Blog : Realtors

Lake Geneva Realtors

Lake Geneva Realtors

There’s nothing that makes me hate my chosen profession more than leafing through a local glossy magazine. There are lots of glossies here, most notably that Summer Homes For City People glossy. That’s a heck of a magazine, but you knew I’d say that.  In spite of my magazine being the only magazine of importance and relevance, there are others that persist. I made the mistake of thumbing through one of these magazines over the weekend, and what I discovered left me weary for this business of real estate.

The issue isn’t Realtors, themselves. They’re fine, really. The issue is advertising. The issue is what we choose to say about ourselves in the hope that someone will believe us. The glossy I read through featured heaps and heaps of advertisements for brokers and their Realtors, and I thought I might lend a bit of MLS based fact checking to the advertised claims.  I’m all for self promotion (see: this blog, my magazine, my life, etc), but there’s a reason why my self promotion is heavy on specifics: I want to be taken seriously.

Without further ado and in no particular order, the ads I stumbled upon:

One claimed 33 reasons why a brokerage is super amazing. I did some research this morning and found that the Walworth County average closed sales (2018) for those 33 particular reasons was $1.67MM. For perspective and context, during 2016/2017 I averaged over $4MM in sales, per month.

Another ad, this one really fancy looking. The agent has been closing lakefront deals on Geneva, since quite a long time ago. Some MLS searching to provide background on the advertisement revealed that indeed this agent has put together single family lakefront deals on Geneva. Four of them, in total.  I, also have closed a few lakefronts on Geneva. 48 of them since 2010, and more before that, but alas, I don’t even have an ad in the magazine.

There’s some mention in other ads of agents winning awards from their companies. Watches, gold circles, platinum things. This is nice for these agents and their host companies. One such company gives away a watch the first year you sell $10MM with the company.  I sent an email to the company asking if I’d qualify for 4 watches for 2017 based on my production, of if I’d be capped at just one watch. (I jest)

Ooh, here’s another ad. This one is sleek. Super sleek.  This agent sells lots of houses that afford the lake lifestyle. To review the claim, let’s look through the MLS…. That agent has sold one home with lake access or lakefront on Geneva this year. One.  This does not make for a terrific year, but it does make for a great ad.

There’s no need to go on and on, as I think you have likely grasped my concern. As a consumer in the market you’ll need to figure out which agent you should use to represent you. Sadly, the lakefront market on Geneva is hot, which is attracting more and more agents to the lakefront fray. You can’t blame them, as it’s the biggest pie and everyone longs for a slice. Unfortunately, no matter what the ads say, not every agent is a lakefront specialist. Not every agent has success in specific market segments. If you’re an agent and you do a  terrific job selling in Geneva National, then put that in your ads.  I have a horse farm for sale (it’s amazing, really), near Clinton, Wisconsin. The fact that I have this farm for sale does not make me an Equestrian Property Expert.

This morning, it’s just another reminder, I suppose. If you need an attorney to help with your Last Will, please don’t hire a personal injury attorney. If you need a mechanic to replace your timing belt, don’t drop your car off at the bicycle repair shop. If you need a Lake Geneva area Realtor to help with your purchase or your sale, choose an agent with a pattern of success in the specific segment that has your attention. If you’re looking for a Realtor to assist you in Des Moines or Hinsdale, do the same.

Weekend Caller

Weekend Caller

We need to have an honest discussion. It’s rare, in any business involving sales, to have such a conversation, but converse we must.  This is about me, sure, but it’s about you. It’s about people you don’t know and people I don’t know. It’s about regular, good people. People we’d go to church with or go to fish fry with. People we’d do both with. It’s about the sorts of people we all are at points in our life. It’s about the weekend real estate caller.

In real estate, it’s a generally understood concept that Realtors work on weekends. We do. We all do.  There are some Realtors who take days off for religious reasons, and I applaud them for their conviction. There are other Realtors who take certain hours off- no calls after 6 pm- that sort of thing. But the vast majority of Realtors will show you a house Sunday morning at 8 am and they’ll show you one Friday night at 9 pm. There are no bounds for most agents, no time when they aren’t hungry to sell you something. Would it surprise you now that I tell you this is a bad thing?

