Zillow has recently announced that it's going to start buying and selling houses.
This is a surprising move because it feels like the website is jumping 2 to 3 steps ahead of what it's currently doing Read more...
Zillow has recently announced that it's going to start buying and selling houses.
This is a surprising move because it feels like the website is jumping 2 to 3 steps ahead of what it's currently doing with the " Make Me Move" offer system, which is merely a seller's way to gauge what the interest would be for their home if they listed at a certain price.
What are the details of this new development with Zillow? How will this affect buyers, sellers, and real estate agents?
Zillow Instant Offers
This is a concept that Zillow is currently testing only in the Phoenix and Las Vegas area. The company is basically acting as the principal in real estate transactions.
Zillow is launching their Instant Offers concept in these specific markets to offer homeowners "greater control over the selling process" and a "more predictable time frame" for the sale.
This program bears some similarity to the way Opendoor or OfferPad work, offering convenient and quick sales at the expense of the best sales price. Speed is the name of the game.
What It Looks Like on the Seller's Side
A homeowner in the area who wants to sell their home can give Zillow their address and answer an online questionnaire about the home. Zillow will then make an offer on it. If the seller agrees to the price, then there will be a home inspection. Then, a Premier Agent will be chosen as the listing agent to close on the deal.
The Buyer Side
If a private buyer is interested in a property that's for sale in those areas, he or she can send an email to Zillow and tell them they want to buy it. If the numbers make sense to the company, then they'll then wire the money over to the owner. The buyer gets the house, and the seller gets to move. It's all meant to be a quick and seamless process.
What about Real Estate Agents?
In short, Zillow intends to keep agents in the selling process, but the program will benefit a select pool of agents. However, the company is confident that they're giving agents highly motivated leads, saving them time and hassle.
If Zillow buys the home, the company will pay a real estate commission to a premier agent that they'll select as the property's listing agent. This means that ordinary agents who haven't paid to be promoted on the website will be excluded.
Zillow explicitly states that the program will benefit only "pre-selected partner Premier Agents and brokers" at this time. As you know, it costs money to get into this inner circle, so it will be up to the individual agent to determine whether this investment will be worth it.
Another detail is that Zillow will be teaming up with Berkshire Hathaway HomeServices Arizona. As we find out more about this partnership, we'll let you know about it.
What happens to the home if Zillow buys it?
If Zillow buys the house instead of a private buyer, then the company will fix up the property and resell it. According to the Las Vegas Review Journal, the company aims to buy the houses below market value in order to flip them for a profit. This naturally means that the seller might not profit as much as she could have if she sold her home in a more traditional way.
If Zillow's offer is turned down by the seller, then the homeowner is free to sell the home through an agent on the open market.
The company's Chief Marketing Officer Jeremy Wacksman expresses the modern homeowner's need for a quick sale at the expense of not selling for top dollar,"[Homeowners] want help, and while most prefer to sell their home on the open market with an agent, some value convenience and time over price.”
Tell us what you Think
What's your take on Zillow's latest move? As a homeowner, would you sacrifice profits for convenience? In today's fast-paced world, there are always going to be attempts to make the process of selling a home become quicker.
The Value of an Agent
Though selling in the open market with an agent from the get-go may take longer, homeowners get the peace of mind that they are going to sell for the highest price possible and have access to expert real estate advice throughout the whole process- not just the closing phase.
If you have any comments, please post below. Don’t forget to check out our YouTube channel for all the latest news and information on the real estate market. I recorded a YouTube video on this Zillow development. You can check that out here.
If you are interested in becoming a real estate agent and taking real estate classes through our company, please visit www.adhischools.com or call us at 888-768-5285.
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I get this question a lot: "How did you start teaching these real estate classes? What's the story behind your school?"You can listen to my podcast about it here, or read on. Long story short — it Read more...
I get this question a lot: "How did you start teaching these real estate classes? What's the story behind your school?"You can listen to my podcast about it here, or read on. Long story short — it happened by chance.ADHI Schools is a brainchild of my passion, education and past experiences. Ultimately, I combined my love for real estate and teaching and turned it into a real estate school.
