We were lucky to catch up with Ashley Robertson Bedard recently and have shared our conversation below.
Ashley , thanks for taking the time to share your stories with us today. Have you ever experienced an industry-wide U-Turn? Tell us about it?
Globalization and an increase in readily available information has vastly changed the dynamics of the real estate industry. In a matter of seconds, a consumer can obtain a list of available homes for sale, approximate valuation, and direct contact information for the listing agent. In one aspect, educated and knowledgeable consumers are a benefit to a transaction, but, as we all know, the internet and media outlets are often not accurate. I recall a seminar I attended when Spencer Rascoff, the CEO of Zillow at the time, declared that Zillow had his parent’s property valued incorrectly by $150,000. Combatting misinformation and disinformation poses a constant challenge to the industry. The consumer often feels confident in their knowledge base, but they are lacking real-time accurate data, and very rarely are educated in the legalities of the industry. I would argue that now more than ever, a professional-seasoned real estate agent is crucial to a real estate transaction.
Furthermore, as inflation has escalated, to levels we haven’t experienced in more than thirty years, housing prices have soared, creating what is known as a “seller’s market”. Many sellers, including new construction builders, have either decreased or fully omitted compensation to the buyer’s agent. Real estate is most often the most expensive asset a consumer will purchase, and we live in an incredibly litigious world. Denying compensation to a buyer’s agent either requires the buyer to have to pay the commission to their agent out of pocket (in some cases the buyer does not have the funds to do this) or requires the buyer to work directly with the listing agent. Working directly with the listing agent creates what we refer to as a “dual agency”. In a “dual agency”, the real estate agent is required by law to become a neutral party at which point both the buyer and seller forfeit negotiating power. Unfortunately, this is becoming more common. Oftentimes, a seller is enticed by the idea of saving money, but what is often unrealized is that by forfeiting negotiating power they usually end up with a lower net profit.
Another challenge we have seem recently is with The United States Department of Veterans Affairs (VA). The VA, to protect veterans, enacted a regulation prohibiting the buyer from paying commission to their agent when using a VA Loan. In the past, this hasn’t been too much of an issue as customarily the seller pays the commissions. However, with the shift in agent compensation, the buyer is now having to increase their offer price by the compensation amount and ask the seller to then compensate the agent. This loophole is allowed by the VA even though the buyer is essentially paying the commission. It is merely structured on paper that the seller is paying. If the property does not appraise at the higher offer price or the seller is unwilling to compensate the buyer’s agent, the VA buyer has no way of legally compensating their agent. I don’t know of any real estate professional who wants to work for free. When contacting the VA with regards to this matter I have been told verbatim, “Well, either the buyer has to proceed without representation or go find another house.” How exactly is this protecting the veteran? In my opinion, the VA is doing the veteran an incredible disservice. This regulation should be reformed as it constitutes a negative shift in “best practices”. These are just a few of the industry-wide U-turns experienced in the industry.
Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.
My interest in real estate sparked at nineteen-years-old. I was convinced I was going to become an investor and coaxed my parents into purchasing my first home with me. I didn’t have the income needed to qualify for a loan, but I knew I could get started pursuing my dreams. I began reading real estate books, “Rich Dad, Poor Dad”, “The Art of the Deal”, and attending real estate investment seminars. One thing led to another and after a series of events including a few years of working in the insurance and lending industries, I ended up where my true passion is.
In 2011, I obtained my broker’s license with a vision of owning a real estate company that brought forth innovation, collaboration, a positive environment; a place where real estate agents could achieve balance and betterment in their lives, and a company that focused on the community. After nearly seven years as the Owner/Broker of RE/MAX Regal in San Marcos, I decided to open a boutique real estate office, Regal, The Property Shoppe. Located in Carlsbad, we specialize in residential and commercial real estate and have a full-service property management division.
There are more than 20,000 licensed real estate agents in San Diego County. The majority transact one to four transactions per year, predominately for family or friends. Approximately 800 of the 20,000 are full-time, seasoned agents. It doesn’t take much to get a real estate license, but it takes years of experience to understand the ins-and-outs of complicated transactions, the legalities, the liability exposure, and to build a network of reliable professional partners. At Regal The Property Shoppe, we go above and beyond the standard duties of a real estate agent and pride ourselves on professionalism.
To provide a recent example, we represent quite a few clients with the purchase of new construction. Each new construction builder has their own contracts typically more than 120 pages long. Most agents who represent clients with new construction attend showings and might partake in the initial offer. From that point on, they let the builder take over with the paperwork. The agent might follow up with the lender to make sure things are running smoothly, but doesn’t have an obligation to do much more. At Regal The Property Shoppe our duties go above and beyond. We read through the contracts, compare lending costs, negotiate for reduced pricing, appliance packages, and upgrade incentives. We attend the framing and blue-tape inspections ensuring the house is provided to the client as intended, new and unflawed. Recently, I discovered a clause on a builder contract obligating the buyer to an additional $1500.00. The clause was hidden in the fine print of a design addendum altering kitchen countertops. The $1500.00 had nothing to do with design but was a decrease in closing costs incentives. After approaching the builder, they chose to stand by the fact that they can alter contracts as deemed fit. Most buyers would either not have caught the change, as they quickly sign electronic contracts, or would have taken the builder’s word that they were subject to the change. After contacting attorneys and threatening to report the builder to the CFBP, the builder removed the clause. This is just one of a few cases we have seen in the past year where new construction builders are adding and amending clauses to their benefit.