Last weekend I had several real estate calls at my office line (262-245-9000). That’s not abnormal. But this was a Holiday weekend and you’ll be somewhat shocked to find out that Realtors also like Holidays.  These days were not created purely for bankers and school teachers and financial analysts. These are the holidays for the people, and while there is some testing that has not been entirely vetted, Realtors are also people. The business expects Realtors to be available at all times, at the drop of a hat, because shouldn’t these blood-sucking sales people be available whenever the job calls. Can I say no?

Of course I can, but it’s taboo to admit it. Could you imagine that on Memorial Day weekend I, too, like the idea of a cookout? I was momentarily undertaking the world’s greatest physical transformation earlier this year, but it didn’t stick so I’m back to preferring my protein to be wrapped in carbs. Soft, pillowy, deliciously doughy carbs. And so I like the cook brats and burgers and steaks, just like every other red blooded American.   I was in my office Saturday morning for a couple of hours, which felt like a nice effort on a Holiday, and that was that.

I stopped back on Sunday evening, after having spent the day Sunday out tiling at the never-ending cabin project I’m embroiled in.  Last weekend,  calls came for me to my office number. Voicemails were left. The weekend calls had left a couple of messages, and I was too late in my reply. Both buyers had moved on without me, which is both slightly understandable and also disappointing. And that comes back to the concept of this business and what it is different agents can offer.

Let’s say you’re looking to have some estate work done and you were told by a friend that their attorney is the absolute best. He does estate work all of the time, and he’s without rival. So you call the attorney, let’s just say on a Sunday morning of Memorial Day Weekend. If the attorney didn’t call you back within a few hours would you have called another attorney? Or similarly, if you call this attorney on a Monday but he hasn’t called you back by Monday evening, would you waltz into the closest lawyer’s office, the one in the strip mall next to the Cinnabon, and have the junior attorney from Middle Appalachia Technical College draft your docs? Of course you wouldn’t. Why then is real estate so different?

I love phone calls from clients and would-be clients. I crave them.  So please, if you’re calling me on a weekend, call my cell phone (262-245-1993). Text me. Email me (dave@genevalakefrontrealty.com). Do all of these things, but I’m begging you not to leave a voicemail at my office for me if you’re expecting a Sunday morning return call. While real estate is a game built around endless availability, I’d prefer it be built around the concept that some agents are more valuable than others, and if you’d like a Sunday morning agent with an hour notice I’m pretty sure I know you’re not going to get the agent who can guide you towards the right property at the right price.

Here’s to the weekend, and to cell phone calls. Above, a pier shot from Thursday. It’s summer. Be here.

 

The Business Of This

The Business Of This

This is, after all, a business. It’s not hard to think of real estate as a business. The business of the business has an office and a phone and some computers and in this, it’s just like all of the other businesses. We all understand that, the business of real estate. But it’s harder to think of Realtors themselves as businessmen and businesswomen. This is because I’m wearing jeans right now and there are some holes in them, and I’ve only discovered these slight oil spots in my t-shirt now that I’ve left my house and am at my office. These oil spots vex, because I haven’t been spilling oil on myself, nor have I been rubbing shoulders with those who might have done so. Still, jeans with holes and oily t-shirts and yet I’m at an office that appears to be functioning as a proper business. But I’m here, at this office and it’s seven something and the majority of the real estate world is still in their pajamas, sipping their coffee, cracking open their laptops on their breakfast room tables. You could argue that pajamas without oil spots are superior to t-shirts with, but that’s not the point.

In this business there are wins and there are losses. I’ve been fortunate to win a bit this year, quite a bit, really, and in that there is comfort. Not comfort that I’ll always be okay but comfort in knowing I’ve successfully pushed off failure for another year. There’s some struggle now, knowing that I must either keep producing or whither away, but there is mostly gratitude for this incredible base of clients that have chosen to trust me with their Lake Geneva maneuvering. This trust is important, in fact it’s everything, and trust placed in a guy with oil spots on his black t-shirt is a meaningful level of trust. But still, this business and this life and the facts of real estate. I continue to feel that there are misconceptions revolving around Realtors and this life, and while most of the cliches are actually true and damning, there are some things I think you should know. Consider the curtain drawn back:

When I interview with a potential seller for their potential listing, I usually want the business. In the event that I don’t get that business, and instead another agent does, I can admit to you now that I wish bad things to happen to that listing. I actively hope it doesn’t sell. I aggressively root against the success. Now, now, don’t assume that means I won’t bring in a buyer and sell that property, because I will in order to drive home the point that the seller made an egregious mistake in listing with anyone other than me, but I do wish ill for the property in general. Petty? Absolutely.  This is a confession, but it’s not unique to me. Every Realtor everywhere feels the same, and now you know.

