The Saga of My Hot Tub: A Study in the Difference Between Real and Personal Property

In real estate, the terms "real" and "personal" property come up regularly. What exactly do they mean? REAL property is land and everything permanently (more or less... Father Time has a tendency to assure nothing is really permanent) attached to a piece of land, like buildings, trees, or that maypole you  installed that was inspired by the local Renaissance fair. 

This is where the term real estate comes from. Sometimes things like crops are considered "personal" property, but that's another topic for another day.

Personal property, on the other hand, is anything that's not real property. This almost always includes everything that isn't real property. Got it?

Excellent!

The Hot Tub Saga

Way back at the turn of the millennium, I was a young high school teacher in Michigan purchasing my first house with my practice wife (aka "first marriage".) We had hired an experienced agent as our buyers' agent to help us find our dream house. After searching through the MLS (that's the database we use to list houses for sale), we identified about seven houses that met our criteria. 

We toured all seven. None were spectacular, though one house was interesting. It was a 2,200 square foot house that took up the entire lot. The only other space not occupied by the house was narrow driveway on one side... which happened to be the opposite side of the house where the door was located.

It was one of the dumbest designs ever.

Anyway, since it was the cream of the crop, we were preparing to make an offer. Hours before submitting the offer, another house came on the market. It was owned by a couple that both taught in my same school district. We decided to hold off on the offer for a day and look at this new house. 

We were glad we did.

The new listing was spectacular. It was filled with ornate, turn of the century woodwork and thick oak floors. We fell in love instantly. The best part? It had a hot tub on the deck in the back yard. In Michigan at the time, that was a bit of a rarity in our price range. I absolutely love hot tubs, especially those that aren't communal. What can I say; I like being naked. The hot tub was listed as a feature of the property on the MLS, so we assumed it was part of the deal. It looked something like this:

We decided to write an offer for the new listing. Because we had already looked at every house in the price range, we knew this was undoubtedly the best of the best, so we wrote a full-price offer. The sellers were ecstatic to receive a full-price offer (in a buyer's market at the time) in a matter of hours. In fact, they were so excited, they decided to submit a counter-offer for the same price but without the hot tub.

Needless to say, I was pissed. I wanted that hot tub, damn it! Our agent went to bat for us by arguing that the hot tub was a fixture, which is personal property that's attached to the real property, much like a furnace or dish washer. They were arguing that it wasn't a fixture because it was only wired to the house, not actually secured to the deck. 

Their agent, sensing this particular house was the best in the price range given our immediate interest, wisely advised the sellers to wait and see if more offers would be coming in.

We were kinda screwed. 

Even though the hot tub should have been included given it was included in the MLS listing, we knew fighting for it legally would be an expensive endeavor that may cost us the house. We relented and allowed them to exclude the hot tub from the offer because we really wanted that particular house. The sellers, feeling bad for the whole issue, let us "keep" the hot tub for a few months before moving it to their new house. 

The Lesson Learned

The loss of the hot tub taught me an important lesson about the difference between real and personal property, and what is considered a "fixture" that would normally be included in the purchase agreement. The rule of thumb: If it's permanently attached, it's real property. If it's movable, it may be considered a fixture in which case it's negotiable (like in the case of the hot tub.) If it's not attached, it's considered personal property. If it's considered personal property, it could still be included in the purchase, but I would recommend the sale be executed separately from the real estate deal. 

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San Diego: Eleven Reasons Why I Love It!

A few years ago, my wife and I decided to quit our high school teaching jobs in Michigan and travel the country in an RV with our three children (at the time ages six, five, and two) and our niece. We were conducting running clinics in conjunction with Merrell while also promoting my two books, The Barefoot Running Book and Never Wipe Your Ass with a Squirrel. This'll give you an idea:

Anyway, our travels lasted about two years and covered approximately 50,000 miles. We visited forty-six states and spent significant time in about thirty. We got to see pretty much every major city and geographic region. After all of our travels, we were free to settle anywhere.

We chose San Diego.

