Why Listing Agents Hide Floor Plans and Disclosures

Drew Hendricks00:29

Welcome to the latest episode of We Fixed Real Estate at 9750 WFRE. And I’m rocking my new shirt. Thank you, Fred.

Fred Glick CADRE#0150761500:37

Nice t shirt, man.

Drew Hendricks00:39

Send Fred an email if you want a shirt. He should be rocking it too. And this is the episode where we’ve you’ve just heard our new bumper reel. We came up with a theme song jingle. Let us know what you think of it.

Fred Glick CADRE#0150761500:52

There you go, it’s not hitting the billboard top one hundred, but yeah. So we’d have a little fun with it.

Drew Hendricks00:56

Yeah. So we Yeah,

we got a couple exciting things to talk about today. Starting off with San Francisco and golf courses.

Fred Glick CADRE#0150761501:05

Yeah, so the San Francisco Standard had an article where they talked about Golden Gate Park golf course, which is, yeah,

Drew Hendricks01:16

I read that.

Fred Glick CADRE#0150761501:16

yeah, it’s a public course, it’s kinda it’s okay.

but the city’s losing like five million dollars a year on it. And there’s no no way unless you’re gonna spend gazillions to make and make it private and charge membership fees and all that that it would survive anything.

But the idea is, no. It’s it’s time on these golf courses throughout the whole state, and they’re about

500-ish accessible public golf courses out there in California and about 200 of them are municipally owned. golf courses are usually about 20 acres for 18 holes. So

Twenty acres is a you can put a lot of housing on twenty acres and infrastructure and roads and everything else. and I’ve said this

I keep saying this, there there’s nowhere to build a massive amount of homes in areas people are gonna want to live. But

Drew Hendricks02:24

Mm-hmm.

Fred Glick CADRE#0150761502:25

yeah, and you build these in San Francisco, people are gonna wanna live there. So it’s it’s a long drawn out process, I’m sure. It’s gonna piss off the guys who are playing golf publicly. And I get it. I used to play golf. I’d grew

completely retired. It’s like you guys go chase that little white ball. played Pebble Beach, I played Spyglass, I played all those I must have played played over a hundred golf courses, but it’s like

Moved on. but anyway, the golf course is the only place that’s going to be able to give us a ton of housing, which is one of the things that brings down prices and gets it more affordable. But then again, the cost to build is insane and if especially don’t do it as a public project, please I beg you. There’s no public project that ever comes out cheaper. It is always over budget and then somebody’s indicted.

for d kickbacks or whatever. It’s just a mess. So actually the legislature has A B six seventy two and A B nineteen ten that subsidizes converting municipal golf courses into housing. they’ve identified a hundred and fifty of them that were operating in a deficit, underutilized or in poor f

financial physical shape. So, you know, 150 times 20 acres, we’re talking about, you know, what’s that, 3,000 acres of homes that there could be, you know, taking out 20% for roads and other structures. So what do we got? We got 2,400 acres pretty much right away we can convert into housing throughout the state of California.

Something to think about, kids. So

Drew Hendricks04:26

Well in San Diego

I know two courses have been converted to housing on the on the fifteen corridor. And then one course was converted to a winery, which is kinda cool. All the vineyard all the all the green all the fairways, everything was just turned into vineyards.

Fred Glick CADRE#0150761504:44

There you go. So reuse of property.

Drew Hendricks04:47

Mm-hmm.

Fred Glick CADRE#0150761504:48

It’s a beautiful thing, as they would say. But yeah, that that’s I’ve been kind of bitching about this for years and I think it’s something that should be pushed. The other thing that should be pushed, and it’s on the governor’s desk, and I think he’s just not going to sign it, but it’s gonna become law, is the plug-in solar for

Drew Hendricks05:11

Mm-hmm.

Fred Glick CADRE#0150761505:12

for your balconies. Ugh.

