BarryLaw Legal Podcast April 29 2019 Part 1

BarryLaw Legal Podcast April 29 2019 Part 1


hi beardy rosensweig here a studio with
Jay Edinger he’s a real estate agent with the Dyna Realty and I’ve known Jay
for many many years and we’re gonna talk real estate today well welcome today’s shawl I’m sitting
here with JN here today and he’s a real estate agent and J and I have known each
other for many many years I don’t know how long it’s been J I would guess 15
yea probably 15 or 16 years got in the ballpark and I want to hear from you a
little bit about your background how you got into real estate a little bit where
you’re at with it just tell me about yourself sure so I am a graduate of st.
Paul Academy which is just right down the street from where we’re sitting
right now and to be honest he left high school kind of at a loss with what to do
with my life went to the University of Minnesota for a short while went to the
you were st. cloud actually st. cloud state prior to Minnesota and then came
out of college really kind of to be honest kind of lost and went back to st.
Paul Academy and coached a high school basketball and baseball there had some
former coaches that kind of reached out to me knew that I was in a kind of a
weird place in my life and kind of a lonely place of my life and brought me
in back to school to to help out there and that that really had a major impact
on my future and from there you know worked a number of different jobs
bartending over at the University of Minnesota and then worked in the family
business for about seven years with my mom and you know my mom probably my
favorite person in the world but very different personalities and every every
family dinner every family outing became all about business instead about instead
of family and ever really weren’t great boundaries that we had kind of laid down
and crossed over the over the years so I decided to you know that I want to go
out and do something on my own I was about 30 years old at that point and you
know it heard the cliche over and over and over again that’s not what you know
it’s who you know and had my my st. Paul friends that I grew up with I had you
know people from from synagogue to write up Jewish and st. Paul that I grew up
with that I knew and I would joined a fraternity at the University of
Minnesota and then my bartending friends and so I had a really kind of wide range
of social circles and decided to get into real estate knowing that taking
kind of taking that old cliche to mine that it’s who you know and not
what you know and it’s paid off well for me over the years that’s good I kind of
what I figured and I knew about its you know nice story so when you first got
into real estate sales I will call it I know if you call it sales exactly
consulting your Saltine marketing yeah okay um tell me a little bit about just
you know briefly about the how you how you become a real estate agent and and
then maybe a little bit about the designation of realtor versus real
estate agent I think a lot of people who kind of want to know how it works so for
me you know you know being new to the business and and really you know for me
it was all about culture and when I got out of real estate school when tud cap
which is now known as Kaplan was called ProSource back in the day when I got out
and had my my license and passed my testing you know I interviewed with four
different brokers well I should say two different brokers and four different
offices and basically went were I just felt we just felt like the right culture
where you know I’ll just say it was a dino Realty that I that hired me and
where I’m still at where I still hang my hat is Edina talked about the customer
experience and I was young and I was certainly dumb but I knew I knew well
enough that if you take care of people things all work out in the end and they
didn’t talk about numbers they didn’t talk about Commission dollars it was
really all about the culture and the culture of helping people and that that
really really talked to me spoke to me I should say and so that’s where I decide
to hang my hat no I at the time I went to the Highland office which is just
down the street from where we are again because that was home I was living on
Grand Avenue and it was nearby and it seemed like the right fit about a year
later I moved over to 50th in France where I still him nineteen years later
and I had just a great you know for me it was it’s the the leadership I had a
manager John Smee who is now the the National Board of Realtors president I
was one of my dearest friends and a mentor to me and you know moving over to
50th in France is probably the best decision I’ve ever made
career in my adult life professionally okay I follow up with that a little bit
as I know sometimes people hear there were real estate agent and realtor okay
it realtor is a certain designation as an adverse is just a real estate agent
or does everybody kind of well I think there’s it’s a little gray there I think
most people there are certain people that that that take that very seriously
that realtor designation mm-hmm I think as we get older or as time goes on we’re
now this new generation of younger agents I don’t think that that brings
true as much as it used to I think the younger agents the Millennials are fine
with the designation of real estate agent that’s all I can tell you for my
personal experience I don’t really I can’t say I’ve experienced hearing a
difference between the two okay so and then when you first started out do you
get a any kind of a salary or a you know you know some kind of a payment where
you work against it and get paid through the commissioners later I mean how does
