Times Have Changed in the World Of Real Estate.

Time again for another “Blog”. Listening to us all talk today in this tech world, it’s crazy. It’s all lingo and slang. And If you don’t get it, you’re out of it.

Just the other day I called my 15 year old daughter on her cell phone. She answered by saying “Word”. That’s it. The ring ended (ring tone actually) and she just said “Word”. I didn’t know what to say. I thought………….. “’sentence’ might be appropriate.” She said, “Dad you’re just not into all the proper terminology and lingo. When someone says ‘word’ it’s like asking what’s the word.” I said Oh, I guess I didn’t get that.”

Getting an education on how to speak the English language from my 15 year old daughter was a surreal experience. I realized how much things have changed. If ten years ago I said…….

“I’m blogging after receiving an English language education from my daughter on her cell phone”. You would have thought that I was vomiting because my life and my daughters was so bad, because she’s in jail and the only way I can learn how to speak properly is to talk to her on the phone she gets to use while in her jail cell.

Times have definitely changed in the way we communicate.

Times have also changed in the world of Real Estate. I know you’re thinking….. obviously. Well, I would like to point out a few things that are not so obvious to the everyday person not living in this new world of Real Estate.

Did you know that many Real Estate brokerages would rather pay their agents more than pay for services for their customers. This is a major growing trend that seems destined to cheapen the entire industry. More and more brokerages are cutting their expenses so that they can entice more sales agents to work with them. Every time I see an advertisement that says “Join us! We only charge $50.00 per month and will pay you 100% of the commission.” I know they have sold out their customers. So many brokers with this “cheaper is better” attitude have chosen a dangerous road in an industry built on service.

Yes, times have changed dramatically. Brokerages who used to spend the majority of the brokerage income on marketing the properties they have for sale have stopped completely. In most of these cases the responsibility for marketing a property is left up to the agent. So how well are agents doing?

Consider this:

If a sales agent is attracted to a company that pays more knowing they don’t provide service for the customer, is this agent likely to spend their own money on these services?

NO!

This is clearly evident by searching the local MLS here in Utah. Some listings have no photos, or sometimes worse, amateur photos. No Virtual Tours. Even in the new world of tech savvy buyers and sellers, many agents have decided not to spend their money on the most basic marketing. So is this trend good for buyers and sellers? Many sellers complain that their agent is doing very little to get their house sold. And think about how much money a seller loses when their house does not sell. How much do they lose when it takes six months or more?

Here at ERA Legacy we believe that money spent on behalf of our customers is money well spent! It shows in our results! You know statistics don’t lie. We continue to out perform the average MLS Brokerage year after year! Our sellers sell faster and for a higher price. The chances of getting a listing sold at ERA is three times higher than the average broker on the Salt Lake Board of Realtors MLS. Next time you are considering a brokerage to either list your house or find a new one, OR if you are an agent choosing a company to work with…….. Choose a Real Estate company that hasn’t forgotten the most important person in the transaction is the CUSTOMER!

Hey! Don’t be surprised by all this. Times have changed. “Word”!!

Many Realtors Are Sincere

After the conclusion of our Forth Annual Business Plan Workshop I noticed once again that there are many REALTORS that sincerely care about their clients. As with so many sales professions Real Estate Agents often get a bad rap. Maybe we all have become conditioned, in a world where we know we can’t trust very many people.

And so, it was so refreshing to hear how our REALTORS have gone out of their way many times to do something above and beyond. At the core of their reasoning for doing more than is required, is simply they recognized a need and knew they could help.

Real Estate agents are often placed in the middle of some very important family decisions. Emotions are high. People are not usually at their best.They are to say the least stressed. They worry about the kids, new job, new neighbors and are sensitive to the “goodbyes” that will happen. Sometimes foreclosure is near. Divorce is forcing a sale.

So many Agents can’t help but be more than just a Real Estate Agent, they also want to be a friend to their clients. Our agents here at ERA Legacy have given examples of how they provide the help needed to their clients. These are some that have been told to or that I have witnessed.

They have fixed plumbing problems for single women.

Sealed the stucco on a chimney of a two story house.

I was to meet one of our agents Christy at her listing. When I pulled up I noticed she was standing on the roof with a paint roller in her hands. She was dressed in a business suit and wearing high heels. I said “What are you doing?” I worried she would fall. She answered “oh, I’m just sealing this chimney for my seller.”

Fed and watered the pets.

Cleared drive ways of snow.

Mowed the lawn.

I called one of our agents a few summers ago, and as the phone was answered I heard a lawnmower being turned off. I said, “Getting the yard work done today” ? he said, “Well the Anderson’s are out of town, their lawn service hasn’t shown this week so I decided I would do it”

Probably the most touching is from last Christmas. One of Top Agents had a listing that was under contract to close. There were delays in the closing. What was supposed to happen before Christmas was once again extended. The family had no money for Christmas for their two children, Malissa (7 years old) and Jake (4 years old.) I have changed the names to keep this confidential. Our agent recognizing the need decided to provide Christmas for the children. This was done completely anonymous.

