Rita Danielle Steele

“This is the one. We want to make an offer!”

As a real estate broker, it is of course not unusual for me to hear these words. And while I usually have a good sense of which properties my client’s will be attracted too, I have on more than one occasion been completely thrown by some of the properties that left my buyers weak in the knees. Like parents struggling to accept their teenagers tattooed boyfriend, these transactions are often the roughest for my “I know better than you what’s good for you,” realtor mentality to come to terms with.

The “one,” sometimes fails to satisfy every item on a buyer’s must-have checklist. It may even be a property I tried to convince them would be a waste of everyone’s time to see. Or it may be overpriced with unrealistic and stubborn sellers. Whatever the circumstances, their attachment to such a property always leaves me perplexed.

Sentimentality is often a clue, and it is simply impossible for a realtor to know what will trigger a happy childhood memory during a property tour. Is the faded wallpaper the same design that covered your buyers childhood bedroom? Or does the house bear a striking resemblance to one that the buyer used to see in an old favorite picture book?

Much more often than sentimentality, however, I get this line: “This house just feels good,” or this one, “it just feels like home.” That’s it? It “feels good?” What feels good? But I have, on more than one occasion, felt that way myself, pulling up into a drive, or stepping through a threshold of a surprising place. So how, I propose, to we explain or define that?

My current temporary residence in Italy has given me, among the countless wonderful things the Tuscan countryside holds for anyone passing through, a fresh perspective on this notion. During ancient Roman times, the Romans were painstakingly careful when selecting the locations where they built their homes. They would, and I will keep this brief as it is a bit gruesome, pay attention to their animal herds and keep them divided over all prospective home sites for a long period of time. They would then slaughter and dissect animals from all divided sections of the land, and look for evidence of ailing health in each animal. The section with the healthiest swine would then become the building site.

Other philosophies address this same concept of the earth’s energies having an effect on people in less gory ways. Anyone familiar with the timeless arts of Feng Shui or Vastu can appreciate the seriousness with which the placement of ourselves and our possessions should be laid out to ensure harmonization with the earth’s polarities under each art’s principles. Countless cultures, both those lost and some still thriving, respect and pay attention to the power and the draw, or repellence, of the earth’s energy in any given location, and its’ influence on our actions, health, and day-to-day lives.

Those more science-minded can look to university departments of Geobiology (From USC and Stanford to Penn State and MIT – most affluent schools have one). Researchers have established long standing evidence of different locations possessing varying energy wavelengths, something which may explain a person’s draw to one place over another.

In Rhode Island, attention to the earth’s alchemy may seem to be far beyond the scope of most realtors and consumers awareness. But I propose that, in the very least, professionals, buyers and sellers should all consider a property’s organic “feel,” when making decisions about it. To pare it down to bare bones, if you are a seller and you have been told that you house gives someone the creeps, brighten it up. If you are a buyer, and a house just feels right and you are having trouble putting your attraction to it into words, make sure that you are working with a realtor who is willing to respect your feelings and work with them. And for those of you who would love to delve into a deeper discussion about Geomancy, biology, or alchemic principals, I would be happy to get you started.

~ Rita

"If he has a conscience he will suffer for his mistake. That will be punishment-as well as the prison."
- Fyodor Dostoevsky, Crime and Punishment

Today my office was yet again put in a position to draw a line between responsibility in disclosure, accountability, and our job description. Where the line should be drawn is still unclear.

As a full service brokerage, we oftentimes represent lessors, matching and placing well-qualified tenants into their properties. Over the past few years, well-qualified has meant, at a minimum, job history and reference verification, credit check, and confirmation of rental/home history. Our clients have been impressed with both our thoroughness and dedication to finding tenants who will care for their homes as if they themselves were the owners.

One red flag we have learned to catch along the way is hesitations over putting secondary renters on a lease. Once, a few months back, a local agent submitted an application for her client to rent one of our listings. While the application checked out, further “google” investigation told us that her client was a convicted repeat offender for grand theft. Upon confronting the agent and her broker, they both confirmed the crimes and admitted to withholding the fact from us in the hopes that we would not find out. Needless to say, we said no thanks to the tenant and have refused to work with the untrustworthy brokerage ever since.

This happened to us again right before Christmas when a woman, selling her local single family home, applied to rent a short term apartment from us.

Her application was impeccable. Perfect job, perfect credit, wonderful references, and a home owner. I had in fact showed another client her lovely home prior to its’ sale, and it was gorgeous and perfectly maintained. Her selling agent spoke the world of her, as did all her references.

