Ronda Allen's Blog

Ask any good real estate agent, and they have dozens of stories of how a buyer may have hindered their own ability to buy the right home.  But, it makes my job easier when I explain the process of buying a home before write the contract, so the buyer can pick up on the time's when they are standing in their own way.  Here are three things I tell every buyer client:

1.  I know you have access to the internet, but I am more capable of finding your next home than you are. 

It's true.  The community is my office.  I know my office.  Only I have access to all of the data in the MLS.  You have bits and pieces of MLS data.  I know the builders.  I know their inventory.  I know that not every home that is available is found in the MLS.  I know sellers who aren't yet on the market, but who are getting their home ready for sale right now.  My job is to get to know the buyer well enough, and ask them enough questions, so that I know which homes fit them the best.  Any agent can tour buyers through 100 homes in an area and say 'pick one'.  A good agent will conduct a buyer interview and engage themselves in active listening, then take back the information gathered and locate the best homes for their client.

There are great sites out there on the internet.  And, I use them to market my listings.  I also use them to engage dialogue with prospective sellers and buyers.  Trulia.com, realtor.com, homes.com, point2homes.com, postlets.com, activerain.com, zillow.com, and many other home sites are useful tools of the real estate industry.  People don't turn purple or put a red rose in their lapel when they are looking to sell or buy a home.  These sites exist to give people a forum for stepping forward to get the assistance they'll need to make a successful move.

2.  I know we've only known each other for a short time, but I am asking for your trust.

This is a big one.  It's human nature not to be too trusting of strangers.  My job as a real estate agent is to connect with you and know as much about you as possible.  I'm going to ask personal questions.  Some of those questions may be uncomfortable for you to answer.  I bet by the time the transaction is over, I'll know you better than some of your relatives and most of your friends.  The good news is, that information is sacred.  You, me, and the lamp post, my friend.  Honesty and trust are what I ask from you.  And, I have a full Realtor Code of Ethics that I will share with you, to show all you gain in return.

3.  Don't presume you know the outcome before you've written the offer.

Agents are nodding on this one!  How many times have we heard buyer's say about their favorite house from a tour, 'I bet they won't come down to $x, so I guess we'll just keep looking'.  Price is typically the factor where buyer's make the most presumptions.  The second most common is the timing it will take for a seller to move out of a home.  The third most common, in my experience, are the sales term concessions or non-realty items that a seller may be willing to leave behind for the right deal. 

The whole point of a negotiation is to find the gain:gain.  This isn't a tug of war.  It's isn't win:lose.  It isn't a win:win, either.  Both parties have something to gain.  If they both gain, the deal will be done.  If they don't both gain, the deal is likely to fall apart.  What we're dealing with is investigating the common ground.  We need to know how close the home being sold is to the buyer's criteria.  The closer it is, the more likely that buyer is motivated to purchase that home.  Most buyers make some sort of compromise when buying a home.  But, any home that meets 85%-95% of their wish list is probably getting some serious consideration by that buyer.  Now, they're weighing their pros and cons, and seeing which factors are set in stone, and which ones might be negotiable.  There we have it.  Our common ground.  Knowing those negotiable factors and working to find the gain:gain. 

I believe most buyers and sellers think that the real estate agents really enjoy getting out to look at homes.  I believe most of those same people believe we spend our days on the golf course and that we really don't add that much to the process.  That is, until you meet a good real estate agent.  A good real estate agent knows their inventory.  We've been in a lot of homes.  The excitement for us is not in the day or two we get out to tour homes.  We already know which homes you are most likely to love and which ones you will likely turn down and why.  The excitement for us begins when we have a short list of homes and can begin the negotiation process.  Something inside switches into high gear and our true expertise comes into play.  Negotiating a real estate contract is very much like playing the game Operation:  One false move, and the buzzer goes off, and it's game-over. 

Have a blessed day!

Ronda 

15 miles West of Fort Worth is the master planned community of Bella Flora.  This is a 1,000 acre community of home sites for custom estates on 1-2.5 acres.  The community is gated, with a gorgeous drive-up to the guard house and a beautiful fountain to pass as you enter the development.  This is a Westmont Development Company community of 100% custom homes, starting at 3750sf and going up to 10,000sf.  Prices begin in the $700,000's.  And, there are furnished models in phase one of the development. 

