Author Archives: ARDELL

About ARDELL

ARDELL is a Managing Broker with Better Properties METRO King County. ARDELL was named one of the Most Influential Real Estate Bloggers in the U.S. by Inman News and has 34+ years experience in Real Estate up and down both Coasts, representing both buyers and sellers of homes in Seattle and on The Eastside. email: ardelld@gmail.com cell: 206-910-1000

Sunday Night Stats – King County

Posted on by
34

I’ve been reporting the change in volume and MPPSF.  But let’s go back a bit so you can see the change from an historical perspective, and also help put things into focus as we move forward from here.  By seeing how we have gotten to where we are, you can better determine if what is happening currently and in the future is “normal” for that time of year, or a change from the normal relationships of quantity and price from quarter to quarter.

Format is Year, Quarter, number of units sold and median price per square foot.

King County Condos

2000 – 1Q x,xxx – $xxx, 2Q 1,574  – $154, 3Q 1,725 – $157, 4Q 1,491 – $162

2001 – 1Q 1,444 – $163, 2Q 1,770 – $165, 3Q 1,816 – $174, 4Q 1,380 – $166

2002 – 1Q 1,464 – $168, 2Q 1,885 – $172, 3Q 1,885 – $172, 4Q 1,642 – $173

2003 – 1Q 1,518 – $168, 2Q 2,011 – $179, 3Q 2,338 – $184, 4Q 1,911 – $183

2004 – 1Q 1,694 – $188, 2Q 2,636 – $199, 3Q 2,540 – $196, 4Q 2,176 – $195

2005 – 1Q 2,066 – $198, 2Q 2,925 – $209, 3Q 2,769 – $226, 4Q 2,266 – $224

2006 – 1Q 1,956 – $242, 2Q 2.748 – $252, 3Q 2,737 – $269, 4Q 2,217 – $278

2007 – 1Q 2,042 – $295, 2Q 2,862 – $302, 3Q 2,676 – $311, 4Q 1,618 – $294

2008 – 1Q 1,258 – $299, 2Q 1,126 – $288 (2Q incomplete data – postings as of 6/16/08)

King Couny Condos

Active Listings: 3,964 – DOWN 22 – median price $325,000 – MPPSF  asking $320 – DOM 60

In Escrow:  946 –  UP 8 – median price $288,250  – MPPSF asking $288  – DOM – 50

Sold YTD :  2,384 – UP 97 – median list price $294,950 – median sold price  $289,000 – median PPSF – $294 DOM 48

King County Residential 

2000 – 1Q x,xxx – $xxx, 2Q 6,111 – $130, 3Q 5,994 – $127, 4Q 5,248 – $128 

2001 – 1Q 4,662 – $131, 2Q 6,336 – $135, 3Q 6,454 – $133, 4Q 4,963 – $131

2002 – 1Q 4,964 – $134, 2Q 6,740 – $140, 3Q 6,320 – $140, 4Q 5,897 – $138

2003 – 1Q 5,479 – $141, 2Q 7,783 – $143, 3Q 8,683 – $148, 4Q 6,859 – $147

2004 – 1Q 5,650 – $152, 2Q 9,237 – $160, 3Q 8.737 – $163, 4Q 7,467 – $165

2005 – 1Q 6,402 – $173, 2Q 9,093 – $185, 3Q 9,131 – $192, 4Q 7,301 – $195

2006 – 1Q 5,596 – $201, 2Q 8,248 – $214, 3Q 7,771 – $216, 4Q 6,204 – $217

2007 – 1Q 5,304 – $222, 2Q 7,393 – $230, 3Q 7,944 – $229, 4Q 4,301 – $221

2008 – 1Q 3,640 – $219, 2Q 3,471- $220 (2Q incomplete data – postings as of 6/16/08)

Residential King county

In Escrow: 2,987 – UP 80 – median asking price $448,900 – DOM 46 – MPPSF $213

SOLD YTD: 7,112 –  UP 306 – median sold price $439,900- DOM 49 – MPPSF $220

Actively for sale 11,817- UP 64 – MPPSF <$800,000 is $220- MPPSF >$800,000 is $337

Stats not compiled or published by NWMLS. (Required disclosure) 

Flat Screen TV – Is it "attached"?