It Started With a Love for Teaching
When I was going through college in the late '90s and early 2000s, I taught the SATs to disadvantaged high school students. Back then, parents of means could pay for SAT prep classes for their kids, but kids without money didn't have the same advantage.This disparity meant that average students couldn't prep as well as those who had access to the premium classes that cost thousands of dollars. To make matters worse, they didn't have the internet to help them. Today, people with tenacity and focus can learn just about anything on the internet — however, back then, there was no YouTube or online schools to give them a leg up.During this time I spent teaching the SATs, I developed a love for showing others how to thrive and be successful through education. It was exciting to empower people and level the playing field in the age of little to no internet.
I Saw the Sign
After I finished college and got my real estate license, I joined a brokerage. There was a sign behind this office that advertised a real estate school. I was just starting out and didn't sell anything for about three weeks. Although this is not a long time to not sell anything in real estate, I was particularly over-caffeinated and impatient, so I decided to try to pick up a side hustle.I called the 800 number on the flier and a man picked up. I asked him if he needed help teaching these classes. I also asked him out of curiosity how much it paid. When I heard that the pay was $60/hour, I called that man twice a day for a month until he finally relented and gave me a chance. He offered me a spot in Norco. I reviewed the material and taught the class, giving my best effort.The next day, the owner of the school called me and asked me how I thought things went. I told him that I thought things went pretty well. He responded, "Well, actually, all of them called simultaneously and asked for a refund, but I like you. If you're willing to try, there's another class you can take over once a week ... BUT, you can never go back to Norco.I agreed. Soon one class turned into three to four classes a week. After I gained experience and confidence, I started my own real estate school in October 2003. The rest is history. We're now in our 15th year in business.
Serendipity and Success
If I hadn't gone into that real estate office and sat in that seat and seen that sandwich sign, perhaps ADHI Schools wouldn't exist now. The real estate school sign was situated right behind my desk at the real estate office I chose to join. If I had chosen to work anywhere else, I might not have had that opportunity to initially teach - and our real estate school might not exit.Though it all happened through a series of accidental events, the result feels meant to be. I have worked with the same group of people for years, and they feel like family. We have a bunch of instructors, assistants and managers who all work together to make our school the powerhouse it is today.My real estate teacher was my mentor. I learned so much from watching how he taught real estate classes. He had lots of experience teaching classes to big-name brokerages since the '70s and '80s. I carry a lot of what I learned from him still today, because before you can branch out, you need to first imitate people who are successful in what you want to do.
So that's the story. Now I also have a brokerage, real estate school and marketing company. I stay busy, and I like it that way!
Make Your Own Story
Feeling fired up? Ready to start your own success story? Find out more about our real estate courses by calling the office at 888-768-5285. We would be happy to help get you enrolled in California Real Estate License courses!
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Over the past 15+ years, I have taught literally thousands of people real estate at ADHI Schools. This has amounted to over 11,000 hours of real estate classes in a classroom setting.
In short, I’ve Read more...
Over the past 15+ years, I have taught literally thousands of people real estate at ADHI Schools. This has amounted to over 11,000 hours of real estate classes in a classroom setting.
In short, I’ve seen it all. I’ve seen people join the business during deep recessions and also in the best of markets. I’ve witnessed many people start out in different circumstances and have noticed three common reasons may fail to launch their careers once they leave our classes. This is true whether students take real estate classes in Los Angeles or otherwise.
Understanding these pitfalls can help you avoid them and ultimately succeed. My deepest wish is for you to be successful in your endeavors, and a large part of success is avoiding common mistakes.
I recently recorded a YouTube video onthree reasons I think some people fail in the real estate business if they’re not careful:
1. They Fail to Treat It Like a Business
When people get into our industry, they often don’t manage their time well. The flexible hours that real estate provides can shock a former 9-to-5 salary worker in terms of the level of freedom they suddenly have in their schedule.
The change in routine feels nice. It’s tempting to get lazy. Instead of jolting awake to the alarm clock at 5:30 am, they realize they can sleep in if they want to. This also means they can stay out a little later. This often starts a cycle of time mismanagement.
They’ll start to go to bed a little later and then sleep in. When they had a 9-to-5, they would hit the gym at 6 am, be out by 7 am and be in the office by 8:30. But in real estate, agents can wake up when they want because they don’t need to be in the office at any set time. Their new flex hours, which could potentially be an asset, are now a stumbling block.
