And what, pray tell, is the name of these marauding reptiles?

“REALTOR Remarks”

Ah yes, that hobgoblin of good intentions in the multiple listing service that provides for private communication amongst local Realtors.  It gives me a good shudder just to type the name of the foul beast.  Suburban legend has it that if you say it three times in front of the bathroom mirror with the lights off, you will doom yourself to a lonely stint on the market.  Why?  Because the private portion of the Arizona Regional Multiple Listing Service which is intended to impart “eyes only” information to the Real Estate sales force is home to some of the most spectacular lapses in judgment this side of New Coke.

“Do not approach cage, monkey will bite!”

“Disregard water damage in hall bathroom shower.”

“Bring me an offer, seller needs to sell NOW!!!”

From the laughable (“House is better than pictures make it look”) to the horrific breaching of client confidentiality (“Divorce situation: husband not cooperative”), one little notation in the private remarks of the listing can torpedo the price you command for your home, if not endanger the sale altogether.  Alarm codes, additional showing instructions, agent to agent disclosures – all are intended fodder for the REALTOR Remarks section.  The mistake that is often made, however, is that anything goes so long as it remains hidden from the prying eyes of the public.

The moral of the story?  Read the full property listing before your agent inputs it into the MLS. While you will most likely view a copy of the completed listing once it hits the system, you will not be able to see what is privately disclosed to other agents.  You will want to see a copy of the FULL listing to ensure that your best interests have not been compromised by a few careless words.

You priced the home well, staged it to look its best, had it professionally photographed, toured and dispersed to the far reaches of the Internet.  Don’t blow it now, kid.

Of course, if you want me to avoid your home like the plague, make sure your agent denotes that it “smells kind of funky, but no known presence of mold.”

In the mood to receive offers that are 50% below your list price?  Instruct your agent to notify fellow Realtors to “Bring me any offer and I’ll get it accepted!”

Unless the Stargate in the study presents a clear and present danger to those who would tour your home, best not to mention the possible credit for intergalactic species remediation.

Enter the Real Estate sneak preview.

Knowing all too well that I am performing preliminary recon, sellers will occasionally grill me as to my intentions when I arrive for a preview appointment.  As I circumnavigate the home, they give me the unabashed hairy eyeball treatment reserved for ex-cons, Realtors, bankers, lawyers and ill-mannered guests who don’t sit on the plastic.  Believe it or not, though, the preview does not merely serve as an arbiter of a buyer agent’s pass/fail verdict.  It is a crash course in product awareness.

To those who would disallow Realtor previews because they anticipate the reports will discourage potential buyers from viewing the home, allow me first to offer a mild rebuke, and then to assuage your fears.  First, disallowing preview appointments will have the opposite than desired effect.  Like the producer of straight to DVD smut who would sooner pay a personal assistant a livable wage than allow an advance screening for critics, you are telling wily Real Estate agents that the house is a total clunker if you won’t let them in for a quick peek prior to an actual buyer showing.  Thou doth protest too much, Ed Wood.

Moreover, you do you and your home a disservice by limiting Realtor previews.  Salesmanship requires a deft touch.  It is just not that easy to sell what one hasn’t seen.  When I come through with my client, you want me to focus on the features with which I became acquainted during the preview rather than blundering about blindly.  Knowing what specific hot buttons light my buyer up, all parties are best served if I have direct, first-hand knowledge of such.  You know, the stuff that doesn’t necessarily make it into the MLS.

Is the second bedroom close enough to the master to make a suitable nursery?

Is the kitchen open to the family room or a candidate for expansion?

Is the yard private, but not overwhelming?

Worst case scenario?  The home is not a fit for my clients, and I save everyone time.  Surely you don’t want any more strangers stomping around your home than absolutely necessary, especially if there is zero chance that the property will work for them.  To boot, I just might remember your house as a possible fit for the next buyer I meet.

Want to sell your house?  Heed the marquee:

Coming soon … to a home near you … Realtor Paul Slaybaugh!

Pretty please, let him in.

