Broker Open Today 11 a.m. to 1 p.m.

One Block to Cedar Lake!

Where: 2705 France Ave. South, in Minneapolis' Sunset Gables neighborhood
What: 3 BR/2 Bath Cape Cod with almost 2,200 FSF, including a huge first-floor Family Room.
How much: $439,900
Who: listed by Ross Kaplan, Edina Realty City Lakes
When: on market yesterday (Nov. 15).

If you're anywhere Cedar Lake over lunch hour today, please feel free to stop by my Broker Open at 2705 France (even if you're not a Realtor).

You'll be impressed by this home's fine construction, period details like cove moldings and a Dining Room arch, and the spacious, eat-in Kitchen.

Oh . . . . and there's a 600 square foot, 2 1/2 car garage (detached) in back to go with the one car attached -- not something you commonly find with 1938 Cape Cod's in such a great location.

P.S.: in keeping with the "man plans, God laughs" theme a few posts back, my gorgeous Fall shots (including the one above) turned out to have a shelf life of 48 hours: taken last Thursday, the Twin Cities almost immediately turned white with the arrival of the season's first big storm Friday.

(E)mailbox Buster

Realtor Bad Etiquette

In the non-realtor world, it would be the equivalent of butting in line, or cutting someone off in traffic.

For Realtors, a common example of bad etiquette is blitzing several thousand Realtors' mailboxes with a 17 megabyte electronic flyer like the one I received yesterday -- an anvil of an email if there ever was one.

For non-geeks, that's equivalent to several hundred regular emails.

The peak for such emails is usually Monday, when over-zealous Realtors hosting Broker Opens the next day try to stir up as much interest as they can.

To stand out, it's natural to want to include as many high-end photos as possible.

However, that can be done less obnoxiously simply by adding (hypertext) links.

When I get email whoppers that overload my email box, like most recipients, I just hit "delete."

A "Team" of One

"What You See is What You Get"

I've written previously about real estate teams ("Teaming Up"), and the pro's and con's.

So it was interesting to me, during my most recent listing presentation (they hired me), to hear my now-client express a strong preference not to work with a(nother) real estate team.

Their reason(s)?

On their previous deal, they never seemed to talk to the same person twice, and nobody seemed to know what was going on with their transaction.

One vs. Many

Of course, not all real estate teams are chaotic or unwieldy.

But as someone who operates "solo" (kind of -- see next), I can assure my clients, honestly, that if they hire me . . . they get me.

That means I'm the one who walks them through the Seller disclosures; analyzes the Comp's and helps fine-tune the list price; prepares the marketing materials; instructs the photographer; debriefs other Realtors after showings; hosts the Broker Open and most (if not all) of the Sunday open houses, etc., etc.

In brief, I always know what's going on, and my client(s) will have exactly one point of contact.

Not Really Solo

Of course, it's also the case that, through my association with Edina Realty, I actually have a huge organization of professionals supporting me (sort of like the Sprint network, pictured above).

That includes a superb office manager, Josh Kaplan; an outstanding front desk and OA (Office Administrator); Edina's knowledgeable legal department; great tech support, etc.

And although I don't refer to them as "team members," I have also developed a circle of expert stagers, photographers, and desktop publishers that I regularly work with.

Down Time

So don't I ever take a vacation?

Not often enough, but yes, I do take off an average of 2-3 weeks a year, usually a long weekend at a time.

Who covers for me then?

Like other veteran Realtors, I'll typically "trade" coverage with another colleague for those things -- like doing a showing -- that can't be done remotely.

In return for their backstopping me when I'm out of town, I'll do the same for them.

Virtual Real Estate

But the surprise the last several years is, thanks to technology ("Look Ma! No Hands!"), how many modern real estate tasks can be done remotely ("virtually").

Even when I'm out of town, I'll regularly scan MLS for new listings that meet my (Buyer) clients' criteria, and won't hesitate to email them if something promising pops up (I'm actually not such a fan of searches that automatically email clients directly -- I like to weed out the "chaff" first).

