My New Blog

For those who passed up the explosive downtown condo market a couple years ago, now may be the time to consider buying if downtown is where you want to live.

It was just announced that there will be an Auction held in May for the Brazos St. condo development with bid prices starting at $80,000 for the smallest units. While it's doubtful that any units will actually sell for this, there may in fact be some good deals to be had at this auction.

Check out more info at this Fox News story.

http://www.myfoxaustin.com/dpp/news/042009_Discounted_Downtown_Condos_on_Saleat  

With all the negative news on TV (so I hear...personally, I don't watch it much), radio and other medium, it's increasingly difficult for all of us to get excited about each day. I can relate as I just reviewed my stock portfolio...down 52%...WOW! But worrying about things we have little control over can only put us on a downward spiral that will be hard to overcome.  

Fortunately, you can (and do) have a good life AND you don't have to participate in this recession. Consider some time tested but simple steps to help you change your life and your attitude so you too can refuse to participate in our recession.

How you might ask?

1.  BE THANKFUL. Be thankful each and every day. No, I don't mean be thankful only if you have a closing today or if you score a new client...I mean thankful that you have your health, thankful that you are not confined to a bed and living off a feeding tube, thankful that you have a roof over your head and food on the table. I know who I thank each and every day but I don't wish to debate the merits for those who feel differently.

Re-learning to be thankful may take an attitude change. So read something enlightening or inspirational each night when retiring to bed. Just 15 to 30 minutes of reading will help you relax and get your head and heart ready for the next day. This should be a daily activity, not something you practice only when you can "find the time." 

2.  GET RID OF SOME OF THOSE AROUND YOU. No, don't whack them, just stop letting them live rent free in your head. The old saying, "misery loves company" could not be a more true statement, especially these days. Too many of your friends and associates are draining the life from you because they believe the world is coming to end. I made a commitment several years back to no longer associate with friends, agents, business associates who, as I call them, are on the "dark side." Some of these were good friends, but they took more from me than they gave. They zapped my energy and my spirit and I finally had to make a decision not to give that to them anymore. Associating ONLY with positive folks will work wonders for your business and your sanity.

3.  BUY...BUT STOP PAYING RETAIL. Decide today to keep on living but don't do it from a retail perspective. Shop for bargains on every purchase you make. My personal buying philosophy is that I won't pay retail for anything. It doesn't make sense to do so. Start paying cold hard cash (yes, cash...not a debit card) for everything except when paying by mail. This will also reduce the many impulse purchases you make weekly but save you money on the purchases you do make, thereby giving you additional money to go to dinner, a movie, a weekend getaway...whatever you reasonably desire. And now is a great time to buy things you can afford. Seems like everyone is ready to discount their retail prices in order to convince consumers to make purchases.

So stop participating in this recession by giving these simple steps a try. After all, what do you have to lose?

About 9 years ago, I was referred to and received a great listing that offered a fantastic view of Lake Travis.  I knew this would be a "hot" listing....but what I didn't know at the time was just how low a veteran broker would stoop to keep her client in the running for this home.

The house was vacant and was located about 35 minutes from my office and my Seller asked me to check on it once a week.  It had only been on the market a one day when I started receiving calls off the sign.  The next day (Friday) I decided to visit the house as the weekend was nearing and I wanted to make sure the home was ready for the traffic that was sure to come. 

When I arrived, I noticed my sign was missing.  I eventually found it had been tossed under a low hanging tree.  I was none to happy, but what could I do.  I went inside the house and noticed all the blinds had been closed which prevented potential buyers from seeing through the house and realizing the beautiful lake view if offered (my seller requested I leave the blinds open for this very reason).

I knew it was probably an agent who threw my sign under the tree and closed the blinds, but all I could do was put the sign back up and open the blinds.  When I arrived back home, I found an offer had been faxed to me from a long-time broker who worked exclusively in that area.  I called to tell her I received the offer and would let her know once my client had a chance to review it, but that it is was a multi-generational fax and was mostly illegible.  Unfortunately, I also told her I'd just returned from the listed house.  Something told me to go back to the house the that day, which I did about 2 hours later. 

As you might have guessed, upon my arrival the second time, the sign was missing again and the blinds were closed.  This time I was certain the broker was behind it.  Later that evening, the broker called and I confronted her about it.  Her response, "Oh no, I'd never do anything like that.....but my client may have have pulled your sign up."  I could not believe my ears.  She was scapegoating her client!   