Allow me to explain.  For months, if not years, you have been told that the glut of housing inventory here in the greater Phoenix area makes for a buyer’s market of epic proportions. Why, the ancient Greeks themselves would write songs about the opportunities that abound for any would-be hero with a hankering for a house.  The only problem with this suggestion?  It’s just not true.

What is a buyer’s market?  Most would define it as a preponderance of available supply and an accompanying dearth of demand.  Let’s take a look at both aspects of that equation.

In a perfect financial world, a buyer waits for the market stars to align in just such a manner before swooping in to claim a nest at a fraction of the “normal” cost.  It all works great in theory, but real world application necessitates that the prospective buyer be subjected to the same set of variables that has drawn down the pool of demand at large. It’s a buyer’s market when few have the wherewithal to actually buy.

Appraisal difficulties and tightened lending regulations are contributing to a somewhat artificial suppression of demand. The “want” is present in the market. Consumers want to buy houses. They want to take advantage of the greatly reduced pricing and sublimely low interest rates. Homeowners want to refinance their houses so that they can stay in them, thus contributing to the lowering of the overall supply.

Want has nothing to do with it. Without ability, all of the consumer confidence and desire does not translate to actionable demand.

So to clarify the lead-in to this post, the current Scottsdale Real Estate market does not favor ALL prospective buyers, as the “buyer’s market” connotation suggests.

Further, the favorable conditions for those who are in positions to purchase do not necessarily translate to negotiable strength. Well-heeled cash buyers, W2 employees with verifiable income, solid credit history/scores, etc will find that they do not call the shots to the extent that they were led to believe. The bargain bin of bank-owned foreclosures is incredibly crowded. You are elbow to elbow with competing consumers when a new shipment arrives. The mom & pop resellers, by and large, do not have the equitable flexibility to negotiate the 30-50% off of list price that many buyers envision. The short sale properties with the absurdly low price tags are, more often than not, pie-in-the-sky figments of the listing agent’s imagination. You submit an offer 10% off list price to the bank, which in turn proves to be 40% off the BPO (Broker’s Price Opinion) that is performed three months later. The bank tells you they will gladly approve the sale – for 75k more than you offered.

While the inflated inventory levels in the housing sector are cited often enough, it is not widely reported that the number of unencumbered properties available for purchase is far less.  In a market that is most assuredly not of the “see house, buy house” variety, the redaction of readily purchasable properties (due to competition in the low end, and lien encumbrances across the full pricing spectrum) tilts the negotiation playing field back towards center.  Neither party has a clear cut advantage when facing each other at the negotiating table.

The truth of the matter is that most of the savings that you can expect to uncover have already been factored into the asking price by the time a listing is brought to market. Sure, there will be those that require substantial negotiation, and plenty others still that simply fail to sell. Never underestimate one’s ability to overprice a house. These aren’t the homes you are most likely looking at, though. The ones that buyers are flocking to in droves are those that present the best value opportunities. And why not? Just be prepared for the competition that you did not think existed in this ballyhooed “buyer’s market.”

Trying to cobble “x” percent off the list price in circumstances in which others are offering “x” above the list price will only lead to frustration.  Don’t get greedy.  Do what it takes to lock up the lowest pricing the Valley has seen for seven to eight years (longer in some areas) while interest rates continue to hover around 5%, and you are well ahead of the game.

And lastly … smile.  You are the guy that so many lament not being right now.  You know, the hypothetical guy who spurs such proclamations at office parties and cocktail hours all across Scottsdale:

“If I had two nickels to rub together right now, I’d buy every house on my block for less than I paid for this albatross back in ‘05.”

They were so excited. Even after I handed them the keys, they were slow to believe that the modest Spanish bungalow was now in their adoptive custody. Over the course of four exasperating months, we must have seen and dismissed close to a hundred homes. This one needed too much work. That one had a poor kitchen layout. Yet another sat on the “t” of a subdivision’s entrance: bad feng shui, or so I was told. Before the market skies parted and yielded the seventeen hundred square foot, clay tile miracle that appeared to have met extinction in their price range, our flagging spirits were all but ready to pack it in. The May 5th, 2005 discovery saved them from another year of apartment living. A challenge, at best, with a ten year old daughter, let alone with a half-baked bun in the oven.

