Customer Service: A Must in this Day and Age

What ever happened to customer service? In today's world, it seems to be lost, as hard to find as a Dodo Bird or one of those old deep fried McDonald's cherry pies (you know the ones... the kind that were light and flaky on the outside but had that molten lava center that gave you a third degree burn on your lip after you bit into it).

Nothing burns me more than when I have an issue with some goods or services. Seems to be happening more and more these days. Then when I try to get some satisfaction, all I get is the run around and the overall attitude that it was my fault the problem exists.

It always surprises me when I get bad "service" just trying to do my job with other professionals that are in the same business. How does one sell a house when one does call back an agent who is trying to set up an appointment to bring a buyer through their property? Why would I have to make numerous calls to a mortgage broker to get an update on a deal in progress? What can I do to get a call back from someone I leave a message for? In this day and age, everyone has a cell phone attached to their hip. Why is it so hard to get in touch with people?

I could waste brain cells trying to decipher the answers to these questions, but it wouldn't do any good. My time would be better spent tooting my own horn.

With an economical climate that we are in now, it is a no brainer that the best way to ensure people will use your services or purchase your products is to guarantee excellent customer service. To be quite frank, it really costs nothing to provide this. I don't like to brag, but I pride myself on the service that I provide my clients. The high level of care I take with those I represent is something I take satisfaction in.

When making first contact with a new client, I always let them know about how I operate. Allow me to break down my rules here. Some may say, "Mike! Why give away your secrets of success?" and I would answer, "Because it would make my job a whole lot easier if everyone operated this way!"

I operate in this fashion:

• If you call me on my cell phone, I will answer. IF I do not answer and the call goes into voice mail, leave a short message. The reason I did not answer is because I am either on the other line or with a client (I never answer my phone when with a client... I give my people my full attention, just as I would for you if I was in your presence. Answering the phone while with someone, I feel, is rude). You can be sure though, that I will be returning your call as soon as possible. I make it a goal to do so within an hour. It is a rare occasion that I cannot.
• My cell (just like everyone else these days) is always on my person and always on. The only time it is not is when I am charging it. IF I am charging it, that means I am asleep. By some chance you call and I am asleep, you can be sure that I will be returning your call as soon as I wake, even before I have that first cup of coffee.
• I keep long hours so you can call me at any time. Don't call me at midnight thinking you'll just leave me a message because I will answer. I love it when I get that surprised response, "OH! I didn't think you'd be up." Yep, sure am... and probably working on your purchase or sale!
• Many people like to communicate through e-mail and text message. I will do so if that is what you prefer, but I like to talk on the phone, if not face to face. Intentions and meanings can be misconstrued otherwise.
• If an open house is scheduled for your property, then I will be there to hold it. I do not enlist other agents to hold my opens. You hired me to sell your property, so I will be there to do so. I will point out all the attributes of your home that you take pride in.
• I do not use lock boxes. I am present at all showings of your property for both selling and security reasons. 
• Follow up... I do it. I like to give my clients feedback on the showings of their home. 
• Communication is key. I regularly contact my clients to let them know the state of affairs in regards to the buying or selling of their home. I'll call even if I have nothing to report which brings to the table two things: 
• I haven't forgotten about you and am doing my best to work for you.
• Maybe we need to evaluate our buying/selling strategy to bring about the desired outcome. I'll have suggestions.
• If you are purchasing, I'll be at your closing (Sellers usually arrange to sign papers ahead of time and at the leisure, but I can be there too). In all the years that I have sold real estate, I have not been present at only four closings and that was because they were done via mail. Do I need to be at closing? Not really. 99% of the time I am just there looking pretty, but there is always that 1% possibility that something may not go according to plan, and if I am there, I may be able to squash the problem before it holds up the process.
• When placing a purchase offer, I try to personally present the offer to the seller. Most agents will do the "Scan or Fax". Whenever possible, I try to make the offer personally. The selling party is not obligated to have me present it, in fact it rarely happens, but if the agent doesn't ask then the answer is already "no". Many agents don't do this... maybe they are scared, lazy, can't be bothered, but I do. I relish the opportunity to give the solid pitch and negotiate the hard sell.

There are other ways I provide exceptional service, but if I divulged them here, that would give away too much! I don't want my competition to know ALL my secrets...