My seller ultimately countered the offer which he faxed to me and which was now completely illegible.  I asked the broker to meet me half-way to exchange a legible version of the offer and she refused.  I told her I would pick it up at the house the following day if she would leave it there for me.  She was agreeable to that since she wouldn't have to put forth any effort.  My seller was not too happy with the broker's behavior either and as a retired military pilot, I was fairly sure he'd tell her his feelings.  As it turned out, my client decided to drive into town and meet me to discuss this offer, but by the time arrived early Saturday morning we had received two more offers including one for $7,000 more than our asking price, which my seller later accepted. 

I advised the broker and she was terribly angry, and even had an attorney call me late that evening to tell me we could not sell the house to our buyer because he had been "advised" that my clients were already under contract with the broker's client.  RRRiiiiiigggghhhhhtttttt.  This broker called me all weekend trying to convince me that we had a contract with her client.  She adamant and I knew she wouldn't give up.  On Monday morning, I called the title company I used and had them do an email blast to all their offices in case this broker attempted to receipt an illegible copy of her offer.  Yep, at 10am Monday she tried receipt her copy so she could tie up the property.  The title company respectfully refused to accept it. 

Things got considerably worse....well actually better.  The broker's client eventually called me and told me he fired the broker for being untruthful and that he would probably sue her because he made it clear to her that he wanted this home, regardless of price.  He asked me to offer the contracted buyers $10,000 cash if they would walk away from the purchase.  The contracted buyer refused the offer and we closed the transaction as scheduled. 

I'm not sure what happened with the broker and her former client but I would love to have been a fly on the wall when they met for the final time.   

Here is yet one more installment of my most bizarre transactions. 

An elderly, but cash heavy buyer, contracted to purchase a small home on the north side of town.  Being retired, and in less than great health, he fell in love with the large corner lot with all the flower beds and the 5' tall, multi-level water fountain that was set upon it's own perch in the garden and energized by the underground electrical service designed specifically for this magnificent, peaceful piece of art.  He envisioned enjoying this beautiful garden and water fountain for years to come as he sat on the covered patio.  Now let me say that before we had even submitted his offer, I felt obligated to warn my client that this may be a troublesome transaction as I knew the listing agent well..she was nearing her 25th year in business and had a less than stellar reputation among the real estate community yet had still managed to build a sizable following of clients.   

It just so happened that my client lived only blocks away (in an apartment) from this house and he drove past it daily, sometimes twice a day as he yearned for the closing day to arrive.  Then, about four days prior to closing he noticed the waterfall was missing.  I'll never forget the sound of alarm in his voice when he called to tell me, "someone stole the waterfall!"  I was afraid it was going to put him in the hospital knowing all the heart problems he had.  I finally got him to calm down a bit and told him I would call the listing agent so her clients (who were now living in another state) could file a police report.  My client was heartbroken to say the least.  I contracted the listing agent phone and told her the water fountain was stolen.  To my surprise she said, "no it wasn't."  I asked her if she knew what happened to it and she said, "yeah, I took it."  To be honest, I was certain I heard her wrong.  I asked her again and go the same response.  I asked her why she removed it and she said, because it doesn't go with the house.  She said, "it's like a picnic table, and those don't convey either.  Well needless to say, we had a strong difference of opinion on that.  A 5' water fountain with specially designed underground wiring to it is a far cry from a picnic table.  We argued for a few minutes before I explained that I would contact the police regarding this matter.     

I told my client what happened and he began screaming that he would $^$$%% that %^$$%$.  Again, I had visions of an ambulance arriving too late to save him.  Again, I calmed him down and we discussed our options.  Although he was retired, he was no less the savvy businessman he always was and he took matters into his own hands.  He tracked down the sellers and called them them.  He explained the situation and was assured that they intended the water fountain to convey.  I again called the agent and explained this and she began yelling at me to leave her clients alone.  And she still refused to return the water fountain, even after repeated calls from the sellers insisting she do so. 

I knew this would go nowhere quick, so I scheduled a lunch with an old friend, who just happened to be a Detective/Sargeant with the local police department.  While we ate, I explained my predicament and asked if he thought the county attorney would accept a case of theft.  He stopped eating, called the C.A. and was told, "file it."  Now, at this point, you would think common sense might come into play with the listing agent.  After all, the Detective called her and "told" her to return the water fountain, to which she responded, "I can't, I gave it to my mother."  So the Detective began getting his statements from the sellers, my client, me and others and I explained the situation to my buyer.  He made a few calls to his sphere and found out that the listing agent's mother had died about two years prior.  How did he know this?  One of his friends actually attended the funeral.  Well, once I told the Detective about this event, he went ballistic and told the listing agent that he was swearing out a warrant for her arrest and that he'd not even consider arresting her until he could do it at her office.  I think they call this the "Perp Walk."  Apparently the listing agent saw her world coming down around her and within an hour of that call from the Detective, the water fountain was back at the house and set up. 

