If wishes were horses, beggars would ride

if-wishes-were-horsesIt’s much easier to “stick it to the man” when you’ve never met the man.

“If” the beginning of every residential real estate transaction were the buyers and the sellers and their agents meeting and chatting, maybe having dinner together and a drink or two for an hour. Then everyone walks through the house together while the seller tells the buyer the story of their life in the house and the buyer and agents ask questions. Then the offer is written, and proceeds through the inspections to find things the seller just truly doesn’t know about. At the end of the transaction when all items and terms are fully negotiated, the buyer comes into the room with a check in his hand. The seller comes into the room with the keys to all doors and garage door openers and manuals on appliances. The agents review the final numbers and nod to the closing agent.

Everyone smiles and shakes hands after the seller gets his check from the closing agent, and the seller hands over the keys to the new owner and wishes them much luck in the home they have lived in, and now pass forward to the new owners.

Believe it or not, that is how many of my original real estate transactions transpired, once we achieved balanced market conditions. For the past several years, more often than not, the buyers and sellers never even meet each other. The Seller’s Agent never meets the buyer and the Buyer’s Agent never meets the seller. The playing field seems to get nastier when it becomes a true buyer’s market or seller’s market. For the first time in many years, I am starting to see transactions that are more civil and fair to both parties.

I’ve been in this business long enough to see both buyer markets and seller markets. I’m still happiest when the market is balanced and all parties have met each other and treated one another with dignity and respect. I wish it were always so, but then, “if wishes were horses, beggars would ride…and there’d be no work for tinkers.”

Free Bloginar in L.A. for 200 Agents!

Russ Cofano and I are giving our 2nd Bloginar for agents next week on how to use blogs to effectively generate leads. Interestingly, the sponsor of the event, Coldwell Banker, decided to open up our seminar to all southern california real estate agents and not just Coldwell Banker agents (WOW!)… Not only that, but they decided to make the even free (Double WOW!).

The catch is that the facility can only hold 200 people and they’ve decided to offer seats on a first-come, first-serve basis! The only place to register is on this fancy flash page they created for the event! (A little bird has told me that there are already over 50 people 70 people 80 people 100 people registered for the event, and the organizers are expecting a full house!)

The event is scheduled to start promptly at 9:30am and last until 12:30 on July 19 at the Skirball Cultural Center in Brentwood.

Last time, we ended up rushing things (and skipping one of two planned breaks) because we really have four hours worth of material we’re trying to condense into three hours. I’ve attempted to filter things a little more this time, but with the inevitable (and valuable) questions that real estate blogging encourages from the audience, I’m sure we’ll be rushing to cover everything in the end this time as well!

Some of the reviews we had from our first bloginar were very encouraging…

Dale Crockatt:

Dustin and Russ, your first bloginar class was awesome! I have not been so excited about a new idea in years. We have been searching for an idea for the fourth generation of our website www.MountHoodHomes.com and I am convinced this is it! I was surprised you were not selling something at the end of the “show

What is a .25 bathroom?

[photopress:9t.jpg,thumb,alignright]Nine times out of ten when someone asks me this question, the house does not actually have a .25 bath. The mls here in the Seattle area requires us to count bathrooms in a specific, and somewhat outdated manner, causing many homes to appear to have a .25 bath that do not. 

[photopress:5t.jpg,thumb,alignright]I will shortly be listing a two bedroom condo in Kirkland at the north end of Lake Washington for about $200,000 that has 1.25 baths. While many homes show 2.25 baths or 3.25 baths, these homes do not actually have a .25 bath at all. A .25 “bath” is one extra fixture, usually not housed in a separate room at all. The 1.25 bath condo I will be listing has a sink and vanity area located in the master bedroom between the full bath (with jacuzzi) and the walk in closet. You enter this dressing area from inside the master bedroom. This is the best example of a real .25 bath. It is an area inside the master bedroom, just outside the full bathroom, where one can shave or put on their make up while the other is in the bathroom taking a shower.