Posted on by
28

Ardell’s Advice:  “When in Doubt – Take it OUT” BEFORE showing your home to prospective buyers!

Over the years the thing that creates the most controversy in a real estate transaction has been something Dining Room Chandelier STAYSthat is attached to the home.  Different parts of the Country deal with these issues in local custom fashion.

When I started in real estate back in 1990, the primary cause of confusion was the dining room chandelier.  Often sellers wanted to take it to their new home, but clearly a light fixture is attached to the home and is sold with the home.

Built-in refrigerator stays with houseAfter “the chandelier” the new attachment item became the “sub-zero” refrigerator.  Up to that point, washers, dryers and refrigerators were NOT considered to be part of the real estate; dishwashers and stoves were.  Rule of thumb being If you can simply unplug an appliance and remove it without any other effort, it goes with the seller.  Refrigerators were like your alarm clock.  Unplug it and take it with you.  Then builders and kitchen remodelers started “building in” the refrigerator with panels that matched the kitchen cabinetry.  The expectation became if it is a “built-in refrigerator” it stayed.  If it was a standard plug-it-in-and-shove-it-into-an-open-space-for-it refrigerator, it went with the seller.  Washer and dryer “hook-ups” were part of the real estate.  The washer and dryer were not.

When the market weakened and became a buyer’s market, sellers of lower priced housing that fit into the category of “first time buyer” started to include the washer, dryer and refrigerator.  When there were 20 of the same type of condo on market, often the seller who listed it with “all appliances” became the most likely to sell.  Higher priced housing was not expected to include the washer, dryer and refrigerator.  “First time buyer” housing was expected to leave the washer, dryer and refrigerator.

Then there’s the curtains.  Most places where I have worked, the rod that is attached to the wall was sold Fabric covered valancewith the home.  The curtain that slipped off the rod went with the seller.  The window treatment that was attached to the wall (usually a fabric covered boxy wood valance) stayed with the house. Blinds and shutters stay with the house. At one point I said to the seller “if you have to go get a screw driver to remove it…you probably shouldn’t be removing it, so call me first.”

Here in the Seattle area, the curtains DO go with the house, unlike most of the Country where only the blinds and rods go with the house.  Here’s what the boilerplate of the contract has to say about this issue:

“Included Items.  …built in appliances, wall to wall carpeting, curtains, drapes and other window treatments, Window and door screens, awnings, storm door and windows, installed television antennas, ventilating, air conditioning and heating fixtures, trash compactor, fireplace doors, gas logs and gas log lighters, irrigation fixtures, electric garage door openers and remotes, water heaters, installed electrical fixtures, lighting fixtures, shrubs, plants and trees planted in the ground, all bathroom and other fixtures and all associated operating equipment…”

I don’t even want to tell you how many times a seller drove out of town with the garage door remote in his car by accident.  Or how many times there is a two or three car garage, but only one remote control.  Most people are surprised that curtains actually stay with the house, when they slip off of the rod quite easily. The one that defies logic is when a buyer expects to get the door knocker with the previous owner’s last name engraved in it, or the sell expects to remove that door knocker without replacing it with a similar one and leaves a hole in the front door.

Flat Screen TV mounted on wallOver time, contracts and local custom worked through these issues.  Today we have the “Wall-mounted Flat Screen TV” to deal with.  Might that now fall under the heading of “installed electrical fixtures”?   If the TV slips out of the mount and unplugs…then there’s “the mount”.  If the flyer and mls said “all appliances included…is the wall mounted TV an “appliance”?

Obviously I just had one of these situations.  The wall mounted TV was not simply “plugged in”.  The cable for the TV came up through the wall via the crawl space and attached directly to the TV.  There was no “cable plate” on the wall.  Of course we really can’t see what is behind that TV, can we?  The seller removed the TV, the Mount AND the cable that went down through the wall and over to the floor type TV connection.

