This post is a more serious post, and if you all know me, you know it’ll be one of the few, if not last, serious post in this blog.

In the real estate world, there are some pretty strict rules that forbid us from discussing commissions in public or with other agents, because it can lead to the possibility of collusion and price setting, so to start this post, let me be very clear….everything is negotiable. Commissions are something that is determined between you and your Realtor and agreed to on your listing agreement. A Realtor can charge whatever they want, be it 1% or 8%. And you have the right to accept it or not.

There…now that that’s been said, let me give a little background on commissions, how I determine mine and talk about the reason behind them.

I get a lot of people that think I’m making truckloads of money, and while I’ve been very blessed in this business and will never complain, my tax statement at the end of the year looks quite different than many people think.

Below is a brief explanation of why I charge what I do.

Expenses: Real estate is cyclical and it’s not uncommon to have one very good month, and three to four without anything. However, the expenses don’t stop. Being a heavy listing agent, I’ve got constant expenses that don’t go away. They range from professional photography (sometimes multiple rounds per listing), printed material, print advertising, direct mail (which I do a lot of), online expenses and advertising, hiring of different professionals that can help me on certain deals, etc, etc, etc. It’s not uncommon to host private parties that involve catering. Things you’ll never see, but that are an integral part of my success, and thus my clients getting their homes sold. When you’ve got all these expenses, but a job in which you have the possibility of never getting paid again, you have to make sure that you’re able to afford to stay in business during the slow times. To top it off, we can often spend thousands marketing a listing, only to have the owner decide not to sell it after a while. All those expenses are just wasted. There’s a HUGE amount of financial risk in this field that people don’t realize.

Hours: Another thing the public doesn’t really see is the HOURS I spend working. A successful agent probably works a minimum of 60 hours a week. Sometimes more. And even when we’re not in front of the computer or on the phone, we’re networking everywhere we go to try and find that special buyer.  It means late nights and weekends. It means time away from my wife and children. Every time I’m awake, I have to be “on”.

Risk: Here’s the biggie. One that most don’t even think about. Every time I’m part of a transaction, I put myself at risk for a lawsuit. Not because of something I’ve done, but you can never truly tell how the other party is going to ask.

Here’s a true example of what happened to me recently. I was hired to list and sell a home in NW San Antonio. Really unique home, but really cool. Not one of my million dollar listings, but not a cheap one either. Well, through some diligent marketing and hard work we got the house under contract. However, once we did, I got a bad feeling about the buyers. They were rude and to be quite honest, I got the feeling that there was a little “crazy” inside them. My gut feelings soon proved to be true. The buyer being an attorney didn’t help.

We went through the inspection process and found some issues with the home that my seller did not know about. He was very thorough on the Seller’s Disclosure, but this one was new to him. We went back into negotiations on the issues found and did some repairs, along with giving the buyers some cash at closing to complete the rest of the repairs they saw fit.

Getting to closing was rough, but we got there. Sure enough, the day after closing it rained. Hard. REALLY hard. And the storm caused leaking. Lots of it. Nothing they didn’t know existed, but they didn’t get the repairs made in time. Now, I truly felt sorry for the buyers, as I would have hated to have purchased a leaky house, but my seller and I did everything by the books and correctly.

However, real estate makes some people crazy, and almost a year later we got notice that they were taking us to mediation and possibly court. They made up incredible lies and hired a lawyer that convinced them they had a great case. They were asking for an amount that totaled about 35% of their original purchase price.

Because I had a bad gut feeling in the beginning, I documented the hell out of everything. Every email I got from every party was in my file. Every phone conversation was documented. By closing, my file was about a foot thick, and unfortunately that’s not an exaggeration. When we sat in mediation with my attorney, my seller and his attorney and the buyers and their attorney, they KNEW they didn’t have a case. However, what they also knew is that we’d settle because they could drag this into court. When you go to court, unfortunately a jury doesn’t always make a decision based on facts. (The Casey Anthony verdict was only a week before this, so it was fresh in our minds.)

