Lisa and Jim's Northern Nevada Real Estate Blog: September 2007

So,  I think we need a forum for this topic, and I've decided to start a group dedicated to business coaching ideas and interests.  Please consider this your personal invitation to join the new group "Business Coaching ... Pros and Cons"

Coaching has made such a huge difference in our life!  I'd like to inspire others to take advantage of the avenues that exist.  Further, I'd like others to share their experiences - good and bad - so that we all can't benefit. 

For the coaches out there, welcome too!  Share your perspectives and learn what the agents think. 

Business Coaching ... Is it Necessary?

In a word, no!

Business coaching isn't necessary if your career aspiration is to be the National Association of Realtors "average" agent.  It's not necessary if you work in a traditional office structure where the broker and manager control your time, your activities and your income.   And, it's especially not necessary if you won't submit yourself to daily discipline and agree to be accountable for your actions.

Reality Check ... the best of the best all adhere to one type or another of formalized, structured, business coaching system.  If your aspiration is to be among the top 1% in your field, aligning with an established professional coaching organization should be the very next thing you do.

Over the past ten years, since first being introduced to formalized business planning, my partner and I have participated in a variety of coaching systems and we've had the pleasure of being coached personally by some of the best in the business.  What I've come to understand is that this is a process that has many phases.  Essentially, we're talking about the evolution of your professional career.

Based on our experience, the first logical phase of coaching is creating a structure, planning and goal setting.  Although we had been selling real estate for 20 years in a traditional office setting, our business planning coach showed us how to structure our business and plan for our success.  We changed our perspective and began to think of our career independently from our present office.  Seems simple right?  Actually, it wasn't until that point that it ever even occurred to me to think of our business as "our business" and think of myself as an entrepreneur not an employee of my broker. 

We cut the cord, focused on the creation and execution of our personal real estate business, and haven't looked back since. 

After the initial phase we graduated to more advanced and more specialized types of coaching.   Once the basics are firmly in place, you have a defined objective, created a plan to meet that objective and obtained the skills necessary to execute the plan, you can shift a portion of your time and attention to refining specific areas within your structure.  The possibilities are endless.  Over the years we have participated in specialty programs like prospecting, neuro-linguistic programming, scripts and dialog, accountability training, universal attraction, mindset, goal setting, etc. 

In choosing a business coach we've learned that each coaching program and every coach offers a new perspective and a different tool for your arsenal.  We've also learned that there is no exact right way or perfect system.  You may gravitate to a specific type of speaker or a specific organization; different personalities resonate with different coaches.  Our advice is to glean the best from each experience, keep growing, and keep learning and absolutely keep coaching! 

Business Coaching ... Is it Necessary?                                                                                   

In a word, "No!"

Business coaching isn't necessary if your career aspiration is to be the National Association of Realtors "average" agent.  It's not necessary if you work in a traditional office structure where the broker and manager control your time, your activities and your income.   And, it's especially not necessary if you won't submit yourself to daily discipline and agree to be accountable for your actions.

Reality Check ... the best of the best all adhere to one type or another of formalized, structured, business coaching system.  If your aspiration is to be among the top 1% in your field, aligning with an established professional coaching organization should be the very next thing you do.

Over the past ten years, since first being introduced to formalized business planning, my partner and I have participated in a variety of coaching systems and we've had the pleasure of being coached personally by some of the best in the business.  What I've come to understand is that this is a process that has many phases.  Essentially, we're talking about the evolution of your professional career.

Based on our experience, the first logical phase of coaching is creating a structure, planning and goal setting.  Although we had been selling real estate for 20 years in a traditional office setting, our business planning coach showed us how to structure our business and plan for our success.  We changed our perspective and began to think of our career independently from our present office.  Seems simple right?  Actually, it wasn't until that point that it ever even occurred to me to think of our business as "our business" and think of myself as an entrepreneur not an employee of my broker. 

We cut the cord, focused on the creation and execution of our personal real estate business, and haven't looked back since. 

After the initial phase we graduated to more advanced and more specialized types of coaching.   Once the basics are firmly in place, you have a defined objective, created a plan to meet that objective and obtained the skills necessary to execute the plan, you can shift a portion of your time and attention to refining specific areas within your structure.  The possibilities are endless.  Over the years we have participated in specialty programs like prospecting, neuro-linguistic programming, scripts and dialog, accountability training, universal attraction, mindset, goal setting, etc. 

In choosing a business coach we've learned that each coaching program and every coach offers a new perspective and a different tool for your arsenal.  We've also learned that there is no exact right way or perfect system.  You may gravitate to a specific type of speaker or a specific organization; different personalities resonate with different coaches.  Our advice is to glean the best from each experience, keep growing, and keep learning and absolutely keep coaching! 

Stealth agents

We responded to a Craigslist listing and got a real estate agent ... is that legal?

