Tucson Kent's World

Is there a difference between urgency and pressure when working with a client?   YES!  When working with buyers, put yourself in their shoes, and take a look at what they are experiencing from their perspective.  Often times a buyer is so focused on finding “the perfect house” or overwhelmed by all of the choices available that they may not remember or even know that deadlines are quickly approaching.  Whether working with homebuyers or real estate investors, basic human relations are the same.

Part of a REALTOR’s duty is to keep their clients informed of things that might affect their decision – staying on top of program deadlines, understanding market characteristics, watching for developing trends, knowing the reasonable timelines to expect a transaction to close from acceptance to closing (which can be very different for various reasons)…and be able to convey urgency when needed without adding another layer of pressure.  Your client’s best interests are your fiduciary responsibility to keep in front of any needs you may have.

Urgency is real – whether because of a client’s needs, timeline, availability of certain properties, loan program or tax credit deadlines, buyer incentive program schedules…you name it.  Pressure is artificial – it is manufactured to manipulate the actions of another.  When an agent puts their own needs before those of their client, I define that as pressure tactics.

I HATE pressure tactics.  I’ll walk out of a store and buy whatever it is somewhere else…even if I have to pay a higher price, to eliminate the possibility that a company or salesperson will be rewarded for using high-pressure strategy.  That’s not sales skills, that’s manipulation.

There are clients that I’ve had for several years who have yet to act – their needs haven’t dictated that they need to act yet, or the opportunity that they are looking for hasn’t surfaced at a time that has been good for them to act.  So be it – there is a trust that is built over that time, and I’m willing to wager that these different buyers will be good referral sources (in fact, I’ve received 3 great referrals from one client…and we haven’t closed a purchase together yet).

I run a business, and I'm human:  there ARE times when I simply cannot work with a particular client. It is better to refer them to someone else than to have a dysfunctional relationship - but taking care to refer them to another professional whose standards are high is a must.

A lot of motivational and sales strategy training focuses on “making someone act” and use “The Man In The Mirror” as a mantra…hogwash.  The way I train is to “Walk A Mile In My Clients’ Shoes” so that when I face the “Man In The Mirror” there’s a calm, easy smile looking back at me.  Yes, there are times that I have my own pressures – but those are mine, and my clients don’t need them added to theirs!

Watch out world!  The Real Estate RoundTable internet radio show is joining the JCKC Network on BlogTalkRadio!

Last Friday, Ryan Shaugnessy and I started our new show, Real Estate RoundTable, on BlogTalkRadio.  Flush with endorphins after finally getting the show started, we were taken to another level of excitement by being asked to join the JCKC Network on BTR after our first effort!

Our first show discussed the question:  "Social Media - Are Consumer Wants & Needs Getting Met?" with guests Frances Flynn Thorsen, Mike O'Neill & Lori Ruff, Jeremy Blanton & Jason Crouch.  There was so much that didn't get a chance to get discussed on air - we decided to continue the topic for this week's show.

The Mission of Real Estate RoundTable is to provide "Straight Talk - No Hype" as we tackle various topics important to buyers, sellers, investors and industry professionals alike.  As part of the JCKC Network, we will strive to equal the quality of the other shows who have paved the way.

Mark your calendars, rearrange your lunch plans - Friday, Jan 22 at 12:30 Central Time we go live again...as part of a growing radio network online!

Part 2:  "Social Media - Are Consumer Wants & Needs Getting Met?"

Call-In Number:  (347) 215-7478  Chat room will be open for your questions & comments!

While doing some research on a property for an investor client, I ran across some interesting statistics for the neighborhood over the past few years. Really interesting statistics that ran contrary to grain of the market in general for Tucson real estate.

Excited to share this, I "Tweeted" my initial findings, which caught the eye of Joe Pangburn, a reporter for Inside Tucson Business, a local weekly journal in the area...who then tweeted me back to see if we could get together.

Long story short, I did more research, which Joe thought noteworthy...and so did his editor.  You can read about it in this week's issue - the article made the cover story.  Thanks Joe!

Here's the online version:  U of A real estate is where to be for value-holding homes in Tucson

Still think Twitter is a waste?

There is a time and place for all manner of things, business decisions too.  Over the past year I have worked with a great bunch of people and a wonderful broker at The Pepper Group Diversified Real Estate.  In this time, I have learned a lot, been given some good opportunities and grown my business in a challenging market.

One of the things about a growing business though, sometimes it comes time to move in a different direction.  The needs of my business are vastly different than they were a year ago, so I had a tough choice to make.  Paula Sindelar, the Broker/Owner of The Pepper Group, has been very encouraging and supportive of me and I wish her well.  I will miss working with her on a regular basis, as I will the cameraderie of the other agents & staff that I've gotten to know.

However, it is time this one leaves the comfortable nest to spread his wings and fly...so I have joined Avalar Advantage Realty.  The tools and opportunities there are too much in line with my needs to get to the next level in Tucson Real Estate - it would be foolish for me to ignore.

Thank you Paula, and the rest of The Peppers, I wish you well.

Hello Avalar...lets get cracking!

If you would like to know more about The Avalar Advantage, and what it can mean for your business anywhere in North America, please feel free to contact me.

Did you see Punxsatawney Phil yesterday?  Well, he saw his shadow, which means 6 more weeks of winter for everyone.  Since this winter has been brutal for many people, I thought I'd commiserate with you as we suffer in Tucson.

By the way, if you're interested in making sure your next winter is a bit more pleasant, we have plenty of new homes, luxury homes, foreclosures - you name it, we've got it.  I'll be glad to help!

