  In the contract, they asked for 3% ($3900) in down payment assistance and 3% ($3900) in closing costs.  They also asked for a home warranty, a $1000 repair limit, termite inspection (we’ll say $75, but could be up to $800 depending on whether termites were found), and for the seller to pay for title expenses (another $1200).

This once $145,000 home was being purchased for

… drumroll …

$119,925 after the seller paid all of the concessions on behalf of the buyer.

That was $25,075 less than the original list price.  BUT because the market sets the price - and in fairness - the number would be $10,075 off the list price.  So the buyer made a full price offer on paper, and yet it was not a full price offer.

It got back to my friend the agent that the buyer’s father fussed at everyone he met because the agent didn’t get her son a “good enough” deal in a buyers market.  I beg to differ.  That she saved his son over $10,000 dollars from the list price was a pretty fabulous deal.

Yet there are always people who argue that it wasn’t enough.

Another friend of mine wrote a comment to me about full price offers saying, “No one should ever pay full asking price for anything that lends itself for negotiation possibilities…..there is always someone willing to wiggle….keep looking.”  I respectfully disagreed with her given the scenario outlined above.

I believe people need to always remember that just because you see something on paper, it doesn’t tell the whole story.  A full price offer may appear to be full price, but when a seller walks away with over $10,000 less than expected, they are not receiving full price.

Of course, you can also ask yourself how badly you want a house.  Even in a strong buyers’ market, homes in your price range in safe neighborhoods may not be available, so you do what you have to do.

I urge buyers and agents to never let the naysayers convince you that you made a mistake because only you know and have the complete picture of what your needs are.

Photo by Kathy T. and her blackjackii phone. Special guest: the calculator.