Negotiations are sometimes difficult when asking for our commissions.

Negotiations have to be handled calmly and efficiently in order to achieve an agreement. First, we need to understand the opponent’s position and what their needs are. Second, we have to address those needs and express our needs to reach a mutual agreement.

Those of you who know me, know that I enjoy old movies and TV shows. I was watching an old episode of “Perry Mason” and his investigator, Paul Drake, was negotiating his fee with a client. Watch how Paul handles the situation.

Now, I am not saying that you must be as abrupt as Paul, but you must learn to say no sometimes. I do believe that you can get your customer to do whatever you want, as long as you show them how it benefits them! To get the commission you deserve, show how your marketing efforts will benefit them. I’m sure that you have an extensive, proven marketing plan, in writing, to show your customer. Have them agree that if you do everything in your plan, it will sell the home. Explain that marketing costs money and your fee is the only way that you can provide the marketing needed to sell their home!

But remember, sometimes you just have to say “NO”!

If you would like more information contact me.

Our market today affords us interesting opportunities.

With inventory low, and buyers buying, we find ourselves entertaining multiple offers to the sellers. Now, there are many ways to handle multiple offers. Each of the ways require the seller’s understanding and permission. In fact, according to the Code of Ethics, we are not to reveal even the existence of another offer without the seller’s permission.

A common way to handle these are to counter all the offers with the direction of bringing back the highest and best offer to the seller. I am not a fan of this method, because each of the buyer’s may not want to negotiate against others and walk away. Now the seller has nothing! I prefer to counter each discretely and without disclosing the existence of the multiple offers to the buyers. The way to do this is to always counter only one at a time and always counter the lowest offer higher than the highest offer. Continue to do this, until your counters are rejected and you have settled on the highest offer. Be careful that you don’t settle on a price that is above the possible value of the appraisal!

If you would like more information contact me.

I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice.

Make good choices.

According to the Code of Ethics, Article 12,

Realtors shall be honest and truthful in their real estate communications and shall present a true picture in their advertising…..ensure that their status as a real estate professional is readily apparent..

OK, this means we have to put the company name in all communications and advertising and we have to disclose that we are a real estate professional up front. This is a higher standard than the law. The law says that we have to disclose that we are a licensee upon first serious negotiations. The Code of Ethics says we have to disclose up front. So, we have two different requirements. When this occurs, our obligation is to always follow the higher standard, in this case the Code of Ethics. Now, the code says we have to paint a true picture in our advertising. Article 12 covers guidelines for offering prizes, premiums, merchandise discounts to sell or buy. It also covers website adverting.

Understandably, Article 12 is one of the most violated Articles of the Code. Why, because we all advertise and as often as we can! Unfortunately, we might exaggerate or embellish a bit too much! Again, if we see an improper ad, call the REALTOR and suggest they review Article 12 for compliance!

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice.

Make good choices.

As a REALTOR, I am very protective of the REALTOR trademark. All REALTORS have the duty to work under the Code of Ethics. We also have guidelines under the Pathways to Professionalism.
There are specific rules for using the trademark. We can only use the trademark adjacent to our name in all advertising, URLs, or e-mails. For instance, RicGiumentaRealtor.com is acceptable.
We can’t use BestREALTOR.com, because a member’s name isn’t there. It is great branding to use your communities name in advertising. So, we might be tempted to use Your Hometown REALTOR as a brand name, but that is a violation of the trademark.

So, who are the REALTOR Police? All REALTORS. If you see a violation, contact the REALTOR and explain that it might be a violation and suggest a change. Review the Membership Marks Manual at NAR.REALTOR. If they’re reluctant or disagree with your assessment, then contact Trademark@REALTORS.com and request a clarification from the legal department.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices.

See you next time!

Are you a REALTOR? I am very proud to be a REALTOR who prescribes to the Code of Ethics.

There are 17 Articles which outline specific duties to customers/clients, the public, and to REALTORS.

I would like to highlight Article 16 which requires REALTORS to respect exclusive relationships. So, if a customer has an exclusive relationship with REALTOR 1, then REALTOR 2 is not permitted to talk with the customer without the permission of REALTOR 1.

Now, each article has Standards of Practices that clarify different situations and can guide REALTOR conduct. It’s imperative that REALTORS know and understand each of the Articles and follow them accordingly. Case in point, there are times that REALTOR 2 can contact the customer and they are outlined in the Standards!

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices.

See you next time!

The most common contract used in Florida is the Florida Realtors/Florida BAR Residential Sale and Purchase contract.

