"I felt like I was being given the third degree," says Clausen. "By the time the prospect and I met, I was ready to fire him. Because I wanted his business, I answered all his questions, but it kept me up 'til midnight answering all his questions."
And that didn't include the additional questions Hank had for Clausen after this email exchange - their third or fourth after a couple of phone calls.
Hank writes: "There are some other questions that I'd like to ask you and hope you won't mind answering them. Those responses will help me make my decision. Here goes: (Clausen's responses are in italics.)
Are you a member of the National Association of Realtors? Yes
Are you an Accredited Buyer Representative? What other special qualifications do you have? I'm an EBA, Exclusive Buyer's Agent. I'm also one of 1% of all American REALTORS accredited by the National Association of REALTORS as an e-Pro, a designation that uniquely qualifies me to serve the e-powered consumer. Through email, faxes, and telephone calls the entire transaction can be done without you having to be here. You can elect either to be at closing or to have me serve as your Power of Attorney for real estate for the purpose of representing you at closing.
Do you have an assistant? Yes, I have a Virtual Assistant
How long have you been in the business of representing buyers in the Denver area? 8 years, check out my license at the bottom of my website
I note that your license, issued by the Colorado Division of Real Estate, is active. Have you ever been sanctioned by that agency? If so, why? No
What difficult situations have you faced in the Denver market and how have you resolved them? The most difficult is in holding new house builders' feet to the fire on behalf of my clients. In one transaction during the homebuyer's orientation walk-through the builder refused to change a drain situation my inspector uncovered. I put my inspector on the phone with the builder in the presence of my clients, and he was able to cut through the B.S. and get them to do the right thing. Another episode with a builder was when a client of mine felt that they were treating him unfairly. I accompanied him and his lawyer to visit the builder and hold their feet to the fire. We were able to get them to award him money damages without a lawsuit.
How many buyers did you work with in the past year? How many of those buyers purchased a home with your help? 12 and they all bought from me
What is your view of the Denver housing market conditions? Go to my website, click on my newsletter, and on the right hand side toward the bottom you'll see a box labeled "Current Market Conditions." You'll find
my most recent assessment there.
What is your experience in assisting buyers find and purchase a new or near-new home in the Denver area? Talk to the clients I've represented. I find the best home for the best price with the least amount of hassle for the buyer.
I prefer to use a home inspector and radon tester of my own choosing as opposed to one recommended by a realtor. Are you comfortable with that preference? No I'm not. I do not get a rebate of any kind from any of the professionals I recommend. You are free to choose who you wish, but I will ask you to sign a release saying that you chose your own inspector (and lender). I represent your best interests and have a fiduciary responsibility to you. That includes recommending the very highest quality professionals. I know many REALTORS don't require this, and some will even say it's bad policy. But my experience is that buyers simply don't have the experience to choose the professionals it takes to successfully complete a complex real estate transaction Our purchase agreements are 8-10 pages long, and is one of the largest financial investments of a lifetime. I represent buyers every day. If you hire me I will ask that you trust my judgment. I don't want you to suspend your own, but in matters where you want a professional advising you, you'll get my best advice. As a Buyer's Agent, that's my commitment to you. My clients will tell you that they're glad they trusted my advice. I'm your advocate, and your satisfaction is my best reward. And we'll have a contract that specifies what I'll do and what I expect of you.
Will you notify me of the contents of a completed seller's disclosure form upon your receipt of it and promptly provide me with a copy, so that I can consider those disclosures before deciding to have the home inspected? That's the law in Colorado. Sellers are required to provide you with a disclosure, which, by the way, doesn't really mean much, because they only disclose what they know to be wrong, and then only if they're honest about it. Many sellers lie about the condition of their home. That's why you have a clause in our contract permitting you to have an inspection, and if you don't like what you see, and the seller doesn't resolve it to your satisfaction, you get to back out of the contract. Of course, you don't want to have to do that having come that far. So I do my utmost to make sure that our inspection is top drawer.
Can I count on you to understand that my wife and I do not want to purchase a home that will require any significant expenditures to correct the current owner's maintenance or repair issues and that we are not willing to purchase any home that poses a safety risk to our us, our little girl, or our unborn child? Totally understood.
Can I count on you to understand that we will not agree to sharing the cost of fixing any problem with a home? As we did not own the home when the problem arose, we see no reason to pay to fix it. For example, if a home has a radon contamination problem that is near or above the EPA maximum, we are not willing to share in the cost of sealing off the entry points for the gas and installing a mitigation system. This is only an example; the same would be true if the house had, for example, a leaky or nearly-worn out roof, a faulty furnace (or one near the end of its useful life), etc. We can ask the seller to pay for anything you ask. However, you must realize that they may not agree to what you ask. That's beyond my ability to guarantee.