Despite having a rock solid case, we had to settle. Now we got them down to half of their initial demand, but we had to pay. A lot. Luckily I have insurance on every deal I do, but the deductible ended up costing me MORE than I made on the house when I sold it. So, in essence, I paid to sell that house and got dragged through almost a year of hell with it.

Is that my client’s problem? Absolutely not. It’s part of the risk in the business.

But is this something I have to take into account? Absolutely. On every deal. Even when you do everything right, someone could sue you. It’s the society we live in.

This long winded post (I doubt most of you are still reading this) is definitely not a “pity me” story. I LOVE what I do and wouldn’t change it for the world. It’s just a little further explanation of why I charge what I do.

Can you negotiate commissions? Absolutely. Will I? Probably not.

I feel that I’m a professional, just like any other businessman out there and I set a value on my service. Every professional should set a value on their service. It’s then up to the consumer to decide what it’s worth to them.

I feel sure that I could call any of my past clients and ask them if they thought I was worth what they paid, and they’d all say absolutely. I’ve been incredibly blessed with great clients that understand the value I can bring to them, and for that, I’m grateful.

OK. I’ll admit it. I did NOT write the article below. Janet Jones, an interior designer in Hawaii did. Found it online and agreed with every bit of it, so I’m sharing.

If you live in Hawaii, visit her website at www.just-your-style-interiors.com. And also send me some coconut syrup, because that stuff is like crack.

1.  We want to test the market for 90 days.  And on the 91st day?  Price reduction–and 90 days worth of potential buyers who have already eliminated your property.

2.  It costs too much money.  I have never seen a home where the staging costs would have exceeded the first price reduction.  And that doesn’t even factor in the monthly carrying cost of the home. 

3.  We can’t stage the house, we’re living in it.  One common misconception is that staging is only for vacant homes.  Every home/condo can be staged, and you can actually live in it after staging.   

4.  We didn’t have to stage any of the other properties we sold over the years.  Yes, once upon a time you could generate three offers by 5 p.m. on the same day your Realtor put the For Sale sign in your yard.  Not now.  Buyers are picky and they have a lot of homes to choose from.

5.  Everyone loves our house so buyers will love it, too.   What you, your friends and relatives love about your house may not be what today’s buyer wants.  Sellers are often baffled by the feedback they get after showings–amazed that buyers have found things they don’t like about the property.

6. We can clean the carpets and declutter without someone telling us how.  Yes, you can (and should) do this, but it is a tiny piece of staging.  Do you know what separates  “clutter” from “asset”?  And what about all the other things that staging encompasses, like traffic flows, highlighting architectural features, updating, and appealing to your target market?

7.  We have no desire to remove/change our _______________ (wallpaper/mirrored tile/gold faucets/paneling/dated light fixtures . . .).  And neither do buyers.  Better to keep your home or be ready to sell at a deep discount. 

8.  The view alone will sell this place.  Then why many months later are these great view homes/condos still on the market?  Could it be that buyers want something to go with the view–like a comfortable, move-in ready home?

9.  We would rather let the buyers makes their own paint/flooring choices.  And that equals a price reduction.  If buyers do make an offer on your home they will double or triple the cost of these items and reflect that in their discounted offer price–which includes a deduction for the inconvenience.

10. Our home is professionally decorated.  A professionally decorated home is tailored to the owner’s particular needs.  Does it work for the new buyer’s needs?  You could see #1 above . . . .

These are all great reasons–

• for price reductions
• for extended time on the market
• for buyers not coming to look at your home
• for buyers not coming back for a second look

There are dozens of reasons not to stage, but only one good reason to stage–getting your home sold faster for the highest possible price.  Staging is preparing your home for sale and creating a home that buyers want to buy.  If you want to be in the best competitive position in this market today, consult with a professional home stager before listing your property for sale.

You have to admit, love him or hate him, Tim Tebow makes for good TV.

