An Older Home

In my poorly lighted bathroom, foundation and blush in hand, I can sometimes fool myself into believing that I still look pretty good for 46, but when I catch a glimpse of my face in the rear view mirror as the sunlight hits the lines around my eyes, I'm forced to admit that I've aged. Even with good diet and exercise, time takes its toll.

House are a bit like aging people, they have a tendency to show their years (unless they've gone under the knife). Even with the benefit of a little updating here and there, there's no denying the aging process.

Styles and trends change and so do the needs of the buyers. Homes built in 1925 were never meant to accommodate the technology of today with all of our computers, screens, and the multitude of electrical appliances we each own. Double-paned windows were still years away, sheer wall and bolting wasn't even a blip on the screen, (what screens?) and the concept of a family/great room wouldn't appear for several decades - nor would recessed lighting, steam showers, granite counter tops, or radiant floors . . . to name just a few.

Still, some of us can't resist the pull of an older home with its attention to detail, gracious sized rooms, traditional floor plan, hardwood floors, and generous moldings. With all that intrinsic charm, it's easy to overlook the boltless foundation, the dry rot under the stucco, or the heating and electrical bills that are sure to shock due to a lack of insulation.

Since most homes are now coming to the market with a mini face lift, it's easy to fall in love with the staging and the paint job. That's the idea. Staging is meant to distract from the shortcomings of the property. In reality, most of us live with unanswered mail stacked on the counters, laundry that's piled up waiting to be folded and children that don't pick up their toys. Enjoy the show and feel inspired, but remember, you're not buying the pictures and the furniture. Don't ignore the big ticket fixes when considering the purchase of an older home. Foundation and pest are expensive to correct and they often don't translate to resale dollars the way a new kitchen or bathroom does. (Let's face it, foundations aren't sexy.)

Still, if you don't mind a wrinkle here or there, an older home can be well worth the investment, especially if you plan on staying in the home for at least five years. As long as you've looked beyond the superficial and investigated the main systems, I encourage you to consider these wonderful classics! Older homes have a way of remaining timeless. Consider the "mid-century" (translation - "track home") that was once the vision of modern living. It's clearly dated by today's standards. In my opinion, the remodeled traditional is head and shoulders ahead of its newer, younger model. The same is true for people as well (of course, I'm quickly becoming a "classic" myself so I'm a bit biased.) And while I haven't quite hit the lines in my face with "putty" just yet, I'm not ruling it out either. While I can't deny the aging process within myself or in a home, a little updating never hurt!

All Realtors Are Not Created Equal!

Real Estate is one of those topics that people can't help but probe you about wherever friends gather. While I try to avoid making every social function, a business call, I also realize that Real Estate is a hot topic that seems to come up whether I am attending a newcomers' party, picking my kids up from school, or cheering on one of my sons at a baseball game. As anyone who reads my blog knows, I am rarely shy about offering an opinion when asked.

Recently a friend said she was going to list her home with her former agent, but only if that agent would agree to a 5% commission on the listing, instead of the standard 6% she had payed her previously. She said she had felt "gullible" for failing to discount the commissions on previous dealings with this very well known realtor, but hadn't know commissions are negotiable. (They are - just as the price of your home is.)

By way of a carrot, she followed up with, "if she won't do if for 5%, I'll let you sell the house instead." While I'd love the opportunity to sell her home should she decide to move, I surprised her by responding, "Let me tell you why you might not want to "discount your commission . . . Why selling for full commission works to your best advantage and why I would encourage you to list your home for 6% as well . . . "

I then told her the story of a recent listing of mine in Piedmont that was a "high-ticket fixer." While it sits on a wonderful street, across from a charming little park, it had quite a bit of deferred maintenance. The owner had lived to be more than 100 years old and failing eye sight and poor health had lead to some significant deterioration of the property.

To my great good fortune, I had the pleasure of working with a trustee who believed whole heatedly that "money motivates." Having given me a FULL 6% commission, he left it in my hands to see what I could do. Given that I now had more money to work with, I was able to paint and stage a few rooms of the house, polish the wood floors, wash the windows, and throw a catered "Preview Party" for the house which I marketed as "A Masterpiece in the Making." In addition I was able to have the home drafted to scale and passed out custom made measuring tapes as a party favor, so that everyone who came, had the tools they needed to begin the process of remodeling. Finally, I twisted the arms of two very talented Piedmont professionals - an architect and a landscape architect - to join forces with me to create a more up-to-date vision of the house. Their ideas gave perspective buyers a jumping off point and were instrumental in helping me to sell the house in eight days for well over asking!

The 1% difference in the commission, allowed me to market the home more fully, print and mail invitations, create a color campaign in my advertising blitz and go well beyond the scope of an average listing. It allowed me to overcome some significant hurdles with the property and "romance" it to pieces, while leaving no stone unturned.

When this topic came up at a recent round table, a colleague of mine asked if I really felt that the service was different on a 5% commission versus a 6% commission. My first inclination was to say "my service is always the same," and on the buy side, it is. I never look at the commission rate when representing a buyer. I look at the "fit" of the property and the goals and the needs of the client. If the commission is a full 3% to my side, it's a nice surprise, but it's never a driving force (for me, at least).