“Can we go in,” the wife asked in a small, cautious voice.

“Of course,” I responded. “It’s your house, Liz, you can do whatever you please.”

She ignored my extended hand and engulfed me in a fierce hug. Her husband clasped my shoulder in a vice grip which betrayed an adolescence spent laboring on the family farm in Iowa. His curt nod spoke volumes.

“You’re welcome, Mel,” I replied.

“Thank you both for hanging in there with me. I know it hasn’t been easy, and I can’t tell you how much I appreciate the patience and trust you’ve shown. It’s been a long, tough slog, but I think we got it right.”

“Yes, we did,” Mel said, breaking his silence for the first and only time that morning.

“We would like to have you and your wife over as soon as we get settled,” Liz added.

“I’d like that,” I told her.

I meant it, too. I like just about every client I take on, but felt a special kinship with this couple for reasons that surpassed the extended time spent in each other’s company. After bidding the happy couple farewell, I glanced in the rearview as I navigated my way down the tree-lined street. Instead of going inside, they remained rooted in place, holding hands and staring at their new home.

I received a phone call from Liz this morning. Turns out that Mel has been out of work for some time now, and they cannot afford to keep the house. Might have to move back to the Midwest and look for a position on the farm. See just what kind of life is left in those gnarled, old leather hands.

I hate this job sometimes.

Surely the right play is to go the conventional financing route, right?

No private mortgage insurance, the lowest possible rate, less red tape than government sponsored financing vehicles.

From a strictly cost-based approach, all signs point to a nice, vanilla 30 year fixed conventional loan at a microscopic rate as the biggest no-brainer in the history of money.

Of course, as we have learned all too well, there is more to your choice in financing than today’s consideration.  In fact, there is more to your choice in financing than even the total cost to you over the life of the loan.  While we may not know where the market and its attendant values are heading, one fact is indisputable:

Interest rates will rise.

Maybe not today, maybe not tomorrow, but soon.  Inflationary pressure makes it inevitable that rates will take off at some point.  All of the warning signs are there.  It will happen.  Rather than banging the tired gavel of “buy today, rates on the way up,” let’s steer the discussion in a less self-serving direction.

Q:  What is today’s buyer?

A:  Tomorrow’s seller.

If you are buying a home in 2010, you need to consider the market forces that may shape 2015 or 2020.  When we agents prognosticate, we tend to focus exclusively on home values.  This is a fool’s errand.  What we really should be thinking about is the buyer pool’s (in)ability to buy.

If interest rates manage to climb into the double digits in several years’ time, the difficulty of selling the property you are buying today may be compounded by a further contraction of able buyers.  How does one counteract the specter of such a looming boogeyman?  By going back to the future for familiar, but forgotten solutions to a similar problem.

What saved home sellers in the era of 18-20% interest in the ‘70s and ‘80s?  Owner financing and assumable loans.  For the purpose of this post, I wish to focus on the latter.

With the low to zero down conventional financing options in the market for my first decade in the business, it was a rarity to consummate a transaction with anything other than non-assumable financing.  Now that FHA loans have forcefully elbowed their way back into the marketplace, however, assumable financing has returned.  Most borrowers are not considering this aspect of the financing in the least, mind you.  They simply jump on whatever they can qualify for that provides the least cost and lowest rates.  I maintain that the assumable nature of a loan will be incredibly important moving forward.

While a new buyer would have to qualify for the loan to assume it, imagine how much wider your future buyer pool will be with such an option in place.  Your 30 year fixed at 4.75% may not look quite as good to you if you find yourself in a position in which you have to sell your home in the midst of 12% interest rates.  Not to sound the bell of an alarmist, but it’s not difficult to foresee a future in which many buyers who have migrated to the security of 30 year fixed conventional mortgages in the wake of the mess spawned by more creative financing find themselves imprisoned within those non-assumable safety nets.