It all boils down to what does this buyer need and expect.  If they don’t have a flat screen TV, well then they probably want the wall to be returned to the condition it was before the TV was there.  If they DO have a flat screen TV to be mounted on the wall…well then they want the cable there with a plate and an electrical outlet with a plate at that spot on the wall.  Do they want the wall mount?  Does their TV fit into that wall mount?

At what point does a wall mounted TV that is hard wired into the wall without outlets become “an installed electrical fixture” per the terms of the contract and included in the sale of the house?  I don’t think anyone expects to get someone else’s TV…or do they?  What about a Theater Room with a mounted projector and screen?  Do you simply remove the projector?  What about all of the wiring that makes it function?  Speakers?  Speaker wires?  Satellite dishes?

From my perspective my advice is the same as it has been for the last 18 years…”If you have to go get a screw driver to remove something (or hire someone to “de-install” something)…CALL ME FIRST!”  Then we work out a “true meeting of the minds” between the buyer and the seller, before creating a bone of contention over a $20 cable connection.

Will the wall mounted flat screen TVs and hardwired projectors in the ceiling go the way of the built-in refrigerators?  How about “under the counter appliances” where you have to unscrew the mounts in the cabinets to get your coffee pot?

Where do YOU draw the line and what exactly is YOUR interpretation of “an installed electrical fixture”?  For sellers:  “When in Doubt – Take it OUT” BEFORE you put your home on the market.  Replace it with what the buyer will actually be getting, before the first buyer steps through the front door and starts believing that “what they SEE is what they GET”.

 

Sunday Night Stats – Regular Weekly Post

Posted on by
Reply

*

*

In the post below this one I varied from the normal format.  Posting this one for readers who are keeping the weekly data on an excel spreadsheet.

King Couny Condos

Active Listings: 3,942 – UP 31 – median price $323,000 – MPPSF $318 – DOM 61

In Escrow: 938 – DOWN 6 – median price $299,900 – MPPSF $299 – DOM 52

Sold YTD : 2,287 – UP 146- median list price $289,950 – median sold price $285,000 – median PPSF $291 – DOM 48

King County Residential

In Escrow: 2,907 – UP 28 – median asking price $445,000 – DOM 46 – MPPSF $211

SOLD YTD: 6,806 –  UP 259 – median sold price $440,000 – DOM 49 – MPPSF $220

Actively for sale 11,753- UP 141 – MPPSF <$800,000 is $219.50 – MPPSF >$800,000 is $337.50

Stats not compiled or published by NWMLS. (Required disclosure)

 

Sunday Night Stats – Patience is a Virtue

Posted on by
64

My focus tonight is on the expectation of sellers to have an offer quickly after listing their property for sale.  I must admit that I am still in a “30 days to offer” mindset as most sellers are.  Truth is, that is not a realistic stance, but I didn’t realize until tonight how unrealistic that is.

In the month of May, considered to be a fairly robust month compared to the previous 6 -9 months, only 16% of all condos sold in 98007 sold in 30 days or less.  Only 29% of all single family homes sold in Issaquah, sold in 30 days or less.  Outperformers such as Redmond had a 45% chance of selling in 30 days or less. 

King County has 7.8 months of inventory.  Not much distintion between condos and single family homes.  yet how many sellers have the patience to wait 7.8 months to sell their home?  At best a seller has less than a 50/50 chance of selling their home in less than 30 days.  Redmond only has 3.8 months of inventory on market as to single family homes. Issaquah is an outperformer as to condos with 61% selling in 30 days or less and only 3.3 months of inventory on market. 

Lots of variations around King County, but be ready to have your home on market for awhile.  No running off for the weekend and “looking at all offers on Monday” this year.  And those of you who did manage to do that, realize how very, very luck you are.

OK, let’s see if we can find a silver lining out there in the clouds.  Seriously, if the sun would come out…things might get a little better in the housing market.  It’s been one gray year…and NO ONE believes it is JUNE!  (Today is my 54/54 birthday BTW…Born in 54 and turning 54.)