Bella Flora is located off Hwy 377.  There are no city taxes, and the development is in the Aledo school district http://aledo.k12.tx.us.  There are 9 acres of parkland in this community.  View lots, lake lots, and wooded lots are available.  This is truly elegant acreage living with easy access back to city conveniences. 

Phase one is underway, with 39 home sites available.  Phase two will open up lake view lots.  Bella Flora literally translates as 'beautiful flower'.  The community promises to have abundant flowers 365 days a year.  One very nice feature is that an elementary and intermediary school are planned within the community. 

Custom building can be intimidating.  The builders like to say 'if you can dream it, you can have it'.  But, it's good to have known and trusted builders with model homes on site, as some people cannot visualize the home they want on the empty slate of a piece of land.  It takes a creative and experienced home builder (and a visionary Realtor) to walk you through the process from start to finish and help you with all the decisions that must be made along the way. 

The builders in Bella Flora http://www.bellafloraliving.com are:

Royal Crest Custom Homes

John Askew Company

Ellison Construction

Visit the school and community websites, and if you feel that your one-of-a-kind dream home is in Bella Flora, call me and let's go tour the models together and interview the builders to see which one will be making your dream come true.

Have a blessed day!

Ronda 

Are you actively pursuing feedback on showings of your home listings?  Do you even care if other agents give feedback on your listings?  Or, are you just using that listing to get buyer leads and not actively engaged in selling that home? 

There are so many reasons why an agent would take a listing.  What they do with it is entirely up to them.  But, there are certainly lost opportunities every day.  Something as simple as following up for feedback on the showing traffic can be a big contributing factor to why a home won't sell.

I know.  All real estate agents are self-employed.  No agent can force another to give feedback on a showing.  There are just some agents, and some brokers, who believe that no feedback is, of itself, feedback.  If the buyer wanted the house, an offer would have been submitted.  Right?  Not so much.  I suggest a different tactic in regard to soliciting showing feedback that has worked for me and has worked on me, as well:

BE COURTEOUS

It's surprising how little effort it takes to get an agent to give feedback.  Courtesy for that agent goes a long way.  Keeping in mind that a good agent is a busy agent, courtesy for their schedule has to come into play.  Email them if they didn't respond within 48 hours to the automated showing feedback request.  They may still be touring with the buyer, so they aren't in front of their computer.  If they are carrying a Blackberry or IPhone, they may be able to respond sooner than you expect.  Consider that they may be out in the field.  If you do call them, call what they are giving as their office number.  When you call their cell phone, unless they are on a mobile-to-mobile plan and you have the same provider, you are costing them minutes and money.  And, don't interrupt their personal family time in the evenings for showing feedback.  Any agent, or member of an agent's team, needs to be understanding of just how precious that family time is at the end of the day. 

BE PROFESSIONAL

"Hey, you know that showing you did on Saturday?  My seller wants to know if you're gonna write an offer?"  Really?  That's how you want to begin?  With a straight-out, direct, yes-or-no response required question?  Danger, Will Robinson!  Be careful what you ask for, cause you just might get it.  "NO".  Conversation over.  Door closed.  Opportunity lost.

How about trying a different tactic that brings about an open line of communication, and might just cause the buying agent to take information back to their client that could lead to a second showing and a possible sale?  Now, don't copy me word for word.  Find the opening comments that work best for you, that sound the best coming from you.  Something along the lines of "Thanks for showing 1111 Elm Street.  I know you probably saw a lot of homes that day.  This was the one you saw around 10am that had the walnut stained double-door entry and the amazing outdoor kitchen.  Can you tell me what your client liked most about this home?"  Courteous, understanding, helpful, and open-ended questions, designed to start a dialogue.  Agents see a lot of homes when touring with buyers.  Help them remember your listing.  It was likely included in a tour of very similar homes in price and amenities. 

Don't ask what they liked the least about the home.  That just invites criticism.  You are looking for the other agent to share objections that would keep the home from getting a second showing.  Your first goal should be to help the home make that coveted short-list of homes to contemplate purchasing.  Then, once they come through for a second showing, your job is to keep the lines of communication open and engaged, to bring about an offer.  In the Dallas/Fort Worth suburbs, it's hard to come across a home that can be defined as old and beyond repair.  So, age and condition are usually minor factors in the negotiation.  Overcoming objections to price, location, or amenities of the home are where we spend the majority of our time. 

