Rodeo Drive's Rough Side

My mantra has always been that you must take care of your soul and mind. It was the reason that I put a hold on my career to raise my kids full time, and it explains why I’m always surrounded by family and friends. It’s also a message that appears throughout my book: Always find balance between your family and your work.

With that said, I realize that it’s difficult advice to follow. And I’m the first to admit that I’m not always successful. Rodeo taught me a tough lesson nearly two weeks ago.

Nikki, my daughter, wanted me to help her shop for a child’s gift. Despite having two kids of her own, she still knows who to ask when she needs shopping advice.

She phoned me late one afternoon. “Mom, the store closes at 6:00. Do you think you can still come?”

It was almost 5:30 at the time, and my toes were wet from my pedicure, but I thought that I could make it. I rushed to Rodeo Drive in my sandals trying my best to keep the polish from smearing. It was a struggle to maintain my balance because the bottoms of my feet were slick from the lotion my pedicurist applied.

Unfortunately, my attempts at juggling wet nail polish and slippery feet in sandals were unsuccessful. No sooner than you can say “North Beverly Drive,” my cheek was planted on the ground. I was injured and embarrassed to have fallen in front of so many people. My one consolation was to see the Chanel storefront above me—I couldn’t imagine a more fabulous place to fall.

An Italian couple came to my side and asked if I was OK. It took a moment to respond because the wind was knocked out of me. The kind pair helped me up, and by the time I had collected myself, I had missed my date with my daughter.

The pain was intense but life had to resume: Two deals were in escrow, I landed a $13.5 million listing in Brentwood, our office Halloween party needed to be planned, and my family commitments continued.

As a result, I postponed seeing the doctor. My daughter, Nikki, who’s a doctor herself, insisted that I see one. I finally did this week, and the X-Rays revealed why I was in so much pain. The fall on Rodeo Drive resulted in a hairline fracture in my wrist and a torn muscle in my rotator cuff.

I’m not proud of waiting so long to see a doctor. It was a good lesson that reminded that keeping all the balls in the air isn’t easy. Once in awhile one will plummet to the ground. And when it does, all we can hope is that it will land in front of Chanel.

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What Do You Mean the Chandelier Isn't Included? Part 1

Antique furniture can be such a hassle. It’s expensive. It often requires restoration. And it needs to be constantly kept up. Maybe that’s what motivated a recent seller to take the chandelier with him when he moved out—perhaps he thought he’d spare the seller the headache. Unfortunately, he didn’t share this news with my client.

I just closed a deal in Bel Air. The purchase moved along and my client couldn’t wait to move into her dream house. After years of being her broker, Julie was someone whom I considered a close friend. I’d been on the look out for months until I discovered a home that was exactly what she was looking for.

Julie bought the estate for $12 million. Not cheap, but worth every penny. The home had every luxury amenity from a screening room to a resort-like backyard. Considering how much the property had in it—audio and video equipment, gym machines, and furniture throughout—agreeing on what would remain in the home took a lot of negotiation. We had settled a deal and escrow was nearly complete…until I received a phone call.

The seller’s agent said that his client planned to pack up the massive chandelier when he moved out.

“What do you mean, he’s taking the chandelier?” I asked. I shared that the seller had no right to chandelier. Being bolted to the ceiling, it was clearly part of the home. Legally, it was clear that my client owned the fixture.

The seller's broker knew I was right. The seller hadn't revealed the fact that he planned to take the light fixture with him, and so it was never stated in the paperwork. But in real estate it's not always about who's right. In this business, compromise and adjusting to change are the only constants.

“Myra, he says that it’s a family heirloom and he wants to leave it to his family,” the broker told me.

“But do you understand the inconvenience your putting my client through? She’ll have to hire a decorator and an electrician, not to mention that she probably liked it in the first place,” I said.

Eleventh hour moves like this are all too common in our business. From antique chandeliers that will be stripped from the ceiling to outdoor statuary that will be packed in a U-Haul, in real estate, you’ve got to always be prepared.

In the case of the light fixture, I knew that this could possibly be a deal killer. But I’ve learned that there is always a positive spin you can take on things. I told the seller that I’d speak with my client.

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What Do You Mean the Chandelier Isn't Included? Part 2

Here’s the continuation to the previous post about the chandelier that refused to stay home:

I shared the seller’s request. I told Julie that the chandelier was a family heirloom and the seller wanted to leave it to his daughter. My client agreed to let the seller take the fixture. But first Julie wanted to know how much it was worth. Both Julie and the seller hired appraisers to assess the chandelier's value.

My client’s appraiser said that chandelier was worth $27,000. It was certainly a beautiful fixture. On the other hand, the seller's appraiser valued it at $3,500.

Julie wasn’t happy to hear this, and it was my job to be the pin that would slowly release the air out of this hot balloon that could have ended the deal. I was tactful and thoughtful about how I spoke to both buyer and seller.

“Imagine that the chandeliers were never there. Would you have bought the house anyway?” I asked Julie.

She responded, “Yes.”