Most homes that show 2.25 baths actually have 3 “bathrooms” involved that total this configuration. The most common setup is one “full bath” plus one “3/4 bath” plus one “1/2” bath, that totals 1 + .75 + .50 = 2.25 total baths. The 3/4 bath is most often attached to the master bedroom and has a shower stall and no tub, making it a toilet + sink + shower stall = 3/4 bath (3 fixtures – no tub). The full bath is usually located off the main hall and is used by the persons in the “other” bedrooms and has a tub (with shower in it) + toilet + sink equalling one “full” bath. A 1 3/4 bath home would normally be a rambler style on a single level, with the full hall bath doubling as the “guest bath”.

A 2.25 bath home would normally be a two story home with a 3/4 in the master, a full bath in the hall and a half bath on the main level, with a toilet and a sink only, so that one does not have to go up to the second floor to go to the bathroom. On the East Coast this is called a “powder room” from the old days when women pretended to be “powdering their nose” as opposed to relieving themselves 🙂 A 3.25 bath home would be similar, but might have four bedrooms rather than 3 with both a hall bath and a “Jack and Jill bath”. A “Jack and Jill bath” is a term used to describe a bathroom set between two bedrooms that can be accessed from either bedroom, but not from the hallway. I had one once, though in my case it would have been more aptly called a “Jill and Jill bath”, but I do not recommend it. The occupant of the bathroom enters from their bedroom and locks the door to the other bedroom from inside the bathroom while bathing. They are supposed to remember to unlock that door when they leave, but often don’t, causing the occupant of the other bedroom to be locked out from their side of the bathroom.

Another example of a .25 bath seen in some very old homes with basements, is a “below grade” toilet only, usually in the basement and sometimes called a “service toilet”. It is a stand alone toilet or a toilet in the washer and dryer area near the “utility sink”. It is often just sitting out in the open in an unfinished basement area used by a guy who is working on his car or in his workshop area in the basement, saving him a trip up the steps to the main bath.

I say this system is “antiquated” because housing trends have expanded, but the mls method of counting fixtures has not expanded with the times. For example, my master bathroom has a separate enclosure for the toilet area, a jacuzzi tub, two separate and distinct sink areas, and a large two headed shower stall. Technically that equals six “pieces” 2 sinks plus 2 showers plus jacuzzi tub plus toilet equals 6. But the mls makes no distinction between that type of elaborate master bath and a “full” bath. That is why you will often see the term “five piece bath” in the marketing remarks of a home, meaning there is a single head shower stall and a separate tub and double sinks. The “uitility sink” located in the washer and dryer area is never counted as a “fixture” when totalling up the bathroom fixture count.

So when you see a home listed as having 2.25 baths or 3.25 baths, stop looking for the .25 bath. It generally does not exist inside that home. Instead, expect to have a 3/4 bath with no tub in the master and a .50 bath on the main level with a toilet and sink only.

The Five-Minute-a-Day Habit

[photopress:brazilsoccerhead_small.jpg,thumb,alignright]It’s been a while since we did a plug for David’s AHI blog. His blog is insightful, fun and for the price of only a few minutes a day, you can learn a lot! I don’t know how he does it, but he manages to write a quality article every day and they are almost always at the high level of today’s article on the relationsip between the World Cup, the world’s future, and affordable housing.

(You can learn more about David from this RCG interview!)

Timing is Everything…

On the Friday before the long-weekend I was handed a DVD from a friend at Move with only a basic overview. (He said something to the effect of “just watch it… it was produced by homestore in the dot com days and a bunch of office decorations and inside jokes will make a lot more sense…”)

[photopress:home_movie.jpg,thumb,alignright]Well, back in the dot com days when I was an engineer in a relatively boring industry, the people at Move (then known as HomeStore) were obviously having a lot more fun… Seriously, having a lot more fun is the only way to explain the “Chris Smith