BE UNEMOTIONAL

As the real estate agent, you are not a party to the contract, and therefore, you need to maintain a certain amount of emotional detachment.  As you heard in your classes, you should not be married to the deal.  You are liaison to the process.  You represent the interests of your client.  As a listing agent, you should not take offense if a buyer's agent says they cannot comp out your list price on that home.  Help them by providing the comps you used to establish that price.  As a buyer's agent, you need to take information from the listing agent back to your clients for discussion, and resist the impulse to speak on their behalf.  The deal will either result in a gain:gain, or it isn't going to happen.  Maintain your composure.  There have been deals lost because a buyer's agent oversold what could be accomplished with negotiations on a home, or because a listing agent misjudged how to navigate an offer to an executed contract.  Discuss options with your clients, provide your professional opinion, and then let them make the decisions that ultimately lead to sale or the realization that a sale is not going to happen because the two sides cannot find the gain:gain.   

DON'T SETTLE FOR LESS

In regard to showing feedback, don't settle for less information than you should from the buyer's agent.  If the buyer's agent finishes a day of touring homes and only states 'the floorplan wasn't right', or 'buyer didn't like the house', you need to get to work.  As the selling agent, now is the time to open the dialogue.  Unless a buyer is building a 100% custom home from the ground up, it doesn't take long to realize that you are never going to find the house that meets all of the buyer's criteria.  Most buyer's settle for 85-95% of their wish list.  Location, price, amenities, commute to work, neighborhood, city, condition, layout, lot size, and many other factors come into play.  Some of those factors are negotiable, while others are absolutely set in stone.  Our job as the listing agent is to find out how far off the home is from the buyer's criteria, and how much of that criteria may be open to negotiation.  After all, the true definition of a negotiation is not a tug-of-war.  The true definition of negotiation is 'navigating the way'. 

Have a blessed day! 

Ronda

When you enter the real estate industry, no matter what brokerage firm you hang your license with, you enter the world of the self-employed.  Freelance contracting is selling from a tight-rope, 50-feet in the air, with no net below.  It's scary. 

When you control your own destiny, it is very easy to become a control-freak.  You learn how to be everything - coffee maker, copy repair person, IT technician, selling agent, buyer agent, leasing agent, and advisor to everyone you know about anything even remotely related to real estate.  It's no wonder that we create an environment where we only rely on ourselves, and work all hours of day and night to build up our business.  Then, when you generate enough business that you can take time off for training, consultants begin telling you that you must offload administrative functions or you'll never be a top producer. 

They are, of course, spot-on in their advice.  But, there's that tight-rope again.  It gets scary again.  Can you trust someone else to do things the way you want them done, in the timing you want them completed, and will you be happy with the result?  Fear keeps you from making the move you need to make to take your career to the next level.  So, you put it off a while longer and hope you'll get so great at time management that you won't have to consider bringing in help.

Here we are, heading into another year, and you still haven't joined a team or found a way to offload tasks that could and should be done by others.  Long after the other agents have gone home, you are still on the computer working.  You don't dare try to figure out your rate of pay compared to your hours worked.  Here, you thought you'd get rich in real estate.  In reality, with your hours and expenses, you are quite possibly working for below minimum wage. 

Kick past the fear.  Shake off the presumption that your way is the only way.  It's time to make it happen.  To grow your business in 2010, you need to do three things:

1.  Join or form a team.  Most agents find they like to work on both the buying and selling side of the industry.  But, we all have a preference toward one side.  Personally, I like the strategy of the selling side, but the personal nature of the buying side.  A good 60/40 split, leaning slightly more toward listing homes, makes me the happiest.  I know agents who focus solely on one or the other.  But, I also know agents who focus on buyers because their own selling skills are weak, or listing agents who try to work corporate hours and don't like to leave their office to show homes to buyers.  Every agent is self-employed.  It's cool to find out what motivates you, or what you are best at, and to do that.  Being on a team allows you the flexibility to find that right split.  Set ego aside.  If the other agent has more listings than you do, they win.  Top billing goes to them.  You still have your listings, but you generate more leads as a team due to the cross-marketing that all those extra listings bring you.