On the other hand, those who treat real estate like a real job maintain structure. They show up at their office in the morning and are ready to work. They don’t leave whenever they feel like it or treat it like a part-time gig. If you want full-time success, you need to be prospecting like a full-time job. You also need to constantly improve on your know-how and build upon your expertise.
Think about this analogy: You have a restaurant that opens at 11. Do you show up right at 11? No! You arrive a couple of hours early to do kitchen prep so when the doors open at 11, you offer great food and service to your customers.
The same goes for real estate. You need to apply the same discipline to your time as you did when external forces were dictating when you showed up and worked.
2. They Fail to Remember It’s a Sales Job
Your real estate job comprises two basic components: lead cultivation and closing. A lot of people float along hoping to stumble into deals handed to them by friends and family. Sure, you can probably survive the first six to ten months with deals from friends and family, but what happens when you sell the houses of everyone you know? What if you don’t have a big sphere of influence? Are you actively prospecting? Do you use social media to reach out to new prospects? Are you actively promoting yourself online and with everyone you meet?
This is a sales job! A lot of people aren’t naturally comfortable with the idea of being a salesperson. As a salesperson, you need tenacity and passion. Reaching out to new prospects and leads may initially feel uncomfortable but eventually you’ll get more comfortable with selling. You need to constantly be looking for new leads even when you are busy, so that you never have a time when you’re not.
3. They Run Out of Money
When you start the business, you’ll need to pass your real estate exam and pay license fees and association of Realtor dues. These can all add up quickly, especially if you’re using your own money to market and promote your listings.
Because escrows are often lengthly, it’s important to understand that it takes time to close on properties. During this time you’re not getting paid, so the first six to ten months can be rocky financially. I see some people return to the 9-to-5 job because they run out of money — however, this whole situation can be avoided with some preparation.
Before you start making enough to go full time, it will take time to build up a pipeline in the first year. Have some savings set aside or a spouse to support you until you make enough to sustain yourself again. Overall, a financial safety net increases your chance of success during an agent’s first year.
Learn What It Takes to Succeed
Are you interested in learning more about the exciting real estate business? Do you want to take real estate classes online or do you want to attend real estate school in Orange County? Take our classes to get a leg up in the California real estate market.
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Recent foreclosure data published by CoreLogic details a lengthy trend of declining completed foreclosures and mortgages at risk for foreclosure. Take a closer look at a few key figures that show some Read more...
Recent foreclosure data published by CoreLogic details a lengthy trend of declining completed foreclosures and mortgages at risk for foreclosure. Take a closer look at a few key figures that show some good news about 2016’s housing market.
Nationwide there were just 30,000 completed foreclosures in October 2016—that’s down from 40,000 in October 2015 and 3.6% fewer than September 2016 (a significant decline). The number of mortgages in serious delinquency, and thus at greatest risk for future foreclosure, fell below 1,000,000 to 997,000. What does that do to the overall foreclosure picture? Well, as of October only 0.8% of homes nationwide were in foreclosure—and that number is falling.
November showed even more progress in this area. The number of completed foreclosures fell further to 26,000, down 30.0% from November of 2015. This is a 14.1% drop from October. Better yet, this means that the number of completed foreclosures year-over-year (2015 to 2016) is down 25.9% with 61 consecutive months of year-over-year (e.g. November 2015 vs November 2016) declines in foreclosure inventory.
CoreLogic also published a promising figure on housing prices—year-over-year housing prices are up 7.1% through November, with projections of 4.7% increases by November 2017.
December finished out the year in similar fashion. There were just 21,000 completed foreclosures in December 2016, 29.5% fewer than December of 2015. This leaves just 0.8% of all homes with a mortgage in the foreclosure inventory, the same percentage as October.
These numbers are clearly great for homeowners right now and are encouraging to many in the industry. A healthy housing market is great for the economy and the consumer, promoting further engagement with the housing market. This is part of the reason that real estate professionals are encouraging people to buy and sell—they are witnessing a strong housing market.
There are those that point out that the national foreclosure rate was very low before the housing crisis that kicked off the Great Recession. We would be remiss to ignore this data. The housing market is one of the most important markets in the U.S. economy, but the economy itself is of course complicated and never invulnerable to decline. Housing affordability and rent affordability issues are legitimate and contribute to analysts’ long-term worries for the housing market.