 I have always been a huge sports fan and I’m enjoying watching this Tebowmania. I  was one of the ones that counted him out at the beginning. His form is horrid. His  decision making is sketchy, at best. And while he’s a physical specimen, he’s just not an  NFL quarterback, right?

Well apparently he is. Just ask the Steelers. (If you’re looking for them, they’ll be at  home watching the playoffs on TV this week.)

I’m still pretty sure that he’s never going to be an elite QB. Yes, they can work on  things in camp and get him a good coach, but he’s not going to be donning a yellow  HOF jacket at the end of his career.

Why do I like him? Simple.

He’s proving that you can do things differently and still win. He’s proving that you can disregard what everyone is saying and still be successful.

You can’t turn on ESPN without hearing the debates about him. How he’s not got the pedigree. How he’s being compared to Manning, Brady, etc. It’s everywhere and most of it, again, it all about ratings.

But what you can’t deny is that while he doesn’t do it the way it’s always been done, he’s winning. And he’s doing it while hearing himself be constantly put down by armchair QBs  across the nation. All he hears is that he can’t do it.

His response: Watch me.

A similar thing happened to me when I started in real estate. My Mom was talking to a lady she knew that had been in real estate forever. And when I say forever, she was one of the ones with her picture on her card talking on a phone. With a cord. I wish I were joking, but I’m not.

And no, to anyone in the community reading this, I will not tell you who this is. They’re still practicing.

With the same picture.

She decided that she was going to give my mother some great advice to pass on to me, because after all, she was so wise and had been a decent producer for so many years. She told me that I should really get into new homes sales and go work for a builder for a few years, because I’d go broke trying to do what she did. I wouldn’t be able to be successful for years.

My response: Watch me.

By the end of my second year I was selling circles around her.

Then I started seeing a few agents that were very successful in the luxury market. They were selling magnificent homes. HUGE homes. Things I didn’t even know existed in San Antonio. I started talking to a colleague about getting into that market. He told me that it’d take 10 years to even break INTO that market, let alone be successful in it. It was saturated.

My response: Watch me.

I had two $2,000,000 listings by the end of that year and he was out of the business.

Is this just a post to say that I’m something special? No. Absolutely not. I’m no more important than anyone out there. It’s only to say that I’m constantly amazed at how many people are out there these days saying “it can’t be done” or “I’m never going to be successful”. It’s sad and it’s actually quite pathetic.

Real estate isn’t rocket science. If it was, I surely wouldn’t be doing it. It’s work and it’s selling yourself as the best for the job. If you don’t believe in yourself, why on Earth should anyone else?

Right now the world is being plagued with people camping out in streets saying “help me” or complaining about their lot in life. They’re saying they need others to support them, because they can’t do it themselves. They’re acting helpless and they think that by bringing others down, it’ll help them feel better about themselves.

The reality is that most people that have great accomplishments had many people telling them that they couldn’t do it. They’d never be successful.

Yes, there are paths to success. There are certain things that you can to do become comfortable in life.

And yes, there are people like Peyton Manning that were just born into the perfect situation and body to be an incredible quarterback.

But there are millions more that weren’t born with those natural gifts, and instead got where they were going by just looking around and saying “screw you, I’m doing this”.

Our world is in a dire situation right now, and it’s ALL due to a huge contingency of folks not looking around and saying “Watch me”.

THAT’S why I like Tebow. He looks around, sees all the people saying he can’t, and says “watch me”. And what’s better, he knows that he’s not special. He’s just an ordinary guy that’s made the best of his situation.

We need more people like this.

We’ve all heard it. It’s a BUYER’S market, and while that’s true, what I’ve found is that most folks (and a LOT of Realtors) don’t know what that actually means.

Because it’s a “buyer’s” market, I’ll constantly get lowball offers (see my earlier post for my thoughts on those) because the buyer assumes they’re going to get a great deal, because it’s a “buyer’s” market.