Why? San Diego County was, without a doubt, the single best area we visited. We liked the area so much, we spent about a month here during the travels. Having lived here for three years, it's easy to see why this is such a desirable relocation destination. Here are some of the things that caused us to fall in love with the area.

1. The beaches. Sand. Surf. Sun. Bikinis. 'Nuff said.
2. The mountains. When we first moved here, we were still very active in the trail running scene, and San Diego has countless great trails covering all kinds of terrain. We could train for pretty much any kind of race without leaving the county, including moderate elevation between four and five thousand feet. Since we don't run as much, we still appreciate the sweet mountain views we have from our living room. 
3. Mexican food. We love food. We really love Mexican food. We've spent significant time in Texas, New Mexico, and Arizona and can safely say San Diego's Mexican food blows the rest out of the water. 
4. Our gym. San Diego is known as a hotbed for mixed martial arts and Brazilian jiu jitsu. My wife and I train both at one of the oldest in the city - the San Diego Fight Club. It's a great way to stay in shape, build confidence, and let off some steam. 
5. The weather. Specifically, the sun. Back in Michigan, we had constant cloud cover from the Great Lakes (54% of days were mostly cloudy.) It sucked. Here in SD? We get FAR more sun (32% cloudy), especially away from the beach and the "marine layer" (what the rest of the country calls "fog.") And the temperature? At the beach, it's pretty much always between 65° and 75°. If you want moderate heat and more sun, go to the inland valleys. Want cold? Go to the mountains (it snows there!) Want extreme heat? Go to the desert east of the mountains. 
6. The diversity of people. Especially the hotties. Around half of San Diego's population came from outside California. It creates a TON of diversity, which gives the region a strong multicultural feel. And the hottie part? We have miles of world-class beaches, tons of outdoor exercise opportunities, and a huge military population. All that adds up to an exceptionally fit population, which makes trips to the beach even more enjoyable. 
7. Very few bugs. In Michigan, we had seasons such as "black fly season", "mosquito season", and "deer fly season." If you went outside and there wasn't snow on the ground, you could count on being inundated with some sort of flying pest. San Diego, given how little rain the area receives, has very few insects. This last year? I killed one house fly. All year. If you hate insects, you'll love San Diego.
8. The casual dress and attitude. Flip-flops and board shorts every day? Yes please! This is a function of the general easy-going attitude that dominates the region. The pace of life in San Diego is a lot like Hawaii... it's exceedingly stress-free.
9. Ample entertainment possibilities. We don't do a lot of traditional "tourist" adventures, but San Diego has a wealth of activities. Sea World, Legoland, water parks, museums (including the USS Midway), piers, festivals, farmer's markets, strip clubs, wineries and breweries... you name it, San Diego has it. 
10. East County is a lot like the Midwest, but more laid back. So my wife and I both grew up in relatively rural areas with a strong small town feel. The East County area sandwiched between the inland valleys and the mountains has a distinct rural feel while still providing all the amenities of the urban lifestyle. Specifically, we get a lot pickup trucks, tattoos, and country music. 
11. Close to LA, but not too close. Before spending time in the area, I assumed Los Angeles and San Diego were basically the same city. Damn, was I wrong. Each city has its own unique vibe. LA is busier, has more traffic, and feels a lot more like urban sprawl. San Diego is more laid back, easier to navigate, and slightly more conservative. LA feels like Dallas, Houston, or Nashville; San Diego feels like Austin or Seattle. 

There you have it. Eleven reasons why we decided to stick around San Diego when our travels came to an end. 

San Diego peeps - why do YOU love San Diego? Leave a comment!

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Passing the Real Estate Salesperson Test

In my last installment, I discussed the process of studying for the California real estate salesperson exam. In this installment, I'll tackle the actual taking of the test. As I discussed in that last post, the test is computerized, consists of 150 multiple choice questions, and has a three and a half hour time limit. A score of 70% (105 questions) or better is required to pass. Since it is a qualifying test, you don't get rewarded for scoring higher than 70%. Hell, they won't even tell you your score if you pass.

With that in mind, I'll propose a 24 hour plan that, once executed, will dramatically increase your chances of passing the test the first time. I'm working off the assumption that you've a) successfully passed all the required coursework and managed o retain or study enough to actually be able to answer 70% of the questions correctly, and b) read the "Understand the Psychology of Test Writing" section in the previous post. 