How about pivoting – can you share the story of a time you’ve had to pivot?
I am a rarity in that I absolutely love to work. A sixty or seventy hour work week used to be normal for me. Beyond normal, I found it enjoyable. After my daughter was born and with a lot of support from family, I still managed to work long hours and decided to go back to school to obtain my master’s degree. I found myself only present for her bedtime routine. I missed the first time she crawled and her first steps.
In 2020, the pandemic altered the real estate work experience. Open houses become obsolete. Mask and social distancing mandates and a fear of exposure to the virus led many homeowners to withdraw their properties from the market. Government mandates required temporary office closures and health and safety measures thereafter restricted in person-contact. The world was forced to work remotely. The pandemic by itself was a pivot in the industry, but as I became pregnant with my second child, enduring complications that ultimately required permeant bed rest, I was forced to work from home. It was the first time I realized how much I was missing.
Today, my days are structured very differently. Often meetings with contractors, property inspections, and sometimes showings are accompanied by two little kids. Colleagues have become accustomed to zoom meetings with children and a dog in the background. Becoming a mother changed my responsibilities, but it did not alter my work ethic. Rather, it drastically increased my coffee intake, required me to become more efficient, to reevaluate what is most important in life, and to restructure. To my surprise, if the kids aren’t present, I find many of my colleagues and clients are disappointed. They welcome the joy and fun dynamic the kids bring to the meeting. Needless to say, I have learned to entice them with rewards for being good kiddos and my daughter does a great job as a “mini-me” real estate assistant.
Can you talk to us about your experience with buying businesses?
This is a story of resilience, a story that has altered the future of the company. In April of 2019, one of the RE/MAX offices in San Diego County was going to close their doors. The owner approached me in hopes that we might be able to merge our offices. After numerous meetings and what initially seemed like a cultural fit, we decided to merge the offices in what was truly an asset acquisition, but one that allowed management from both offices to merge. This is a lesson learned for me. At first, we were busy combining systems, defining roles, and integrating professional relationships. We quickly opened an escrow division and began to hire.
Unfortunately, during consolidation, management was occupied and neglected to realize the deteriorating culture. The two office cultures didn’t really complement. On the surface the cultures seemed to be the same, but management styles, protocol, and the systems each office was used to were very different. By the time the culture became the focus, the environment was already degenerating. What used to be an incredibly positive, pro-active, and truly fun environment began to turn negative. In a heart-to-heart meeting, I approached the employees and independent agents with an ultimatum that has and is shaping the future of the company. I asked everyone to assess their happiness with the company. If they weren’t 100% happy and didn’t feel like they were in the right place, they needed to leave. The next two weeks resulted in a 50% reduction of our agent count. We more than doubled in size overnight and six months later reduced back down.
I may never know if my ultimatum was the right choice. To this day, I question that meeting. It could have been approached many ways, but what it did result in, was taking a step backwards to reassess my initial vision. As mentioned in a previous interview question, I obtained my broker’s license with a vision of owning a real estate company that brought forth innovation, collaboration, a positive environment; a place where real estate agents could achieve balance and betterment in their lives, and a company that focused on the community. The acquisition was no longer in line with my vision. The exodus gave me a chance to reevaluate everything about the company. It inspired me to go back to the basics and to redefine our purpose.
Over the years, as an owner, I delegated quite a bit. As so many owners, we are busy with our regular duties and are hoping that the tasks delegated are being done correctly. I am about the farthest leadership style from a micro-manager. I believe in empowering staff to be innovative, take initiative, contribute ideas, and to lead in the position that they hold. However, as I was being pulled in so many directions, I neglected to have enough oversight on systems, such as client retention, that hadn’t been revamped or improved in years. The last two years have been focused on refining systems and innovating the company. Sometimes you must take a step backwards, change direction, and go down a different path to get where you are meant to be.
Contact Info:
- Website: www.regalthepropertyshoppe.com
- Instagram: https://www.instagram.com/regalthepropertyshoppe/
- Facebook: https://www.facebook.com/regalthepropertyshoppe/
- Linkedin: https://www.linkedin.com/company/regal-the-property-shoppe
- Twitter: https://twitter.com/regal_property
- Yelp: https://www.yelp.com/biz/ashley-robertson-bedard-regal-the-property-shoppe-carlsbad
Image Credits
Timothy Vechik with James Croft Photography https://www.jamescroftphotography.com