It’s gonna be so huge. So anybody in the solar business with these solar panels, you could sell them to a entire condominium associations all at once. You can buy them in bulk. it’s all great. So something to look forward to. It’s a positive.

Drew Hendricks05:33

Yeah.

Fred Glick CADRE#0150761505:35

So let’s get out of golf. Okay.

Drew Hendricks05:37

Before we get out of golf, since are they

actually talking about turning the the Golden Gate golf cour the San Francisco golf course into

Fred Glick CADRE#0150761505:45

They did the article and the fact is they were just complaining about the fact that it was it was yeah. And the reporter

Drew Hendricks05:52

There’s so many courses. Like this

Fred Glick CADRE#0150761505:56

actually broke down how much physical space and usable land and how it could happen, so somebody’s gotta listen to him. But I’m sure Lenard Toll, any of those big builders would be happy to get that

big piece of land in San Francisco, but we don’t

Drew Hendricks06:14

Mm-hmm.

Fred Glick CADRE#0150761506:15

we like something a little better. And like something quality. Like I always talk about the cement 3D built houses. We can get them done pretty quickly. And then they’re earthquake proof, fireproof, floodproof. So let’s do it smart. No more sticks and bricks. It’s just really

Drew Hendricks06:33

Yeah. the the one that they’re

showing though in the article was the the marquee one that has the golden view of the golden gate bridge that’s right there by Seacliff. I mean

Fred Glick CADRE#0150761506:44

Yeah.

Drew Hendricks06:44

you’re not gonna build a housing I mean every house around there goes for ten million. So you’re

Fred Glick CADRE#0150761506:49

yeah yeah. It’s not not g right.

Drew Hendricks06:51

that may not be what the course they choose to decommission.

Fred Glick CADRE#0150761506:54

No, but

but that Golden Gate Park water, you could build townhouses,

Drew Hendricks07:00

Mm-hmm.

Fred Glick CADRE#0150761507:00

or condos, flats. Flats I’d have to start calling them flats and everybody else should stop calling apartments condos because a

Drew Hendricks07:10

Mm-hmm.

Fred Glick CADRE#0150761507:10

single family house could be a condo. So we’re gonna call flats, just like they do in Europe.

Drew Hendricks07:18

Sounds good. Well, Sting in San Francisco, the you know, there’s impact going on in the luxury housing market, a little shift in the buyers and what they’re doing, especially in the East Asian market.

Fred Glick CADRE#0150761507:31

Yeah. back in two thousand and seven, eight, nine, ten when we had the last crash thanks to option arms, there was a lot of people from Asia

Who would buy up the luxury properties? Stuff that was gonna go for ten million that dropped to six million. They had the cash. They literally bought them, closed them up, shut off the water, shut off the power, and just emptied the house and just let it sit. And guess what? Now that San Francisco’s cuckoo,

Drew Hendricks08:10

Mm-hmm.

Fred Glick CADRE#0150761508:11

and

The Chinese government has changed the way they do things because it used to be the leader would be the leader for ten years and then you’d switch to another leader so the alliances and would would change over and maybe you weren’t on the good side of the new guy, so you didn’t have the money. So but now Xi Jinping, who is meeting our president today, I roll.

He’s in it for life. He changed everything around. So he’s the new dictator.

Drew Hendricks08:46

Mm.

Fred Glick CADRE#0150761508:46

And so you’re either in or you’re out. But now the values have gone up so much, it’s time to sell before it all crashes.

The I I have a buyer looking at a house is listed at roughly eight. And we had such a hard time figuring out what what to bid because we know there’s people who have a lot of money and can pay cash because they got it from their anthropic stock or their other AI.

OpenAI, one of the other chat things that are gonna go public, but what they did until just a couple weeks ago, they bought out some of these people now so they could control the number of shares and be able to set the price a little better when their IPO comes around. So

we don’t know what the competition is, so we don’t know what to offer. It’s just like I said, throw it against the wall, you do what what you feel is best. And here’s another question I get all the time about offers. So clients will ask me, Hey, is there going to be a second round?