After much discussion about filing a complaint, my client requested, as did the sellers, that we "just get it closed' and not drag them into any more problems.  They did not wish to make any further statements or answer any more questions from anyone.  I swallowed a bitter pill and honored their requests, but reluctantly so.  And to this day, I can't believe someone would disparage their own dead parent in order to cover up a crime.      

A while back, just prior to my family and I leaving for a vacation. a referral called me to list an home from his mother's estate.  He was was still doing final repairs on it so we decided to wait until the repairs were complete before starting our marketing.  This was going to be a very hot listing due to the location which is highly sought after, so I was looking forward to receiving multiple offers once we started our marketing.

Within a few days, and before my sign was on site, an agent saw the seller working on the house and said she had cash buyer for the house if he'd be willing to sell.  He told her to call me.  The buyer agent called me and submitted a cash offer which we eventually countered before coming to an agreement.  Shortly thereafter our family left for our annual Florida vacation.  I was due to be back just a few days prior to closing and without any lender issues, I assumed this would be a relatively pain free transaction.  I could not have been more wrong.

I was still on vacation when I received a call from my closing attorney to tell me that a lender had just called to get a copy of the title commitment.  What lender...this is a cash deal.  I immediately called the agent to see what she knew about this issue.  She said, "yeah, the buyer can pay cash, but he thought it might be better for tax purposes to use a loan."  I explained that we accepted her offer before we even placed the home on the market because it was a cash offer and we would not allow a lender to get involved at this point."  I told her that because the house had no floor coverings, no working plumbing, ancient electrical wiring, was in the flood plain and numerous other issues, a lender would never provide a loan on this home.  I told her, "no way" and she argued her point some more before hanging up on me.   

Then it was time for her lender to call me and argue the point.  By this time, they were disturbing my vacation far too much, so I told the lender she was not and would not be involved.  She began calling me every name in the book.  She was screaming so loud that my wife and son who were in the car with me could hear her rantings.  I decided to hang up and enjoy my vacation. 

Apparently the lender had not had enough.  she called my seller and began complaining about me and why she should be allowed to do the financing for this purchase.  My seller than called me to complain about the lender.  There seems to be a pattern here don't you think?  I advised him not to answer her calls anymore. 

Upon returning form my vacation, we did close it as a cash transaction.  My seller was elated...the other agent likely bought a voodoo doll and named it Guy. 

PS.  I've used used one closing attorney exclusively for about 5 years and he says I'm a magnet for crazy buyers, sellers and agents.  I'm starting to believe him.

What we experience can often be considered a cruel teacher, but a teacher nonetheless. 

I had a listing that was under contract and and failed to close per the contract as scheduled due to buyer/lender issues.  I knew the agent was looking for her next victim...I mean client, so this transaction had been placed on the back burner.  Apparently this agent (newbie) believed her obligation ended when the contract was executed and everything else would happen while on autopilot.  It did not.

About a week later than originally scheduled, the buyers (who were local) did finally close their side of the deal but I was not given advance notice.  And there was no reaon for me to attend the buyer side closing as my clients were in other states and had already signed their closing docs via a mail-out. 

At 4:30pm about week later, it finally closed/funded and the buyer agent calls me wanting to know where the keys to the property are so her clients can get inside "their" house.  Yes, she was mad at me from my previous questioning of her involvement in this transaction.  Anyway, I told her the keys were left inside the house with the exception of the one key in the electronic lockbox which she had access to.  Then she says, "My clients need to get inside so YOU need to meet them there and let them in."  I told her that since I wasn't even told the closing would take place this day, and because I had other commitments, she could make the 1.25 hour drive in rush hour traffic to let them in or I would provide them the key early the next morning as I could not drop my other business to take care of hers.  Needless to, things went from bad to worse in our conversation and I eventually ended it without her approval.  She called back several times apparently in an attempt to continue this argument...I declined to answer.      

This is when things went from bad to worse.  She refused to fight rush hour traffic to service HER clients, so she apparently told them to have a locksmith remove the door knob, and put a new lock on.  This is fine, but based on hearsay, she also told them to take my lockbox and place it inside the house.  The next morning I arrived to find my lockbox missing so I contacted the buyer by phone.  He wouldn't talk to me, but his girlfriend did.  She began screaming at me that this was "THEIR" house (she was not even on the contract) and refused to give me my lockbox.  As I had already seen my lockbox sitting inside (I peeked through the back window), I decided to file a theft report with the police department.  I did so immediately and the officer who took my report also tried talking to the buyer, but got his girlfriend instead.  She then started yelling at him.  BIG MISTAKE!  He went back to the house with me, looked inside and saw the lockbox.  He forwarded his report to a veteran Detective, who also called and spoke with the girlfriend. Yep, she started screaming at him and then hung up on him.  EVEN BIGGER MISTAKE.  The Detective called me to see if these folks were just stupid or mentally challenged. 