There are many good agents out there, yet ask yourself this question: How long did it take my agent to get back to me the last time I left a message on the cell phone that they always have on them? If you don't like the answer, give me a call. The only way I will not answer or call you back in a timely fashion is if I am either dead or I dropped my phone in the toilet. Right now, I don't know which scenario would be worse! Roc and Roll, people!

The Problem with Pictures

In this day and age, a good majority of house hunting is done without leaving the house. With more and more access to listings at their fingertips, buyers are surfing the list of possible homes on the Internet and making some decisions without even stepping foot inside the properties. Although this new technology is a great tool, I would like to offer some advice to help you eliminate the possibility of missing out on your dream house.

If the home has everything you want... 3 bedrooms, 2 baths, perfect location, etc.... but the pictures on-line are terrible, DON'T rule it out. Instead, place the listing into the "Maybe" pile. Have your agent do the same. The next time you go out on a home tour, have that home added. It doesn't hurt to at least take a look in person, does it? You may "waste" some time (What, a half-hour at most?), but you at least know it is definitely not a contender.

Yet, you may be pleasantly surprised!

Have you ever gone into a house and said the words, "Oh, this looked so much better on-line"? It is a phrase I hear all the time when escorting buyers through potential homes. There are agents out there that have a good eye and prowess with a camera. They can really make a clunker of a house look good on film. Unfortunately, talent in photography is a two way street.

There are some people that just don't have the skill with a camera, so it is possible that the pictures they snap may be not up to par. Dark shots that make it hard to decipher what exactly you are looking at or pictures of non-important features of the house like the staircase to the basement are common. Color imbalances that make a paint color look wild and crazy can deter a potential buyer. Even photos taken with a camera-phone can make the house look unappealing to the average person.

Including these homes in the property tour is a practice I tend to employ when putting together an itinerary. Some times the houses are indeed not what they are looking for, but more often than not I am told that the houses really surprised my buyers. "I wouldn't have considered this house from what I saw on-line, but I really like it", is something I hear quite often. Would you be surprised to hear that roughly half of those people wind up placing an offer? On a house that they nixed from pictures on-line? It's true.

There are some instances though, where what you see (or don't see) on the websites is accurate. An unfortunate truth when talking about photos on-line deals with the lack of pictures. If there is a listing on the Internet without pictures of the interior, that is often a giant red warning flag. There are reasons for this. It could be a brand new listing and the photos haven't loaded yet. In other instances, the agent wants to get the best pics, so they give the seller time to clean and stage their home or the agent is waiting for a nice sunny day to maximize the interior light. The absence of pictures can also be at the owner's request or the property is being used as a rental and the agent has yet to been given access to shoot the interior.

These are all possible reasons for not having pictures on-line, but I find the biggest reason is that the interior is so unappealing for one reason or another, the agent feels it would be a detriment to take any inside shots. Think of it this way, if you have a great house, wouldn't you want to showcase it? Wouldn't you take as many pictures as possible to entice more people to come and see it? You can't sell a house that nobody comes to see, right?

Should you avoid a property if there aren't any pictures on-line? No, you should still look at it, just be cautious. You never know what you will find. There are always exceptions. In fact, I just closed a deal last week where there were no pictures on the website and it even stated in the listing that the place needed work. Combined with the extremely low price, we set up a showing but were weary of what we were going to find. Upon going in, we discovered a perfectly fine home and exactly what my client was looking for!

So what am I trying to say with this passage? Basically, the point I am making is the only way you should rule out a potential home is to see it first hand. The Internet is a great tool, but nothing beats being there in person. Pictures tell a story, but is that story fact or fiction? Check it out, step foot on the property, and determine that for yourself.

Well, I have to wrap this up... I have more of Rochester to sell! Until next time, Roc and Roll!

Beware the Flip

Often when taking Buyers around their targeted neighborhoods, we encounter a property that is obviously in the stages of being flipped. I am sure that most of you know by now what "flipped" means, but for those of you who don't, it is the practice of buying a distressed home at a low cost, investing some time and money into renovating it, then selling it at a higher price in order to make a profit. The seasoned Flipper can make some good money doing this, but Buyer... Beware.

Why should someone be cautious about purchasing a flipped property? At first glance, everything is sparkling and new! The walls usually have a crisp coat of fresh paint, the floors have often been treated to a high sheen or newly carpeted. Many times, the kitchen has been appointed with new cabinetry and modern appliances. What could be wrong with that?