“Well, if you can get a reasonable amount for them, you can now get the chandeliers of your choice, and they’ll be exactly what you want,” I said.

Julie appreciated my approach. We moved ahead to solve this dilemma. Both buyer and seller agreed that the chandelier was not worth $27,000. Nor was it worth $3,500. I suggested that we settle on $20,000, call it a day, and move on. Both agreed. Escrow closed, the chandelier left with the seller, and Julie moved in.

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Good News: Bright Skies in 90210

Let's start with the good news first: If you've followed real estate news lately, you'd think that it's all doom and gloom. But don't believe everything you read. I'm here to share that the Westside market is still full of activity. If a house is priced well, then it's likely to sell within a reasonable amount of time. Case in point, one Brentwood home was recently listed for $10.25 million. It's an incredible property, but even I had my doubts about how quickly it would sell. Well, as I compose this message, the home is no longer on the market. Although there's truth to what the experts are saying about the real estate market, high end Los Angeles property continues to sell. Stay tuned for the bad news next. 

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New Years Day. Save the Date!

The publishing schedule is on track, and I'm delighted to announce that my book launch will be Tuesday, January 1--Just in time for the New Year.

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Kick the Tires: Know Your Inventory Part 2

In the previous post, I shared about the importance of being an expert. The following is the second part of the story: 

The sellers wanted us to reduce the price by $200,000. We countered with $35,000. Then they wanted us to drop the price to $150,000. We countered with $75,000. Finally, the sellers asked for a $100,000 price cut. They added that if we didn’t accept this last offer, they’d walk away from the deal. My client asked me what she should do, and I told her to hold firm to $75,000. She was hesitant but trusted my judgment. In the end, my discernment and advice proved to be right.

I recall a phone conversation that I had with the buyer’s agent.

“I can’t believe you’re being so tough,” he said.

“I’m not being tough, I’m being realistic. The deal was sealed at a $75,000 reduction,” I responded.

“You know that there are other listings that my clients have been looking at. Like the one on Whittier—it’s clearly in a better location.”

“You’re right. But if you think the roof’s a problem on this house, you’d better take a look at the plumbing and foundation on that one,” I answered.

“How about the house on Crescent? It’s on a bigger lot,” he said.

“But have you seen that floor plan? It’s terrible,” I said.

He went on to describe two more listings.

I finally told him, “Look. No listing gets by me. Everything you’ve seen, I’ve seen too.” He paused and said that he would speak with his client.

As much as he tried, he couldn’t intimidate me because I knew the inventory. I was aware of the value of the listings he had mentioned, their square footage, and their strengths and weaknesses.

The next day, I received a fax from the broker. His clients accepted our $75,000 offer. Upon hearing the news, my client remarked that my advice must have resulted from a real estate sixth sense. My decision, however, had less to do with the supernatural and more to do with observing the deal from the buyer’s perspective.

There were several factors that were in our favor. First, the buyers had locked themselves into a great loan that was looking even better because interest rates were climbing. Second, the buyers had spent thousands of dollars for the inspection and hours evaluating the results. If they walked away from the deal, they would have to start the entire process over again.

Finally, and probably most importantly, I knew the inventory. The other homes in the same price range would require considerable amounts of deferred maintenance. The buyers would find that any home they were looking for would need a similar investment to raise it to their standards.

Knowing your inventory is hard work. It won’t happen by logging on to the MLS and looking at listings from the screen of your computer. You have to attend Tuesday caravans, regularly communicate with your colleagues about listings, and know the latest information about the community you serve.

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Kick the Tires: Know Your Inventory Part 1

Beverly Hills is one of the highest profile places to live in the world. It’s A-list of residents, from top actors and producers to CEO’s and professionals, make it an exciting place to call home.

In my case, 90210 is both where my three kids grew up and it’s where I’ve established my business. After twenty years selling high end real estate, I can confidently say, “If you can make it Beverly Hills, you can make it anywhere.”

Regardless of whether it’s the Bronx or Bel Air, real estate is a tough business. And with the Internet, information is everywhere. Your clients can log onto the MLS from their computers or on their iPhones. This means that you have to work harder and smarter than your competitors. That’s why I specialize, and so should you.

The more specialized knowledge you have, the more you’ll stand out from your competitors. Here’s a case in point. I had a client who was selling her Brentwood home for $7.5 million. We based the price on comparables and on the roof that needed to be replaced. A buyer put in an offer, and the deal was moving ahead. Once the inspection results were in, however, the buyer insisted that we drop the price. The reason? The roof needed to be replaced.

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Welcome ...

A couple of years ago, when I began writing my book, I envisioned this project as a way to share my experiences with a wider audience than otherwise possible. Little did I know that the book would create such a buzz prior to it even going to print. The galleys (pre-publication copies) came out a few weeks ago, and I’ve been overwhelmed by the response.

“When am I going to be able to get my hands on your book?” is the first thing I’m asked. As a result, I’ve created this blog to answer questions, to provide the latest news about From Homemaker to Breadwinner, and to describe how following my method will bring you success beyond your wildest dreams.

Visit often, and I look forward to hearing from you soon.

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