About Nottingham's Perry Hall

Don't Wait Until January 1

The shorter and colder days of the year have arrived and so has the fattening holiday season.

We do not exercise enough, we eat too much, and we sleep way more than we need.

Then, January 1 comes around and we make our New Year's Resolutions.

I am going to exercise more, stop overeating, and make more of every day.

But, why are you waiting? Would not you like to feel better now?

On Thanksgiving, we will visit with family and have the meal of the year and then with our stuffed guts have the family feud of the year.

Here is an alternative for you. Running, or jogging, or even just walking. Early on Thanksgiving Thursday, there will be parades all around the country, but even earlier than that, there will be people running, especially on Thanksgiving. Turkey Trot 5K and longer runs will be starting at 7, 8, and 9 am and they will be packed with enthusiastic runners.

"Oh! That's not for me! I'm lucky if I can run to the end of my street."

Stop bellyaching. Some of these people have been running for years and some have started only a month ago. There is one thing that you will see before and after every run that all of these people have in common:

Big fat smiles on their faces.

And, it does not matter what the weather is. I have gone to races where the temperature was in the 20s and a brisk wind was blowing, yet I would find 30 or more runners ready to go. After a half mile to a mile into the run, none of us was thinking about the weather; we were warmed up; we were enjoying the scenery. And, what was the same as in every other run for all of us:

Big fat smiles on our faces.

So forget the family feud on Thanksgiving and start a new tradition, a frolicky family fun run. But, don't stop there; make it a habit, a healthy habit, that you can enjoy throughout the year.

I look forward to seeing your smiling faces.

Presumed Buyer Agency and Confidentiality

Presumed Buyer Agency does not exist in all states, but it does exist in Maryland.

In the past, prior to Presumed Buyer Agency, when a Buyer went to an Agent, that Buyer would, frequently, presume that the Agent was representing them, unless the Agent was the listing Agent for a property. However, in the past, the Agent was actually representing the Seller regardless of whether or not it was the Agent's listing.

Because of this confusion, Presumed Buyer Agency was created. Now, unless the listing which is being shown is listed by the Agent or the Agent's Broker, then the Agent is presumed to be representing, in an agency relationship, that particular Buyer.

A key word here is Agency. In an agency relationship, one of the fiduciary responsibilities and expectations is confidentiality. Even though, it is not a written agency agreement between the Buyer and the Agent, it is still an agency relationship with all of its implied fiduciary responsibilities.

The requirement for confidentiality is ongoing; it exists forever, even after the agency relationship ends or even upon the death of the Buyer.

Presumed Buyer Agency has its limits. In the State of Maryland, an Agent, when working with an actual contract to purchase or lease, must represent one or the other Buyer or Seller, beyond a presumptive state. This representation must be disclosed in writing.

Confidentiality example: An Agent works with a Buyer in the capacity of a Presumed Buyer Agent. During this time the Agent shows the Buyer several houses and learns of the Buyer's financial means and ability to purchase a house. Eventually the Buyer orally ends this Presumed Buyer Agency relationship. The Buyer signs a Written Buyer Agency Agreement with another Agent from another Brokerage and puts in an offer to purchase one of the listings from the original (Presumed Buyer) Agent. The listing Agent can not give the Seller, his client, any financial information from this Buyer, which he learned while acting as his Presumed Buyer Agent, unless this information is otherwise made available. This is true, eventhough the Presumed Buyer Agency relationship was not in writing and, eventhough, the Agent has a fiduciary responsibility to his client, the Seller.

So be careful.

Buyer Agency Protocol

Recently, I heard a question asked from a Buyer about Buyer Agency Protocol. The particular Buyer had been working with a Real Estate Agent for about a month, but without a Buyer Agency Agreement. Eventually, the Buyer found a house on his own and worked directly with the Seller to write the contract. The Agent was not involved.

Afterwards, the Buyer posed the question: "What is Realtor protocol in this type of situation, because I want to be fair?"

In that month, prior to the Buyer going out on his own, the Agent had done copious amounts of work for him. Naturally, the Buyer did not want to take advantage of this Agent.

So, Mister Buyer are you willing to pay that Agent 3% of the purchase price for that deal that you made without him. Not likely. In actuality, it is more likely that you are thinking of paying him a couple hundred dollars, if that.

Let me see if I can determine how this works.

• I have a mortgage. I will call them and ask what is protocol. Can I stop paying my mortgage? Oh, that's right; that has already been answered. Look at all of the Foreclosures and Short Sales.
• I have a credit card that I have been using. I will call and ask if I need to pay the balance. Oh, I can declare bankruptcy and not pay any of it.
• If I go to the emergency room, do I need to pay for the medical service?
• . . . .
• Can I use a Real Estate Agent for nothing?!!

Some Agents are okay with this scenario. "Oh gosh; don't worry about it; just send me referrals."

"Darn right I will send you referrals; you are the cheapest guy in town."

But now I ask, should his question have been reworded. Perhaps to something like "What is Buyer protocol . . . ?"