it so I think most people at and I can’t once again everyone’s got a different
experience and I and I certainly was not well-versed in negotiating when I first
got in the business I think the one thing I learned about the real estate
business and I and I mean maybe it’s changed in the 20 years I’ve been in the
business what I learned shortly after joining Edina Realty is when you
interview with a brokerage you feel like you’re interviewing for a job yet it’s
very different because most real estate brokerages are gonna hire you they want
you they need numbers there are brokers you know local brokerages and national
brokerages that rely on just numbers because they’re they’re hanging out fees
to these agents and they rely on volume and some agents are gonna make it some
art but the volume of agents they have in their office you know pays the bills
from what I understand that’s that’s a business model that’s you know somewhat
foreign to me but but it exists for me no there was no you I was on my own I
mean it was it was nine months before I sold my first house and I was spending
money and writing checks and I certainly wasn’t receiving them but once you once
you have your first sale you know hopefully things your
confidence goes up your your experience level certainly goes up and things just
seem to snowball for people after that first kind of get over that first hump
but know there was there is no salary or draw or anything offered to me I can’t
speak to others I don’t know how you know how those work I’m sure some people
maybe negotiated especially if they’re if there’s something about them that
seems very promising maybe they’re coming from another career where they’re
very successful and the broker sees something in them I’m guessing there’s
probably things that could be negotiated I never personally experienced anything
like that he is on my own do you get you get office space though or do you get
some kind of marketing help or do you you know what what part of it initially
what does the broker do you generally pay for that you do you uh generally you
know right now I I don’t take an office space I help us out of my house the
office is there for me to use my assistant is there probably three to
four times a week but if I were to take an office space then my my arrangement
with it edina really would be different where I would be paying a higher fee to
them and that could work out a number of different ways whether it comes out of
Commission dollars or it’s a set fee but I haven’t taken and I haven’t had an
office personally I think it about eight years I’ve just officed out of the house
just to avoid that fee and I’m just more comfortable because here’s the thing
real estate office is great it’s a great source of information people are sharing
information and that’s the one thing I love about the company I’m with is
people play really well in the sandbox together we share information if I know
someone in the office is looking for a certain property in a certain part of
town and I hear about it I share that information immediately and what goes
around comes around but at the same time when you go to the office it can tend to
be a little bit of a social place and I don’t get as much done you don’t make
money sitting off exactly you have to be out showing how exactly meeting with
people and helping them exactly and there listen there are those agents that
seem to be in the office a lot to say that I understand so being that you’re
strictly on a commission as you said you have a network of people you’ve
developed over the years which is I’m sure very helpful and they trust you
like you and sure so did you reach out to those people initially and and and
and how do you how do you generate some of your that’s a great question it so
for you know listen I got in the business in 1999 I still had an AOL
email address and was you know I can remember that the dial-up sound
connecting to AOL every day the technology has changed the industry
it’s amazing what technology has done for this industry when I when I got in
the business and I can only imagine what was what how things were done before I
got in the business when I got in the business if you know there is new
software that you know at the time was cutting-edge but I used to have to fax
listings to my clients there you couldn’t send email attachments email
was it was prevalent me email existed but it wasn’t as easy as sending a PDF
now as it is was it back then it was just it was impossible to do and the
technology wasn’t integrated with the MLS where you could email from the MLS
there was a lot of copy pasting going on there was a lot of like I said literally
using the fax machine that changed you know that to not too long after that you
know into the 2000s but but so so getting my name out there
like I said technology’s changed things I literally was I’ve always been very
involved in philanthropic activities and the easiest way for me to promote myself
and do it really subtly was to basically just have a signature on an email when I
email people about a charity event that was involved in and at the bottom it
would say you know Jay had agreed I know Realty and I can’t tell you how much
business I got off that simple signature and those signatures back then were just
you know typed out of text now they’re you know they’re pretty fancy but that’s
literally kind of what propelled my career I think is just being involved in
the community and reminding people in a subtle way of what I was doing and I
would expect as you build up clients over the years it starts to become a
higher percentage of referrals absolutely okay absolutely and then