And the bottom line is I have no no one has

Drew Hendricks10:05

Yeah.

Fred Glick CADRE#0150761510:06

any idea. Not even the aid the listing agent. You don’t know what the i if you’re gonna get offers, you don’t know how many offers, you don’t know what those offers are going to be.

you put in one offer, somebody comes in at $300,000 above everybody else, paying cash settled in five days. Well, what are you gonna do? You just take that offer. But if there’s some similar offers, then you go for the second round.

So I’ve been telling people in San Francisco the bidding, the way to bid there is high and do not have the seller pay any buyer broker fee. Because

Agents are still charging two and a half percent, even though it’s eight million dollars. It’s it’s ridiculous. I I can’t understand smart people who sign exclusive contracts with these glamour agents at two and a half percent of the sale price on eight million dollars. I mean, yeah, you you have a lot of money, but you’re wasting a lot of money for

Drew Hendricks11:00

Mm-hmm.

Fred Glick CADRE#0150761511:03

we charge under ten grand for the same thing they do for two hundred and fifty grand. I

Drew Hendricks11:08

Mm-hmm.

Fred Glick CADRE#0150761511:09

Don’t get it. And non exclusive, right. Yeah.

Drew Hendricks11:09

And you’re non exclusive.

Eliminates the the whole divorce scenario.

Fred Glick CADRE#0150761511:18

Cuckoo for Cocoa Puffs. But speaking about things, and I want to talk about the people

who are listing their property with these people and how they’re kind of getting screwed by them. For example, if you list your property with an agent who doesn’t put in disclosures in the MLS, who doesn’t put in a floor plan,

on the MLS to show in Zillow or or Redfin. You’re hiding everything. You’re keeping

you’re keeping everything.

So what does a a a buyer do? Let’s say they don’t have a broker, what they’ll do is, you know, I’d really like a floor plan with the dimensions, so I know if this is gonna work, ’cause you know, having the square footage of the whole house is great, but it they measure hallways. So who cares about how long a hallway is?

So what the agent is trying to do is get them to call the agent because in the ML in the in Zillow, Redfin

the listing agent’s contact information is there. So what they try to do, get people to call

Tell them they’ll be happy to get it for them, but they’re trying to lead capture them and do dual agency and charge the buyer two and a half percent, which means the seller’s going to pay two and a half percent the way those agreements are gonna show up. And

Drew Hendricks12:42

Mm-hmm.

Fred Glick CADRE#0150761512:44

it’s a paywall. It literally is, and that’s what they’re trying to do. I saw a listing yesterday, my clients were a little late to the to the the game. House has been listening for eight days. My client said, Hey, you know

Can you get me disclosures? I email over the agent, she says, we’re we’re we did offers this morning. Nothing in the MLS about when the offer date was, no link for disclosures, nothing. So she was trying to hide all that, and you know, maybe one of the buyers is her own buyer at two and a half percent. So, you know, it also pisses buyers off that you don’t have this information and you’re not transparent, so they’re gonna be pissed off and go to another house.

you know, the those kind of things. So i it’s expensive to not have your agent do that. So make sure you tell the here’s what we do. When we do our pictures, we do a 3D, be it Matterport or something else. We use something else because Zillow doesn’t allow for Matterports on their site because homes dot com owns Matterport. Okay? So

We put it on there, we put it on our website, we put it in our disclosures that anyone can come in and get. So you could every property we do, we have a website for. And on that website, a customer without an agent can come on, download every disclosure, the same ones we’re going to send to an agent. If there is if there may be a better version of the floor plans on there sometime, we give the inspections, we give the disclosures, we don’t do dual agents.

Agency. So what happens if somebody gets things just from us? We’re not going to charge the seller or we’re not going to charge the buyer and hence the seller another, let’s say, 97.50 to represent them because we’re not going to represent a buyer, but they’re smart enough people who will represent themselves. They know what they’re doing. You

Drew Hendricks14:43

Mm-hmm.