May – King County Stats

516 condos sold compared to 959 last may – Down 46% as to volume

$298 median price per square foot – Down from $303 last May

1/1/08 to 5/31/08 – 2,220 condos sold compared to 3,906 for the same period in 2007

That’s down 43% as to volume, so May is not outpacing the year as a whole unless there are a lot of really late postings.  Median price per square foot for the same period is down from $298 to $291. 

Single Family Homes – King County

1,499 sold vs. 2,502 last May – Down 40% as to volume

Median price per square foot $220 – Down from $228 last May

1/1/08 to 5/31/08 – 6,634 sold vs. 10,001 in 07 – Down 33% as to volume

Surprises me that May would be underperforming the five month average here.  Not a good sign.  Lets hope that when we see some better weather around here, we will see some better stats as well.  Real Estate can be very weather driven and this year has really been bad. 

Median Price per Square foot of single family homes since January is the same as May stats at $220 – down from $226 for 1/1/07 to 05/01/07.

There are 11,753 homes for sale right now selling at a rate of 1,499 a month.  There are 3,942 condos for sale selling at a rate of 516 a month.  Basically it would take 7.5 months to sell off what is on market IF the rate of selling stayed the same and nothing new came on market.

So where’s that silver lining I promised you?  There are 2,907 single family homes in escrow today and 938 condos.  Those of you who are off to sign your papers to close escrow, realize how very lucky you are.  And those of you getting ready to put your homes on market, have a great big party if you are one of the lucky ones who gets an offer in less than 30 days.

Stats not compiled or published by NWMLS. (Required disclosure) 

Good agents and how they conduct their business

Posted on by
32

I just received a call from John.  John is an excellent agent in that he is low key, no pressure, but very attentive to his client’s needs.  I met John at an Open House at 6806 27th Ave in Bryant.  John was out with his soon to be owner/seller, checking out the competition before pricing and listing his client’s home.

It is very considerate when an agent does this at an Open House, and does not make “an appointment” causing the owner to think it is a buyer coming.  Often owners get angry when an agent calls to “show” and then spend hours cleaning, only to find it is a “preview” by an agent using the property to gauge the pricing for another and competing seller.  Attending the Broker’s Open or a Sunday Open is the correct way to canvass an area to accurately price your next listing.

I just received a call from John.  He was giving me a “heads up” that his new listing at 3165 NE 82nd Street in Wedgwood would be coming on market tomorrow.  What a “good agent” to realize that someone listing a house in a similar price range might have potential buyers for his new listing.  What a “good agent” to take the extra step of remembering all of the agents he met at the Open Houses while canvassing the area to determine the price for his new listing.

We don’t talk about “good agents” enough, so if you happen to stop by the Sunday Open House or the Wednesday Broker’s Open of John’s new listing at 3165 NE 82nd Street, shake his hand for me and say “pleased to meet a good agent” 🙂   I’m doing my own Open House on Sunday, but I’m going to try to stop by on Wednesday.

Honestly, good agents are worth their weight in gold, and knowing who is who in this business is a huge part of what we do for our clients.

Is your offer "a secret" to be kept?

Posted on by
134

Many buyers are under the erroneous perception that their offer is “a secret” and that in a multiple offer situation, their offer cannot be revealed to other participants.

While many agents may say “I would never…”, reality is that they DO in one form or another in some cases.  The real question is CAN they do it…and not WILL they do it.  Often the seller will counter the most qualified buyer with the higher price of another offer from a less qualified buyer.  Technically they didn’t “reveal” your “offer”, but they used your price as the counter price to a different buyer.  Same difference really, isn’t it?

“Hey, No Fair!” is something we hear often from the buyers caught in multiple offers.  Reality is that the seller does NOT have to be “fair” to all of the buyers, nor does the agent for the seller.  P.S.  If you are thinking that this post is not relevant as we are “in a buyer’s market”…think again.  At least half of my recent dealings in the last 60 days have been multiple offer situations.  The good houses are getting multiple offers,  “good” often translates into best floorplan, best condition, turnkey, move-in ready, needs little or no work…and not best “value” or a “bargain” in need of repairs or updates.