Absolutely not - it's called a "blind ad".  Real estate agents must disclose their licensed status in all advertising - it's the law in the State of Nevada.  Further, if the agent is a Realtor they are also violating the Realtor Code of Ethics.  The public has the right to know if they are being "sold" something by a licensee and not an unlicensed owner representing himself.  This is a very basic law and practice, but in this challenging market some agents are desperate ... and desperate people do desperate things. 

It is unfortunate that some are driven to gain advantage over their fellow practitioners by what they perceive to be cleverness when in fact it is shameful.  We are witnessing it with increasing frequency in our local market and we do take action.  We first warn the agent out of courtesy.  If they don't change their ad and disclose their licensed status they are reported to the Board of Realtors and the State of Nevada for the appropriate policing action.  There are reasons for the existing laws... consumer protection... and they must be complied with.  There isn't a place in the real estate business for scofflaws as evidenced by the widespread lending fraud recently perpetrated by unscrupulous lenders and real estate agents.  That practice is substantially to blame for the current loan industry crisis. 

The Internet and newspaper classifieds are good tools for buying, selling, lending and borrowing ... as long as it is done in the appropriate manner.  There are a lot of people trying to get in your pocket these days.  Are you getting unsolicited emails?  Phone calls? Everybody has a "better mousetrap" to make you money, save you money ... something to do with your money.  There is a catch - somebody is making money along the way.  Be careful - you can make money in this market but you shouldn't be compromised by unethical/illegal behavior in your effort to do so.

Our Advice:  If you find yourself in a situation where you asked for "free" information on your home value, "free" foreclosure information, or details on an offering you thought was a private party, and you are suddenly faced with dealing with an agent ... run!  Even an agent offering his own property for sale is required by law to disclose his status.  There is no plausible explanation for this behavior other than blatant deception against the public ... you.  It is not how professionals conduct themselves in their business.  Stick to professional representation when you need real estate services as this is not a market for amateurs.  If you experience a "stealth" agent "strafing" you to do business by all means report them to the Board of Realtors, 775.885.7200, and/or the State of Nevada Division of Real Estate, 775.687.4280.  Your assistance is greatly appreciated.

There is no right way to do the wrong thing.  If an agent is unethical and illegal in their initial contact with you, where else are they compromising their integrity and your financial and emotional safety when it comes to buying and selling real estate? 

Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, http://www.carsonvalleyland.com/ , 775-781-5472.

Well, this is interesting!  We call ourselves professional ... Are We?

We got a call from an out of area agent to list his parent's home.  They have been listed with another - not so busy - agent for many many months.  No showings, no activity!

We look them up in MLS and see TOM (Temporarily off the market).  We bring it to the attention of the referring agent and ask him, "Is the listing canceled?"  He assures us that it is and please keep the appointment with his parents, because, "They really need to sell!"

So ... we keep the appointment.  The house is great but grossly over priced.  We tell them we can help them sell it but we need a 15% price reduction.  They agree!  We ask about the prior listing - which started 20% too high.  They said it was "handled!"  I said, "Let's call the prior listing agent."

We called and asked her, "Did you cancel this listing?"  I'm sure you can guess, the answer was, "NO!" 

She maintained they took the listing off the market to facilitate a medical procedure with the assurance that the house would be back and active once the client was well again.   A true story according to the clients. 

Anyway ... I say to the current listing agent, and the referring agent, "This is not my affair, the property is listed, I'm not getting involved, work it out!  Let me know when it's ok to talk with the clients."

Now- The fight is on.  Both the Referring Agent and the Listing Agent want the referral fee!  The Listing Agent feels justified because she has, "Done so much work".  The Referring Agent feels justified because, after all, his parents need to move and their health is failing, and he thinks the other agent hasn't lived up to her part of the bargain.  (She took a one year over priced listing from two aged clients who really really need to move - never had one showing in 4 months - and refused to allow them to move the listing to another agent.

I get calls from both agents telling me their sad tales.  I'm not legally able to interfere with a contract that both of them are asking me to pass judgment on.  What's up with that?

My final frustrated advice to both of them was this, "Split the Dam fee!  Or ... Give up the Dam Fee!  Duh! We're talking $2,167.00 dollars for heavens sake!  The overriding, a least should be overriding, (but seemed to get lost in the shuffle) factor is ... Mom and Dad Seller Need to Move!

So, here's the question!  If we call ourselves "professional", and want to be treated "professionally", shouldn't we act "professionally?

I don't know any other group of paid individuals who would deny patrons the help they need and seek on the basis of dollars.  Doctors don't prohibit second opinions, or seek monetary compensation for sending a patient to a specialist.  Neither do Attorneys, Accountants, Financial Advisors, Dentists, or any other profession? 

Not one profession except real estate agents seeks compensation for providing referral services.  Further, not one profession except real estate agents would even consider strapping a consumer into a contract for services that they could not provide.  And ... then ... seek to prevent the consumer from obtaining those services from another source without being paid a portion of the compensation.  Is it any wonder we suffer from such low public opinion?   