Moving forward, your mortgage might not just be your mortgage.  It could potentially be your future buyer’s.  As such, when shopping for financing, there is more to consider than just the nuts and bolts of your own cost.  Your mortgage could eventually prove either an enticement or a hurdle to a sale.

Heady stuff.

I will close with that which should have served as a preface: I am not a mortgage professional.  DO NOT rely on my speculation in any manner when making a choice in financing.  The nuances and new rules/regulations in the financial world are changing so fast that even those who wade in those murky waters on a daily basis are having a hard time keeping their raft of sanity afloat.  For some, the internal debate is academic anyway, as there are qualification constraints on all financing types.  Only your lender, with a full view of your financial picture can provide competent advice as to which programs you may ultimately qualify for, and which is the best fit for you.  I do, however, want you to add this question to the typical inquiries about rates, fees, penalties, etc when speaking with your chosen loan officer:

“Is this loan assumable?”

I expect it will matter more than the attention it is currently being afforded in most Real Estate circles.

Aside from We’re Going to Disneyland, All the Rock Candy You Can Eat and, possibly, No School Today, you won’t find too many phrases that resonate with the children of Scottsdale more than Mighty Mud Mania.

Held annually at Chaparral Park in central Scottsdale (just East of Hayden, between Chaparral and Jackrabbit Rds), Mighty Mud Mania was originally conceived as an advertising ploy by the good people at Johnson’s Wax for their “Shout” spray pre-wash product. Encouraging kids to navigate an appropriately mud-laden obstacle course, the idea was to demonstrate how the detergent could remove even the toughest stains from the 300 free white shirts that were provided to the pioneering entrants.

Oops.

The kids and the Scottsdale mud proved more than a match for the product’s stain-fighting prowess.  The idea stuck, however, as the city adopted the concept as a fun diversion from the dog days of summer, and now multiple sponsors help pull the event together every year.

Celebrating its 35th incarnation this year, Mighty Mud Mania has grown from its gimmicky origins to a spectacle that draws as many as 10,000 participants.  Now including mud pits for children of all ages, shaded sand boxes, a stage with entertainment and participation performances, water slides, concessions and hose-down area (courtesy of a hose down from the local Fire Department) in addition to the ubiquitous obstacle course/steeplechase/sanctioned insanity that started it all, the fun has morphed from the means to the ends.  Entrance and participation is free, though donations and canned food drop-offs (collected by the Vista Del Camino Food Bank) are encouraged.  With the crowds that attend the event nowadays, parking has become a bit of a challenge.  As such, overflow parking is provided at Mohave Middle School, with buses on hand to transport those in attendance.  Admission to the public pool at Chaparral park is also reduced to $1 between 11 AM and 3 PM on the day of the event.

Of course, having a relative that lives half a block from the park is also a perk.  We were fortunate to be able to park in the Crestwood subdivision (directly East of the pedestrian entrance to Chaparral Park on Vista Dr), and walk our boys over for this year’s fun.  One day, and one day only, it took place this past Saturday, June 19th, between 8:30 AM and 2 PM.  Here is a pictorial recap of the filthy carnage that ensued.  (click images to enlarge)

Mighty Mud Mania:  just one more thing that makes Scottsdale Scottsdale.

Look forward to seeing you there next year!

For more information about this event, visit the City of Scottsdale’s Mighty Mud Mania page.

I field some derivation of this inquiry on a fairly routine basis from buyer clients. Typically, they have stumbled across a property listing online, or possibly in the ARMLS portal I have set up for them (provides for user log in and review of all homes currently for sale that fit their specific criteria, rating of the available homes, notes, price adjustment tracking, etc), that appears to be just the anomaly for which they have been hunting. That one desperate seller who has become so fed up with the Real Estate market that he is willing to hand over the keys to his castle for little more than a kind word and enough pocket change to cover the U-Haul.

“Paul, we HAVE to go see this house! It’s 2500 square feet, right in the McCormick Ranch area where we’ve been looking, and get this, only $299,000!”

“Wow,” I respond, though not I’m not really thinking, “wow.”