When I push a seller to take an offer that might be lower than what the seller wants, I’m not doing that because I want to get paid. I like getting paid, as does everyone who works at any sort of job, but when I urge a seller to accept a price I do so without any particular regard for a future paycheck. I do so because for every seller that refuses an offer and then, soon thereafter, ends up getting his price, I’ve seen 500 sellers who refuse an offer and are later filled with deep regret over their missed opportunity. Do I like making commissions so that my children might be able to eat their dinners of chicken, rice and corn? Of course. But do I tell a seller to take the money and run because I’m thinking about what I’ll get out of it? Absolutely not. The business is structured in such a way that compensation only occurs in conjunction with a closing, which leaves the interests of the agents subjected to conflicted scrutiny, but I assure you that I only push a seller because I know the seller needs that buyer far more than the buyer could ever need that seller. To put it more succinctly: Don’t hate the player, hate the game.

Agents are not always busy. They’re not. No matter what their Facebook or Twitter feeds tell you, they aren’t always on showings when they aren’t at closings. In fact, most of them are at home. That’s why I built this office to feel like a house, so that when the middle of winter comes and with it cold and dark and snowy, I can simply stoke a fire and work without feeling the need to drive home and do the same. Most agents work from home a shocking percentage of the time. So when you call them and they’re busy, they may be napping or sipping tea or they may be binging on House Of Cards because they assume it’s about real estate. I’m hardly ever at home, but that doesn’t mean I’m working 18 hour days, either. In fact, about once every 7-10 days I’ll go fishing and take that day mostly off, even though the cadence of my cast is continually disrupted by cellular notifications. And when I take a Monday or a Tuesday off and that’s the day you call me, don’t be upset, because on Sunday when you were playing I was showing houses to someone from Palatine.

The business is far more stressful than you might imagine. That’s because the agent is the cog that seems unnecessary and overpaid, but if the agent is doing this correctly the agent is also the glue that holds a transaction together. Being the glue is stressful, and it creates significant tension for the agent.  The world loves to view agents as overpaid cheeseballs, because in fact we often are, but successful agents are often so because they feel the burden of knowing the deal rests of their shoulders, and without them, the deal would often fall apart. Bad agents know this but they don’t care, good agents know this and it causes them to wake up at 2 am because they’ve had a nightmare that your deal fell apart and it was their fault, even though it wasn’t actually their fault. Good agents are stressed agents, and I’ve often done my best work when scrambling and stressing, especially when I’ve already forgotten that I have oil spots on this shirt and I’m already late for my first appointment.

Trust Fall

Trust Fall

A sudden twinge of pain. A shallow breath. A pain here, another there. The symptoms of something, but of what? A quick google search reveals what you already suspected. You’re dying. Classical symptoms, classical profile, soon it’ll all be over but the weeping, and there’s a very significant doubt that more than a few will weep. Maybe your mother, but that’s about it. Your kids, sure. They’ll be sad for a while, at least one could hope. The funk sets in, the languid life lived as one who will soon depart from it. The world will go on, and you don’t find encouragement in that fact. It’ll go on, all right, the same as it did today the same as it did the day before, but you won’t be there. The absence won’t be noticed, no one will care. The car passing outside your window right now won’t know if you’re in that office or not. Soon, no one will remember you, unless your friends hold a golf outing in your memory. But that, like all things, will slowly fade and everyone will move on and they’ll be happy that your wife found a new husband, and so quickly and she’s so happy! It’ll be just fine, and the pain comes again and the breath feels shallow and so you nap a tortured nap. Death, soon.

But you don’t do this for long, because you go to the doctor who studied about your pain and your breath and he says you’ll be fine. He says you have anxiety and you’re not really dying at all. For the advice, you’ll owe him money. If you have Humana, you’ll think your insurance will pay for the visit, but they won’t. You take your family to Chili’s. Another year, another near miss. And when your car sputters and the light comes on, you google and find yourself on a message board. The members use words you don’t really know, but you’re smart and you can figure things out. The member forum contributors have names like TieRod (everyone assumes his name is Rod). Others are Sparky (and they assume his nickname is Sparky, but it might only be for this forum, no one knows for sure). The moderator doesn’t even use a name, just V-10. We assume he has one of those BMWs with that size engine. You search for others that have discussed what it is that your car has. You search for the positive, something like, yeah, my car did this and then I did that and now it’s fine.