Adhi always recommends that our readers obtain as much information about the housing market as possible in order to assess different housing markets. The market conditions in Los Angeles may vary from the market conditions in New York City. These foreclosure and price numbers are, for now, a sign of a healthy market with improving conditions for a great many Americans.
What does this mean for your market? Have you seen these stats reflected in your market? Are foreclosures down, or are they up or stable? Any signs of upcoming changes? Let us know, we would love to hear more about your market conditions!
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Find here a summary of important legislative updates affecting California real estate professionals.
Assembly Bill 1650—Disclosure Requirements on Solicitations
New legislation has been signed Read more...
Find here a summary of important legislative updates affecting California real estate professionals.
Assembly Bill 1650—Disclosure Requirements on Solicitations
New legislation has been signed into law by the governor that affects disclosure requirements on real estate solicitation materials.
A.B. 1650 is concerned with real estate licensees disclosing when they are performing a task that requires a license if it is intended as a first point of contact with a consumer. Thus any publishing or distributing of materials that advertise a product or service that requires a license must state that a license is required for that activity. For example, if a REALTOR® wants to advertise his or her listing services, their distributed material must make it clear that listing a property requires a real estate license.
All of these “first point of contact” materials are also required to include the licensees license identification number and apply to mortgage loan originators as well, not just real estate salespersons or brokers.
The new law provides examples of materials that will require this disclosure. It specifically states that covered materials “includes business cards, stationery, advertising flyers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer”. Note that this is not an all-inclusive list and any other material intended as a first point of contact with consumers would be subject to the same requirements. The real estate commissioner has the power to define the list further.
This law’s reach does not extend, however, to “an advertisement in print or electronic media” or to for sale signs.
SB 710 Clarifies Team Name Laws
Current California law requires the listing of the company name and responsible broker’s license number on all team advertising materials, which was not the intent of legislators when they originally wrote the law.
Enter Senate Bill 710, which, effective immediately, changes the requirement from both the “name under which the responsible broker is currently licensed by the bureau and conducts business in general or is a substantial division of the real estate firm” and the associated license identification number, to that name or that name and the license identification number.
Those wishing to refrain from listing the broker’s identification number on advertising materials may now do so. Again, this law is effective immediately.
For any further information, the text of the legislation can be found here
AB 2330 Updates Broker Associates Searchable Information and Broker Notification Requirements
The California legislature has unanimously passed and Gov. Brown has signed into law AB 2330 and goes into effect January 1st, 2018. This new law requires brokers to “immediately notify the Commissioner in writing” when a new real estate salesperson hangs their license under the broker or is terminated by the broker. “Willful or knowing” violation of this provision is punishable as a misdemeanor.
Brokers must also report to CalBRE if a licensee is an “associate licensee” and if so, which broker the licensee is contractually associated with. CalBRE will be required to publish this information as well.
AB 197, SB 32: Greenhouse Gas Legislation
A seemingly unusual law for inclusion in a real estate-centered legislative update, but this law actually has the potential to be quite important.
This law requires the State Air Resources Board to “approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990” to be achieved by 2020. By 2030 greenhouse gas emissions are to be reduced to 40% below 1990 levels. The board is also required to “protect the state’s most impacted and disadvantaged communities” while creating these regulations.
This means that more steps will be taken to lower emissions—steps that have not yet been decided. The economic impacts are not yet known. Housing is clearly an issue that disadvantaged communities are concerned with, perhaps lending strength to the argument that policies that would directly affect the housing market will not be included. Yet, there is not yet any such guarantee. Real estate professionals should watch this law and its impacts as they assess their markets. Adhi encourages our students and readers to pay attention to politics and the state of the economy as our industry is dependent upon consumer confidence and a healthy economy.
AB 73: Clarifications Upon Disclosures of Death, HIV
This law, which took effect on September 25th, 2016, updates the wording of the law to clarify required disclosures. One such clarification is the confirmation that owners and agents are not required to disclose an occupant’s death or cause of death on the property if it occurred more than three years prior “to the date the transferee offers to purchase, lease, or rent the property”. Previously the law only stated that failure to disclose under these circumstances provided no cause of action.
This law also clarifies the disclosures surrounding HIV/AIDS. Owners and agents are not required to disclose that “an occupant of the property was living with human immunodeficiency virus (HIV) or died from AIDS-related complications” at any point.