Well, within a couple of months, a warrant was issued the the buyer was arrested for a Class B theft.  He was not happy.  Perhaps he won't allow his girlfriend to do his talking in the future.  He was taken to the County Jail and booked for theft.  Within a couple of days of that I got a call from my broker at the time who had received a call from the buyer's attorney.  They were threatening to sue, file a complaint with our real estate commission, call the President of the United States...you name it.  I explained the situation and told him this was a police matter and that is who the attorney should contact. 

The end result is that the Buyer spent a night or two in jail and he eventually had to pay me restitution for the lockbox (which was never subsequently found) and how has this arrest permanently on his record.  All because he may have been given bad advice by a new agent.

Over the last 10 years, I have been a student of real estate.  I say student because I don't think you should ever stop learning or having a strong desire to learn.  And real estate, like our world, is constantly changing. 

But one thing I've noticed is how few agents continue to aggressively learn as they continue their career.  Many get their license and in the ensuing years do only what is required of them ito keep their license.  Here's an example.  Some months back, I took another agent along on a "short-sale" listing appointment with me at his request.  He had been in business for 18 months and had sold a few homes, but he didn't feel comfortable with listing presentations or finding comparables, and he admittedly knew nothing about short sales.  

We ultimately listed the house and on our drive back to the office, I began a line of friendly questioning to see if I might be able to offer anything of value to him in the way of advice.  The first thing I realized is that he was more than 30K high on his market analysis and this was a 140K listing.  Next, when I asked him if he had a listing presentation that he practiced, he said no.  When asked why, he said, "I just don't have that desire to like you to learn and practice and....".  I couldn't believe my ears.  He was striving to be average and that's exactly what he had achieved.  It clearly did not bother him a bit.  Then to top it off, he said he never really felt comfortable explaining the contract forms to his clients because he didn't understand them.  WHAT?  

In reality, he's more often the norm than the exception.  In my humble opinion, I've found far too many newer agents believe they've hit the pinnacle when they obtain their license, and they never crack a book, read a periodical or attend classes/seminars that will help them better understand the nuts and bolts of the business rather than how to market more effectively.  With this particular agent, he declined my offer to help him understand the processes and paperwork, he simply didn't want to know or do any more than he already did.  A sad commentary indeed.

I know there are plenty of agents out there that work hard every day to become more knowledgeable, but I think we all have a duty to help push the newer agents in that direction.  Many are young and don't have a lot of life experiences to fall back on and that is where those of us with some gray hair can help. 

So, for those in our industry who also believe that learning never stops, I applaud you.  It is the only way we can become Doctors of Real Estate.    

Well, believe it not, I just had my first multiple offer of the year on a small home in northern Travis County. Guess the Chicken Little’s in the media wouldn’t want to hear about this.

Anyway, I still find that most sellers, buyers, and even agents are not versed in how to handle multiple offers so that everyone involved is treated fairly and professionally. So, let’s consider how this multiple offer was handled.

First, it should be noted that I received all offers on the same day (actually night) and I printed, numbered and placed each in order in my file. Next, I emailed each offer to my out-of-town client for her review prior to our phone conversation. Then we went over each offer thoroughly and chose to make a counter-offer on the best offer we had received. The thing to remember here is that many sellers don’t understand that is very dangerous to even consider countering more than one offer at a time, lest the seller could become obligated to sell their house to more than one buyer. This is an attorney’s dream. Since all this was taking place at about 9:00pm at night, we knew we needed to act fast to get a one of the buyers committed before they all got frustrated and withdrew their offers. When we countered the best offer on the table, we did so that night, albeit late that night. I emailed the counter-offer (signed by seller) and gave the buyer till 6:00pm the following day to either accept or reject the counter-offer without the option of a counter. This gave a true sense of urgency to the buyers because all agents who submitted offers were aware that other offers were on the table and that only one buyer would be able to purchase the home. I advised the agent working with the buyers (note that buyer’s were in California) that at 6:01pm the following day we withdraw our counter-offer and move on to the next potential buyer. This time frame forced the buyers into decision making mode while still allowing us time to keep the other offers on the table.

Our counteroffer was accepted by about noon the following day and I contacted the agents who submitted the remaining offers that the seller had accepted another offer. It all worked out well but it could have ended terribly had we not given this some thought and acted professionally in the counter-offering.