It's also the case that, for something critical like fielding or negotiating an offer, my clients know that I'm never more than a phone call away.

P.S.: it's accepted real estate wisdom that the best way to sell a property is to head for the airport on vacation.

Define, "Everything"

"This Home Has Everything" -- Really?

The pitch for the Broker Open (earlier this week) was certainly alluring: 'Beautiful Cape Cod, Absolute Move-in Condition; this home has everything!'

In fact, the home did have a long list of nice features, updates, etc.

But "everything?"

Not unless you consider a one-car garage -- disclosed a little further down -- to be an amenity (most Buyers decidedly don't).

Broker Tour 11 a.m.. - 1 p.m. Tuesday (9/14)

Spacious Point of France Condo

with 2 Owner's Suites for < $400k

Where: 6566 France Ave. South, one block south of 62 (Crosstown); just northwest of Southdale

What: light and spacious condo (over 2,500 sq. ft.) with Contemporary flair in amenity-loaded Point of France (including 24 hour front desk).

When: just listed

Who: agent = Ross Kaplan; broker = Edina Realty

How much: $373,900

Please join me at my broker open tomorrow at Point of France ("POF").

This unit (#401) is a terrific choice for someone who wants to combine plenty of living space with a carefree lifestyle in a location close to everything.

Highlights include the two (!) master suites, each with a walk-in closet and private balcony; the updated Kitchen with granite countertops; and miles of storage.

POF offers everything under one roof, including a state-of-the art exercise room; heated pool; party rooms; and library -- all on a pretty, 8 acre setting overlooking tranquil Point of France pond (pictured above).

Hope to see you tomorrow! (non-Realtors welcome)

Super-sized Tour Today?

As "civilians" (non-Realtors) may or may not know, Tuesdays from 11 a.m. to 1 p.m. is when local Realtors -- at least in the Twin Cities -- go look at all the new listings.

To facilitate that, Brokers print and distribute "tour sheets" with the addresses of the homes on tour, along with short blurbs summarizing the highlights of each property.

With last Tuesday off because of Memorial Day weekend, I was expecting today's tour to be especially big.

But I was still surprised when I got the especially thick print-out, which was more than double the usual length.

The explanation?

Instead of printing out the tour on the usual double-sided paper, my OA ("Office Administrator") used single-sided paper.

Real Estate Myth #37: Sunday Open Houses

"Open House Available For a Terrific Listing That Always Gets Great Traffic"

One of the more durable myths out there is why Realtors do Sunday open houses: many clients (and prospective clients) seem to believe that the primary motivation isn't to sell the client's home, but for the hosting Realtor to troll for future business and ultimately sell other homes, down the road.

The reality is a bit different.

If Sunday open houses were such a great way to pick up clients, you'd see more listing agents doing them.

In fact, the majority of listing agents avoid doing them.

Instead, they try to line up replacements -- typically, newbie Realtors -- by dangling carrots like this: 'Open house available this Sunday for a terrific listing that always gets great traffic.'

Just once I'd like to see a listing agent level with would-be pinch hitters with a hook like this: 'open house available this Sunday for a not-so-appealing home in an out-of-the way location that's already been for sale for 8 months, is (still) priced above market, and may get 3-4 people through -- if you're lucky.'

Notoriously Low Yield

What the (experienced) listing agents know that the newbie's don't is the following:

--Most people coming through open houses aren't interested in buying a home at all.

They're just curious about what the home looks like inside; are interested in interior decorating ideas; want to see what prevailing home prices are so they know how much their home is worth. Etc., etc.

--The distinct minority of prospective Buyers who are serious are invariably already working with a Realtor. Which means they're strictly off-limits.