Should a Buyer pay for the services that he receives, for any service or product, or should he expect that everything should be free? "Let's spread the wealth around", the wealth which will not exist if everyone thinks that they are entitled to everything regardless of what it costs.

That's it for now.

The Vacant Lot

It was a listing of mine, this vacant lot of about 1.5 acres. The area was developing and it was becoming feasible to build on the lot, which was previously in a rural area without sewer systems. The lot did not pass a perc test, but with new development in the area, public water and sewerage systems were becoming available.

The adjacent lots to the right and to the left, which were of a similar size, already had houses, but up to this point these property owners also had the benefit of an open lot being next to them. These were the first people that I approached about purchasing the property. They both declined the offer, afterall, they already had the benefit of the lot without having to purchase it.

So I opened up the marketing to the broad MLS market and beyond.

There was plenty of interest, but also plenty of discouragement from the adjacent neighbors.

Here is some of what happened.

• The back portion of the lot was a bit overgrown with sticker bushes, but was passable. Nonetheless, I came prepared with gloves so that I could push the stickers aside as we made our way to the back of the lot. I got there before my clients and fortunately so. I was out of my car for about a minute when the neighbors unleashed their pit bull, which decided to charge right for me. I could do nothing but hold my ground. You have heard how dogs can sense fear; well, I gave a stance of bravado. Remember, I had my gloves on. Keep coming pooch, you're going down. Apparently they can sense more than fear as he wussed out about half way to me and headed back to his house. Whew! That was a close one.
• On another visit, the other neighbor decided to get into the act. This neighbor's lawn was neatly trimmed, but for some reason, he thought that he should crank up the tractor. It seemed that he thought that the area that formed a circle around my car was what needed some extra trimming. This required a different tact than the pit bull. I got out of the car and got his attention. He stopped and we had a cordial conversation. This calmed him down. It seems that his heart was not really into this bullying stuff.
• The next showing came and neighbor number one was at it again. The pit bull didn't do the job, so weapon number two was unleashed. Little Naked Billy came out of the house and started dancing all around the lot. That's right, a 4 year old boy with no clothes. This was more comical than intimidating. Eventually Little Naked Billy went back into the house. Perhaps he stepped on a sticker or two.
• The next showing came and the neighbors were not out of weapons. Out came Spittin' Marge, an eleven year old or so girl, who started spitting in my direction. Actually, I could not believe it. When I left the showing, I circled back just to see if she was a chronic spitter or whether she was really targetting me. There she was at the end of the driveway spitting in my direction once again. Although disgusting, it, too, was rather amusing.

Eventually, the lot sold and the new owners put up a new house. I have not heard any horror stories, so I guess they must have been accepted.

Always Think Marketing

I know of a family with two children. I remember the father indicating that the younger of his children, his son, was not as smart as his daughter. It was just idle talk, but it was mentioned at a family gathering. In the future from that time, I heard the grandmother of that child mention that she did not know if he was going to be able to do well in college. I asked her why, but she could not give me a good reason. In actuality, there was no good reason. This boy went to a private high ranking academic high school, played sports, and participated in several other extracurricular activites, while maintaining a high B average. In fact, he did go to college and he did very well. But the seed of doubt had been unwittingly planted long ago. On the other hand, I have seen parents who never say anything negative about their children. They do not necessarily constantly brag, for that would be annoying, but they create an aura about a child that would make everyone expect great things from that child.

Are you in the market to sell your house? No. That's okay. Act like you are.

Are there certain houses that you drive past on a regular basis and just admire them even if they are not on the market?

What is it about these houses?

Perhaps it always has beautiful colorful flowers neatly adorning the front yard. It may be that the lawn, bushes, plants, and trees are always neatly manicured. It could be that it has a well thought out color scheme for its siding, shutters, trim, and such. Maybe this house is never in a state of disrepair.

Whatever it is that makes us like this house, we would agree that it is in top showing condition to be on the market for sale.

If we were looking for a house to buy, this would be the type of house that would have us sold at the first impression. We would be excited the moment that we pulled up for a showing appointment.

If an agent told a Buyer about this house, the Buyer may say that they were familiar with that place. There may be a thousand houses in the neighborhood, but the Buyer would know which one you mean. Excitement would be stirring before they even got to the house. They would tell you "I have always loved that house."

The house may be similar in style and size to other homes in the area, but it always stood out, because the owners always kept it in showing condition. It had an aura about it that the other homes did not have.

Do you ever wonder why every once in a while you will see a house that sold for much more than similar homes? The size, style, amenities, age and so on do not give you the answer and so you just wonder. Did they simply pay too much? Or is this that house that has always been the envy of the neighborhood?

It may be easier said than done to keep a house in this type of condition. But think about it. This is the house that stood head and shoulders above the rest. It was no contest that this was the house that you wanted. And, you were willing to pay more for this house because you thought that it deserved it.

Yes, it may take a little extra effort to keep your house like this, but it pays for itself in the long run. Your house will sell faster and for more money. Plus, you will be able to continue living not just in your house, but in your dream house.

So, always think marketing.