listen you know if you do a good job for people you know and you leave a leave a
mark on their lives because you’re pretty listen when you’re dealing with
buyers and sellers you become part of their family you’re
literally with them and talking to them multiple times a day you know I always
make the joke that you know if they sell 50 if I sell 50 properties a year I feel
like I got dumped 50 times a year as well because you’re with someone all the
time and all sudden it’s just over and and it’s that the keeping in touch part
is the part that can be real challenging because you want to keep in touch with
them a for future referrals but be just because you’ve established that
relationship and it’s a relationship business and and you know I always take
relation to take relationships over any amount of business just because I enjoy
people and you become a pretty intimate part of their lives and you’ve spent a
lot of time with them you learn about them you know other families and as they
say it’s the biggest purchase in your life to a person for most people yes and
I’m very sensitive and to that and very sensitive to that that transaction is
much bigger than any Commission will ever be to any agent how it affects
their lives and their families lives is much more impactful than a commission
will ever be for a real real estate agent so it is it’s a huge process it’s
very time-consuming it can be very very emotional as I’m sure you know mm-hmm
and to be in the middle of that and kind of kind of helping people wade their way
through the waters it’s a big responsibility it’s something that most
agents I think take pretty seriously and I’m sure it’s really a positive
experience for the most part I mean some of the transactional things can get a
little bit emotional but it’s really a positive experience because you’re
getting somebody into some home that they’re gonna spend a lot of time on
potentially grow their family in and sometimes they’re in there for their
lifetime absolutely absolutely and the you know I will tell you I’m blessed
that after 20 years of being in this business I can pick and choose a little
bit if I want to work with someone or not I’ve had a couple instances where
I’ve met with people and I just didn’t get a good feeling from them and it
wouldn’t matter to me if it’s a small little condo somewhere in town or if
it’s a million-dollar mansion tatter to me if you’re not gonna enjoy that
experience and they’re not going to enjoy you at this point in my career I
just it’s not something I want to take on and I would refer it out to someone
who might have a personality that meets there that matches their
better and as an attorney I run into the same thing with clients so there are
many clients I won’t even let hire me because I have to have that same exact
an imagined relationship with them same as I understand that expression because
it’s so emotional because it’s so emotional I would not want to be in the
middle of something with with someone that I don’t think I’m gonna see eye to
eye with and usually those things you know might be around disclosure items
sure I’ve had clients you know in the past not want to disclose certain things
and I won’t be a part of that you know it’s part of the processes is doing
things by the book and and and having people who want to do things the right
way well that things are important part of it and that’s how you build your
reputation exactly um let’s just shift gears a little bit to me a little bit
about the MLS the Multiple Listing Service I think that’s kind of a mystery
to a lot of people sure it’s not something they really focus on when they
work with real estate agents because they’re more into you know the buying
process process and you know explain a little bit how that works and how that
working with different agents just sort of the summary of how they might work
and you know I think the MLS is still the most powerful tool that drives our
industry as far as marketing properties but things have changed quite a bit
you’ve got you know you’ve got the with Zillow and Trulia they’ve got they’ve
got new features that include coming soon or make me move and-and-and-and and
actually the MLS has now got a coming soon feature itself but the rules with
that are you can advertise a property prior to it going on the MLS and prior
to it accumulating market time but you’re not allowed to show it well on
Zillow people privately and agents are posting their listings prior to going on
the market you know I myself a couple years ago put my condo on on Zillow for
make me move I put on at a ridiculous price just to see if anybody reached out
and and certain you know certainly I’d sure enough I did get a couple a couple
hits off that MLS is still you know the most powerful tool in the industry it’s
the best way to open the floodgates and expose your your listing
your properties to the most to the highest the largest audience the the the
other websites certainly create a lot of activity and and our clients seem to be
on those websites quite a lot quite a bit more than we are where I kind of
still rely on the MLS to get my information I have clients emailing me
all day about stuff from these other these other private websites yeah I run
the MLS or some are not both some some are okay some of the listings are I
would say more often than not they are on the market they’re the friends but
you know if they go into the make me move feature they go into the coming
soon they might find stuff okay which are now on the MLS but you’re not on the
MLS yet Carender those privately listed or you know posted or they so it so what
I’ll tell you so one of the things I do with most sellers if they’re living in a