2.  Get an assistant.  I don't care if the assistant is a friend, spouse, a rookie agent, or a hired aide.  When you are so tied to the computer that you can no longer get away from your desk to take on the task of finding sellers or working with buyers, you have no choice but to enlist some help.  To continue to burn the candle at both ends depletes your energy.  It makes you more tired.  And, if you are tired, you open yourself up to illness or being less than stellar at your job.  Thus, sellers won't pick you to list their home and buyer's won't want to work with you.  You will either run yourself out of business or you will become so exhausted that you go do something, anything, other than real estate. 

3.  Create a new day.  If you aren't tied to your desk anymore, then how are you going to spend your days?  Do you even know?  You gave good service, your business grew.  Referrals came in from your clients, and your business grew more.  You did it all and patted yourself on the back for attaining a certain level of success.  But, when someone else is handling the administrative tasks for you, what does that leave for you to do?  Plenty!  You begin networking with other agents in the area to get your listings sold.  You interview contractors to take on specialized tasks (I now offload all still photography, virtual tour panoramic photos, and graphics to a marketing firm) and train those contractors on how to meet your expectations.  You preview home and attend events in your community (rotary, chamber, builder, realty board, etc...) and build your knowledge base.  You investigate new online and offline marketing strategies and test them to weed out the ones that work from the ones that generate no results.  You take more time with each buyer or seller you encounter, as you are now focused on working with clients.  You are not distracted by the long to-do list being worked back at the office.  Your assistant has that under control, and is worth their weight in gold.  Those buyer clients like you more, as you are confident and can engage in active listening and actually show them fewer homes that more closely meet their criteria.  You convert more of your clients off phone calls, emails, tweets, or texts - because you make a better first impression.  (Yes - social media should stay with you, at least in the beginning.  Once you develop your style, a good marketing manager can take on many of the social media tasks, too.)  And, you have time to analyze trends and patterns developing around your listings, so you can tweak your marketing strategies and get more homes sold faster.  You, in short, finally become a real estate agent.

Don't leave 2010 to luck.  There were successful real estate agents all over the country in 2009.  They did things a little differently than you may have done them.  Go into 2010 with an open mind and finally taking that leap-of-faith to expand your horizons and grow your real estate career.  The only limitation you face is yourself.

Have a blessed day!

Ronda

   

Other agents from all over the country will attest that we are getting calls each week from unrealistic buyers and investors looking to scoop up distressed properties.  Many of these buyers have to be sent away, because they are looking for a price point that just doesn't exist in our suburban housing market.  So, here's a breakdown of the minimum home sale on a distressed property across popular sections of our suburbs.  We want to help you make the most of your investment, whether you are a first-time home buyer, a start-over buyer, or a property investor.  But, use this blog as a guideline to ensure that your wish list includes a realistic starting price point:

NOTE:  These distressed property sales are documented home sales in our MLS in the last six months.  There is no guarantee that properties will sell at this price point now or in the future in these towns, and this distressed sale may have been the only one of it's kind.  This is strictly a guideline from which to begin conversations.

Plano  $47,900

Allen  $57,500

The Colony  $40,000

Prosper  $123,000 

McKinney  $15,000

Frisco  $68,400

Aubrey  $73,900

Lewisville  $44,900

Coppell  $68,000

Dallas  $2500 list price, that sold for $4000 (and it wasn't pretty and smelled of urine)

Southlake  $202,000

Grand Prairie  $15,000

Arlington  $32,150

Rowlett  $51,750

Duncanville  $38,900

Irving  $31,500

Fort Worth  $16,000

Kennedale  $52,800

Mansfield  $43,551

Highland Village  $85,000

Keller  $34,000

Haslet  $39,900

Watauga  $38,500

Trophy Club  $127,700

Flower Mound  $65,000

As you can see, when you call us about homes from $30-40k in towns like Prosper, Southlake, or Trophy Club, that price point doesn't even exist.  Some agents may get a little frustrated with even taking your phone call.  Forgive them.  They've just had fifty others just like it.  If your price range is realistic, and you are somewhat flexible on the location of the home, we probably do have a home to suit your needs. 

Have a blessed day!