Here are a couple of ways that your offer is “revealed” in a multiple offer situation.  Often it’s more like a guessing game.  Buyer Agent says “If I bring you an offer of less than asking price, does it have a chance.”  Agent for Seller laughs and says, “Hey, I have FOUR OFFERS!, what do you think?”.  Even if all four offers WERE under the asking price (not likely), the agent may still respond in this manner.  Buyer Agent says, “If I cap at $950,000 will that put us “in the running?”  Agent answers “Yes, but more offers may come in, so no guarantees.”  Well at least you found it it was likely more than the ones in hand…maybe.  No guarantees.

The reason agents don’t reveal the other offers before the seller picks one is because they WANT you to go AS HIGH AS YOU WILL GO, and that is their job as the agent for the seller.  NOT because they CAN’T tell you.

When an agent reveals that there are multiple offers, that is also called a “Notice of FINAL and BEST”.  You bring your Final and Best Offer.  NO the seller does NOT have to counter you and rarely do multiple offer situations give you a “counter” or “second try at it”.  YES, the seller’s agent can pick up the phone while considering the multiple offers, call the Buyer Agent who has the buyer with the best credentials and give them a price at which their offer would be accepted and tell them to re-write, right now, and bring a new offer at a better price to the house.

Can the agent for the seller by-pass an offer merely because the buyer does not have an agent?  Yes.  The seller can take the offer price from an unrepresented buyer and counter a represented buyer with the same offer price.  If the seller and the seller’s agent prefer that the best and most competent agent be on the other side of the table during escrow, that is a considerable factor.  Often the seller and the seller’s agent will choose based on the competence of the Buyer’s Agent.  So everything the Buyer’s Agent has said to the Listing Agent WILL be part of the consideration, and having NO agent will also be a factor in determining which offer to select.

OK, now everyone say “NO FAIR!” in unison.  Quite right.  When the seller and seller’s agent are looking out for the seller’s best interest, they are often NOT fair to all or even any of the buyers who are submitting offers.  Don’t be lulled into the idea that you will get a second chance to make an offer.  Don’t be lulled into the idea that other buyers “CAN’T” be told what your offer is.  Don’t expect a seller to “be fair” to you while he is doing his best not to “leave any money on the table”.

Best offer wins.  Often the best offer is cultivated by “shopping” the offers on the table until the best offer is formed…and not the best offer “as submitted”.  If anyone thinks it is “illegal” for an agent for the seller to reveal your offer to another potential buyer…quote me the law that prevents that from happening. 

Rarely, if ever, do agents reveal another offer by physically showing it to another agent BEFORE the seller makes a decision.  Rarely do they reveal another offer in writing.  Rarely do they reveal it in a voice mail message.  Most often these things happen verbally and “off record”…like a whisper in an ear as most secrets are revealed.  So your agent being available by phone during the time the offers are being presented, could mean the difference between your getting the house and your not getting the house.  Often what we do to earn our commission is be available…at the right time…with little or no notice…just in case we are needed.

So when you decide not to have an agent, know that may hurt you in a multiple offer situation.  And when you are choosing an agent, understand that how your agent conducts themselves with and in front of the agent for the seller…can make or break your deal…and your heart.  So pick an agent that is trustworthy.  One that YOU trust…and one that the other agent will trust to help you close, rather than to “get out” of, the transaction.  If an agent makes it very clear to you “that they can help you get out of this”…they may be sending that signal to the other agent as well.  No seller wants a buyer who is looking for “an out”.

I have had agents bring offers, in mulitple offer situations, tell me “I hope this one works.  I’ve submitted 7 offers for these buyers and they cancelled on home inspection EVERY time!”.  When the Buyer Agent “vents” to the Agent for the Seller…what are they thinking?…but that’s another post.  For now, know that your offer CAN be revealed, used, shopped and utilized to the seller’s best advantage.

Sunday Night Stats

Posted on by
8

Not a huge movement, but fewer condos for sale, meaning they are selling a bit faster than they are coming on market, for a change.  Fewer in escrow than last week, but that’s normal for the last week in the month as more escrows close out in that week.  Won’t be doing true month end stats until next week, as there will be end of month closings posting during this week.