First, let’s talk about what a “market” is and what determines a “market”. A market is a snapshot of an entire group of something; in this case, homes. When a market is down, the entire market is down. When a market is up, the entire market is up. Not just select homes in said market.

For a minute, let’s pretend that each neighborhood demands that a home be set at a certain value. For example, every home in Elm Creek is $500,000. HOA Regulations DEMAND it (remember, we’re pretending – just stay with me on this). Right now, we’re in a buyer’s market, so while everything is $500,000 right now, three or four years ago the HOA was demanding that every home be priced and sold at $600,000.

When the economy turned and the inventory outweighed the demand, it became a buyer’s market, so in order to make things more appealing, Elm Creek demanded that everyone price their houses in accordance with the supply/demand. Thus, everything is $100,000 lower than it was a while back.

However, buyers look at this a different way. They say, “well if it’s $500,000, I’m only going to pay $400,000 because it’s a buyer’s market”. They don’t think about the fact that it’s ONLY $500,000 because it’s a buyer’s market. A few years ago, or a few years from now, they’d be paying much more.

When we, as listing agents, set prices, we set them based on the CURRENT conditions. Not past conditions. Not what we think the future conditions might be. Current conditions.

So if prices are set off of the current conditions, they’d be set based on the “buyer’s market”, correct? Meaning that you’re going to pay a fair cost for that house. You won’t over pay, you won’t under pay.

And when your appraisal comes in, it’s going to show that you paid a fair price. It’s not likely to show that it’s worth $100,000 more than you paid for it, because remember, it’s based on the MARKET. Not what the market WAS. So don’t get discouraged because you don’t think you got a “deal”. You did get a deal. You would have paid much more for that house in a different market.

Now, from time to time you’ll find different situations will allow you to get a home for a much lower value than even the market dictates. Those are usually due to some sort of seller distress like a foreclosure, etc.

Too often I get low offers on my listings by buyers looking for a “deal” because it’s a buyer’s market. Honestly, it’s irritating to myself and to the sellers because buyer’s don’t take a step back to see how the house is priced with today’s market. They just assume that because it’s a buyer’s market, they should be getting it for LESS than everything else in the MARKET! (key word)

If the appraisal on your home comes back much lower than your contract reads, then you’re not getting a good deal. But if you’re paying what the market dictates, you’re getting a good deal. Be happy with it. Know that you’d have paid more in a different time.

Everyone wants a deal. I understand that. But not everyone can recognize a deal, and that’s the problem that we, as listing agents, face in a buyer’s market.

If you’re determined to get a property for lower than market value, that’s your prerogative. But just know you’ll have to look a lot longer and harder, and you’ll have to give up the idea that you’re going to get a perfect house for a discounted price. If they’re lower than the rest of the market, there’s usually a reason for that. It’s usually going to need a lot of work. There’s SOMETHING causing it to be priced less than the market.

The key to real estate is buying right in the market you’re in. Just don’t overpay.

Set your budget and don’t go over it. Don’t worry about how much the seller is making, how much the Realtor is making, etc. Just stick to your budget and don’t overpay. It’ll ensure you’re happy with your purchase.

Disclaimer: I’m going to be VERY politically incorrect in this post and talk about God, so if you’re offended by God, Jesus, etc., well, I don’t care.

1 Thessalonians 5:18 says “Give thanks in all circumstances, for this is God’s will for you in Jesus Christ”.

But, c’mon God, ALL things? Really? Surely You don’t mean EVERYTHING, right?

Yes. Everything.

This is something I’ve struggled with in the past. In this business, you can go through extreme highs and lows. The cliche term “feast or famine” doesn’t even begin to explain the life of a Realtor. I’ve been blessed in this business more than most. In the six short years I’ve been a Realtor, I’ve shot to the very top of my profession and am honored to have my name mentioned right along side of some of the most amazing Realtors in South Texas. I’m truly humbled by it.