According to the contract “Time is of the Essence”. Now, whether you use the “As-Is” or the “Standard” contract the provision for “Time is of the Essence” is the same. So, what does it mean? It means that the contract calls for specific dates to perform the actions in the contract or there could be consequences. When I say specific, I mean “drop dead dates”!

For instance, if the closing date states November 1, then that is when the closing happens. Yes, even if you put “on or before” in front of the date! If you put “on or before” in front of the date, you still need both buyer and seller signatures to move it up! You are falsely setting the customers up for disappointment by allowing them to think that it may be moved up, because it needs both parties to agree in writing to do so. It should not be moved up verbally. All things must be in writing to be enforceable according to the Statute of Frauds. So, don’t bother to put “on or before” in the contact because it is meaningless. Just use specific dates.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice.

Make good choices. See you next time!

Personal property is always something that needs clarification in our sales contracts.

There is a paragraph which lists most items that convey with a home. But not all homes have all the things listed. Some items need to be excluded from the list and there is a space in the contract for you to list those items right under the paragraph. However, there is a little confusion built into the personal property paragraph. It states “..the following items which are owned by Seller and existing on the Property as of the date of the initial offer..” The confusion is, how do you prove it wasn’t existing at the time of the offer?

For instance, let’s say that the property does not have a disposal in the sink. A disposal is listed in the paragraph. It wasn’t existing so the buyer shouldn’t expect it at closing, right? Suppose the buyer goes on a walkthrough and swears that there was a disposal and they want the disposal put back or they’re not closing! So how do I avoid this from happening? Everything that is listed in the paragraph of personal property that is not on the premises, I list in the paragraph under the personal property clause as excluded from the contract. I don’t cross out on a contract. I just list it as excluded. This way it’s clear to both buyer and seller that the item does not convey!

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice.

Make good choices. See you next time!

You know, in Florida, we write the offer to purchase usually from the buyer, on a contract form.

That form is then signed by the buyer and sent to the seller. If the seller agrees with all the provisions in the offer, then they can sign it and send it back to the buyer. Now we have a contract!! In Florida Most closings are done by Title Companies and the buyers and sellers are not required to have attorneys fill out a contract.

So, sales associates help the buyers and sellers write the sale and purchase contract. We are allowed to fill in the blanks of Supreme Court Approved contracts. This means that we must be knowledgeable in the contract form that we use and understand that there might be special conditions that occur in different transactions. There are Riders that we can attach, written by attorneys that fit most residential situations.

However, we are never allowed to write any provisions effectively changing the contract. We have a clause for “additional terms” that should be used to explain provisions. If you listed pool equipment as personal property to convey, then here is where we can explain what is included in pool equipment. If there are special clauses needed for the contract it is our obligation to tell our customers to see an attorney!

If you would like more information contact me. 

I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices. 

What is an effective date?

According to the Florida Realtors/Florida BAR contract the “effective date” is the last date that the buyer and seller has initialed or signed the contract and returned the contract back to the offeror.

Now, how is this date determined?

Let’s say that the buyer wrote an offer on the 5th and sent it to the seller. The seller signed the offer on the 7th and returned the offer to the buyer on the 10th. The 10th is now the effective date. But where does it say that on the contract? You know that date is important because many of the provisions, for instance inspections, use that date as a starting date.

You see, it’s up to the buyer, in my example, to write an e-mail to the seller’s associate and designate the 10th as the effective date. Nowhere on the contract is the date the 10th written, so an e-mail establishing the date is important! Make sure you do this to avoid any confusion regarding other dates in the contract.

If you would like more information contact me.

I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices.

You know we have come a long way with technology.

Especially where paperwork is concerned. I remember hand writing contracts on the hood of a car, with five copies using carbon paper! The contract was two sided and legal length. But the carbon paper was only letter length because we needed five original signatures!! What’s carbon paper? Well that’s for another video!

Now we can use any electronic device anywhere as long as we have internet and fill out our documents and have them signed electronically. PAPERLESS! We can store our documents on digital back ups as long as we can produce the file as needed for the Florida Real Estate Commission.

Even counter offers are done on a “Counter Offer Form” so we never need to cross out, initial, and date changes. Gee what’s next, will they take our MLS books away! Oh, they did that too? Oh, well. Listen, I need to get on the internet and my dial-up is so slow it takes forever!

If you would like more information contact me.

I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices. See you next time!

How confidant are you in your ability to do your job well?

If I said that I had a property that I would like to list or buy, are you the right person to help me? I hope that you said yes to that question. And if I asked “Why should I hire you?”, can you tell me in a short and sweet response that you are the right choice?