Truth of the matter is that my cynical little REALTOR mind is already trying to unravel the scam. Even in the foreclosure jungle that is present day Scottsdale, that property simply does not exist. Unless it is a completely unrealistic short sale listing with nary a chance of gaining lienholder approval, a money pit of epic proportion that would make Shelly Long and Tom Hanks blanch or …

“The name of the subdivision wouldn’t happen to be Briarwood, would it?”

“Yeah! How did you know? Whatever, it doesn’t matter. Can we go see this right now before somebody else snaps it up? I can stop by the house to grab the checkbook.”

Next comes the part where I break the bargain hunter’s heart. Built in the shadows of Gainey Ranch, McCormick Ranch, Palo Viento and Paradise Valley Farms, Briarwood is a picturesque little enclave of tile roof homes. Designed and built by local favorite Malouf, the architecture, front elevations, green lawns and killer location make for an outward appearance of grand larceny at the indescribably low prices they command.

So what’s the deal? Poor construction quality? Lawsuits? Was the community built upon ancient Indian burial ground?

None of the above. Briarwood is nothing shy of Pleasantville on the Scottsdale map. Nope, the only element lying beneath the surface of this otherwise pleasing neighborhood that some buyers will find sinister is the unanticipated leasehold ownership. Essentially, Briarwood (there are actually several phases scattered throughout Scottsdale) and the neighboring Santo Tomas subdivisions are single-family residences with legal ownership rights that more closely resemble condominiums. It is a rare bird in these parts. While relatively common in some states where land is limited and owners are reluctant to part with it (Hawaii, for example), land lease subdivisions are uncommon to the greater Phoenix area.

With many land lease subdivisions controlled by local Real Estate magnate, the Herberger family, homeowners own the private residence and pay monthly rent for the dirt upon which they stand. The 99 year lease terms vary slightly from phase to phase. In Briarwood VI (the phase nearest McCormick Ranch in the 85258 zip code), the monthly land lease fee is 1/10th of 1% of the sales price. So that 300k house comes with a $300/month fee. This in addition to the $110 monthly HOA fee.

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Homes For Sale in Briarwood of Scottsdale

Showing properties 1 - 1 of 1. See more Briarwood community real estate.
(all data current as of 7/31/2010)

1. $199,900 : 7327 E Berridge Lane, Scottsdale
   
   2 beds, 2 full baths

   Size: 1,518 sq ft

   Lot size: 7,500 sq ft

   Year built: 1973

   Parking spots: 2

   Walk Score™: 66

Listing information deemed reliable but not guaranteed. Read full disclaimer.

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One thing that may be disconcerting to potential a home buyer is the uncertainty regarding someone else owning the land under his/her home. It can be a very large mental hurdle to overcome, as the premise runs somewhat contrary to what most find attractive in single-family fee-simple home ownership. Some trepidation is to be expected, even if not entirely rational, as to whether the lease will be extended at the time of expiration, or if terms will become untenable upon renegotiation.  The fact that most have decades before such concerns come into play should not be discounted, but buyers don’t need much to fret about when making a decision so critical as the choice of housing.

When looking at properties that sit upon leased land, a buyer will have to weigh the potential cost savings of the home against the additional fees to see if it actually pencils as a bargain. Financial determinations aside, you have to ask yourself if you are truly okay with your lot having a landlord. This is a personal decision that supercedes the advice of your agent. If you are not comfortable with the setup, the financial consideration is moot. Lastly, financing options will be somewhat limited on leasehold properties. As challenging as the mortgage steeplechase has become in 2010, expect a few more tar pits and flaming hoops when shopping non-traditional ownership styles.

Despite numerous inquiries, I have never sold a Briarwood or Santo Tomas home. While not real keen on throwing cold water on the wishes of my clients, I am forthright with the cases both for and against these developments. I find that after most learn the apparent bargain basement pricing does not accurately reflect the out of pocket cost, they’d rather stick to the more known commodity of fee-simple ownership. With an eye always on resale value/ability, I confess to breathing a sigh of relief. Some swear by this ownership style, but it’s a gamble (as is all investment, I suppose) that does not fully agree with my digestive track. When making the ultimate determination of whether to issue a professional advisement of “yea” or “nay” on a property, I always consider this bit of selfish introspection:

When they call me to sell it in five years, will I pump my fist in excitement or hang my head in anticipation of a tough slog?