Ronda

Seller's:  So, the prospective buyer offered low on your home?  What now?  Same song, second verse - right?  Buyers are still trying to tell us that the North Texas Region is a buyer's market, even when we can prove to them in sale comps that we're a BALANCED housing market and our sales comps have been rising steadily all year.  I know the low-ball offers can be exhausting.  We selling agents don't care for them, either.  It's a lot of work for potentially no result.  Or, is it? 

When you've received what you consider to be low-ball offers on the house, what do you do?  First and foremost, don't tell anyone.  Let everyone assume you just haven't accepted a reasonable offer yet.  You and your agent are the only two parties that need to know the details of showings, feedback, and offers on your home.  There are a few truisms that I have found in my experience in the real estate market in Dallas/Fort Worth in general, and in the North Dallas suburbs, specifically, that you may find of interest:

1.  A home in demand stays in demand.

If you have received offers for your home, that is confirmation (regardless of the offer submitted) that your overall market strategy is working.  The goal is to generate enough showing traffic to bring in offers, and hopefully, be in a position to turn just one of those offers into a contract that closes successfully.  Don't think you have to give away the farm.  Just begin the negotiations with the buyer(s) who offer, and be willing to wait for the next buyer if the negotiations don't work out.  The party without time on their side is usually the party who ends up giving away the most. 

2.  If the agents are showing the home, and providing positive feedback, don't fix what isn't broken.

Agents aren't shy.  If we don't buy the asking price of the home or there is a condition issue that stands out as an obvious concern, we're going to tell you in our showing feedback.  The Dallas/Fort Worth housing market can be defined as somewhat seller-lazy prior to listing.  Not a lot of work goes into making the house sale-ready before the sign goes in the yard.  Our buyer's agents do a great service - we want your home to sell and will tell you exactly what you need to do in order to overcome objections.  North Dallas agents have it a little easier.  Our homes tend to be newer, which should mean they show well with minimal make-ready. 

3.  No showing feedback does NOT equate to no interest in the home.

Yes, it's true that not every agent is good about giving feedback.  But, cut the agents a little bit of slack.  Some are being advised by their broker's to ONLY invest their time in activities that generate income.  A lot of good agents are out of business, and brokers are pushing the remaining agents to close more deals.  Sitting down for an hour to give feedback from a showing tour that lost them a full day out of the office is the professional thing to do, but it isn't an income-generating activity.   Any good listing agent has experience with home listings that had 30-50% of the showings fail to give feedback, but one of those agents ended up bringing the buyer who ultimately purchased the home.   NEVER give up on those showings as prospective buyers.  There was an agent in Dallas who used to say you stay with a buyer until they 'buy or die'.  That's a bit harsh, but a good listing agent definitely keeps following up until they know that buyer purchased some other property.  Electronic feedback requests aren't enough.  A great agent will pick up the phone and track down feedback on your behalf.

4.  Until we reach a gain:gain, there is no chance of a successful real estate transaction.

There has been no worse year in real estate than Summer 2008 to Summer 2009 in the DFW Metroplex, in my opinion and in the record books.  But, moreso than having slower sales figures, the behavior of buyers has been the most appalling on record.  Buyers ran around going for the jugular on listed homes all over DFW neighborhoods.  Buyers jumped from one home to the next, looking for the most desperate sellers.  What used to be a cooperative industry became a competitive industry.  I am personally so glad to see balanced market conditions return to North Dallas, and sellers standing their ground based on factual sales figures.  People are holding on to the equity they earned, and are no longer just giving it away to make the sale.  It's a sign of strength and recovery that took almost a full year to regain.  Until a buyer can offer a normal seller what we used to refer to as a "win:win", and now call a "gain:gain" the seller still maintains the right to sell the house or wait for the next buyer.  In a balanced market, both parties must work together to negotiate a fair market value.  That doesn't just mean to split the difference between the offer and asking price.  That brings the skills of the truly great real estate agents back into the forefront - both of whom have the task of getting the best price and terms for the house for their client.  Negotiations are an art.  And, that's where the real difference between real estate agents is experienced. 