Before I jump into the actual plan, there are a few prerequisites:

• Know progressive relaxation. This is a cool trick that completely relaxes your body in a matter of minutes. Relaxation is important because anxiety reduces your ability to recall information you've stored in long-term memory. The idea is to lie down, slow your breathing, then systematically clench and relax muscle groups around your body. With only a few trials as practice, you'll get good enough to be bale to go through the progression while sitting in your seat immediately before you start the test. A more detailed guide can be found here. 
• Irrational self-confidence. Back when I was a teacher, the power of expectation never ceased to amaze me. Simply telling a kid "Wow, you're one of the smartest kids I've ever had in class" immediately before taking a test would result in anywhere from a 10 to twenty percent jump in their score over their average, all because it boosted their self-confidence. You can do the same trick by repeatedly telling yourself "I'm a great test-taker!" The funny thing? You don't even have to believe it.
• Cramming. Cramming for tests gets a bad rap, probably because teachers assume that last-minute cram session is all the studying their students do. But cramming really does work. The trick is knowing exactly what to cram and when to do it, which I'll discuss in a minute. 
• Caffeine or no caffeine? Caffeine generally helps increase attention and facilitate memory recall, but it can also increase anxiety. My rule of thumb: Test with the exact same amount you used for studying, no more, no less. That idea is based on the concept of state-dependent learning, which I discussed in the previous post. 
• Bootstrapping and retrieval cues. "Bootstrapping" is a testing term that refers to the process of answering the easiest questions first, then using them as memory retrieval cues for the more difficult questions. The real estate salesperson test lets you jump around, so this is a valuable strategy. 

The Plan

The day before

We'll start our test-taking plan the day before the scheduled test date. This is the most important study day you'll have; take the day off. The goal for this day is to review ALL of the material that'll be on the test and identify the stuff you definitely know, stuff you kinda know, and the stuff you do not know. I accomplish this with two legal pads, one labeled "KINDA" and the other labeled "CLUELESS." There's no need to make a note of the stuff you already need to know. 

Start in the morning and work in blocks of 15 minutes with 15 minute breaks. During the study blocks, either review the summaries of each chapter in the "real estate principles" book OR go over practice questions. When you encounter a question you can't immediately answer, add it to one of the two legal pads depending on your familiarity with the definition or concept. 

The purpose of the blocks (versus one huge study session) is to prevent the serial position effect, which happens when we remember things at the beginning and end but not in the middle. By breaking up the sessions with breaks, we can dramatically increase our capacity to encode (memorize) all the material. 

Once you get through all the material, review your "KINDA" legal pad. Just by virtue of studying all of the material, some of it will be committed to memory. Place a check next to the stuff you definitely know, then review the remaining material.

Next, go to the "CLUELESS" legal pad and do the same thing. Check the things you definitely know, then add the stuff you kinda know to the "KINDA" legal pad. Now review the stuff you do not know.

Repeat this process until you know everything OR run out of time. At the very end of the test session, review the "Understand the Psychology of Test Writing" section of the last post. Ideally, go to bed early enough to allow for seven to nine hours of sleep. 

As far as other logistical considerations, make sure you drink plenty of water and eat several healthy meals. Avoid extremely greasy foods, food with a lot of fiber, excessive alcohol or other drugs, and rigorous exercise. I also like to know exactly where the testing will take place, so I map the route via Google Maps and estimate the travel time with traffic. I also gather all required documents and other materials the night before, like forms, identification, an approved calculator, etc.

The day of the test

Wake up several hours before the test. Go through your normal morning routine (breakfast, showering, dropping a deuce... whatever.) Skim both legal pads. By now, you should have far more than the minimum required 70% of the material committed to memory... this review is just icing on the cake. Just like the previous night, review the "Understanding the Psychology..." section. 

Once you finish reviewing, I found a short, relaxed walk provides just enough distraction and light exercise to put me in the right state of mind before leaving for the test site. Dress in comfortable, quiet clothing. 