You need an elevator speech to respond to this question filling two minutes of time and convincing me that you are the right person. I am sure that in your market, there are a number of Realtors that can do exactly the same job. What do you do differently? What makes you shine? Do you stand out amongst the Realtor masses?

Boast about your statistics: your market share, the number of listings sold, your access to unlisted properties, your designations, your certifications, your number of years as a full time Realtor. Get the picture?

People like doing business with professional, knowledgeable, successful people that they feel are competent to complete the task. Whether it’s buying or selling a home, they want the best person to handle the job. Are you that person? Tell them!

Has anyone recently asked you how the market is?

Standing in line at the grocery store, or where you pick up your morning coffee? Was your response, “Great!” or “Unbelievable!” When a potential customer asks an open-ended question like this, why do we give an answer that provides absolutely no information to the customer? Here is an opportunity to show off your expertise in real estate and provide good, factual information that the customer can use. People like working with experts in their field. Do you bring your car to a mediocre repairman? Don’t you want the best mechanic?

Here’s where you need to have an elevator speech on market statistics. How many houses sold this month compared the same month last year. How many listings are there compared to last year or last month. What’s the average price compared to last year or last month.

Do you get the idea? Know your market statistics and provide good factual information to prove that you are worthy of their business. Where can you get this info? Try your local MLS. If you are a Florida REALTOR, try the FloridaRealtors.org page and navigate to Tools/Research and view Sunstats.

If you would like more information contact me.

The most misunderstood topic in real estate is Florida Law on Agency.

I’ve studied this topic since the first statutory law in 1994. It’s been changed and revised many times and thus the confusion.

It is a consumer protection law covering the disclosure of the relationship we have with our customers. There is a presumption of Transaction Brokerage unless we establish a different relationship in writing. Now, most of the companies are Transaction Broker companies by an overwhelming number; over 85%. Now there are two things going on; ONE: We have the job of real estate and TWO: the relationship we have with our customer. As Transaction Brokers we are all able to do the entire job of real estate. It’s HOW we do the job that is important. Transaction brokers provide facts, figures, and information; while Agents provide opinions and advise.

Now here is where the confusion is obvious. As Transaction Brokers, WE ARE NOT AGENTS! Sales associates are only agents of the broker, not the customer. So, we should avoid calling ourselves agents! WE DON’T HAVE CLIENTS! We have customers. The term client isn’t even defined in the law, and might create an unintentional agency. Courts have ruled that if it walks like a duck, acts like a duck and talks like a duck…It’s a duck. You can’t act like an agent and hide by saying you’re a transaction broker.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices. See you next time!

This is the third installment covering safety. I am going to talk about hosting an Open House.

I general, the way you dress for work is key in making sure that you are not a victim. Dress casually and wear comfortable shoes. If your local police department has a program that can monitor your activity, call them in advance and let them know about the open house. Use the “buddy system” and bring a local mortgage professional along to help qualify your buyers. Lock your purse and other valuables in your car, hidden from sight. Keep your cell phone, keys, and pepper spray with you at all times.

Personally invite the neighbors to visit you during the open house. Have the customers ring the bell for entry, open the door and lock it after them. Use a guest sign-in sheet. Make sure that you direct your customers through the home, keeping yourself between them and an exit. When leaving the home, secure all locks and doors, even if you have not opened them previously. Sometimes customers may open a door or window, and you need to secure the home before you leave.

Remember that in order to lessen your risk of becoming a victim be aware of your surroundings and trust your sixth sense. You can choose who gets to visit the home. Allowing customers access to your Open House is not as important as your safety.

If you would like more information contact me.

And remember, you can have a good day or a bad day. It’s your choice.

This is the second installment covering safety.

I am going to talk about buyer showings and appointments.

First of all, NEVER meet a prospect for the first time at a property. Always meet your customer at the office. Copy their drivers license and leave this and your itinerary with your broker. Have your customer pre-approved with a mortgage professional before showing property. Keep your cell phone on silent. Do not wear flashy clothes, jewelry, carry credit cards or large sums of money. Always go into the home through the front door.

Direct the customers through the home always keeping yourself between the customer and the exit. Have a secret code or phrase with your office in order for them to understand that you are in trouble. Make sure that it is something innocent, so that the customer is not alerted. Always have pepper spray or gel with you at the ready to use, if the emergency arises. It works on snakes, and other animals that may be a danger to you or your customer.

Remember that in order to lessen your risk of becoming a victim be aware of your surroundings and trust your sixth sense. Getting a sale is not as important as your safety.

If you would like more information contact me.