Fred Glick CADRE#0150761514:44

know, we just tell them: look, get us the pre-approval, get us the proof of funds, we’ll fill out the contract with you. We’re not going to say a word.

Because we represent the seller, but we’re happy to do that. And that’s what the listing agent’s gonna do. And we tell you, look, run all the disclosures through AI because we do that ahead of time. So we know what the problems are. So that’s a complete better deal for the seller, the way we do it. So

think about it before you you pay these two and a half percent people and ask them these questions. Are they gonna be transparent? And why not? And let’s see what the answer they come up with is. Huh.

Drew Hendricks15:29

Yeah, that’s crazy. So did but did your client was they were they able to make an a offer or they just missed the round?

Fred Glick CADRE#0150761515:36

well on that one they missed the round. So they’re th they’ve been looking in San Francisco. They must have looked at twenty houses so far in the last month. It’s just crazy. Outbid on I think they made about three bids. Outbid on every one of

Drew Hendricks15:52

Now is now is

Fred Glick CADRE#0150761515:52

and that’s it th

Drew Hendricks15:53

San Francisco in the Bay Area, it seems like it’s kinda unique because I look at the news articles and the talks about interest rates and how housing markets like screeching to a stop. Yet what we’re seeing in some of these areas is it’s actually ramping up and getting even more frenzied.

Fred Glick CADRE#0150761516:09

San Francisco

buyers who are paying cash. They don’t care about the seven percent mortgages. And by the way, do not, do not, do not, do not take a fixed rate mortgage right now.

Look at the arms.

Seven year, five year, it’s gonna save you at least a point in rate.

The big banks actually are the places to go. Because I look on the secondary market, the Fannie Mae market, my arm rates are higher than the fixed rates. We’re in it almost an inverted curve. For all intents and purposes for mortgages, we’re in an inverted curve. Which means the short term rates are higher than the long term rates. Of course, it was five seventeen on the ten year today. It’s disgusting. It’s absolute

Drew Hendricks16:51

Well.

Fred Glick CADRE#0150761516:52

disgusting. So what Bessett did a couple of weeks ago, that didn’t help. It’s the oil prices, it’s like

Hello, it’s you

Drew Hendricks17:01

How long does

how what what’s your anti w what’s your prognostication of how long this is gonna stay at this level or

Fred Glick CADRE#0150761517:11

a while.

There’s no reason for it to come down. I mean the Fed’s gonna go up again, so everybody knows that, so that’s why the ten years going up now. It’s it’s crazy.

Drew Hendricks17:23

In any

sort of manipulation of it or the fault or artificial attempt to lower it just kinda has the reverse reaction.

Fred Glick CADRE#0150761517:30

Nobody cares. The markets don’t care. The most important thing you can do every morning if you’re in the housing market and you’re worried about all this stuff is get up, get the C B C app and look at the ten year treasury. See what’s going on with that. That’s all that matters in this world. That’s what thirty year fixed rates are based on, the ten year treasury basically. There’s mortgage backed security pricing, but it’s pretty equal now.

So it sucks for people. And it’s killing, where it’s not San Francisco and Cupertino and craziness. It sucks for people. You

Drew Hendricks18:04

Mm-hmm.

Fred Glick CADRE#0150761518:04

know, it’s

Two-one buy downs are going to be used a lot, meaning if the rate is seven percent and no points, you get five in the first year, six in the second, seven year, three through thirty. You pay three points to get it because you’ve gone down two in the first year, one in the second. So

Drew Hendricks18:24

Mm-hmm.

Fred Glick CADRE#0150761518:24

that so maybe a seller pays that. there’s ways to play around with this. There’s three two one buy downs. But one thing to realize on these buy-down programs, you have to qualify at that seven percent.

Rate, even though you’re getting five year one, six year two.

Drew Hendricks18:40

Mm.