Hopefully stories like these will remind us all to be a little more mindful of others.

And from my point of view (Broker) Great people make Great Realtors. Great Realtors not only make a good living, but more importantly they make friends, friends that they sincerely care about.

Enough for today, Will.

Contracts and Real Estate

Once again I am reminded how important it is to have complete and accurate contracts and agreements with any Real Estate purchase or sale. Below is a list of the Contracts and Addenda, and Clause that the Utah Association of REALTORS and the State Attorney Generals Office have complied for the licensed agents use.

• The Residential Purchase Contract – 6 pages – 25 sections
• The New Construction Purchase Contract – 7 pages – 25 sections
• Commercial Purchase Contract – 2 legal pages – 24 sections
• 6 addenda – 8 pages ( approx. 80 sections)
• 21 Clauses – 23 pages (115 sections)

That’s a total of 42 pages and 269 sections of legal language.

That’s a lot for to know. But, each of these documents have a specific purpose.

It is absolutely critical to have an agent that is knowledgeable in the language and purpose of the contracts and addenda and clauses. This can avoid many serious situations.

See, what you need to know is in Real Estate when we have a problem with a transaction, we create a form. So there are many forms, because we have had many problems. Real Estate transaction can be very complex and dangerous if we do not use the appropriate forms.

It is also important to understand that not all situations have been addressed in the agreements we currently have. There can be times were the average agent may wonder where their client stands in the contract.

I answer between 10 – 20 contract questions a day. I would like to think I have become very good at noticing potential problems. And although the client may never speak to me (because I’m the Broker and act behind the scenes) I would like to think I have saved them from many disastrous legal issues.

Today I dealt with two interesting situations.

1. Back up offer Contracts and the deadlines. Does the buyer have to spend their money on inspections and the appraisal if they are not the primary offer?

2. Subject to the Sale of Buyers Residence Addendum. What happens if after the buyer has their offer accepted, the sell of their old property fails? What is the status of the new offer? The seller has accepted the offer with understanding that the buyers house was under contract. The Answer? There is not language to protect the seller of the new property.

Okay, maybe this stuff is too much to understand for the average person.

My advice? Hire agents that make knowing the agreements a top priority!!! Or agents with supportive and knowledgeable Brokers. You’ll be glad you did.

Seasonal Impact On Home Sells

With the holidays just behind us, this time of year can be frustrating for home sellers. If you have had your property active on the market in December then you know what I mean. But don’t loose hope. The worse time of year for Real Estate Sales has just passed us. It only gets better from here.

In the Salt Lake Area we topically see number of home units sold drop to 1,100 in January. This is the results of few homes going under contract in December. January usually sees an increase in number of showings, therefore increasing the units under contract. We see the results of this by the number of units closed in February. This trend will continue all the way through June where we see about 2,300 units closed. So be patient if you can. It will probably mean more to your bottom line.

Salt Lake Valley has seen an excellent Housing Market in 2006. I have not heard anyone project a bust for 2007. Most of the opinions including mine are a decrease in annual appreciation to around 6%. The days on market will also increase from 35 to 50. ( These statistics are from the WFR MLS and represent the average agent/brokerage. Many agents and brokerages have much better statistics including us here at ERA Legacy Realtors)

If you need to sell your home now it can be done. It is not the “best time” but lets remember we are still riding the wave of the best market we have seen in 10 years.

I would strongly suggest a experienced Real Estate Agent that is equipped to council, market and negotiate.

I am reminded of “The 6 Selling Factors”. Even in January it is critical to review each property as it relates to these factors.

• Property Location and Physical Features
• Property Condition
• Price
• Financing
• Completion and Market Conditions
• Marketing of the Property

Now, living in Salt Lake everyone know that we can get a lot of snow this time of year. When a buyer can’t see the roof or landscaping it makes the sells process difficult. Most buyers will just wait. So if you need to sell, hope for rain.

I suppose I could go on more on this topic. Look for future sells tips in up coming blogs, because I have many.

Happy New Year.

Will the Broker

Salt Lake City Real Estate Broker on the loose!

Hey there my name is Will Cooper and I’m the owner and Principal Broker of ERA Legacy Realtors of Salt Lake City. I’ve started this Blog as a way of sharing information I’ve learned over the years about Real Estate transactions, Real Estate Laws and how they effect the Buyers and Seller and Real Estate Agents.

My passion for Real Estate is one that began 16 years ago. Today I enjoy the complexity and details of the contracts associated with a Real Estate purchase. I pride myself in knowing the laws, rules, regulations and association bylaws of real estate. For the last 7 years I have taught new Licensees and new Brokers Contract Law and Agency Law at Stringham Real Estate School.

I have also authored Real Estate programs for Agents. Track For Success. The Real Challenge. Your Real Estate Business Plan.

I spend most of my time answering questions from Real Estate Agents. Because of years of experience in this area I thought it would be beneficial to share some of the most common or interesting situations.

It is my intentions to update this blog each week. If you have any topics you would like me to express an opinion on please submit them and I would be happy to give you my view.