My associate who was working with her discovered that she was married in the process and insisted that her husband also be on the lease. At that point, the wife told her that she had hesitated to mention him because he was on parole. The crime? According to the wife, marijuana possession. My associate met the husband and confirmed that he seemed like a great tenant as well. The property owner was not concerned, and the tenants moved in.

A few days later the wife contacted us again to say that the parole officer needed a letter from us stating that notice of her husband’s parole status had been given. No problem, happy to help, we said, and I called the parole office to confirm the language she wanted on the letter.

Nice enough conversation, except one minor detail that the lessee’s had left out. In addition to possession, the husband was also convicted of murder. That’s right. Murder. Not involuntary manslaughter any other awful charge that we perhaps could have stomached, but murder.

Needless to say, we are now dealing with tenants that, as wealthy and clean and quiet as they may be, made a gross misrepresentation and are about to be evicted unless our lessor surprises us and is ok with this new development. Of course, we are, in hindsight, kicking ourselves for not better checking the husband’s record. It was easy to “google” the minor charge and his name and confirm it. But what more should we have done? Should we have run a full scale criminal background check? In hindsight, I unequivocally say, yes, we should have at least recommended that the lessor had one done. I also wish that we had not trusted the tenant’s own agent, an agent that is very well respected in our small community. But hindsight is always 20/20.

So my question, to both consumers and other agents is, what level of inquiry do you expect from a realtor in terms of tenant verification? Is it better to always expect the absolute worst of people? Is it no longer ok to trust other professionals representations? Should criminal background checks become the norm with high end rentals? Should realtors ever “vouch” for tenants that have a bad past? Should anyone? He served his time, and the State has declared him a free man again. But to quote my beloved Dostoevsky one more time: “Why am I to be pitied, you say? Yes! There's nothing to pity me for! I ought to be crucified, crucified on a cross, not pitied! Crucify me, oh judge, crucify me but pity me?”

Everyone agrees that the I-195 land is one of the City’s, and the State’s, greatest opportunities for growth and economic stimulation. Are we up for the task?

“Providence is so beautiful,” my sister-in-law Irene gushed as we sat down to lunch overlooking Waterplace Park at Jacky’s, one of Providence’s newest hotspots.

Like Irene, other newcomers to the city are usually entirely unaware of the city center’s horridly dull “before” landscape. As Irene and I walked along the riverfront back to my car, I told her about the Capital Center Commission’s efforts 30 years ago to rebuild the city’s core. Their ambitious undertaking included unearthing the river that 150 years ago served as Providence’s hub.

In the late 1800’s the river’s peak at Salt Pond Cove, or “the Cove,” was a busy port for merchant trading and transportation. For those of you struggling to visualize the city as it was, picture tall ships docked where Smith Street is today.

The industrial age, for better or worse, transformed our city. The rise of railroads and manufacturing gave Providence the means to accessibility and profitability that had been previously reserved for open ocean ports like Newport. In an attempt to keep my historical meanderings to a minimum, the city’s growth spurt and poor planning resulted in the Cove’s deterioration into a congealing mass of “silt.” (Again, for readers with a penchant for detail, picture a squalid waterfront dyed magenta from clothing manufacturer waste, that boasted a combined mass of direct slaughter house disposal and human excrement. And to think that we get squeamish over the thought of our ancestors neglecting to wear deodorant).

The solution to the city’s loss of its former Promenade was decided by further imprudence and poor planning. The decision makers resolved to fill in the entire Cove and deck over it. Once the decision was made however, the parties involved wasted years bickering to determine who should be responsible for paying for the fill (the railroad company eventually did).

It should be noted that the City ironically commenced the construction of its’ municipal sewage system only a year after the filling. (And yes, the sewer system would probably have saved the Cove).

So here we are again, generations later, facing another important city transformation opportunity. We have inherited countless foolhardy decisions and hasty executions to guide us as we determine the best new uses for the former I-195 land. But before we groan over our apprehensive contemplations of what crazy idea our dear State and City officials will come up with next, we can look to our one saving grace.

Thirty years ago the Capital Center Commission worked together to recreate our downtown into the renowned destination that it is today. Attend one Waterfire event if you need to affirm that they got it right.