Gather all the required documents and other materials, your two legal pads, and anything else you might need. Drive to the site. Since most testing sites have strict rules on what you can and cannot bring into the testing site, I prefer to arrive about 30-45 minutes before the report time, then do a last-minute cram session in the parking lot. Weird, but it works. 

Once you enter the test site, do all the required logistical stuff like filling out forms, signing in, turning off your phone, etc. When you're in your seat and ready to take the test, go through the progressive relaxation routine one last time, then repeat to yourself "I am going to ace this test!" repeatedly until it's time to begin. 

Once the test starts, use the bootstrapping technique to answer all the questions you definitely know, then complete the questions you're pretty sure you know. If you studied correctly, you should already have more than 70% correct... but don't give up just yet. Hopefully the questions you did know provided enough information to allow you to answer the tough questions. If not, apply the multiple choice principles from the last post. 

If time allows, review all of your answers. I like to do this on the off chance I made a mistake and marked the wrong answer. I almost always leave my first choice instead of second-guessing myself unless I have overwhelming evidence my initial answer was wrong, but your mileage may vary. I've found I tend to get answers wrong when I change them, but, according to our best research, this isn't always the case. 

Once you're confident you've done the best you can do, submit. Of course you'll have passed because, well, my advice is awesome! Save the dancing until you leave the testing facility. 

Once you've passed the test, next up is completing the application process, then you're well on your way to becoming a real estate tycoon!

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How to Prepare for the Real Estate Test

In the last post, I discussed the coursework required to be able to take the real estate salesperson license in California. In this post, I'll talk about preparing to take the test itself. Luckily, taking multiple choice tests is a bit of a specialty of mine.

I spent wayyyy too long in formal education. I've earned an associates degree, four majors as an undergrad, and a master's degree. I spent twelve years teaching high school psychology, which also included a whole lotta test writing and diving into the mind games that are possible with multiple choice tests. In short, I've spent years taking, writing, and administering multiple choice tests. All of that experience gives me the tools to plan and execute a study routine that assures success with minimal effort.

Test Format

The first step is to understand the nature of the test itself. The test consists of 150 multiple choice questions, each with four possible answers. It's in electronic format and you can go back to review questions already answered. You're given three and a half hours to complete the test. A score of 70% is required to pass. It's qualifying in nature, so it doesn't matter how high you score over 70%. Finally, there is no penalty for guessing.

Given this information, we can begin the planning process. The time limit is extremely generous with 84 seconds for each question. When we take practice tests, we can measure the average time it takes us to answer each question, which will give us an idea of how long it will take us to answer all 150 questions. With the extra time, we can review any question we may not have been 100% confident in our answer.

This is a very good thing. Because the test writers, based on everything I've read, do not intentionally try to mislead you, some questions can be used as memory retrieval cues for other questions. For example, you may have forgotten what "Mello-Roos" means, but the answer in another question gives you a hint that it's a type of special assessment.

Since we know the entire test is multiple choice, has four possible answers, and has no guessing penalty, we can plan even more. We have a 25% chance of guessing the right answer without even reading the question. If we can eliminate one of the possible answers, our odds increase to 33%. Eliminate two and our odds increase to 50%. When we take practice tests, we can get in the habit of eliminating answers we know are incorrect to increase the odds of guessing.

Understanding the Psychology of Test Writing

Test writing is an interesting endeavor. Any decent test taker will attempt to write questions in a way that assesses the test-takers' knowledge while making the test seem as random as possible. In other words, they want to make sure you're not just learning patterns. Of course, it's impossible for humans to do this; we always fall into patterns. Lucky for us, we all kind of fall into the same patterns.