--The remainder of Sunday open house prospects -- people who maybe, kind-of are looking -- usually are characterized by one (or more) of the following: a) they can't afford the house (or any house); their timetable is next year (or century); they have no idea what they're looking for, at what price range, or where.

So, yes, a new Realtor who has time on their hands and plenty of patience is welcome to follow up with such prospects -- assuming they leave valid contact info -- in the hopes they'll eventually buy something.

Or not.

The Case for Open Houses

All of which begs the obvious question: if open houses have such a poor track record, why do them at all?

For two reasons:

One. As a convenience to serious, already-represented Buyers, who are typically off work on Sunday afternoon and can cover more ground going through open's (vs. having their agents set up private showings during the week).

Two. Because, while the odds may be low . . . you never know. (See, "The (Mythical?) Serendipitous Buyer").

In truth, the vast majority of things Realtors do to market homes -- at least individually -- have a low probability of success.

So, the odds of a private showing leading to a consummated transaction are less than 10%; the odds of exposure at a Broker Open (Tuesdays) leading to a sale perhaps only a little better.

Ditto for blast emails to neighborhood Realtors; direct mailings; high-end photography and literature; "plugging" listings at various Realtor meetings, etc.

But therein lies the rub.

Precisely because you don't know which marketing effort will ultimately sell your client's home . . . a good Realtor does all of them.

P.S.: the foregoing recalls the marketing director of a Fortune 500 company who laments that she knows she's she's wasting half her marketing budget -- she just doesn't know which half.

$6,000 Condo Assessment

Are Twin Cities Condo's Suddenly Pet-Friendly?

At my broker open in Golden Valley yesterday, a "civilian" (vs. Realtor) came through who was grumbling about a $6,000 special assessment just levied on the condo association where he lives.

Apparently, even though the condo association's Bylaws expressly prohibit animals, a resident who was evicted because he had a dog successfully sued the association.

While I was duly sympathetic, I tried to put things in perspective: in an age when attorneys charge -- I don't know -- $200-plus an hour, a $6,000 hit isn't exactly the end of the world.

At which point the individual clarified: the assessment was $6,000 per condo, and the complex has more than 150!

He further spied a link between aforesaid lawsuit, and Twin Cities condo's suddenly all becoming pet-friendly.

Any Twin Cities blog readers who can corroborate any of the above?? Area Realtors?

At least up until now, my legal background tells me that condo associations can proscribe anything they want, provided it doesn't violate any laws or other public policy (i.e., no discrimination etc.)

Broker Open "Buzz" or . ..

Who's That Woman on the Cell Phone in Front of the Broker Open?

I noticed the woman on the cell phone in front of the broker open as I was looking for a parking space.

Hmm, I thought -- must be a hot new listing if the agent is on the phone to a client even before she can get back to her office (if you ever see three agents on their cell phones in front of a broker open, the house is probably going to sell, quickly, in multiple offers).

Why outside?

It's probably obvious, but it's not such a great idea to be overheard telling your client, "Cancel your appointments this afternoon! You've got to see this place -- it's a steal!"

Unfortunately for the owner in this case, that's not what was going on.

The person on the cell phone was a loan officer who was co-hosting the broker open, and couldn't get good cell phone reception inside.

Biggest Sunday of the Year? Today!

Open Houses Galore

Clients often ask if a particular Sunday is a good time to hold an open.

I don't forecast home prices or interest rates, but I'm going to go on record with this prediction: today, April 11, will be the busiest day of the year for open houses (the "retail" kind; broker opens -- the "wholesale" version -- are held each Tuesday).

I can think of at least five reasons for that:

One. Last weekend, Easter, was an off-day. Today will benefit from pent-up demand.

Two. The tax credit for Buyers expires April 30.

Three. Realtors like to hold opens on days when they know there will be lots of other opens; that way, they can piggyback on all the other marketing out there (see Edina Realty's ad at upper right).

Four. At least in Minnesota, the Spring market doesn't start in Spring, it starts in February, right after the Super Bowl. So, we're now well past the mid-point.