The issue with a flipped house can be multi-fold. With the big boom in Real Estate five years ago, combined with the numerous television programs on the home improvement channels, many people perceived flipping houses as a great way to make a fast buck. Unfortunately, the majority of the people that attempted to tackle this task had no training, no knowledge, and no experience in renovating a house!

I have no experience in auto repair but I do enjoy cars. I like to watch shows on TV like Top Gear, American Chopper, The Rebuilders, etc. I have never been under the hood of a car. Should I pull my engine apart to find that weird knocking noise, or should I take it to a professional at an auto shop or dealer?  With my limited knowledge of the workings of a car engine, if I get in there and start messing around, I may do more harm than good. 

More harm is what some house flippers are doing.

The house flipper has one big thought in their head: MONEY. That is why they began the process... the promise of easy cash. In order to make the most profit, they had to buy the house cheap, put as little money into it to fix it up, and then sell the new and improved version for a premium. In my line of work, I find that when dealing with bargain properties, there is a reason for the low price. There is often major work that needs to be done. Major work usually means major money, which will cut into the bottom line.

That bottom line is what drives many of the Flipper's decisions. The number one mistake I see is when a Flipper will attempt to save on costs by doing the repairs themselves. Again, should I get under the hood of my car if I have never gone there before? No. When fixing up a home, there are projects that need to be done by a professional, especially when dealing with electrical and plumbing. Yet, professionals cost money!

Rather than enlisting a Plumber or Electrician, a cheaper solution is to purchase a DIY book at the local hardware store. This is a practice that I have seen way too often and strongly urge against. An improperly wired lighting fixture or spliced wire to a breaker box can eventually lead to a fire. Lack of proper knowledge on how to join and seal piping and plumbing could result in flooding and severe water damage.  This is not what the Buyer is expecting after they move into their new home!

The Buyer is not expecting that the new house they just purchased has had half-assed, dangerous work done to it. They are looking at this new home with rose colored glasses believing that everything has been done properly and up to code. Often, Flippers just give the house a face-lift or (as we like to call it) put a coat of "Lipstick" on it.

There was one occasion where a Flipper put lipstick on a home which lead to some expensive issues for the Buyer:

Some people decided they were going to flip their first home. Unfortunately, they did not know what they were doing or what to look for. After attending an auction, they purchased a house that had been sitting vacant for some time (dirt cheap) then immediately began working on it. In order to save money, they were going to do the majority of the work themselves.

The house was cleaned out, kitchen cabinets stripped and painted, new do-it-yourself sticky floor tiles installed in the bathrooms. They had a new water heater installed and got a clean bill of health on the forced air furnace. In the living room, there was one wall that was severely stained, but a couple coats of primer and fresh paint fixed that issue. The home looked great and they were ahead of schedule. They would have it on the market for resale faster than expected.

Even faster than that was the acceptance of a purchase offer! Once they listed the property, the first Open House brought the Buyer. A young couple looking for their first home saw the place and immediately fell in love with it. Within the week, they were moving forward on the sale. The home was inspected, all contingencies removed, and after 6 weeks of waiting, they closed. The Sellers walked away with a nice profit and the Buyers moved in to begin living in their new dream home.

The dream would soon turn into a bit of a nightmare. Shortly after moving in, the young couple began to notice a slight discoloring on one of the walls in the living room. The paint was getting darker around the area where the wall met the ceiling. Within a short time, the stain grew darker and bigger, extending half-way down the wall. Perplexed, the husband called a buddy of his who just happened to be a retired contractor. The friend came over and looked at the stain and concluded that they had a water issue. There must be a leak somewhere in the wall. Even though he didn't want to, the husband made some calls and got a professional in to fix the problem.

What a problem it turned out to be! After punching a hole in the wall, it was determined that there was a water leak in a pipe leading from the upstairs bathroom shower. Water was travelling along the pipe and then being deposited on the interior of the wall when it hit an elbow joint. To get to the source of the leak, they would have to tear open the ceiling in the kitchen. Now they had two giant holes in their home.