When I used to be a full-time teacher, I LOVED writing multiple choice tests because my students (all were college-bound juniors and seniors) were very experienced test-takers. They knew the game. Without studying, most of them could pass tests based entirely on their knowledge of taking multiple choice tests. My goal as a test writer was to use their knowledge to trip them up. And I was really good at tripping them up. Here are a few common rules they had learned:

• Choose the longest answer. The longest answer is often correct because it contains qualifiers that are needed to explain why the answer is the most correct.
• Answers incongruent with the other answers can be eliminated. Often, one of the four answers will seem out of place compared to the other three. That question can be eliminated.
• All or none of the above are usually right about half of the time. The presence of an "all of the above" or "none of the above" usually indicates it's either the right answer or it was thrown in to break up the pattern of "alls" or "nones" always being the right answer. The result - a shift in probability. Also, if one of the other three answers does not meet the criteria of the absolute answer, the absolute answer is not the right answer. 
• Sometimes grammar can be used to eliminate a possible answer. This is just a quirk in human psychology. The test writer focuses more on the right answer than the wrong answers, and may occasionally mess up the grammar in one of the wrong answers.
• When you encounter look-alike answers, one is almost always correct. Two similar answers almost always means one of them is correct. 
• When you encounter two answers that are opposites of each other, one is usually correct. Same deal as the above tip.
• If an answer says the same thing as another, it's wrong. If there's only one possible answer (like on the real estate test), two answers that say the same thing have to be wrong and can be eliminated.
• Always avoid absolutes. Most of the time. Terms like "never" or "always" usually means an answer is wrong. There may be an exception on the real estate test, especially when dealing with legal questions. 
• Extreme answers are usually wrong. This usually pertains to math questions. If one answer is wayyyy out of the range of the others, t's almost always wrong.
• All of these tips are just guidelines. There are always going to be exceptions, but these rules almost always result in a higher probability of answering questions correctly. 

How, What, and When to Study

All of the tips given above are ways to hack the test itself, but the real key is actually knowing the material. Since the real estate test is qualifying and really just a hurdle meant to weed out really unqualified agents because most will lear skills under the tutleage of an experienced agent, committing all the test material to permanent memory is unnecessary. You just need to remember the material long enough to pass the test. With that in mind, I recommend the following strategy:

Take as many practice tests as possible. 

Kaplan's three textbooks contain practice questions at the end of each chapter. Between the three books, there are hundreds of possible questions to practice. More tests and questions can be found by Googling "California real estate practice test" and "real estate practice test." The former will return results specific to California; the latter will return results related to the industry in general. Together, you should be able to find thousands of practice tests.

If those aren't sufficient, there are quite a few options to purchase test banks. Kaplan offers one, as does most study, testing, and tutoring companies. 

Okay, so what's the best way to go about studying? I recommend diving the study time into four to eight 15 minute blocks each day, then repeat this for four weeks. This is preferable to studying in huge blocks of time because it eliminates what is known as the serial position effect. This effect causes us to remember the beginning and end of something, but forget all the stuff in the middle. That's why so many people never remember the middle lines of the Start Spangled Banner. 

Where you study is also important due to an effect known as "state-dependent learning." Our brains have an uncanny ability to recall information in the same conditions we memorized the memory, which includes both our external environment and our internal state. This means we want the study conditions to be a close to the test conditions as possible. You'll likely be taking the test sitting upright at a computer in a quiet room lit with fluorescent lights. You won't be able to eat or drink. Based on that, every one of your study sessions should match these conditions as closely as possible.

Following all of these tips will put you in an excellent position to ace the test. Well, pass it with that minimum 70%, anyway. In the next post, I'll discuss the actual taking of the test, including how to reduce the anxiety and set yourself up for success.

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How to Become a Real Estate Agent: Passing the Real Estate Classes

This last week, I passed the last of the three classes California requires as a prerequisite to taking the real estate licensing exam. I use the term "classes" loosely; they really involved reading a book then taking an open book test.

All in all, the coursework is pretty simple. I chose to do mine through Kaplan, mostly because their at-home study program was cheap and didn't require attending classes. I could read the books at my leisure, then take the tests afterward. There are three classes, two of which are required. Principles of Real Estate and Real Estate Practice are the two required; The Legal Aspects of Real Estate is the third, which was an elective.

The actual coursework is essentially a whole lot of terminology and concepts related to the real estate industry. Most of it is generalized to the entire industry, but some is specific to California. The coursework itself would be a very poor preparation for the career, but licensees are required to work under a real estate broker in an apprentice-like role.