"Crunch Time"

Buyers of family homes in particular like to make their purchases by Memorial Day, so they have time to close by mid-Summer and be unpacked and in place for the school year.

Sellers of family homes know that, too, which is why now is crunch time for doing a deal.

Five. Nice weather!

Personally, I'll be doing an open house double-header.

Please stop by my open at 4121 W. 28th St. (28h and Inglewood) in St. Louis Park's Fern Hill neighborhood from 12:30-2:30 p.m.

Or, come by my open at 1340 Fairlawn Way in Golden Valley from 3-4:30 p.m.

"Lunch Will Be Served"

"I'll Just Have the Sub, Thanks!"

Maybe it's just because I missed lunch and my stomach is growling, but I couldn't help notice this (very) tantalizing hook to attend a Broker Open house tomorrow (see below).

Which, of course, was the whole point (getting a jump start on April 1?):

Lunch will be served:

Buttercup Squash Ravioli with Black Truffle and 12 Year Balsamic King Crab and Artichoke Fazzoletti with Saffron and Dried Tomato

Truffle Poached Rabbit with Celeryroot, Wild Mushrooms and Port Braised Chestnuts

Grilled Beef Tenderloin with Red Wine Farro, Porcini Mushrooms, Marrow and Balsamic-Alspice Gastrique

Sautéed Sea Scallops with Romesco, Braised Salsify and Leeks

Or ... Jimmy John's Sandwich Platter

File this one under the "Made 'Ya Look" Dept. (it did!).

What Happens at 3:01 P.M.??

Define, "On Tour"

Readers will recall my post last Tuesday lamenting (kind of) the dwindling number of free lunches at Broker open houses ("No More Free Lunch -- Really").

As I noted then, Tuesday tour is when Realtors view, often by "caravan," all the new listings on the market.

By convention, the time window is almost always 11 a.m to 1 p.m.

So the following blurb, from today's tour sheet, caught my eye:

On Tour 10 a.m. to 3 p.m. Easy View with Electronic lockbox on the front door inside the porch.

In other words . . . Realtors can let themselves in with their electronic key -- pretty much like they can every other day of the week (minus, I suppose, the showing request and confirmation).

I'd file this one in the "nice try" category.

No More Free Lunch -- Really

It's not exactly true that "there's no free lunch"; if you're a Realtor, you could almost always count on at least a few homes on the Tuesday Broker tour having some sort of spread.

Well, not today, and very little lately, generally -- not even at upper bracket properties where putting out a lunch is most common.

The explanation?

I'd guess mostly the economy: listings are taking longer to sell, which means Realtor marketing budgets have to stretch further.

But it's also the case that there's not much connection between catering a broker open and selling the house (at least in my experience).

Blithely Walking Through "Open Doors"

Spam and All Its Clones (Online and Off)

My door's always open, Jones . . . so be careful you don't walk in by mistake.

--Cartoon showing a CEO sitting at his desk, addressing the janitor in the hall

As someone who works in sales, it's always amazing to me how many people violate the first rule of prospecting: don't start out by annoying -- or antagonizing -- the prospect.

If you have a phone and a front door, you certainly know about all sorts of invasive, poorly-timed (is there a right time?) telemarketing and cold calls. (To me, at least, it certainly seems like "do not call" lists have become increasingly porous.)

However, as a Realtor (and blogger), you're an even bigger target.

Here's what I routinely encounter:

The unwelcome open house guest. Broker opens, at least in the Twin Cities, are held every Tuesday from 11 a.m to 1 p.m. Although the target audience is other Realtors, if a non-Realtor type sees my signs and wants to take a look, great (I am trying to sell the house).

What I'm not receptive to is sales pitches from "newbie" home inspectors and lenders, like the one who showed up at my Broker Open this Tuesday.

I do appreciate how tough it is out there -- but, hey, it's tough for Realtors, too!