Can I count on you to adhere to my requests applicable to opening offers, responses to counter-offers and the like? I will, of course, consider your advice on those matters before providing that direction but do not want to feel that I am being asked to offer a particular price, or accept a particular counter-offer, because of considerations relating to the commission my agent stands to earn if the sale closes. That's why you want a reputable agent representing you. I do not EVER consider my own interests in serving my clients' needs.
Because my wife and I have not lived in the Denver area before, can we count on you to show us houses in neighborhoods, communities, and cities that meet our specific desires, offer homes that stand a good chance of appreciating over time, are safe, and have high-quality schools? Unfortunately federal Fair Housing Laws do not permit me or any agent to discuss with our clients the safety of any neighborhood. I will point you to the local police department and ask you to do your own research. Same with schools. We cannot steer clients away from any neighborhood. I have an obligation to serve you, but only within what the law allows.
Can we count on you to screen the houses you think might fit our criteria so that my house-hunting time in the Denver area is most efficiently invested? I can only do so much screening. I have sent you a number of homes, and I expect a cooperative relationship where you rule out homes you have no interest in prior to telling me which ones you do have an interest in. I will use my professional expertise to show you a limited number of houses while you're here. However, please understand that every client is different. I had clients once who saw 60 houses in a weekend, which was certainly not my preference, it was theirs. If you only want to see 1 house a day, that's your preference. But you select the houses. I just provide you with what's available.
The exchange continued with Hank sharing facts about his financial situation and what kind of loan he wants, a meticulous list of preferences in a home, and his family. "We have a little girl (18 months) and another child on the way as well as two Labrador Retrievers and an elderly cat," wrote Hank.
He then provides Clausen with his wish list:
"Here are specific things we are looking for and/or will be considering:
Our current townhouse is 1368 square feet. We would like to purchase a home that is at least a little bit bigger, say about 1500 square feet minimum, if possible.
The house needs to have at least two bathrooms.
The house needs to have a two-car garage. It would be nice if there were a service door leading from the back or side of the garage to the outdoors, as well as a window in the garage.
We would prefer to avoid a corner lot and any lot that has a view of any busy arterial, highway, or other street that has a high volume of traffic and noise. We would rather not buy a house located on a busy street and would prefer to have the minimum feasible highway noise. We will not buy a house located next to or close to an apartment complex, mobile home/manufactured home park, industrial area, airport, landfill, or hazardous waste-contaminated area. Since I can't possibly know everything about every house in the area, these are things that will reveal themselves as we look. If we pull up to a house for which we have an appointment and it's next to an apartment building, we'll drive on without looking.
Mature vegetation is strongly desired. If the house is brand new and lacks landscaping, we'd want to know the restraints imposed on choice and location of trees, shrubs, and bushes. Yes, of course, and if you need help with landscaping, I can refer you to competent professionals. As you may know, xeriscaping is a recommended landscape method for arid areas. I am personally acquainted with the expert in Denver who literally "wrote the book" on Denver xeriscaping if that is of interest to you.
The bigger the fenced backyard, the better. We would prefer to avoid chain-link fencing and will be most impressed by a wood fence that is at least six feet high. We'll have to see when we visit homes. Most privacy fences in the Denver area are six feet high.
A vaulted ceiling is nice and we very much like the open, light, airy floor plans.
We'd like to have central air conditioning and heat and a fireplace, though we would accept forced-air heat [forced air heating is the most common kind in the Denver area, and I don't recommend electric heat, although since gas is almost as high as electricity and is scheduled to rise this winter, gas is catching up in cost] if that is a necessary compromise. We do not want any electric heat. We would rather not have the laundry facilities in the same room as the hot water heater and furnace, since that arrangement can often make it difficult to access the hot water heater and/or furnace when maintenance or replacement is necessary.
If the home is new or newer, we will want a dishwasher, garbage disposal, and reasonably modern refrigerator and range. The range should be equipped with an anti-tip device and we'd prefer, but won't insist on, a gas range. That is not a common practice in this area. The Buyer takes what's offered and buys their own refrigerator, washer and dryer. In an offer we can ask for what's there, but the seller may plan to take the appliances with them. The stove always comes with the property (unless there isn't one there to begin with.) We would like to have a pantry off the kitchen, nook, or dining area. A pantry may or may not come with a given home.