In addition, it was determined that the water leak had been going on for so long, mold was growing inside the wall. There was a large amount of contaminated plaster, even the studs were afflicted. A professional mold remediator would need to be called in to take care of the issue. The dollar amount for repair of this problem was increasing rapidly. The new homeowners were extremely upset. "Law suit" on was on the lips of the homeowners. They believed that the sellers of the property knew about this and purposely hid the problem.

The initial problem was that the Flippers didn't know what they were doing and were ignorant to the warning signs. Instead of investigating the source of the stain, they merely put a couple coats of paint over it. They weren't being malicious or deceitful, they just didn't realize that there was an issue. The stain appeared old and dry, but that was because the house had been vacant for quite a long time, and while they were working on the house, the upstairs shower was only turned on once to clean it. Inexperience was the culprit with this flip.

Now you are probably asking, "So I should never buy a flipped house"? No, I am not saying that. First, there are people out there turning homes that do a great job and know what they are doing. Second, sometimes a flipped house only needs a cosmetic face lift.  What I am trying to convey is to use caution with homes of this kind and be aware of potential issues. There are always going to be items that pop up after you purchase a home (even with new construction), but you can use some knowledge to limit what you encounter. You can use the following 10 tips as an initial line of defense against the unforeseen:

1. Use a good Real Estate Agent: An agent that knows his/her business will be able to guide you through the process as well as research and investigate a home if it is a contender for purchase. In most areas, a Buyers' Agent will cost the buyer nothing. The commission is paid for by the seller, so why not have representation for yourself at no cost to you!? (I recommend this for any Real Estate transaction.)
2. Enlist an attorney to represent you in the transaction. (Again, recommended for all RE purchases)
3. In most cases, your agent has access to records showing the previous sales transactions on a property. He should be able to get this information. You will be able to see timelines with each transaction and know how many hands have been involved with your potential new home. 
4. Have your agent get a detailed list of the improvements done to the property, on paper with dates of completion and the names of the people that did the work. You want the names and contact information of all the people that did any outsourced work. If someone has done a good job of the renovations, they are going to want to brag about their handy work, in addition to justifying the price that they are asking for. If they will not supply this information freely, then you should consider that a red warning flag. 
5. Always have a home inspection done by a professional. If there is an issue, the inspector will probably find it. Unfortunately, they will not be able to discover everything, like in the previous mold example. They will not punch holes in walls or dig up pipes. Yet, since they are trained, do the job everyday, usually come from some type of construction background, and in some cases require licensing, they will see things the average person may not. 
6. In most areas, it is required that the Seller provides the potential Buyer with a "Property Condition Disclosure". This is a 4 to 5 page form, filled out by the Seller to the best of their knowledge, stating the condition of the property. For example, if every Spring a river of water runs through the foundation flooding the basement, they need to list it in the disclosure. Review the disclosure and make sure there is nothing that stands out as an issue. Your agent will be able to supply you with this.
7. If something in the flipped house is brand new, like appliances, have your agent place a clause in the purchase contract that states all warranties will be transferred to the buyer at time of close. This also applies to any construction or handy-work. If there are any guarantees or warranties, you want them. 
8. If any work or major renovations/additions made to the home required permits, have your agent include a clause (if there isn't one already on the purchase offer) stating that certificates of compliance will be supplied to the Buyer's attorney for review prior to close. Often people take out permits to do projects, but then never have the permit closed and a compliance certificate issued. 
9. Ask if there are any "Before" pictures that you can have/see. If there are some available, try to get them before the inspection. If you see something that might be a concern, you can have your inspector pay special attention to it.
10. Have your agent research other transactions that the sellers have had in the past. Are they seasoned flippers? Have they done other flips in the past? If so, and if possible, contact the current owners of the houses to see how happy they are with their home. Weigh what they say carefully, though. As I mentioned before, there are usually some issues that arise after the purchase of a house, so be sure to differentiate what is normal and what might have been caused by an inexperienced flipper. If you have trouble doing so, pass the information by your agent for assistance.

If you use any of these tips, it will make buying a flipped home more of a stable decision. I hope this hasn't scared you in purchasing a property that has been flipped. There are people that turn houses for a living, that do it well, and really do care that they present a good product... It is the ones that have logged many hours in front of HGTV and have dollar signs for eyeballs that you have to worry about.

Now I must wrap this up... I have an appointment for an oil change I have to get to.

Until next time, Roc and Roll!