It is of crucial importance that California real estate professionals fully understand these disclosure requirements in order to fulfill their duties to their client and not violate the law.
AB 2406, AB 2299, and SB 1069: “Accessory Dwelling Units”
These laws change some requirements for the zoning and creation of “Accessory Dwelling Units” (ABUs), formerly referred to as “Second Units”.
AB 2406 permits a “local [housing] agency” to “provide by ordinance” for the creation of ABUs in single-family or multifamily residential areas. This includes “Junior” ABUs within a single-family home. Any proposed ordinance to permit these ABUs must include “among other things”, building standards for the creation of said ABUs, “required deed restrictions, and occupancy requirements”. Additional parking requirements for the unit are prohibited by this law.
AB 2299 and SB 1069 work together to change the term “Second Unit” to “Accessory Dwelling Unit” as well as establish guidelines for ADU permit review processes and restrictions with the declared hope of increasing housing supply in the state. Cities and counties are permitted to identify and/or evaluate potential sites for the creation of ABUs. Cities and counties will be able to substitute ABUs for up to 25% of “the community’s obligation to identify sites for any income category” (meaning that communities that invest in housing may include ABUs as part of said investment, with further requirements.)
The laws also mandate that local agencies approve or disapprove applications “ministerially without discretionary review” unless they have adopted their own ordinance in accordance with this law—incentivizing local agency cooperation. Local agencies can adopt certain restrictions to accommodate other zoning laws.
For specific requirements and details of these laws, visit them here: AB 2406, AB 2299, SB 1069
We welcome feedback and commentary from our readers on these important new laws. Do you foresee important market impacts? Will any of these laws affect your business in any way? Let us know in the comments. And as always, for any questions or clarifications feel free to reach out to cody@adhischools.com
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Current California law requires the listing of the company name AND responsible broker’s license number on all team advertising materials, which was not the intent of legislators when they originally Read more...
Current California law requires the listing of the company name AND responsible broker’s license number on all team advertising materials, which was not the intent of legislators when they originally wrote the law. If you are thinking about taking real estate classes in Los Angeles and joining a real estate team continue reading.
Enter Senate Bill 710, which changes the requirement from both the “name under which the responsible broker is currently licensed by the bureau” AND the associated license identification number, to the name of the broker OR that name and the license identification number.
Those wishing to refrain from listing the broker’s identification number on advertising materials may now do so but must still include the name of the broker at a minimum. Again, this law is effective immediately.
Even still, it is important that real estate professionals follow the law and make all necessary disclosures. For any further information, the text of the legislation can be found here, or contact the author of this piece at cody@adhischools.com for any questions or clarifications.
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Your intuition can probably tell you that married couples are the largest home-buying demographic. It makes sense: between family and financial goals and the purchasing power of two people, married couples Read more...
Your intuition can probably tell you that married couples are the largest home-buying demographic. It makes sense: between family and financial goals and the purchasing power of two people, married couples have both the incentive and the means to purchase real estate. But married couples aren’t the only buyers. Single women make up the second largest buying demographic, ahead of single men and unmarried couples.
According to the National Association of REALTORS® 2016 Home Buyer and Seller Generational Trends report, 15% of recent buyers were single women. This number may not appear to be that large to some readers, but considering 67% of buyers were married couples and the next largest buyer demographic—single males—only accounted for 9% of buyers, it is quite evident that single women make up a huge part of the home buying population.
The highest percentage of single female buyers falls in the 51-60 year-old age range, where they actually make up 20% of buyers. 19% of buyers aged 61 to 69 are single females. Thus this single female buyer demographic is on average a bit older than the typical buyer. This is not to suggest, however, that younger single women are not also buying homes—they make up 13% of buyers in both the under-35 and 36-50 age groups.
There are a few other statistics to keep in mind to contextualize what we know now:
First time home buyers made up 32% of buyers
The typical buyer was 44 years old—younger than the average single female buyer
77% of sellers were married couples—singles and unmarried couples thus account for the other 23% of sellers
So what’s the takeaway for real estate professionals? How does this impact your business? We encourage you to keep an open mind as you take our real estate classes and forget any preconceived notions about who the average buyer is. Married couples might make up the majority of buyers, but there are other demographics—most notably single women—that are also active.