Fred Glick CADRE#0150761518:40

So that’s not a crazy thing. The bottom line is talk to a loan officer that knows what they’re talking about is the best thing before you even look at a house, before you even go to your first open house, get fully underwritten pre-approved. How many times have I said that? about a hundred million.

Drew Hendricks19:00

yeah.

Fred Glick CADRE#0150761519:00

but talk to them about rates and rate structuring and how it works and things you can do.

And just go from there. See if you’re comfortable.

Drew Hendricks19:11

So as we’re head heading into the fall. Today is actually the second day of fall.

Fred Glick CADRE#0150761519:16

Yes, correct.

Drew Hendricks19:18

Interest

rates aside, what what are you what are you thinking about the markets going into October?

Fred Glick CADRE#0150761519:27

kinda is what it is. There’s you know, it all comes down to people being comfortable, having a job, being secure, wanting to plant roots. And right now people are like you know, add that into the rates and people are like, I don’t know. They’re worried about everything.

We’re in a worried society. That’s why we’re getting a blue wave, ’cause it’s gotta change. It’s just absolutely has to turn around and

current leadership is just not helping. Let’s put it that way.

Drew Hendricks20:02

We’re almost almost a month away

from these. I I have a feeling that the l run up to these midterms is gonna cause I mean, w we’ll we’ll be in interesting times for the next thirty days for sure.

Fred Glick CADRE#0150761520:15

Yeah,

and and people please pay attention to the realities of your day to day life and how it’s gotten worse as opposed to the fact that, some news outlet can’t sit into the the White House. it’s all diversion. The bet

Drew Hendricks20:30

It will get

Fred Glick CADRE#0150761520:30

the Tommy Tuberbrain yesterday comes in and he starts talking about this is in the United States Senate. people who dress up as furries are are piloting your

Drew Hendricks20:41

I saw that.

Fred Glick CADRE#0150761520:42

plane. It’s like

Drew Hendricks20:43

Most of the flight attendants where do you come up with that?

Fred Glick CADRE#0150761520:45

And that is the diversion of all diversions. They probably sat in

a room and said, Hey, who’s the stupidest guy we have here that could say this and it sounds credible from him and that people who are dumb will believe. So he’s locked up Alabama or Mississippi, or just where people just keep believing these people.

Drew Hendricks21:11

It’s

it’s crazy. So we got political uncertainty, we got political worries going on. But here in California, we have actually environmental worries going on right now too, with this Super El Nino that’s coming to pass. And Newsom

Fred Glick CADRE#0150761521:23

Surfs up, dude.

Drew Hendricks21:24

Newsom already declared a state of emergency and it hasn’t even happened yet. So that’s gonna affect

Fred Glick CADRE#0150761521:29

I know. I mean surf

Drew Hendricks21:31

coastal. And we even had a sea turtle plant lay eggs in Seal Beach.

Fred Glick CADRE#0150761521:36

It’s insane. It’s absolute

Drew Hendricks21:38

First time ever documented on the West Coast.

Fred Glick CADRE#0150761521:40

Yeah, and I’m sure some Instagrammers will be all over that. good. Good.

Drew Hendricks21:44

They got a little cage around it to protect it, but but yeah, we’ve got a big

big hurricane coming up up through the coast of up through the Pen Baja Peninsula, up into Arizona, Polo. Mm-hmm.

Fred Glick CADRE#0150761521:55

Right. It it’s a cat five, yeah, polo.

And it’s it’s jarting off north northwest, I think, or n west northwest and which is gonna help drop the curve of it all into the places that develop the waves so that the surfing waves are gonna be insane.

Drew Hendricks22:15

yeah.

Fred Glick CADRE#0150761522:16

So

Drew Hendricks22:17

If it gets into that window, it it’s it’s gonna be historic.

Fred Glick CADRE#0150761522:22

Great.

Drew Hendricks22:22

And so

lots of exciting things to look out for. I mean you can either look at a two things. We’re in a unique time of change and we’re also in a unique time of weather. And sometimes these uncertainties bring benefits that you can’t anticipate. That’s my silver lining.