King County Condos

Active Listings: 3,911 DOWN 42 – median price $324,999 – MPPSF $320 – DOM 59

In Escrow: 944 – DOWN 28 – median price $299,925 – MPPSF $300 – DOM 51

Sold YTD : 2141 – UP 127- median list price $289,950 – median sold price $285,000 – median PPSF $290 – DOM 47

I did a quick check on May closings.  While all are not posted, May sales prices were up both as to median price and MPPSF at $290,000 and $293.  Likely won’t take the YTD numbers up much, but one would expect “high season” sales to be a bit more as to price than 1st quarter sales…and they are.  I’m putting one on at $273 per square foot in Issaquah this week, hoping for shorter days on market than the King County median of 47.

King County Residential

Single family homes are not selling at a higher rate than they are coming on market as the condos are.  I would expect to see that change in June and July.  The number in escrow is down, but again that is because more move from in escrow to closed in the last week of a month, than in other weeks.

In Escrow: 2,879 – DOWN 54 – median asking price $448,950 – DOM 45 – MPPSF $212

SOLD YTD: 6,547 –  UP 380 – median sold price $440,000 – DOM 50 – MPPSF $221

May sale prices are up at $447,000, but no change for MPPSF

I do the Actives last for Residential, as I can’t run stats when volume is over 10,000 units

Actively for sale 11,612- UP 33 – MPPSF <$800,000 is $220 – MPPSF >$800,000 is $339

If distressed properties start selling more and more outside of the mls and less and less via the mls, we will have to check these numbers against the tax record data.  In fact it will be a good idea at the end of June to compare the first two quarters mls figures with County Stats.

I’m still seeing multiple offers on the best properties.  People expecting the best properties in the best areas to sell at bargain prices are disappointed.  It’s not that kind of buyer’s market.  It’s not really a buyer’s market at all…it’s just not a seller’s market. Distressed properties ARE a bargain, but not the best homes in the best areas.  The date for that to change is usually around October 15th.

Stats not compiled or published by NWMLS. (Required disclosure)

 

Sunday Night Stats – King County.

Posted on by
24

A special Shout Out to my Late Night Fans. I was over on my blog testing out some theories in specific areas. Comparing YTD 08 with same period 07 in King County, Kirkland and Bellevue. To my surprise, given it’s almost 1:00 a.m., I was seeing people reading them as I was posting them.

I almost didn’t post my Sunday Night Stats, given tomorrow is a holiday and I post them Sunday nights so that people have something to play with at work on Monday morning. But once you start a regular “show”, I guess you can’t miss a night. So I was pleased to see someone is watching and waiting and reading. Quite a few someones in fact. It gave me the energy to press forward, so thanks!

Before I continue with the normal weekly stats, I think I’ll go back over to my blog and do Redmond. The more time I spend in Redmond, the better I like it. I just sold a Rivertrail townhome, and have another coming on market next week. Have spent quite a bit of time in Abbey Road and English Hill recently as well. Redmond has a lot to offer and may be becoming the stronger choice than Bellevue or Kirkland. I’m going to be tracking that. As I suspected, Redmond’s doing pretty darned good relative to Kirkland and Bellevue at 30% down as to volume vs. 60% down as to volume. And the asking prices of property on market is also more in line with reality.

The market is not going up this year people! Stop adding 10% to last year’s comps to get your asking price. Unless you like sitting on market for 3 times the number of days, only to have to reduce your price and sell for less as “stale on market”. Condition and price are key! Inventory is up and volume is down and you have a lot of competion with many months of inventory in supply.

OK, let’s get to tonights weekly roundup:

King County Condos

Active Listings: 3,953 UP 36 – median price $324,950 – MPPSF $320 – DOM 58

In Escrow: 972 – UP 42 – median price $299,950 – MPPSF $302 – DOM 50

Sold YTD : 2014 – UP 128- median list price $289,950 – median sold price $285,000 – median PPSF $290 – DOM 47

(The numbers on solds on my blog tonight are different because I closed it as of 5/15/07 and 08 to do an accurate % regarding change in volume, giving enough time for all closings to be posted. Here I do the 7 day change from last Sunday.)