The state requires eighteen days between classes, so that was mildly annoying. Given that they're open-book tests with 100 multiple choice answers and a two-and-a-half hour time limit, it's possible to simply look up every answer in the book if you're adept at using a glossary and index. I actually read most of the material because it was interesting and would eventually serve a utilitarian purpose, but most of it was pretty dry.

Regardless, I got through all classes in the minimum fifty-four day time frame. The next step? Apply to take the state licensing test. California uses a decidedly inefficient system that requires me to mail an application which will allow me to register for the test online, so that will add four to six weeks to a process that could be done in five minutes. 

In a future post, I'll explain exactly what I'm going to do to study for the test. Hint - I'll drop a few nuggets of wisdom on hacking multiple choice tests. It's one of the benefits of my psychology background. Stay tuned!

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Christmas Trees: Real or Fake? Which One is Better?

Every year, I have a few friends that insist on sparking the debate over Christmas trees. Which one is better, a real tree or an artificial tree? While I acknowledge most people make this choice based on their own personal opinions and preferences, it might be fun to really explore some of the details of the issue. 

Appearance

Which one looks better, the all-natural version or the fake version? Take a look:

Oops, wrong picture. My bad. How about this one?

Aesthetically, well-trimmed real trees and high quality artificial trees are virtually indistinguishable. This is especially true since fake tree manufacturers started adding small imperfections into the design of the trees. They look really good, but not too perfect.

TIE.

Cost

When we move to finances, there's a pretty clear winner. According to the National Christmas Tree Association, the average cost of a tree in 2014 was $39.50, which would obviously have to be paid every year. There's also the cost of the stand for watering, a skirt to catch all the dead needles, and the cost of disposal. 

Compare that to the average cost of an artificial tree. According to the same organization, the cost of a fake tree is $78. Unless you're really into consumerism, an artificial tree will last anywhere from five to thirty years. 

FAKE WINS.

Longevity Throughout the Season

The real thing is great when you first bring the tree home. The branches are firm and supple; there's very little drooping. As the season wears on, gravity takes its toll. You can try supporting the branches the best you can, but there's no escaping age. By the end of the season, the tree is virtually unrecognizable compared to how it looked in its youth. 

Fake trees, on the other hand, remain perky far longer. With care, they'll remain that way indefinitely. Even when the tree gets quite old, it still retains the look of a much younger tree.

FAKE WINS.

Smell

Okay, this one's a little odd, but a lot of people really like the "piney" smell of the real trees. I grew up in the sticks in rural Northern Michigan and spent countless hours roaming around coniferous forests. The smell of pine trees always brings back a flood of warm memories. With a real tree, you get a long-lasting pine air freshener that'll last the entire holiday season. With the fake tree, you get PVC carcinogens like such as dioxin, ethylene dichloride and vinyl chloride, and even lead.

REAL WINS.

Feel

While we don't normally go around groping every tree we see to determine if it's real or fake, sometimes you get a chance to cop a feel. While it's a sometimes controversial opinion, I definitely prefer the feel of the real thing. The fakes are nice to look at, but touching them just feels... unnatural. It's not a deal-breaker, but it is something to seriously consider. 

REAL WINS.

Environmental Impact

As it turns out, scientists have actually studied this issue at length. One of the best studies was conducted by the American Christmas Tree Association. I know what you're thinking... how many damn Christmas tree associations are there?!? 

Anyway, their research found the issue boils down to how long you plan on keeping the artificial tree. If you're keeping it less than nine years, real trees have less impact. Longer than nine years? The artificial tree with have less impact.

I'm going to work off the assumption that most people are fundamentally kind of lazy and aren't going to bother replacing their artificial Christmas tree more than once per decade, so I'll give the win to the fake.

FAKE WINS.

Conclusion

Based on this incredibly in-depth, scientific analysis of real versus artificial trees, I would say fake trees barely nudge out real trees. It's close, but the fact that the fake trees don't die is really the deciding factor.

What do you think? Real or fake? What are your experiences with either one? Has anything ever happened that made you chose one over the other?

Share your experiences in the comments section!

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