In today's market, short sales and foreclosures make up a sizable portion of the inventory.  Many of them have the utilities turned off to save the seller some money, especially if it is taking a while to sell...little do they know that this could possibly cost them more than they bargained for...

In Tucson, if the electric is off for 6 months or more, one must obtain a "Re-connect Permit" from the city or county before service can be restored.  It used to be that you went down to the Public Works Building, paid your $75 and an inspector would be out the next day to look at the panels, check around the house for possible major problems and give the OK to have the electric company turn on the juice...not anymore, buddy!

the home has to be brought up to standards BEFORE a permit will be issued.  No if's, &'s, but's or exceptions.

For newer homes, this isn't such an issue...but for older homes, it can be an expensive proposition for a seller already strapped for cash (or a bank holding a lot of real estate in its portfolio).  For buyers, well...who wants to put money into a home that you aren't even sure you want to buy without seeing if everything works or not?

Most of the general public doesn't know about this rule...which was implemented just this past April.

In the case that a seller cannot afford, or refuses to bring the home up to code, the house is going to sit...and sit.....and sit........and deteriorate..........and be worth less money...........become a target for vandals....................you get the picture.

The smart buyer and agent, knowing this regulation, will check the age of the prospective home AND call the utility company to see how long it has been without power before even thinking about viewing it.

The smart seller will keep the utilities on, so that their returns don't diminish even further.  Saving a few bucks now can cost a whole whale of a lot down the road a few months.  Make it possible for buyers to have solid inspections done without the hassle of having the basics turned on for a day.

Foreclosure companies can save themselves a lot of headaches down the road if they take Tom Bodette's saying to heart:  "We'll leave the light on for you!"

"Where's the bargains?"  "I want to look only at foreclosures."  "I hear from my friend who knows real estate that the only way to go these days is with bank-owned properties." -- an almost daily mantra heard by agents representing buyers in today's marketplace.

Great!  There's plenty of them to choose from...in all shapes, sizes, neighborhoods, price ranges...and in all manner of conditions, too.  Educating a client in what to expect when viewing foreclosures is key to making the experience time well-spent and not disheartening to a buyer.  In a majority of the REO's that I have seen in my market, you can generally expect the appliances to be long gone.  Dishwashers too.  Sometimes cabinets, vanities, countertops, closet rods...you name it.  Not always, mind you, but a majority of the time (that means over half the time, the coin comes up "tails" for those prone to flipping coins).

Be prepared to take into account the condition of the home when looking at whether it is a "bargain" or not.  What will it cost you to bring the landscaping back from the jungle?  Will that drained pool need replastering?

Will the property meet the requirements necessary for the loan?  Most loans, ya gotta have a functioning oven...and that place where the dishwasher used to be?...got to put something there, too.  Fridge?  Not usually an issue whether it is there or not...don't ask me why, thats just the way it is.

There are lots of other things to keep in mind to protect and prepare  your client when buying an REO property, too:

• No Seller's Property Disclosure Statement (SPDS) or C.L.U.E report  (here's a hint...Listing Agents can get a C.L.U.E. report if you ask them)
  
• The contract that is used by the owner usually is one of their own...read it carefully & thoroughly.  Contingencies and clauses usually present in your association's standard approved contracts are probably gone or worded differently.  Make sure your buyer's rights and interests aren't being stripped completely.
• AS-IS:  what if the roof leaks, or the electrical system is a nightmare?  Will that affect the buyer's loan?
• Who provides the title insurance...and what type of policy?
• How about the utilities?  Are they on, and will they be for inspections?  Who is turning them on if you need them?
• Lead-Based Paint, Mold and other affidavits or disclosures need to be used if applicable.
• Inspections - don't start them until you have a fully signed, executed contract.  Verbal doesn't cut it!  Also make sure that the inspection period doesn't start until you have the full contract.
• Which escrow service is being used?  Is it even in your town or city?  (Whether the seller has the right to demand a particular escrow is fodder for another post)

Lender-owned properties can be great opportunities for finding value.  The thing to remember is to always be aware before going into the "arena" with your buyer.  Do your due diligence...and then some.  Just because it looks like a "deal" on the MLS doesn't always mean it will be one in reality.

Preparing your buyers beforehand and watching their backs during the process is the reason they came to you in the first place.  Imagine the referrals you can earn when your happy clients are showing off their new home to their friends and "the great deal their REALTOR got them" on it!

I don't care what side anyone was on concerning the "bailout bill" - it is what we have in front of us...and we all have to figure out how to work with it.

One benefit I see for Arizona in the bill is the provision granting tax relief promoting renewable energy development, especially solar!  Even before this bill was proposed, I have been getting calls from companies & individuals interested in establishing solar farms in Arizona. With the promise of extended incentives and tax benefits now a reality, it is not unrealistic to expect visionary companies and investors to see the potential for a great investment in the Tucson or Phoenix areas to capitalize on the opportunities present.

As a result of research done for previous interested parties, I have learned quite a bit (and look forward to learning more) about the property requirements a solar farm needs to be successful and that our utility companies, state and local governments are receptive to the idea.  As an agent, I welcome the opportunity to work with clients looking to make moves in a field that is forward thinking.  As a resident, seeing an opportunity for our state to be a leader in renewable energy makes me smile!

(Photovoltaic panels at Frito Lay Facility in Phoenix, AZ.  Installation by American Solar Electric, Inc.  Photo from Kyocera Solar, Inc. website)