When I'm hosting a Sunday or Broker open, I'm working for my client, trying to sell their home -- not your captive audience!

Now if only a great handyman or electrician showed up at my open houses . . .

Stealth blog posts. The artful kind actually start out commenting on your post. However, a couple sentences in, they drop the pretense and shamelessly start pitching their product or service, larding in multiple links and Web addresses for good measure.

Note to Readers: I try to catch and delete these, but as you've probably realized, a couple still sneak through.

Spam. No, spam targeting Realtors isn't qualitatively different than "regular" spam.

Rather, the difference is quantitative: maybe 10x as much, often with mailbox-busting attachments riding along.

So, here's my suggestion to all the folks out there trolling for new business:

If you really want my attention, do what I do: send a handwritten note. Seriously.

P.S.: One of the most effective put-down's of a heckler I've seen at a stand up comedy act is this one: 'Hey, do I jump up and down on the end of the bed and distract you when you're trying to work?!?"

Catching Mistakes -- Or Not

Nice Save by Edina's Front Desk

The difference between good and not-so-good Realtors isn't just the Realtor -- it's often the quality of the support staff around them. Assuming the Realtor has support staff.

I was reminded of that when Edina Realty's front desk caught a mistake I made on a "tour request" form I turned in yesterday -- the first mistake I've ever made :)

On the line that asked for the three digit MLS area, I inadvertently transposed a number. So, instead of appearing in the Bloomington section of the Broker tour printout where it belonged, my new listing would have shown up in South Minneapolis.

Then, instead of having 17 Realtors at my broker open today . . . I would have had none (and my client's townhome would have had no exposure).

Fortunately, Mary, one of my office's two listing coordinators, noticed the mistake, corrected it, and left me a voicemail letting me know that it had been taken care of. Nice.

Team Effort vs. FSBO

Contrast that with what can happen when no one's looking over your shoulder.

As I discussed in Classic FSBO Mistakes, I previewed a home where "Foreclosure" had been checked on the MLS information sheet.

When I asked the (for-sale-by) owner how long the home had been in foreclosure, she got upset, and was adamant that, in fact, the home was completely paid off.

So I handed her the MLS report.

Oops.

The home had been on the market three weeks at that point, and my guess is that it hadn't attracted a single showing because the list price made no sense for a foreclosure.

That one mistake alone probably cost the owner 5%, or in her case $20k.

P.S.: the grainy photos, poorly written ad copy, and missing disclosures probably added up to another 5%.

Lying Realtors

Reason Not to Lie #37

Lying is hard, telling the truth is easy. By definition, every good Realtor juggles: multiple clients, dozens of showings, lots of parallel deals at varying stages. It's hard enough keeping all the details straight and presenting them coherently to your client(s); not tripping yourself up in a web of lies would seem to increase the "difficulty factor" exponentially.

--Ross Kaplan, "Freakonomics Rebuttal"; City Lakes Real Estate blog (3/23/08)

Faithful readers of this blog might be surprised to hear me say that, as far as I can tell, Realtors seldom lie -- and good Realtors never do.

There are multiple, reinforcing reasons for that: it's unethical, it's bad business, it's hard to do (see above), it's easily found out, etc., etc.

On that last score -- it's easily found out -- I heard a good anecdote recently about a Realtor who felt the need to "embellish" the turnout at a Tuesday broker open. If you didn't know, at least in the Twin Cities, the custom is for Realtors to tour the new inventory each Tuesday from 11 a.m. to 1 p.m.

Instead of simply reporting to his clients that, for whatever reason, the turnout was poor, the Realtor "borrowed" a slug of colleagues' business cards to leave out on the client's dining room table.

What happened next?

The client wanted to hear the broker open feedback directly from "the horses' mouths," and decided to call the agents directly.

When not one of them turned out to have actually attended the broker open . . . the client did what any client would -- and should -- do: fired the Realtor.