The Importance of Using the Digital Darkroom…

Back in February I wrote my first and only article on Real Estate Photography for Rain City Guide with suggestions for improving the quality of real estate photography images. I guess I had high expectations. But sadly, there are still listings out there with what I’d have to call ‘awful’ pictures. I’m somewhat disappointed. I thought I could change the world, or at least the quality of marketing images of Real Estate. Today I picked up a very slick, glossy Real Estate publication of premier listings to ogle what I expected would be some awesome and inspiring interior photography and I really couldn’t believe what I saw. There were certainly good exterior photos, including aerial views of sweeping estates, but I saw several poor interior images on full page listings of multi-million dollar homes which must have been a significant advertising expense for the Realtor. Several of the interior images were much too dark to really show off what must have been beautiful interiors and many of them showed converging verticals created by the use of a wide angle lens, which may not have mattered much anyway as the images were so dark. I have to tell you, a digital camera in the hands of someone who doesn’t know what he/she is doing is a dangerous thing. I don’t know if the Realtors don’t think it’s important, they don’t recognize poor image quality or some other esoteric explanation.

However, I have a confession to make. Some of the images that come out of my camera are pretty darn bad. Fortunately no one sees them at this stage and I wouldn’t want you to. So how do I get people to pay me to photograph their listings? Well, the image capture with my camera is only the first half of the photographic imaging process. The other half is image editing or post processing that takes place on my computer with software such as Photoshop or Photoshop Elements. And it’s amazing what image editing tools can do to transform an image. Referred to as the digital darkroom, I learned fairly early at my entry into
digital photography to regard image editing as an extension of the camera. Although camera manufacturers strive to create cameras for the point and shoot crowd that will require little or no post processing, almost all images will benefit from some editing and the high end digital SLR camera’s are intended more for user involvement in the post processing. This involves making necessary corrections in lighting, color balance, saturation and perspective. Sometimes even a few more tricks are at our disposal for a photographic faux pas or a special touch like a sky replacement. Ideally, photographers consider a good original capture important and reliance on too much editing to be a bad strategy. In the case of interior photography for real estate professionals, I have a choice between bringing in and setting up lights (a time consuming process on location) or simply shooting with both flash and/ or available light and working out the results on the computer. For most homes, the Realtors or home owners are comfortable with about an hour of their time to be present while I’m shooting the interior. After about an hour for the average home, I’ve worn out my welcome, so I’ll only set up the lights in a situation where I consider it a necessity.

For the purposes of illustration, I’m going to be brave and show you how one of my images looked when it came out of my camera and follow it with what it looked like when I submitted it to my customer.

[photopress:kitchen_before.jpg,full,centered]

Pretty bad, huh? Would you pay me for something like this? I could try to convince you that the carpenter was really incompetent to explain those slanting cabinets and walls, but would you believe me?

[photopress:kitchen_after.jpg,full,centered]

The final image may not be quite ready for the cover of Architectural Digest but most people (agents and buyers) when they see the ‘after’ image are likely to respond ‘wow, what a beautiful kitchen!’ After all, it’s one of the primary selling points of this home and it should make that impression. Do I make my point?

Inman’s Innovation Awards!

Congrats goes out to all the contributors on Rain City Guide! We were nominated as a finalist for the “Most Innovative Blog Award” by Inman News. In my world, contributors are not only the people with their photo up on the sidepanel, but also those of you who return to give your comments on a regular basis. This site thrives off of your continued involvement!

The winners in each category will be announced in SF at the Inman Connect Conference. I’m definitely going to be there (I’m speaking on a panel on lead conversion)… Additionally, I would really enjoy organizing a meet-up of bloggers one evening. If you’re interested in joining us, then leave a comment below and I’ll send details as things get closer!

[photopress:Luther_engineering.jpg,thumb,alignright]In the meantime, I’m not proud to say that I didn’t know many of the non-blog nominations so I spent some time this evening on google researching the other companies nominated. Here are some notes (or at least links) I took while scanning the other nominees.