5.  A low-ball offer is still an offer.  Counter-offer if you don't like it.

The state of Texas has no requirement on a seller that forces an answer to an offer within any timeframe or at all.  Sellers have the right to simply ignore an offer.  But, quite frankly, that's just stupid.  Yes, I called the seller who ignores an offer stupid.  Every offer is worth a counter-offer!  I've seen over and over again just how close to list price a buyer will get whe they have found the house they want.  It doesn't take any time at all to counter to an offer.  About 20 minutes to knock out the paperwork.  There are lots of buyers out there who have to be educated on the value of the homes.  Their own real estate agent may not have even run any comps to support their offer.  Our buyers aren't necessarily from here in North Texas.  They may have to throw out everything they ever thought they knew about real estate (sorry, Californians - I had to learn the Texas market when I moved from California in the 1970's and the same is true today).  Without a counter-offer, you don't allow the buyer to learn how to buy real estate here in  Texas.  Take a cool off period after a low offer.  Pitch a fit.  Get offended.  Rant and rave about how horrible the offer is.  Then, sit down and draft a fair counter-offer based on the actual 90-day sale comparatives in this region, and educate the buyer on your expectations.  Don't swat them away like a fly being a nuisance.  Help them understand your personal perspective on this home sale, and they may just come up to meet you more than you think they will.  The worst they will do is walk away.  And, you have no idea how many of those buyer's who threaten to walk away, and then do make good on their threat, turn back around within the next 14 days and buy the house.  Ask any North Texas Realtor.  We've all seen it happen. 

Have a blessed day!

Ronda

Ronda Allen - Realtor, Certified Purchasing Manager

RE/MAX Dallas Suburbs - Keith Dobbs Team

#1 Office and #3 Team for RE/MAX in North Texas at mid-year 2009!

CEO - comingsoonhomes   Follow us on twitter:  www.twitter.com/comingsoonhomes

Client referrals always welcome!

There are times, in North Texas, when there just isn't a match between a buyer and the available homes in the Multiple Listing Service (MLS).  Not every neighborhood, town, or city is saturated with available properties.  In those cases, we have to reach out to the general public to try to find a match. 

Denton County: 
I have a buyer looking to retire to Denton County.  They prefer not to build a home.  They want newer resale (age under 10 years preferred).  3-bedrooms would suit them fine, although they would be okay with a 4th bedroom.  An open floorplan would appeal the most.  Formals are not required, but would be nice to have.  The budget for this purchase is $250,000 to $300,000.  What is not flexible on this purchase is the lot location.  The lot they want will be private, or have lots of privacy if not totally private.  An oversized lot would be ideal.  Nothing smaller than .25 acres need apply.
The home should be in Denton Proper.  Fixer-uppers need not respond.  This buyer has a home in Arlington that must sell before they can offer, so we need a seller who isn't in a great hurry.

Collin County:
I have a buyer who will go month-to-month in their townhome in Richardson at the end of February.  Between February and August, they would like to relocate to one of the following specific neighborhoods:
Frisco - Heritage Lakes
McKinney - Stonebridge Ranch
Prosper - Lakes of La Cima

This buyer knows they are asking a lot, as their budget is only $170,000 to $200,000.  What this means is that we must find a seller who has been in their home for some time, has some equity, and doesn't mind sacrificing a little on their own equity position to be sold in 2010.  Smaller square footage homes are fine.  This is a young couple.  They absolutely know the location.  They are flexible on the house.  Condition issues that are strictly cosmetic are okay.

Dallas County:
During our preview tour, I found the perfect home for my Florida buyer in Irving, Texas.  However, her home in Florida did not sell in time, and the owners would not take a contingent offer.  3-bedrooms are a must.  No busy corner lots or facing busy streets.  Prefers to buy in the Irving Arts District.  $125,000 to $150,000.  Because this is a Florida buyer, she is used to open floorplans.  Because she is already a retiree, she isn't interested in a fixer-upper. 2-car garage is required.

Have a blessed day!
Ronda



Ronda Allen, Realtor and Certified Purchasing Manager
CEO of comingsoonhomes.com
RE/MAX Dallas Suburbs
4032 McDermott Drive, Suite 100, Plano, TX 75024
972-816-4369 7am-7pm Monday through Saturday and 12-5pm Sundays
www.rondaallen.remax-texas.com
www.keithdobbsteam.com
Follow me on twitter:  http://www.twitter.com/comingsoonhomes