But man, on that rocket ship up, there’s been some turbulence. This year alone I’ve been through some amazingly weird and trying situations. I’ve had a buyer (not my client) try to sue a seller over something ridiculous and drag me into it because they know I had insurance. It ended up costing me $7500 out of my own pocket, and what makes it worse, was that I was the only reason that the case didn’t go to court. I meticulously documented everything, proving the buyer’s claims to be completely bogus.

Thank you, Lord.

I’ve worked with a buyer for over a year, and developed a great rapport with them. We finally found a property they loved and made an offer for them. When the seller couldn’t come down to our price, the buyer, whom I thought was actually a friend started sending me some pretty horrible emails and text messages, full of words that would make George Carlin uncomfortable and basically blamed me for the seller not accepting their offer, because it wasn’t high enough. Tons of hours down the drain.

Thank you, Lord.

There was a con artist running around in San Antonio, looking at big houses and telling people I was his Realtor. His girlfriend even called me one day asking to pick up the keys to the house he just bought. When I told her that she’d had a fast one pulled on her, and that I’ve never written a contract for that fool, she broke down crying, admitting that she gave him her mother’s engagement ring to be “resized”. I also told her that I ran a background check on him and he had over 20 warrants for his arrest for very violent crimes. She truly believed that a mid-20′s multi millionaire met her at a strip club and wanted to marry her after 2 weeks. Poor girl. Poor stupid girl. I run into the biggest freaks in this business. It’s like I’m a magnet for them.

Thank you, Lord.

I’ve been through extremely busy periods. I’ve been through extremely slow periods.

Thank you, Lord.

I’ve had people ask how I can stay thankful and happy about things like this, and my response is only “because that’s what we’re told to do.”

I’m not special and I’m no more important or wise than anyone else. All I know is that God’s got a plan for us, and to this point, following it has provided me with a pretty darn good life.

I equate it to my life with my beautiful children. As with all parents, we go through our battles at home. Every day I’m protecting my son from things that he thinks will be really cool, but I know that in the future will hurt him. He doesn’t understand it, and he RARELY accepts it without a huge fight, but I continue to do this, knowing that one day down the road he’ll look back and say “hey, maybe Dad DID know what he was talking about. Glad he didn’t let me to THAT.”

Being a parent has really helped me understand that sometimes the things we want, or the things that we think will make us really happy, aren’t TRULY in our best interests.

Trusting unconditionally in the Lord is hard, and if you’re not a Christian, you cannot even BEGIN to understand what I’m talking about, but for those that are, and have truly given their lives to Him and trust Him, you understand the peace that I have. And you can see how that trust has impacted your lives for the better.

In this business, I want to do it all. But there are times when I’ve come to something in a deal that I just don’t see a way out of. Real estate makes people irrational, at best. But I can tell you that every time I’ve come across an issue like this, I’ve just turned it over to the Lord and said “here, YOU fix it”. Every time, the problem resolves itself. I won’t go into detail here, but I’ve seen some really cool things happen in my business because of the trust I put in Him.

Today, I’m Thankful for the trust that I have in Him, and the fact that no matter how bad it gets, He’s always got my best interests at heart. Even if I don’t understand it, I know that one day I’ll look back and go “oh yeah, maybe He DID know what He was talking about”.

Here are some other things I’m thankful for this Thanksgiving (in no particular order):