However, on the selling side, that extra one-half percent, gave me all of the incentive and the extra marketing dollars I needed to create something really unique for this one-of-a-kind property. On careful reflection, I had to say "yes. I believe it makes a significant difference in the way one can market a property for sale." As the example above illustrates, it does. Truthfully, if all my sellers felt as my trustee did with regards to money's ability to motivate, I could be more creative, more imaginative, and ultimate more successful with every listing I take. At 5% I am forced to be much more prudent and practical with my marketing dollars. That's just a fact of business.

While not every house may need the extra attention my high priced fixer needed, in a competitive market, every property does benefit from dynamic advertising and marketing, and almost all homes require some staging, cleaning, gardening and primping before coming to market. (Some of these items are often included in a full commission package. Here's where you might want to negotiate for services.) Cutting corners on the commission to your agent may not be the smartest decision you make with regards to your single largest investment. You may actually benefit more by offering a full 6% commission!

One final note, commissions are split between the listing side and the purchasing side. Your agent splits the commission in half and splits that half again with his/her broker. While the commission may seem large, it's divided between many parties. What an agent is able to do with his/her share of the commission is what separates and defines the talent. By all means if each of us created the same campaign, marketed identically, and gave an average effort, then you should demand and negotiate a lower commission rate with your agent .

But all agents are not created equal, nor are all brokerage firms. Thinking that they are is naive. The best agents in the business seek and usually receive a 6% commission because their skills and experience set them apart - there is an art to selling a home and they have perfected it.

Moreover, most top agents seek firms that can support them in their endeavors to stand apart from the crowd, as I did by choosing The Grubb Co. to affiliate with. As with most things in life, you get what you pay for. Real Estate is no different. Hire a true professional and don't sweat the 1%. Instead, make that agent go the extra mile and perform above the pack for it! If the result is satisfying, the 1% difference won't even be a consideration. Instead, you'll be grateful that you made a smart and wise decision to support your agent to his/her best ability. Don't short change their efforts for what amounts to a relatively small investment on your part. Don't be "gullable" by falling into the thinking that you are saving money by discounting the commission, as my friend did. In reality, you are not.

Loyalty

This year marks the inspiring 54th anniversary of my parent's rock-solid marriage. Similarly, my twin sister and her husband have been married over 25 years (Cal Berkeley sweethearts - just as our folks were) and while my own record is not quite as impressive as either of these two examples, my husband and I are happily sailing towards our 17th anniversary this April. In all of cases, loyalty has played a major role in cementing each of our relationships.

I bring up loyalty because it's often a motivating factor in choosing a Realtor. When is loyalty appropriate and when isn't it? When does loyalty help you to achieve your goals and when does it get in the way?

A friend of mine in Piedmont hinted recently that she and her family might be making a major move in the next few years that would require the possible sale of their charming home. Thrilled that she was considering me to represent her, she followed up a few days later with . . . "I've thought about this a great deal and while I would love to work with you, I have used another agent at your firm for several transactions and feel loyal to her."

Although initially disappointed, I responded with " I can only hope my own clients feel similarly in the years to come. . ." and I meant it. Truly, to have clients feel strongly enough about you and the service you provide, so that they return time and time again, is the very essence of success. It is what each of us as professionals, is working to achieve. Certainly, I hope that I have garnered that kind of respect and trust in my practice even now.

This is an instance where loyalty makes good sense. If you have established a relationship with an agent that has served you well, knows the area, and has placed your needs first and foremost, why risk your most valuable asset by abandoning what has proven to be a winning team? As my mother likes to say, "If it ain't broke, why fix it?"

On the other hand, yesterday, while touring the upper Rockridge area of Oakland I came across a property that I thought would be perfect fit for a new client of mine who lives in Los Angeles. He and his wife are planning on moving up north in May to be closer to their grown children and grandchildren (appropriate loyalty). This house had been listed by an out-of-area Realtor so there were no MLS sheets at the Broker's tour. ( The MLS sheets provides statistical information about the property including bedrooms, bathrooms, year built, etc.)

"No Problem," I thought, I'll just send him the information via the Internet when I get back to the office. Unfortunately, upon my return, I discovered that the property has yet to be entered into the Oakland MLS - either the agent is not a member of our local board of Realtors and doesn't have the ability to do so, or he doesn't know the area protocol for advertising and promoting a listing in Oakland. Here's when being loyal to a friend, a colleague, or even a Realtor you may have used in the past, is an inappropriate use of "loyalty" and here is where it can cost you dearly. Failing to place the property in our local MLS drastically limits the number of agents that will find your property when they search on line. Fewer agents translates to fewer buyers which directly translates to fewer dollars.

Having lived in San Francisco for eighteen years, I'm often asked by clients moving over to the East Bay if I can sell their property for them on the other side of the bridge. Technically, the answer is "yes." My California license allows me to sell anywhere in the state of California - my conscious, does not. Although I know every crook and cranny of San Francisco, I moved out of the city three years ago. Three years in Real Estate terms can be epic. The market is constantly changing and selling a property when I no longer know the micro markets, the emerging neighborhoods, or the local players does my clients a disservice. Saying "yes" to this request would be an inappropriate response no matter how "loyal" I feel to them. I serve them best, by referring them to a reputable, local, knowledgeable agent instead.

Loyalty is a wonderful quality and it serves us well - in marriages, in friendships and in business. Just make sure that your "loyalty" is not taken for granted, both in a marriage and in a working relationship with your agent. Make sure your agent is as "loyal" to your goals as he/she is to their own.