A few weeks ago, in partial celebration of the Capital Center Commission’s achievements, the Providence Preservation Society put on a three-day symposium entitled “Make no Little Plans: A Symposium on Visions for Providence.” The Symposium also served as a opportunity for the cities best and brightest to share their aspirations for the I-195 land redevelopment.

Symposium attendees also had the honor of meeting the now confirmed newly elected I-195 Redevelopment Commission. Lincoln Chafee (Who chose the nominees with recommendations made by Angel Taveras and House Speaker Gordon Fox), nailed it with the commission selection. The seven-member Commission is headed by Colin Kane, principal of Peregrine Group, as chairman; Barrett Bready, president and CEO of NABsys Inc.; Barbara Hunger, a registered nurse with Women and Infants Hospital; Diana Johnson, renowned art consultant; John Kelly, president and CEO of Meeting Street School; Mark Ryan, principal of Moses and Afonso; and Michael Van Leesten, CEO of nonprofit OIC of Rhode Island. All upstanding contributors to our community, my first reaction to the Commission member selections was “dream team.”

Everyone agrees that the I-195 land is one of the City’s, and the State’s, greatest opportunities for growth and economic stimulation. Are we up for the task? After attending the Symposium I wholeheartedly say that yes we are. What I have witnessed so far is collaboration over mutual aspirations, and substantial aforethought and prudency paired with imagination and boldness. I am confident that the Commission’s leadership, like that of the Capital Center’s Commission, will result in a better City for the next generations.

If you are skeptical about the promise of what we Rhode Islanders are capable of creating, think about this: The catalyst for the entire Capital Center redevelopment was a single wine-stained sketch on a napkin, ideas scribbled by a few young friends over cocktails. So before you criticize or succumb to your usual jibes about our shortcomings, go get that forgotten napkin, post-it, or candy wrapper out of your trash basket, and get involved. If you can see opportunity in a 41-acre dirt pile, you can contribute to its fruition.

For more information on the Symposium and the new Commission, visit:

http://www.gcpvd.org/category/features/195-relocation-project/

Realtors today are often faced with this line of questioning from sellers: "Will you accept a lower commission?" It's not that the seller asking wants to undercut their realtor. The seller is asking because realtor commissions are hard to understand. In order to get a good sense of how the commission system works, let's start with the basics.

The industry norm for realtor sales commissions is 5-6% of a property sales price. With a commission-based system, the person being compensated for his or her services takes a high risk in exchange for a "high" reward. For realtors, the risk is not making a sale and earning nothing, no matter how much time, money, or effort a realtor puts into the transaction. The seller is therefore paying a "high" reward in exchange for the high risk the realtor takes on for a guaranteed outcome. The assurance to the sellers is that if the desired outcome is not received, the seller pays nothing.

As most Geo friends know by now, in a former life I was a practicing attorney. As a lawyer I was paid, depending on the case or client, in three different ways (well, 4 different ways, if you include the occasional free drinks and apple pies as a means of compensation from my nearest and dearest). The first was by commission. Personal injury, wrongful termination, discrimination cases and the like would be paid by commission upon a successful settlement or trial. We would take 30% of any monies paid to our client. On a good case, that 30% would be obtained after a few months of settlement negotiation. On a more complicated case, it would be received (maybe) after years of litigation.

The second way I was paid was by an hourly fee. With certain clients, such as contested divorces and custody disputes, amongst many other cases, I would keep meticulous record of how my time was spent in 6 minute increments. I would then bill my clients for every minute of my time on their case, including every phone conversation, email response, and meeting time. On top of that, they would usually be responsible for reimbursement of all filing fees and other expenses incurred.

The third way I was paid was by flat fee. This form of payment was well-suited for standard document preparation, contract review, or non-adversarial work such as basic real estate closing title work.

The point is that, depending on the client and the services being rendered, a different fee structure would present itself as most appropriate. There were options. I was not a "salesman," of a product; I was a consultant and a representative of my client. It was my responsibility to zealously advocate on for my clients best interests every time. Today, as an agent, I expect the same standard of care of both myself and of everyone else here at Geo.

So back to the problem. The problem with a commission-based payment system is that in today's market, cookie cutter services and uniform commission rates no longer satisfy sellers OR realtors. Let me explain why.

Commissions are not always the right fit for a seller. Let's say Jane Doe is thinking about selling her home, but given her personal circumstances and the market it may be best for her to stay put and make improvements or maybe even rent. She needs professional advice, not only to establish her home's value as is, and if improvements are made, but also to help her decide what she should do. How can she trust a listing agent, one who is pushing for a quick sale of the house, to be acting in her best interests when they only benefit financially if a sale is made?