It would be nice to have a bathroom with a sunken tub and window off of the master bedroom, as well as a walk-in closet off the master bedroom or master bathroom.
We will not buy a house that has vinyl siding. We'd prefer to have a house built at least partially of brick but understand that a new or newer home may be of wood construction. If the home is constructed of wood, we'd want to be sure it was built on a foundation of concrete and not in an area with an elevated risk of tornadoes relative to the rest of the Denver metropolitan area. Tornadoes have come up with two individuals lately. As I told them, we're not an area known for tornadoes except on the eastern plains. We would inquire in the area about tornadic activity.
We will not buy a home that has an unfinished basement not appropriate or recommended for finishing. If the basement is already finished, we will expect that it was finished by the builder at the time of construction pursuant to the approved plat plan and/or construction design or that the seller hired a licensed and qualified contractor to do the work, secured all necessary permits before commencing such work, and promptly obtained and passed all applicable municipal inspections. A basement professionally finished by the builder is certainly an option you may require, but it will severely limit the housing available to you. Many people buy new homes and don't finish the basement till later. They may or may not have it professionally finished. That's something you can decide when you see the basement.
We really do not want to deal with a roof that has either already failed or is basically at the end of its useful life. We would like the house to have a roof that has at least a number of years of expected reliable service ahead. If the roof is an issue, that's a matter for the inspection to reveal. At that point you can ask that the seller replace the roof. But again, these are things that will come up during the course of looking at homes and is an item of negotiation.
It's important to keep in mind that the dogs would be coming in and out, so hardwood and/or tile floors are very important and the placement of the patio door[s] leading to the backyard is something we'd look at pretty closely. If the house is newer but not new or a bit older we may be willing to consider it even if it has carpets, depending on the purchase price, whether the seller would throw in a floor allowance, etc.
Ideally, we'd like to get a four-bedroom house so that the two kids would have bedrooms and I could have a study, but we'd settle for a three-bedroom if necessary. We understand that some new homes have lofts in addition to the master bedroom and two other bedrooms. That seems to be a nice layout that would accommodate my need for a study. We understand that the price for a four-bedroom may be out of our reach.
We do not want a pool on our property, but don't mind if the community has one. We don't want to live adjacent to a golf course but don't mind if the community includes a golf course. It would be wonderful if the home were adjacent to or nearby a creek, stream, pond, river, or natural lake.
We would prefer to avoid membership in a Homeowner's Association but will not necessarily rule a home out because it is required. However, if an HOA membership is necessary, the particular restraints imposed by CC&Rs, the amount of dues, and what services those dues pay for will be important considerations.
My wife's commute to her job and the commute I'd face to classes at CU (Boulder or Denver campuses) and the proximity to outdoor recreation (i.e., mountains, canyons, parks) is important, but we do understand that an affordable new or newer home may require that we deal with a bit of a commute (e.g., Castle Rock or Parker or South Aurora or Lakewood/unincorporated Jefferson County on the southwest side of the Metro Area or Brighton).
The reputation and record of the builder and the quality of the construction matter. We understand that homes in the Denver area often settle as soils shift and so we would be interested in learning how the builder designs and builds the home to accommodate that geological reality, as well as how the builder has dealt with the apparently endemic radon contamination problems in a particular home and in a particular subdivision. All these are issues for the inspection.
Since property taxes differ among the metropolitan area's counties, we'd want to be aware of the annual assessment and how it compares to other counties, as well as of the general reputation of the local school district and particular schools and the safety of the area (e.g., crime statistics, proximity and number of nearby registered sex offenders). That's an area for your research.
"Please keep in mind that buyers commonly start out with a vision of what they want," Clausen cautions Hank, "only to change it when they actually are able to see what's available. You're buying a resale home, and it won't be perfectly what you're looking for. You'll have to make compromises."
Hank got his questions from Realtor.com and possibly embellished them because he came from a place where he said people commonly bought and sold without agents, and he didn't know what to ask to find a good agent.
"He'd had a bad agent here in Denver," says Clausen, "and said he and his wife reneged on the deal when the inspection revealed way too much work needed on the house. He had a few stories about the 'bad' agent. This time, he said, he wanted a good agent, so he went to Realtor.com to find out all he could.
Several calls later, Clausen was hired, but found that proving herself to Hank was exhausting. It was a clash of generational values over trust. Hank didn't want to be 'taken' and Clausen wanted to be recognized for her expertise and to 'prove herself' a little less vigorously than Hank required. But reassuring a buyer like Hank is a lot like settling a spooked horse. You know the rattlesnake is dead, but the horse doesn't think so.