Most Innovative Brokerage

I wish Inman provided some more context so that I could know why they picked these particular real estate brokers. If anyone can let me know what sets these firms apart, please share!

Most Innovative Web Service

[photopress:Luther_engineering_2.jpg,thumb,alignright]Most Innovative New Business Model

Most Innovative Real Estate Blog

Most Innovative Real Estate Data Site

[photopress:Luther_engineering_3.jpg,thumb,alignright]Most Innovative Technology

Most Innovative Mortgage Company or Service

Most Innovative Media Site

Most Innovative Rental/ New Home Online Service

What’s a buyer to do?

[photopress:frustration.JPG,thumb,alignright] In the under $500,000 market, good properties are flying off the shelf. In the last two weeks, we were chasing properties with our client in multiple offer situations from Bellevue to Edmonds. It’s a tough market to work in and gets very discouraging to our buyers. When a market is this hot it always requires an accelerator clause if you want to be in the game.

I was thinking about how typical this chase was and want to share this little history with you. Two deals we lost, one where we bid higher and one where we bid the same and the last one that we got, we paid less than the highest bid. Here’s what we did and how we finally got a happy ending!

Offer 1:condo in Sandpoint, priced $325,000. We were the high bid on this one at $375,000. We used an accelerator clause because we knew we had to and in fact, there were 10 offers. We knew we’d have to waive inspection and form 17 and be pre-approved and we did all that, but the seller, rather than selling for the highest price, sold the condo at 5000 below our offer because the seller had met the other buyer and liked him. Our buyer, by the way, has great credentials.

Offer 2: condo in the north end priced at $330,000. we did an accelerator to 350,000 and we were beat at the same price because the other buyer was all cash. This was smart of the seller, since there’s always the problem of appraisals, which are tougher on condos than single family homes

Offer 3: condo in Roosevelt district, this one was listed at $320,000 and we put in an accelerator clause up to $365,000, no inspection, waive 17 and pre-approved. This time our buyer was in town and met with the sellers and, as usual, we found something in common with the two of them, and we got the condo for $5000 less than the highest offer.

Lesson learned: Always always try to get some connection with the seller if at all possible. It’s best, if you have a likable buyer, to have them meet and chat a bit. Even if you’re working with a sour personality, you can still coach them a bit and I’m right there with them to act as a catalyst. If the seller or buyer are out of town I write an interesting summary of how much the buyer likes the house, their strengths and I always try to find something really touching about them, some sort of volunteer, a special hobby, etc. Knowing the listing agent and/or treating them really well is a great asset, too. I’ve been known to bring a Starbucks when arriving with an offer. Sellers like to know who they’re selling to and often their home is not just a financial investment but something with soul and they want the “right” person to buy it.

So, you just never know. Selling a home is an emotional venture and there are as many reasons for who they’re going to sell to as their are people!

To Promote or Not to Promote…

When I posted an ad for our listing masking as an advice column yesterday, I got more than a few emails from people who apparently weren’t very happy that I was linking to Redfin.

I had a reason to link to the detail page on Redfin as oppose to our own. A little birdie whispered to me that the “most viewed” home on their site for Thursday would not only be featured in emails and on their blog on Friday, but that home would also be eligible to host the first “Redfin Showing” on Saturday. I’m a sucker for extra publicity for my home and was happy to cooperate! So if you’re in the neighborhood, feel free to stop by our home between 2pm and 3pm on Saturday!

To the agents out there who are upset that I’m giving Redfin digital ink… Please feel free to suggest interesting ways to market my home as I’ve always been an equal opportunity promoter! 🙂

Coldwell Banker Bain’s new interactive map search launched today

Very similar to what John L Scott did (they were both done by the same dev company) but a little more localized as far as neighborhood drill-down. They also added sold property listings driven by address reference rather than map based, but still pretty handy.

As I’m an agent for Coldwell Banker Bain I’ll refrain from singing my praises of the improvements. I’m a little more interested in what everyone else thinks of it. Check it out at http://www.cbba.com/InteractiveMapSearch.aspx