Let's take another example. John Roe just purchased a bank owned property. The city's assessed value for the home is astronomical, 100K over what he paid for the house. He wants to get his taxes lowered but has no idea who to talk to. He would love to continue working with his realtor, but he does not want to take up the agent's time without figuring out a way to compensate them for continued representation after the purchase transaction has closed.

Most realtors, at least the good ones, are always going to act in their clients best interests, regardless of whether or not that means they end up doing a lot of work for free. But the above two examples, out of countless other scenarios we have been faced with in recent months, highlight a deficiency in the one-option-only payment system that is currently the norm in our industry.

Commissions don't always make sense for the realtor either. Back in the "old" days (not that I am old enough to have experienced it myself!), realtors put their sign up and started their wheeling and dealing with prospective buyers. Nowadays realtor responsibilities are drastically different. Online marketing alone is both time consuming and expensive. Technology has considerably increased the time invested into each listing. To give you an idea, today my assistant was creating a QR code for one listing, discussing website format changes with our web designer, posting rental ads to craigslist and about 10 other rental sites, and resizing digital photos for online publication. And that was just within the last twenty minutes. By the end of the day, hours will have been invested into marketing our properties in dozens of ways that did not exist 30 years ago. And that is before we even get face to face with consumers! There are endless other services, such as property staging, that are provided nowadays as well. For a home in a higher price point, the final payday seems worthwhile. But what about affordable condos and starter homes? Well, we provide the exact same full service to those sellers as we do to million dollar listings. Needless to say, small paydays are less rewarding after the endless hours are expended. Sometimes, in my head, the attorney side of me can't help calculating my hourly wage earned. It is not uncommon for that number to come out to below minimum wage.

Without a doubt, the commission or nothing realtor compensation system has become archaic. And if you ask around about why such a system is still in place, the answer you are likely to get is, "well, that is the way we have always done it." Not good enough for me. Probably not good enough for you either.

We understand that every seller in today's market has different needs. And paying for exactly what you need can be a preferred, straightforward solution to many sellers' hesitations about paying convoluted percentages of their homes' eventual sales price to an agent.

As professional consultants collectively experienced in all aspects of real estate, our team is always committed to providing a thorough needs analysis to all clientele, and only afterward offering responsible options to address those needs. Unlike the industry norm, persuasive tactics have no place at our company. Our mission is to provide expert advice and to serve your best interests. It is never simply to "sell." In order to share our services with a broader pool of consumers, and to reach those of you who don't like the current system (yes even you, FSBO's), we are making some changes..n daysntteh with teh notice to the Buyer expiration or, finding suitable housing and ble options to addres sthose s a high re

Over the next several months Geo Properties will be launching a new system of consultation services and compensation alternatives for its sellers. Our commission-based approach will remain intact. If, upon discussing all your options you decide that a traditional commission is the best choice for you that is perfectly fine. But we want our sellers to make that choice because it is the right one for their circumstances, not because it is their only option.

To learn more about how we can best serve you, contact a Geo Team member at 401.273.7777. We look forward to working with you.

Nola, my best friend Dawn's 13 month old daughter, is just about the happiest, most darling little thing when left to her own devices. She was in top form yesterday when Dawn came over to help me with the landscaping at Bluff. Problem was that "her own devices" meant crawling around through plaster-dusted rooms and splintered floors. So I got "Nola" duty, while Dawn began doing battle with the horrendously overgrown hedges in the front yard. We spent the afternoon walking up and down the porch stairs, Nola's hands in mine to keep her from touching anything. Surprisingly not boring. Shocking to some may be the fact that I occasionally enjoy spending time with little ones. At least when they eventually go back to their parents. I would be an awesome grandmother. If only I could skip the "mother" part.

Dawn had a nice day too, at least until a spider crawled inside her pants. No joke - this really happened. I was down on the grass with the munchkin when my friend suddenly started screaming and dancing around like Elaine from Seinfeld onto the front walkway. Before I, and my neighbors, knew it, Dawn was putting on a strip show for the neighborhood children. Pants half off, she finally ran up the stairs to complete her undressing in the living room. No curtains of course, so she still got a nice round of applause from the guys across the street, despite the curtailed performance.

Did I mention that Dawn is a hottie? Needless to say, Bluff Ave might as well have spotlights on it 24/7 for all the attention we are getting over here.

~ Rita