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If you are buying or selling in Briarwood or another leased land communities, I know several excellent neighborhood specialists. I just don’t happen to be one of them. You need a gung-ho advocate on your side when you brave the Real Estate jungle. Not completely sold on this product from an investment and practical standpoint, I must demure from soliciting the business. Drop me a line, and I will gladly refer you to a top-notch leased-land specialist.

Of course, if your Real Estate needs land you anywhere else in the Scottsdale, Phoenix and Paradise Valley, I am ready to pick up my sword on your behalf.   Give me a call and let’s see if your goals align with my sensitivities.  Coffee’s on me.

(480) 220-2337 | paul@scottsdalepropertyshop.com

With this surge in demand and a subsequent decrease in supply, rental values have not only held firm, but have noticeably increased in the markets I work.  From a purely anecdotal standpoint, I have been shocked by the level of competition for not only the properties I have had listed for lease recently, but for the tenants I have worked with to secure rental properties as well.  Mind you, I am not simply referring to the low end pricing (sub $1000/month) where heightened competition is always to be expected, but in more expensive price ranges to boot.  In particular, I am seeing a LOT of interest in properties that are renting in the $1400-1800 per month range.

Checking the latest statistics to see if what I have noticed is playing out on a larger scale, I see active Scottsdale rental listings are down to roughly 1800 units (as of ARMLS’s May figures).  This marks a steady decline from an inventory that reached a high point of 2568 in November of 2008 and did not dip under the 2000 unit threshold until January 2010.  The 5.19 months of rental housing supply (as determined by the current rate of absorption) is at its lowest point in years.  Interestingly, the overall average rental rate has not shown a noticeable jump, despite my recent personal observations.  Given the decrease in total inventory and increase in absorption (units leasing per month), however, I fully anticipate next month’s numbers to reflect a higher baseline average.

This shift in the rental market tells me two things:

1)  Before deciding to walk away from a house that appears irretrievably underwater in terms of negative equity, homeowners (and potential future renters) really need to study their options carefully.  If I had a nickel for every misguided homeowner who erroneously believed there was an unmitigated plethora of housing options, at bargain basement prices, waiting for them once they pulled the plug on the Bank of Extortion … er, I mean “America” … I could comfortably retire to my literary tinkerings.  The assumption that lower selling prices go arm in arm with lower rental rates is patently false.  Further, with all of the newfound competition for rental housing, your chewed up credit report will be scrutinized a bit more by potential landlords than most would expect.  Sure, a human landlord may be more understanding of the recent economic woes than some faceless underwriter, but as in any free market, it always comes back to options.  If there are renters out there with fewer credit issues and deeper pockets, you are going to get aced out.  Please consider where your escape pod is heading before abandoning ship and scuttling that home turned financial Death Star.  If there is no soft landing, how have you benefitted?

2.  Our market may have reached (or is close to reaching) that sweet spot in which it makes sense for the homeowner with designs on a move-up purchase to revisit the rental potential of his/her existing home.  While the notion of renting an existing house out (to offset the mortgage) to free oneself up to take advantage of the market conditions and purchase a considerably larger home for a fraction of its prior value is nothing new, the increasing strength in the rental market makes the strategy more feasible at present.  The biggest hurdle to this play, other than deciding whether one is really cut out to become a landlord, remains  the qualification process.  Unless you are one of the fortunate few who maintain at least 25% equity in your home, you will essentially have to qualify to carry both loans (the existing house as well as the new one you would purchase).  Even if you secure a tenant whose rent will cover the payment, you will be qualified for the new loan as if you were qualifying for both properties.  If you have the means to do so, the time could be right to finally leverage the conditions that seemingly everybody and their brother’s mail carrier have already managed to exploit.

