Book Review - As Is by Joan Herlong
My third book review is a special one. It is a book written by my broker and real estate legend Joan Herlong. Whether you are a Realtor or someone who will buy or sell a home in the future it is a great read with clever anecdotes and funny stories of Joan’s real estate journey. Joan is straightforward in her approach to real estate.
The book gives some details of Joan’s relationship with her realtor mom, her initial integration into southern culture as an outsider from “up north”, and the journey that brought her into real estate in Greenville, South Carolina. The book provides insight into the value a good real estate agent brings to both buyers and sellers. It also gives some cautionary tales of the damage a bad realtor can do to a real estate transaction.
I wanted this review to be a little different. I encourage you to read the book. You will not be disappointed. However, the rest of this review will have “Joanisms” from the book. A Joanism is advice given in only a way Joan can deliver it.
On Success in the Industry - To be successful in this industry (in anything; really), you have to be reasonably smart, reasonably good with people, and you have to be willing to work your ass off.
Working with an Inexperienced Realtor - It’s no small thing to take a chance on a green agent. But if you rule out all green prospects, you might miss out on someone amazing.
Days on Market - Seller Beware. If your prospective listing agent’s presentation is fixated on promoting their personal average days on market for their past listings, it may be because they sell a lot of average, fungible houses. I can’t promote my “average days on market”, because unique, high-end listings defy averages. On the other hand, if I wanted to tout my low average days on market, I’d make sure that all my listings sold fast by underpricing them. Selling fast is easy; selling well takes time, effort, and expertise.
Communication with a Seller Client - When a potential seller asks, “How often are we going to communicate?” the answer is that it’s up to the seller. My answer is: “We’ll be in continuous communication. I’ll return your call/email/text promptly, by the end of each day, and I’ll use your preferred medium.” We train our associates to understand that client communication is paramount. If the seller communicates best by semaphore, then the agent better buy some flags and start waving.
Do You Have a Buyer for my House? - This is perhaps the most important question a seller can ask. If your agent does have a buyer for your property, he or she should disclose that to you up front. Failing to disclose that is actually a violation of the NAR Code of Ethics. I find this article is the most often honored in the breach. It’s amazing how often listing agents “suddenly remember” they have an interested client, but not until after they have a signed listing agreement. At first the seller might think their listing agent is a hero. Wow! My agent sold my house in one day! But here’s the thing: Did that listing agent price the property for the benefit of their seller or for their buyer?
Buying in a Resort Community - If you are looking to buy in a resort community, caveat extra emptor. There’s a high probability the on-site agents only represent the developer. In many resorts they cannot represent the buyer - but that doesn’t mean they don’t work with buyers. It also does not absolve them from disclosing agency requirements in their state, up front. Ask questions. Make sure the people who work on site are licensed to sell real estate. Is someone says, “You don’t have to sign anything with me. I’ll act like your buyer’s agent, but you won’t have to sign anything I won’t burden you with the paperwork,” don’t be fooled. That person probably works for the developer, not you, not for your interests. A few questions for on-site agents: Are you a member here? If not, why not? If yes, do you pay your own dues, or does the developer? Are property owners and members here allowed to be salespeople? Are members allowed to use outside Realtors for resale? May I see a complete copy of the restrictive covenant before we see the property? Can you show me data on resales for the past two years? Are you a licensed real estate agent? Are you also a Realtor?
As Is does not mean “Fixer-Upper” - The best deals are AS IS deals. There’s no fussing about whether something is a repair and no posturing (by agents who wouldn’t know a French drain from a French kiss) about how a repair should be done properly. There’s no whining about, “I don’t care what the contract requires, I just my buyers to be happy …” AS IS does not mean that a property is a fixer-upper. It used to mean that to most people. On my company’s listings, however, AS IS usually means the seller has the property professionally inspected before anyone darkens the door.
This next Joanism is more pertinent today with the recent legal proceedings and proposed settlement related to realtor fees (specifically buyer agent fees and who pays for those services). Buyer’s Agency Agreement - The buyer’s agency agreement should be explained, discussed, and negotiated between the buyer and the buyer’s agent before it is signed. It is also South Carolina rules that a Realtor must have a signed buyer agency agreement before showing a client any property.
A few more of my favorites …
The true measure of my company is not how well I run it, or how much I personally sell, but how well it runs when I am not present.
Lasting success in this industry comes from treating it like the business you want to be successful in.
I omitted some of the best advice for sellers and buyers that Joan gives in the book. AS IS is an easy read that will make you a smarter home buyer or seller.