Think about ways to expand your network to better utilize this knowledge. You know your niche, ask yourself how to better utilize it. Share this information and find those people willing to dive into real estate.
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For those of you taking our Los Angeles real estate school, you might already know that the iconic Playboy Mansion has recently been sold for a staggering $100 million, half the original asking price, Read more...
For those of you taking our Los Angeles real estate school, you might already know that the iconic Playboy Mansion has recently been sold for a staggering $100 million, half the original asking price, to Daren Metropoulos—son of billionaire investor C. Dean Metropoulos. But Hugh Hefner won’t leave just yet—the 90-year-old will pay $1 million per year to continue residing at the estate and has the right to do so until he passes away.
We’ve all seen photos and heard stories of the property, but what else should we know? The iconic Gothic Tudor was built in 1927, considered one of the greatest works of famed architect Arthur R. Kelly. The house is approximately 20,000 square feet with twelve bedrooms (including the two-floor master suite), chef’s and catering kitchens, and a screening room with a built-in pipe organ. The grounds also house a gym, a tennis court, an orchard, a four-bedroom guest house, and the famous—or infamous—pool and grotto. All together the estate is five acres of prime west Los Angeles real estate.
So what are Metropoulos’ plans for the property? Well, he already lives next door and his long term plans are to merge the two estates into one larger property. He views it as his “private residence for years to come”. Metropoulos has described the Playboy Mansion as a “one-of-a-kind piece of history and art” that he intends to renovate and restore.
The deal itself? Mauricio Umansky of The Agency, many of our students work there already - with Gary Gold and Drew Fenton of Hilton & Hyland were the agents to hold the listing. Jade Mills of Coldwell Banker Residential Brokerage represented Metropoulos. Is this type of success enough motivation to work harder as a real estate agent and get your real estate license in California? We think so! =)
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Sellers marketing their homes are often concerned about what goes on inside their house when they’re not there. This has led to the installation of surveillance equipment in many homes for sale. Maybe Read more...
Sellers marketing their homes are often concerned about what goes on inside their house when they’re not there. This has led to the installation of surveillance equipment in many homes for sale. Maybe the seller has a security concern: who is coming into my home and what are they doing? Are they stealing? Or maybe their interests are purely professional. What are potential buyers saying about my new floors? Is my agent working hard for me? Regardless of the motive, this is something real estate professionals must be aware of, particularly when the seller is not present.
These days it’s easy for a homeowner to keep their home under surveillance and find out what’s happening in their absence. From openly visible security cameras to so-called “nanny cams” (hidden cameras designed to innocuously keep an eye on caretakers that are often adopted for other purposes), there are lots of ways to keep watch.
You may be asking, is this legal? The answer is yes, for video recording – more on audio in a moment. Unless a person being recorded is somewhere they can reasonably expect privacy (e.g. a bathroom, changing room, etc.), video surveillance is legal. Considering a real estate agent is inside of someone else’s home, it is unlikely that court proceedings would determine that they could have reasonably expected privacy in the event they are recorded.
If you are listing agent and see cameras, you need to get on the same page as the seller if at all possible. Ask if the cameras are on when you are showing the home and what the purpose is. You will probably be asked about the cameras by potential buyers and agents and you should be prepared for that question.
It’s also possible that you may not know about the presence of cameras in your listings, particularly if they are hidden. If you feel comfortable asking the question, you could simply ask your seller if any recording equipment is in the property. These days, it’s probably safest to assume that cameras exist inside the home. While this should not affect what you do on the property (as you should already have been following all legal and ethical requirements that coincide with holding a real estate license), a mindful outlook on the situation may prevent professional issues with your clients.
Audio recordings are another legal issue. Depending on the state it is illegal to record a conversation without the consent of all recorded parties. In California, the legal standard is that “confidential communication” cannot be recorded without two-party consent. “Confidential communication” is defined as any communication in circumstances as may “reasonably indicate that any party to the communication desires it to be confined to the parties thereto”, as long as the communication is not made in a “public gathering”, “in any legislative, judicial, executive or administrative proceeding open to the public”, or “in any other circumstance in which the parties to the communication may reasonably expect that the communication may be overheard or recorded”. This leaves a significant loophole. How do you define a reasonable expectation to be overheard?