Whatever your goals for the Scottsdale Real Estate market, drop us an email or give us a call with your specific needs / questions.  You might not be as trapped as you think.

(480) 220-2337 | paul@scottsdalepropertyshop.com

Before you place too much importance on these latest additions, make sure your virtual Captain Stubing has what it takes to avoid the icebergs of an honest to goodness Real Estate transaction.

The great equalizer, the cyber-world provides the blank slate upon which even the most novice agents can paint a colorful picture of expertise.  Years of experience trumped in the search engines by weeks of keyword optimized content.  Those with their hard hats on in this soft medium can easily be mistaken for proven veterans of the Real Estate world.  As such, even the most obstinate curmudgeons have yielded to the inertia of technology and joined the online fray in the ever-expanding global search for the next business prospect.

While we here at the Scottsdale Property Shop are ardent followers of the Internet prophets, we realize that this shiny new(er) medium is only the latest and greatest hat to hang on our business rack.  The fixation with getting to the top of the pagerank heap has distracted many agents and consumers alike from the actual job of selling Real Estate.  Think getting the most online exposure possible for your home is key to the probability of a sale?  Well, you’re right.  That said, raw exposure in the absence of ability is tantamount to brain surgery via an enthusiastic first year med student with a text book, albeit it one with exceptional illustration.

If you are reading this, you already know that we are adept at getting our services and our properties in front of a target audience.  What you may overlook, however, is the fact that this is but one minute portion of the job.  You must fully vet the agent(s) you choose to employ on all facets of the service, not simply the “Cool, my house will be on page 1!” factor.  Click through the articles, peruse our thoughts on the state of the market, review our credentials.  Only then, if you believe we’ve got the chops to handle the full responsibility of listing and selling your Scottsdale home, give us a call to move into stage 2 of the vetting process: a personal consultation.

While the Internet is a valuable tool, there is no magic Real Estate bullet or panacea for an overpriced or under-represented property.  Your agent should know the community, the builders, the amenities, the home sales, the effective means of procuring a buyer, the nuance of negotiation, the ability to close and how to effectively navigate the escrow to the finish line.  Google and Facebook will do none of those things for you (him).  To add another clumsy metaphor, consider the various legs that prop up your home sale. If your agent does not have adequate experience with / knowledge of the product, the integrity is suspect.  If your agent cannot effectively close buyer leads, the integrity is suspect.  If your agent cannot, or does not know how to handle the various hurdles of the escrow process, the integrity is suspect.  And yes, if your agent does not leverage the proper media for attracting suitors for your property, the integrity is suspect. Ask any particular leg to support more than its burden, and watch the entire structure collapse.

While I know a few terrific agents who have been in the industry for relatively brief durations, I am aware of all too many Internet marketing wizards who lack the first clue about the process of selling a home.  It seems that the only thing taught in new agent training these days is how to leverage social media and/or drive traffic to one’s site.  Valuable tools, but am I crazy to posit that learning to actually do the job is every bit (or more) as valuable as tracking hits?

I see such agents in my keyword Google alerts often enough to know that they have the marketing portion of the job wired, but who exactly are they? For all of that search engine juice, I’ve never seen their names on a sign in the communities they target. I applaud the promotional efforts, but cringe for the consumer who hires the Internet warrior out of mistaken belief in his/her expertise. After all, are we Real Estate professionals who market on the Internet, or Internet professionals who occasionally dabble in Real Estate?

I can buy dominant online position for a particular neighborhood for about $20/month, but I can’t buy ability. Even in the 24/7 virtual “what have you done for me lately” world, a track record is always in vogue.

Consumers … choose your weapons wisely.

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*Now, because I am a full-time Real Estate agent who moonlights as on online personality, you may follow me on the social network of your choice via the icons in the footer.  One more Twitter follower and I win a free chicken!

Subscribe to my blog or an angel loses its wings.

Shoot, I still generally decline a store clerk’s offer of assistance despite clearly having no idea which bottle of red to pair with the flank steak atop my cart’s haphazard grocery selection.  Just a knee-jerk reaction to get the salesperson out of my space.  I am perfectly capable of bungling the choice on my own, thank you very much.