• I’m Thankful for a beautiful wife and two amazing children that are the light of my life.
• I’m Thankful for a family that puts up with my consistently ridiculous ideas and shenanigans and supports me in everything I do (even though there is more than occasional eye rolling).
• I’m Thankful for a thriving real estate business.
• I’m Thankful for a God that loves me and knows me personally.
• I’m Thankful for our soldiers that constantly risk their lives to provide me the freedom to do what I love to do. There is not enough “thanks” in the world.
• I’m Thankful for parents that never missed one of my little league games, school plays, etc.
• I’m Thankful for amazing clients that I’m working with/have worked with. I’ve been really blessed to work with clients from ALL walks of life, and I love that I can truly call the vast majority of them friends.
• I’m Thankful for those new Jalapeno Cheetos. Seriously, those things are like crack!
• I’m Thankful for one of my dogs. Jury’s still out on the other one.
• I’m Thankful for Texas. Period.
• I’m Thankful for beer. Not getting drunk, but one or two at a time. Because MAN it’s good. (be responsible, people)
• I’m Thankful for fast cars.
• I’m Thankful for hats and boots (those that know me get it).
• I’m Thankful for football.
• I’m Thankful for the blues. If you don’t listen to it, start. It’ll change your whole view on music.
• I’m Thankful for technology. Even though it constantly brings me to a rage when I cannot get my phone/computer/ipad/etc to work. Apparently it makes my life easier somehow. Still haven’t figured it out, but in all things, right?
• I’m Thankful for Will Ferrell movies (Step Brothers withstanding)
• I’m Thankful for socks. Seriously, can you imagine life without them?

HGTV is the worst thing that’s ever happened to real estate. Seriously. I don’t know how many times I have to hear “take down your family pictures” or “take down your religious decor” before I puke.

Tomorrow I’m taking a new listing that another Realtor had for a year. House it priced right. Nice floor plan. Well maintained. When I was doing my research, I was trying to figure out what was wrong with the house, because surely something had to be, right?

Well, as soon as I walked in the door, I figured it out. They “staged” it. Their Realtor fell into the old adage of “take all your personal photos off the wall” and really just make the house as unoffensive as possible. The sellers did a great job of listening to their Realtor and as a result, the house looked bare. The first word that came into my mind was “sterile”. It looked like a clean room at a hospital.

Not an ounce of personality in the house. Not. One. Bit.

Welcome to your nice, new, unoffensive home!

When a buyer walks into a house, they want to feel like they’re buying a home. Not a museum. Put yourself in a buyer’s shoes. When they’re out looking at homes, they’re probably looking at 10-15 in a day.

Now, there’s nobody on Earth that can remember what every home looks like after looking at that many. So you’re behind the 8-ball to begin with. What you want is for your house to have personality. You want it to be memorable, because at the end of the day, a buyer will usually buy the house they remember best. Not the one that works best for them. They won’t remember that one.

First order of business on the new listing…we’re painting the dining room a nice, deep, maroon color. It’s right at the entrance and will give it some nice pop when you walk in the door.

Next…pictures are going back up. All of them? No. But some. We need the walls to be utilized for more than just holding up the roof. Putting pics up will warm the areas and make it feel like home.

Finally…we’re putting some of their religious decor back up. All of it? No. But some. The simple reality is that I’ve NEVER walked into a home with a buyer where they say “Oh, there’s a Cross (or Menorah or Buddha statue or…), I’m NOT buying this house”. It’s not going to happen. If it does, they weren’t going to buy that house anyway and it’s just an excuse.

I’ll never tell a seller, regardless of their religious denomination, to hide their beliefs. I’m a strong Christian, and I would never do it. Nor do I expect anyone else to. It’ll NEVER affect the sale of their home. Never.

Want to stage your home? Make it feel like a home. Do you need an ENTIRE WALL of Crosses? Probably not. Do you need your living room to look like a Lifetouch Portrait studio? No.

OK, if your family photos look like THIS, go ahead and take them down.

But make it feel like a home. Add a splash of color to a wall. Or a dining room. Or a powder bath. Keep a few (a FEW) knick knacks out.

Maybe when the buyer is sitting at home with their stack of MLS sheets, they’ll remember the house with the maroon dining room.

I know that my opinion is only one, and if your Realtor has a different opinion, and a proven track record, listen to them. However, don’t fall into the HGTV trap. Otherwise you’ll be holding on to your lovely, absolutely unoffensive, home for a long time.

There’s an old adage that if you’re offending someone, you must be doing something right. Offend someone. And sell your home.