desirable area is I may suggest that they do a pre list on their property I
know you do a lot of those yep and I’m sure you’ve seen it on my Facebook page
that’s probably the thing I use my facebook page the most these days for is
just to market pre lists the advantage to a pre list is and there
are some disadvantages because you’re not getting maximum exposure that you
would on the MLS but you can market a property without a cumulative market
time you can your your marking a property that people have a team in you
know there’s a human nature where people want to know about something that no one
else knows about demand demand so if they come and they come and look at the
property and and they feel like no one else knows about it there’s an emotional
attachment potentially that property especially if they like it getting maybe
a better deal or that getting what they want before somebody else jumps up
exactly and in preventing us as an agent to bring it to market and opening the
floodgates sure so the the the positives of pre-listing to me are you getting
free feedback before you go to the market before you accumulate that market
time you’re getting hopefully constructive feedback about things you
could change I just here’s a perfect example I just had a
house that we’re gonna go on the market for for $700,000 we had three pre list
showings the feedback was the kitchen was dated okay the rest of the house is
great but the kitchen was too I had already had my painter go over and
give my clients a bit I’m painting their kitchen cabinets and they didn’t want to
spend the money was $5,000 to change the whole look of the kitchen which is my
opinion they went ahead took the leap of faith trusted me we we went on the
market we had 12 showings in 36 hours and they had two offers and ended up
30,000 over asking price after the three people had seen it at 700,000 that
weren’t interested mm-hmm so that that constructive feedback they got from
those pre low showings just confirmed what I was telling them about what
needed to be done and helped kind of get them over the hump is um their way
helped testing price as well yeah absolutely
listen I’ll tell people generally if we’re gonna pre lists we’re gonna go on
at a higher price than we would actually go to the market with to be test and see
what your maximum you portent they could get exactly and because if you you know
here’s the old you know John’s maybe I remember John’s maybe pulling in his
office we were talking about pre-listing and MLS listing years and
years and years ago was let’s say you had a van Gogh painting an auction hall
and you only allowed two people India there’s a hundred people outside the
auction hall that wanted to get in and bid on it where you gonna get your best
price and that was his logic about you put it on the MLS and you open the
floodgates I agree with that completely but you’re also risking the fact that if
it no one wants it the market time accumulates and immediately your clients
could be damaged by that so to kind of put it out there test it at a little bit
of a higher price buyers are generally a little bit more understanding the house
isn’t on the market so it might not be in perfect shape that showing you
actually getting people in for showings that are a little more flexible and
understanding about that you know they’re not gonna necessarily see it
when they want to see it because once a house is on the market buyers have
expectations so what what um how much do you get involved in giving advice about
upgrading properties you know internally externally you know cosmetic or you know
maybe a much more so than that and they can maximize not only the time it
takes to sell but justifying the price they could get for doing those items you
know I do that quite a bit but I also rely on a couple a couple people I have
a stager who’s got an interior design background and I feel a lot more
comfortable having her answer those questions and paying her a fee myself to
go in and not only tell my clients how to stage their house you know in anyone
but stage and I’m not talking about bringing in furniture how would I kind
of use and lose what they have in the house already and she gives them kind of
a consultation and then she also answers those kind of questions about is does it
make sense to paint as it make sense she’s also a licensed real estate agent
to be honest with you so she understands that kind of return you get as well okay
okay so that another question that’s how much staging okay explain a little bit
about staging and what the benefits are of you know I understand if there’s an
empty house because people moved already obviously there’s no furniture it
doesn’t give you that comfortable that’s that’s easy conversation habit yeah the
house isn’t empty and you want them to stage it that’s a little more awkward
difficult and uncomfortable conversation I have with the men is it a cup a
combination between what they have what they want to put in storage and maybe
bring the other things in or usually less is more but I will tell you you
don’t want an empty house because there’s there’s a number of reasons you
don’t want any house number one empty house screams that you have a desperate
seller right that’s probably living somewhere else and paying a rent plane
rent or mortgage mortgage somewhere else so buyers immediately think they have an
upper hand and there’s they kind of go to this mindset that we’ve got a
desperate seller which is not necessarily the case number two when I
walk into a house and it’s empty your eyes are gonna be drawn to every flaw
every imperfection that’s that exists whether it be you