As it turned out, agent and client had more in common than they thought and were able to overcome their strangerhood. They both used the Internet for its efficiencies.
"Yes, he hired me, mainly because I called two of my current clients and asked them to call him, which they were glad to do," says Clausen, "and because I put in more time on answering his questions than most other top agents would. The ones who will spend the time to answer all the questions may very well be a rookie hungry for business."
Yet, sensing that Hank's overkill on the questions was more about insecurity than distrust, Clausen answered anyway. She was concerned, however, by Hank's "unrealistic expectations of what an agent would do for him just from reading up on Realtor.com, thus placing a huge number of demands on me, and thinking it was normal. He also wanted to close in 3 weeks, which we were able to do, but he got in the way of the transaction because he considered himself 'e-empowered.' All that meant was that he was a huge pain in the you-know-what. Personally he was as nice a guy as you'd want to know. But as a real estate consumer, he was a dismal failure."
That's one way to look at it.
Clausen supplies some examples:
Initially he refused to understand why a preapproval letter rather than a prequalification would be necessary in order to close on a home in 3 weeks
He wouldn't provide earnest money over $2,000 (not that it would be required in his price range, but he was inflexible)
He refused to bring along with him the documentation a lender would require in order to process a loan application quickly
Initially he refused to use the builder's lender because "they will take back any incentive given with other charges or a higher interest rate"
He wanted a whole series of GFE's from the builder's lender for 6-8 different scenarios, and he wanted this all by email right away
He wouldn't call the lender or builder, but would email me to call them for him. The questions he needed answered would have been best dealt with by them rather than going through me, thus taking excessive time and conveying possible misinterpretation, and he had a lot of questions! I told him he was getting in his own way, possibly delaying closing, with the many questions and not wanting to call them directly. He got pretty huffy, but he did call them. It was comic: Richmond Homes has a closing coordinator, but he refused to call her. So she and I were acting as switchboards trying to coordinate everybody. A detail escaped one of the Richmond people, and my buyer had a coniption. The day before closing he hung up on her, then called me and told me that because they were obligated by law to go through with the transaction, they would, but he would list the house the very next day. And he was somewhere between Flagstaff and Denver in a rented truck with his wife, his brother, his 18-month old daughter, two labs, and a cat.
He wanted me to set up contacts with contractors to do some adding to his spec builder home, such as installing bookshelves in his 4th bedroom
He wanted me to get in touch with the Design Center at Richmond Homes to request information about the house -- measurements, etc., for changes he wanted to make after moving in
"Now, normally I would do all that for a buyer," says Clausen, "but it would have taken place over a longer period of time, not three weeks. I was dealing with other clients, not just him."
But Hank was also a solid lead. He came in with no referral fees attached over the Internet, and he closed in three weeks. Hank may have been a bit of a control freak, but he was also realistic that he wasn't going to get everything he wanted.
Imagine the bravery it took for someone like Hank to hire a professional - sight unseen - to represent his best interests. He did the best he could. He did his homework about what he would need to know, and then he put his trust in Clausen.
Clausen has reason to be proud because she was able to convey trustworthiness through her writing. She came through for him, and that was all he really wanted.
Would she really have saved any time or effort if she had met Hank in person instead of on the Internet?
"I usually don't have initial meetings except through email like this one," Clausen explains. "If they call, I ask for their email, and we go from there. Unless it's a first-time buyer who needs hand-holding along the way. You're right, though. If I had been able to meet with this client it would have taken about the same time. But that excludes the other third-degree I had from him -- when he called me after he got my email and had ten thousand more questions!! LOL Good thing he had me as his agent, though. He bought from a builder, and by the time he got in his own way throughout and they messed up, I got him a $100 gift certificate to Home Depot from Richmond Homes and a letter of apology from their regional V.P. Glad that one's over!"
She says, "Word of mouth may be the ideal way to hire an agent, but it's unrealistic. Most buyers (don't know about sellers, I'm a buyer's agent) I deal with go online first, and mostly know what they want by the time they get to me. Or because of the trust my website engenders, they at least trust me enough to call."
And the moral of the story is the agent who can generate trust gets the buyer, and the buyer who can trust his agent will have fewer bumps and bruises.
Published: December 13, 2004
Use of this article without permission is a violation of federal copyright laws.
Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.
Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans.
Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR
"The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors
Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