But after some time you don’t find anything and that sputter persists and the black tape you stuck to the dash glass over the shining cartoon image of the engine has begun to peel and sag. You take the car in to a mechanic named JEFF, the cursive signature stitched into his shirt a reassuring endorsement. He’s been there long enough to have the personalized shirt. The mechanic says your car has a this and a that, something serious, but not fatal. You agree to have him fix it, for a price. When you return to the dealer two days later your car is ready, it’s been washed, the invoice is $870.54. Good, you think, because you had feared it might be over a thousand but it wasn’t. You take your family to Chili’s in your car, the one newly fixed.

You’ll need to sell your house soon. You’re looking to upgrade, to improve, because your health is okay and your car is fixed and it seems like the time is right. You’ll need to sell the house. A Realtor is summoned, the one with her name on the city bus bench. She arrives, a yellow Hummer with her name emblazoned on the side and her face, too. She looks nothing like the photos, but that’s okay because you don’t look like you did 20 years ago, either. You ask for her advice, what’s the house worth? She tells you $375k. Maybe $385k, but certainly not $395k. Your list should be $389k. Start soon, clean the clutter, fix those holes in the drywall, clean up the oil stains in your garage, the drips that dropped from your car before you had it fixed by Jeff. You thank her for her time, for the sweet brochures, and you tell her you’ll let her know.

You toss and turn that night, not because of the shortness of breath and the slight wheeze that the doctor said was nothing, but because you question the advice. Why would this agent tell you $389k? The neighbor once asked $429k for his house. He’s not better than you. The agent must have just wanted to get your house sold immediately, so she under priced it. She wants her commission, that’s really all she wants. Yeah, that’s what’s going on here. You get it. You’re not dumb. You weren’t born yesterday. In fact, when you fill out online things where your birthdate is required you have to scroll way, way down the list. This isn’t your first time. You’re not to be trifled with. Nice try, Realtor lady, but that’s not going to work with you. Those four comps she showed you on your street, and her lifetime of sales and experience, those aren’t going to just steal money from you. When you wake up tomorrow you’re going to find a Realtor with the right number, because that Realtor knows you, and your house, and they know that you once replaced the water heater just because. It wasn’t even leaking!

I get it. Realtors aren’t doctors. We aren’t even mechanics, though shamefully, some Realtors do wear name tags. Realtors aren’t really motivated by a desire to help you with your housing goals, just as a mechanic isn’t motivated to help you with your tie-rod assembly. The mechanic fixes your tie-rod because he wants to make a living. A Realtor works on Sunday mornings and Wednesday nights because she wants to make money. She puts pictures on Facebook of a kid running through some lakeside lawn with the title “WELCOME HOME”, because she wants to make money off the emotion. You’re working at your desk today and not laying in bed because today you want to make money. You didn’t buy that stock because you want the company to usher in world peace, you just bought the stock because you liked the dividend and think the stock will appreciate- because you want to make money. Realtors are greedy, you say, they just want to sell your house or sell you that house to make money, you say. Guess what? You’re right. There’s never been a successful Realtor who wasn’t motivated to make the wage that can accompany success in this business. Is that an indictment on the real estate business? That depends, does a printing press operate because they love the thought of people reading the instruction manual that comes tucked into a package of a a wireless router, or does the printing press print those manuals because they are trying to make money?

The real estate business is clouded by the thought that Realtors are representing their financial interests, rather than those interests of their clients. This, in the presence of agents who have not proven themselves honest and effective, can be the case. But this can be the case with the printer, and with Jeff, and with your doctor who prescribed you some medicine that you might not have needed, even though it might help if you actually have that thing you think you have, the thing that makes your breath shallow when you’re nervous. Want to find a Realtor who isn’t very good at their job? Find one that doesn’t find motivation in the promise of wages for success. All this is to say you can’t discount a broker’s advice just because you’re afraid he’s going to make money if you listen to him. That’s the way the business has been structured. If you’d rather pay me hourly for my time, I’m happy to discuss a fee-based arrangement. But you know what would happen then? You’d assume that open house I’m doing is just a ploy to bill you for my time.