Fred Glick CADRE#0150761522:41

There you go. You know what, you just check the weather forecast for the next couple of days in advance. You can’t you can’t worry about it every day, but I’m glad at least Newsom did something about that. So

Drew Hendricks22:51

Yeah. What about the palisades? Have they started construction on that yet?

Fred Glick CADRE#0150761522:56

yeah, it’s a lot constructed. There’s still a lot of lots available.

Drew Hendricks22:58

It’s all getting back. Mm-hmm.

Fred Glick CADRE#0150761523:00

But remember the Palisades is kinda high up. So you gotta go up

Drew Hendricks23:02

Yeah. And the Malibu, I that’s what I’m thinking of.

Fred Glick CADRE#0150761523:07

well, Malibu parts of it are high up and parts of it are pretty much, you know, right along. you get to point Doom and y you’re you should be okay, but if you’re along in central Malibu, right along the water, it’s gonna get ugly.

It’s you know

Drew Hendricks23:27

It’s good to know they’re building again.

Fred Glick CADRE#0150761523:29

Yeah, we’ll see what happens. St still a lot of lots available in the Palisades. I think if you got money you just wanna leave for ten years, just buy a lot in the Palisades and do nothing with it and wait till somebody begs for you to sell it to them. Cause

Drew Hendricks23:47

Hmm.

Fred Glick CADRE#0150761523:48

there’s always some actor

Or someone in the entertainment business that makes a lot of money from doing one thing and then wants to buy that house. So that’s what we see.

Drew Hendricks23:59

E easy money.

Fred Glick CADRE#0150761524:01

Easy money. Well not exactly. I’m sure they worked pretty hard to get to there, but

Drew Hendricks24:06

Let’s see, that’s what we have. We’ve gotta actually if you’re s what you gotta go to Arriva, go down to the footer in the insights section ’cause we’re rolling out a lot of new interesting content. That’s mm-hmm.

Fred Glick CADRE#0150761524:18

Yeah, a lot of good stuff.

and by next week I should be able to announce a program where there’s this company out there that does things like make arrangements with movers and setting up your cable and utilities and all that kind of stuff where they get a few bucks from these guys as a whatever.

And then they split it with the real estate agent. Well I said to the guy, I don’t want the money. Can you give this back to my buyers? So if you come into Arriva

Drew Hendricks24:52

Uh-huh.

Fred Glick CADRE#0150761524:54

starting sometime probably next week, we’ll be able to give you the link and the password to get into this site so that you could set up your cable, set up whatever, and get a rebate. So

Drew Hendricks25:07

Full onboarding.

Fred Glick CADRE#0150761525:08

Full, rebates all the way down the line. Cause to be honest, we usually don’t work with our s buyers as to how they’re getting moving stuff arranged and utilities. We tell them to do it, but we don’t we don’t get day-to-day because we think it’s it’s a personal thing. It’d be crazy. But if we’re able to make it simpler and easier and they get money back for it, fabulous. Who d who doesn’t want to get money back from Xfinity and Verizon and

Drew Hendricks25:34

Yeah. Absolutely.

Absolutely.

Fred Glick CADRE#0150761525:36

‘Cause you d

you deserve it.

Drew Hendricks25:38

that’s the whole mode of Arriva. Trans transparency and flat

Fred Glick CADRE#0150761525:41

There we go.

Drew Hendricks25:43

fee and rebates back wherever we can find

Fred Glick CADRE#0150761525:46

Exactly.

Drew Hendricks25:46

I think we and end on this note, end on that note, or a note. We’ll have

Fred Glick CADRE#0150761525:52

Mm.

Drew Hendricks25:52

some jingle music. and if you want a T shirt, reach out to Fred.

Fred Glick CADRE#0150761525:56

There we go. I forgot about that. We’ll we’ll get more into that next week once once I have it done.