I favor legitimate referrals for the sake of securing knowledgeable and competent services for our customers, clients and family.  However, once an agent's fee takes precedent over providing the service the customer needs and deserves to receive, that agent has lost their right to be called professional and is little better than a crook in my opinion.    

The home we want is priced right ... what should we offer?

Many Buyers are compelled to offer low because they've read, or been told, to do so.  Others think they have to do it because somebody did it to them in another market.  If the home you like is priced right ... get what you can and buy it. 

Smart Buyers are making offers based on their knowledge of the market and hopes for a good deal.  Ultimately they are accepting a negotiated price and getting what they want at a good value regardless how it compares to the listed price.  We recently saw an offer 22.2% below the list price of a well priced property.  The Buyers had to try it and they did.  Fortunately, they knew the market and recognized that the property was well priced.  Ensuing negotiations resulted in a price but .7% below the list price, less than a 1% reduction!  Both parties were happy and achieved their objectives.   

The values are all over the board these days.  We recently showed property and found homes three doors apart, the same plan by the same builder, that were priced $30,000 apart. They were essentially the same house.  One was priced right - the other deserved a "wake-up" offer.  In another neighborhood we experienced a discrepancy of $60,000 between similar homes.  In that case the lower home was priced by a very active local agent that had great knowledge of the market.  The other agent was from out of town and unfamiliar with the market.  Sometimes out of town agents are relatives, but more often they are sought out by Sellers because the local knowledgeable agents wouldn't tell the Seller what they wanted to hear.  Both of the homes $60k apart are still unsold, but which do you think has a better chance of selling?

Sellers and their agents must look realistically at what they are trying to achieve and plan accordingly.  It doesn't matter what you paid or what you owe - market is what market is.  If you want, or more importantly, have to sell then get a realistic Realtor.  One that will tell you the truth and make a plan that works for you for your situation, not just say what you want to hear so they get a listing hoping one of two things happens: 1. they find a fool and his money - rare in today's market, or 2. they list high at what you are hoping for, and then beat you up for a price reduction week after week, you concede and their slimy tactics are rewarded ... for them.

Our Advice:  Because of the great discrepancy in prices in the market place one must be really sure when pricing.  If it is priced right ... really right ... you will sell.  What your home was worth in 2005, or will be worth in 2009, is irrelevant.  If you want to sell today you can ... if you are positioned in today's market in a today manner.  That includes price, condition, showing availability, experience ... and intention.  If you don't need to sell - don't right now. 

If you need or want to sell ... do it right, price it right, and you will be moving.  The days of the uneducated Buyer are over.  If you are waiting for someone to come in and pay too much you might as well hunker down for a long winter.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781-5472.

Can we avoid probate any other way than a trust?

Can we avoid probate any other way than a trust?

In Nevada there is another mechanism that allows your heirs to receive your property without probate other than by you creating and managing a trust. Nevada is one of but eight states in the nation that provide for Transfer on Death Deeds. It has only been available for a couple of years, and can be a very good tool for estate planning. We've only recently become aware of it and thank local attorney Karen Winter for introducing and orienting us to this means of conveyance.

With a Transfer on Death Deed (TODD) the owner(s) execute a deed and name the recipients of the property, those they intend to inherit it. The Deed must be recorded prior to the death of the owner. Once recorded, the owner may continue to do with the property what he wants with no restrictions. He can re-finance it, sell it, or even record another Transfer on Death Deed changing the recipients. If it is sold the TODD is voided. Likewise, if a subsequent TODD is recorded the first is voided. The owner even has the right to rescind the TODD at any time. For details read NRS 111.109. It is easy reading as far as laws go.

This is a reasonable tool for estates in which the real estate comprises the majority of the estate's value. What happens is on the demise of the owner the property is immediately conveyed so it is no longer a part of the estate. In many cases, the result of removing the real estate is the resulting estate value is small enough that probate is not required thus the heirs avoid the expense, time and aggravation of a probate. Note that the property is immediately conveyed - the Executor of the estate consequently has no power/effect on the new ownership of the property. The Executor may be an owner, but the property has absolutely no relationship to or with the estate.

Our Advice: Though the law specifically states a married grantee may receive title as "sole and separate property" without a quitclaim from their spouse, be advised that to get title insurance when selling the property you will likely need to get one. If you are considering using this tool be very careful in assessing who you are going to give your property to. You can give it to multiple parties in various ownership percentages, i.e.- one gets 16%, another 23%, etc. Understand, however, that you are creating a "partnership" of sorts which inherently creates a precarious situation. Make sure they get along. If they don't they may have to resort to a partition lawsuit to unwind their common interest. Make sure, too, that you address how the mortgage payment, taxes, insurance, utilities and maintenance will be paid while they own the property.

A Transfer on Death Deed can be the best and worst of things - think it through before you use it. Properly used it can put your mind at ease and save your heirs a lot of money, time and aggravation. Make your intentions and desires known, make a plan, and execute your plan. Questions? See your attorney and/or CPA.

Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, http://www.carsonvalleyland.com/, carsonvalleyland@hotmail.com 775-781-5472.