know on the walls the floors whatever when a house is furnished your eyes
aren’t drawn to those imperfections and then all the other thing is you know a
lot of people would think an empty room feels bigger than a furnished room and
that’s just not true furniture you generally a furnished room is gonna feel
larger than because what’s what’s in there right you
can see picture the volume of exactly and so those are three reasons why in
listening the other two get back to the awkward conversation yeah sometimes you
have to tell your clients that their taste is not necessarily what’s in right
now and that’s that’s a very tough conversation another reason why you
should bring my my stager and to have those conversations with them so I don’t
have to because I’m the one that’s going to be in it with them for the long haul
and as far as the staging goes who typically pays for that and
approximately I know it’s all over the board but like what can somebody expect
to pay for something like this so I just had a 5,000 square-foot Plus house
staged but it was really only staged on the main level and the reason you know
my clients are on a tight budget they just bought another big house and we’re
moving into it and there’s houses gonna be there’s gonna be vacant and they
didn’t want to spend the money upfront on the staging now one of the things I
always offer my clients is I’m always willing to pay for any work they want to
have done on their house if they sign a listing contract with me that says that
they’re gonna pay me back and reimburse me at closing that I’ll pay that they’ll
make those payments up front to lighten their load and that’s not I think
there’s it’s not common but I think there’s a number of established agents
that you know it’ll make its making my job easier if they allow me to do this
if they take if they trust me to do this work and you know and I usually haven’t
signed a contract saying for some reason the house doesn’t sell that they’re
still gonna reimburse me but it’s trying to make my life easier and make their
life easier but you know they’ve already got a lot of out-of-pocket expenses
having a second house and in most cases I’m just trying to lighten their load
but I will tell you the staging process is generally paid for by the seller or
the homeowner and it in this case we just staged the first floor because
first impressions are everything right once they get upstairs to the bedrooms
you can kind of imagine what a beds gonna look like a double bed a king-size
bed a queen-size bed whatever and kids furniture or whatever your your staging
that’s the easy part for a buyer to visualize a living room family room some
of those things are not as easy we spend most your time exactly
and he wants me walking in a while right and then listen people they say that in
the first seven seconds someone walks into a house they’ve already made their
decision whether excited to go up to the second floor and see the bedrooms or
they’re thinking about the next house on their tour so the first impressions go a
long way so that’s where it’s best to spend your money is on the main floor in
that first impression area so so give me I know it again let’s just go back give
me a range on prices I mean I mean if somebody’s it’s an empty house sure and
just let’s just say even a basic average price for a basic staging for us average
so the stager I use who I think is the most reasonable and I’ve dealt with a
number of them they’re all they’re all terrific but they’re the most reasonable
as far as pricing goes they basically on a house that’s probably three thousand
square feet to do most of the house you’re gonna be about $3,500 to $4,000
but what they do is that number is good for 90 days and they charge ten percent
every month after that so if it’s if it’s forty five it’s four thousand
dollars for this house to do the whole house after 90 days it’s four hundred
bucks a month pretty reasonable where others will charge quite a bit more okay
and that’s that’s what kind of separates the company that I use with the others
is their their back end their long-term fees are a lot less expensive and they
do all the work they do they come in they have a designer
they’ll set it up everything exactly the evidence they usually have someone come
out take pictures first David designer come out and then show up
with a moving truck and and unload their unload their out the furniture which and
basically give the house a whole makeover let me just ask you about
photos and videos of the home how often has have done anything important part of
our job and it’s the easiest part of our job and it’s still I just just you know
was about to list a condo and doing my research and and a unit in the same
building came on the market and obviously the agent had used his iPhone
or some kind of a camera digital camera to take these photos and what they were
far from professional and then I set up an appointment to go look at that unit
and I it was embarrassing for me and I was
pretty I was pretty candid with that agent in my feedback to him that he
wasn’t doing his clients any favors and he wasn’t professionally marking the
property and I usually don’t overstep my bounds that way but he really was not
only was he hurt in his client though he’s are also heard in my client because
my clients gonna be listing in the building sure and they’re not gonna get
the price that his his clients are gonna get the price to help justify my clients
price her so he’s hurting all of us and and that’s that there’s no excuse for an
agent not to use professional photos and every single property they list there’s
just no excuse for it you


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