Which leads to the thrust of today’s discussion of a well-traveled suburban myth:  The (presumed) advantage of listing agent attendance at all property showings.

Some agents, either out of deference to demanding sellers or as a standard business practice, require they be present at all showings.  They show up, open the door and then go in one of two directions.  They either stand aside and let the buyer’s agent handle the actual showing of the home, or they commandeer the next thirty minutes; leading buyer and cooperating agent on a room by room tour, pointing out each frivolous nuance in painstaking detail.  The buyer’s frozen smile masking (or revealing, if the blithe monologist would bother to notice the glazed over eyes) the fact that mental check-out occurred shortly after exiting the foyer.

You say there are TWO electrical outlet receptacles along this wall?  Both GFCI protected?  Get the *%&^ outta here!

There may be two schools of thought on listing agent presence at showings, but one is simply promoting the wrong curriculum.  When the listing agent inserts himself into the process, he lacks the rapport to understand which items are important to the buyer and the ability to sell the home’s strengths from a position of trust.  Further, much as if the seller were in attendance, a buyer is less comfortable exploring a stranger’s home in the company of a stand-in stranger.  The idea is to allow a buyer the breathing room to open cabinets and linen closet doors.  To stand in the family room in silence for a few minutes and decide which wall is best for the sectional.  To visualize his artwork hanging above the bed in the master, or the family gathered around the breakfast table on a lazy Sunday morning.  It doesn’t work if an interloping chatterbox squeezes the breathable air out of the house.

Thanks for the fifteen minute demonstration of the pool’s waterfall.  I wasn’t sure if I wanted the hassle of a house with a pool … now I’m sure I don’t.

Even if the agent hangs out of sight, the unnecessary presence can trigger an internal stopwatch within a buyer.  While he may not care about wasting his own agent’s time (as well he shouldn’t), the stranger factor tends to accelerate the showing.  Humans are much more apt to “put out” those with whom they are familiar than the guy off the street.  Whether borne of politeness, the discomfort of feeling watched or a hesitancy to reveal any indication of interest to a salesman, the end result is a showing that is less likely to live up to its full potential.

Is the other agent still in the living room?  I’d wouldn’t mind calling my wife to have her come see the house, but don’t want to keep him from other appointments …

Showing quality aside, the other big knock on mandatory appointments with the listing agent is showing quantity.  The anticipated control and added security over the showing comes at the steep price of deterrence.  Not only do properties that are more difficult to access get thrown to the bottom of the stack by many agents (if an agent is paring 10 potential properties down to 4 to show a buyer, guess which ones get the axe first?), but listing agents are not always available to show the home when it is convenient to the buyer.  The ease of access issues with such properties can prove insurmountable.  Say a relocating buyer is in town for the day, but your agent is unreachable or booked through tomorrow.  You just lost your shot at that buyer.  With the number of properties from which to choose currently, the very last thing you want to do is erect needless hurdles.

As to the safety issue, the integrity of your home’s security is always an issue when you open the doors to the general public.  That said, with the state of the art electronic lockboxes that are utilized these days (please tell me your agent is willing to pony up the $80 per box cost), a record is kept of all agents who access the premises with clients.  Each agent has an individual keypad with a unique code.  Every time the key is accessed, that code is stored and available to the listing agent.  Further, agent keypads crash unless they are updated every 24 hours.  Thus, the threat of the missing or stolen keypad is not the cause for panic that it once was.  Put the valuables away for safe keeping, but one licensed professional per showing provides adequate protection without diminishing the quality of the showing, or precluding it outright.

In our experience, the most advantageous means of ensuring high-quality and high-quantity showings is to dial phasers back to “stun” and stay the heck out of the way.  Market the property to the nines, accompany unrepresented buyers on tours of the home, but don’t micro-manage the sales force.  Draping oneself over a potentially hot showing like a wet sales blanket may appease a needy seller, but it does not serve the interest of the actual goal:  selling the house.