King County Residential

In Escrow: 2,933 – UP 229 – median asking price $449,000 – DOM 43 – MPPSF $212

(median asking price way up there on “in escrow” this week -MPPSF up too by $5)

SOLD YTD: 6,077- UP 341 – median sold price $439,990 – DOM 50 – MPPSF $221

Sold prices the same PSF. Houses are selling for about $10,000 under list price.

Actively for sale 11,579 – UP 126 – MPPSF <$800,000 is $220 – MPPSF >$800,000 is $338

No change to speak of in price per square foot. Inventory increasing by less than half as much as last week. Maybe it’s the holiday. Speaking of which…have a good one!

Stats not compiled or published by NWMLS. (Required disclosure)

 

STOP TAKING MONEY FOR REFERRALS!!!

Posted on by
43

I could start and end this post at, ” Just STOP taking money for referrals…unless you are providing an equivolent equivalent value.” But this practice is such a hold over from the olden days, that many will say WA??? As in what the heck are you guys smokin’ in WA?

The added “equivolent equivalent value” has to be TO THE CONSUMER by the way, and not to YOU!

‘frinstance: Had a 3 plus hour meeting with some people yesterday.

Them: How can we get referrals from you?

Me: Be on top of your game and the best source of your service for my client. And that changes from time to time and client to client.

Them: Maybe you could get an insurance license?

Me: Why?

Them: So we can legally pay you for referrals.

Me: (after going to bathroom to puke up my lunch) You repay me by giving the clients I referred to you PRIMO attention to their needs. Do the first one or two for free to give me a chance to evaluate your services and talent level.

Them: Scratching their heads, but willing to learn the new way of life I have introduced.

I don’t expect all agents to “get” this. Agents paying referral fees is as old, if not older, than the mls itself. But at least scratch your head and be willing to learn “the new way of life” and society’s elevated stance on this matter.

You refer to someone:

1) Because your client needs that service. They more and more DO NOT and can choose their own.

2) Research and give them a few GOOD and valued options that you have taken the time to investigate. DO NOT STOP AT THE FIRST AGENT WILLING TO PAY YOU A REFERRAL FEE…Yes, sad but true, the way it “was”.

3) Do not simply send them to any office in your Company’s list of other offices. If the BEST agent for them is at RE/MAX and you work at Coldwell Banker, as example, then refer them to the RE/MAX Agent. OR, give them the agent with your Company plus two others and let them choose.

Agents ask me all the time why I am or am not willing to pay or not pay or receive referral fees. Most times I don’t and sometimes I do.

1) I am willing to pay them to Galen, I think, because Estately.com is a valued service that the client has already utilized. Jury’s still a little out on that one.

2) I take a “referral fee” when the client is here and buying there, as I am the one who meets with the client at this end to do the paperwork. So I am “sharing the commission” with the referred to agent on the Coast or wherever, as the client is here in my office going over the offer. Technically a “referral fee”, but actually a fee for “added equivolent equivalent value”.

We are mostly talking about legal, agent to agent referrals here. But quid pro quo, I’ll scratch your back if you scratch mine good old boy networks are so old fashioned and yesterday’s news. As I said, I don’t expect you to “get” this to the degree that I do. I don’t expect you to go puke up your lunch, like I do when the offer comes around.

But at least start to scratch your head and say WA?? Cause Seattle has it ALL OVER most of the country when it comes to using new technologies to change the world. Your client uses the internet. They can find their own referral. “The times they are a changin'” and you don’t want to “endorse your epitaph” with underhanded, yet legal, practices. AT BEST at least say to your client “can I get you a referral who will pay me 25% of the commission you are paying them?” At MINIMUM please apply full disclosure to the practice.

Thank you.

For those who never heard this song, it’s worth a listen and I still remember every word from when it came out back when I was an impressionable youth and goes with the “endorse your epitaph” line in the post.

It’s always been one of my Favorite Songs. Mr. Business Man by Ray Stevens. Maybe Dustin will turn it into a YouTube insert for me. For now, here’s the link:

So many favorite lines in there. “Do you qualify to be alive, or is the limit of your senses so as only to survive?!?” Love that song.