Holding Things Together, HOAs, Showing Emotions, Earning it, & a Question for You
September 2024 | Jim’s Note
This month - I wrote a short Charlottesville - Albemarle market update speculating on the market turn on my blog, good agents’ compensation, building for climate change, earning business, what do you wish you’d known before you bought your home, and showing emotions. I hope you like it.
Why do good agents get paid (well)?
Because we study, are informed, and surround ourselves with the right, smart(er) people. And we’re now in an era where agents’ expertise, experience, and surroundings can be valued.
There are (finally) a lot of conversations about the value that great agents bring to the real estate transaction equation. One example from a time when I had the buyer:
In the Residential Purchase Contract, there is a box to check that states whether there is an HOA. (The new term is “Common Interest Community (CIC)”.)
I checked that there was a HOA.
The other agent said, “There is no HOA here.”
And yet, the property did come with deeded Covenants and Restrictions, meaning that it does require the “yes” check.
“But I was told it didn’t count.”
Okay, here is the link to the Code of Virginia that cites exactly what constitutes an HOA. As such, we’re going to check that box and give my clients three days to review the C&Rs.
What I have written as an explanation a couple of times:
My understanding is that CIC determination is governed by three factors.
1) The Subdivision must have occurred After 1/1/1959.
2) There must be a document that establishes the entity, with no requirement of incorporation.
3)The documents must be recorded in a municipal courthouse.
Summarizing from the Code of Virginia.
Even when I am 100% correct, if the agent either does not agree or does not understand, we have to determine how to proceed. Much like when negotiating with a 3-year-old. I can only explain that the fireplace is hot.
What I’m Listening To: Not Built for This
What I’m Listening To is typically an end-of-note topic, but this series warrants attention, time, and action. Our society — housing, economy, geography — is not prepared for climate change.
Not Built for This #1, #2, #3, #4, #5.
Simply put, we as a society are a) not ready and b) not even thinking about how to prepare for the effects of climate change. “Estimates are that within 75 years: 160 million Americans and will be displaced by climate change and that 13 million will have homes under water.”
The preexisting infrastructure of inequality and managed retreat — two phrases that struck me in episode 4.
If you don’t “believe” in climate change, your beliefs are detached from reality.
What do you wish you had known before buying your home?
I’ll start with some things I guide my clients to ask:
How much does it cost to operate the house? HOA + Power + Water + et al
Where are the property lines?
What does that switch do?
What say you?
Back in the crash
Those of us in real estate had to earn the business. Things are a bit different now with so many so few (related). I’m not saying there is malice; I’m saying that they are human, and not having to fight for business and trust means that often, the lowest common denominator wins.
This example is from many years ago:
I had one house under contract with Builder A in one neighborhood and one with Builder B in a different neighborhood. The same crew from the same company installed HVACs in each house.
The installation for Builder A was clean, professional, and good.
The one for Builder B was, in a word, sloppy.
The difference: Builder A set a higher level of expected quality, and delivered. (my clients are still living in this house, and I’m wondering if they’ve had the HVAC replaced yet)
- I edited this post a bit to be less targeted and more broad. No one said anything; I thought the lesson is better when it’s less focused.
Showing Excitement
Making an effort every day.
I need to learn to show more excitement. My clients are proud of their homes, and my responses need to reflect that pride. And I need to delicately coach them to no longer see their homes as the places where they raised their kids/started lives together/etc. — the home is now a product.
I emotionally detach. If I get caught up in the undulations of emotions and stresses, I am not as well positioned to advise.
All with empathy, understanding, and compassion.
Quick thoughts
Life Stages Advice. One of the things a great representative can do is help buyers ascertain the suitability of a house — I ask a lot of questions.
I’m finding that having been a first-time homebuyer, repeat buyer and seller, newlywed, parent of little kids and later college kids, and now as grandparents, I and my wife are seeing — and providing — the value that close-by grandparents offer. More of my clients now are the parents of my clients who are trying to move to the Charlottesville area to be closer to the grandkids, or to be closer for their kids to help them as they age, or both.
Going back to analog watches. I now wear my Apple watch only when sleeping and when exercising. I found myself a) too beholden to the Fitness steps and standing prompts, b) too distracted by the watch even when most notifications are off and, c) it’s easier to tell time on an analog watch than on an Apple version of an analog watch.
New forms. In this Brave New real estate World, Nest developed our own buyer representation and seller marketing and representation forms. Objectively, they are quite good, and I’m looking forward to talking about them with clients.
What I’m Reading
Lessons learned from writing a weekly newsletter for 115 weeks.
Floods from ‘training thunderstorms’ lead to dramatic rescues and 2 deaths in
Engage Louisa - I’ve long advocated for Sean Tubbs’ Charlottesville Community Engagement; Engage Louisa is similar in that it is a singular source for what is happening in Louisa (to the east of Charlottesville/Albemarle) — water, solar, power station(s), townhouses, internet — so much, and I wish these types of exceptional journalists were more widespread.
The NAR has sh*t the bed for decades; marketing like this only affirms that. The people at NAR are great and well-intentioned; the system is broken. Until they institute an apprenticeship for Realtors, they’ll be stuck.
What I’m Listening To
Daft Punk Live 2007. This has been on repeat for a few weeks now.
If I Ruled the World - Trevor Noah. Mandatory Travel. Good stuff.
One of the greatest advantages of being relatively young, and mostly empty nesters is that my wife and I get more time together — this is something I’ve always wanted, and now, we finally have it. 20+ years in the same house, and kids gone = more time for fun (and work)