According to the law offices of Stimmel, Stimmel, & Smith, answering this question will be left to the proceedings of each trial (and thus either the jury or judges). It is quite possible that a recording in someone’s home would not be considered a violation of privacy because the recorded persons are on someone else’s property, but there is not a guarantee. Real estate agents are invited into a home for business purposes and conversations are part of that standard business practice. It is entirely possible that a judge and jury would rule that privacy should not be expected.
Does all of this sound paranoid? Consider a few cases where that surveillance revealed some unpleasant facts. In 2013 an agent was caught stealing underwear from his female client. In 2014 two real estate agents were caught having sex on secret cameras in the home one of them was listing. And just last year a real estate agent was caught stealing prescription pain medication from a house she was showing. Obviously these happenings are rare, but it does prove that some homeowners had good reason to be suspicious.
So for our students preparing for the California real estate exam, know that obtaining a license is not an endorsement of character. Some sellers will be skeptical or nervous about the prospect of letting strangers into their home and real estate professionals should be prepared for how those clients try to protect themselves.
Do you have any experiences with recording equipment in a listed property? Comment below! As always, feel free to reach out to the writer, cody@adhischools.com , if you have any questions.
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With much of the Western United States experiencing extended droughts, some homeowners are turning to alternative landscaping methods to save resources.
Recently REALTOR® Magazine1 (pg 34-35) wrote Read more...
With much of the Western United States experiencing extended droughts, some homeowners are turning to alternative landscaping methods to save resources.
Recently REALTOR® Magazine1 (pg 34-35) wrote about owners who are “rethinking the traditional American landscape” by moving toward yards that require less water and maintenance. The “desert landscaping” method, popular in much of the Southwest, is probably what comes to mind when picturing drought-resistant landscaping, but depending upon your locale there are other options to save water without compromising the aesthetics of a property.
Besides aesthetics, cost can be a deterrent when re-landscaping. It takes money to tear out a lawn, buy new plants, or truck in gravel. While these upfront costs are cause for legitimate concern, a move towards drought-resistant landscaping has the potential to save a homeowner money over time. The overall savings will depend on water prices in a given area, but expert estimates claim up to 75% less water is needed and maintenance bills could be lowered by 50% in Southern California when desert landscaping is implemented.
It would be wise to investigate rebate opportunities from your city or county water authority in your area to help offset the upfront cost. There are opportunities throughout the western United States for rebates for everything from removing grass lawns and installing more efficient watering and irrigation systems to more general rebates for conversion to a drought-tolerant landscape. With hundreds of dollars in rebates oftentimes available, the investment can be manageable.
Houses with great curb appeal are easier to sell and it is never too soon to plan ahead. While the traditional, perfectly green yard will likely never go out of style, trends in design can impact prices. Landscape economist John Harris states that good landscaping can add up to 28% to home value. A Clemson University study says that taking landscaping from good to excellent “in terms of design, condition, and placement” can add 6-7% to a home’s value.
These statistics show that execution and design are important. If you choose to move away from a more traditional landscape design, but do it poorly, you may miss out on the opportunity for increased value or worse – even see your property value lowered. Choose the right layout, plants, and accessories, from gravel to a suitable gate to the backyard or courtyard. Seek professional landscaping help or gather the opinions of those you trust about what works. The U.S. Department of Agriculture also publishes information on “hardiness zones” that help people understand which plants can survive in which conditions. Remember, if your landscaping is already good, making it “excellent” could add 6-7% in value.
Some owners resist the thought of a drought resistant yard because they fear that their children won’t be able to play as much. One option is to maintain a lawn in the backyard for room to play, while the landscaping for the rest of the property reflects alternative design. Some choose to pursue this goal with artificial turf in the place of a genuine grass. The distance to a good, safe park can also be a factor here. A nearby park can reduce the amount of green space you personally need and many newer developments are built with parks in the neighborhood.
So if you’re a homeowner, consider a more efficient yard. It might just improve your curb appeal and the value of your home while saving you money on water and maintenance. Whether you’re taking real estate classes in Los Angeles or preparing for the real estate exam in California, make sure you know how to talk to your clients about landscaping. It may not be your job to convince them that alternative landscaping design is right for them, but it is your job to make sure they understand the reasons behind these designs and the community resources that may make up for lost green space.
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