Month: October 2016

The peas and carrots can touch now

by John Rice

It was 1987.  A friend of mine lived in a brand new house in Cumberland Hills.  It was gorgeous and seemed huge to me.  I lived in a Bungalow in the first block of Kenwick.  His parents paid $148,500.  Two years earlier my parents paid $58k.

Today, if equally updated, the Cumberland Hills house might be worth $300k.  Our 1920s bungalow would pull around $400k.

My how things change.

Lexington has always been a town of either older or newer houses.  You had Chevy Chase and Ashland Park if you wanted a nice older house.  You had Greenbrier and Westmoreland if you wanted to pretend you lived in the country.  Everything else was generic new construction of various price ranges or older affordable houses.  You didn’t see much variety of prices within a neighborhood either.  If Lexington was a plate of food, it was the plate of that person we all know who doesn’t like any of their food to touch.

Today, it seems like it is okay for the peas to touch the carrots and some of the gravy to run on the roll.

An incredibly renovated house on Lakeshore Drive listed for $1,200,000 sells as soon as it hits the market and it is surrounded by mostly $500-600k houses.

A house on Townley in Meadowthorpe sells for $275k.  This is one of the highest prices EVER in Meadowthorpe.  Townley had always been the most affordable street in the neighborhood.

The renovated houses on Rand Ave sell for about $170 a square foot.  Very little of Lexington gets that kind of money per square foot.

There is more and more interest in living downtown.

The north end of Lexington seems to be losing it’s stigma as being the “Bad” side of town.

The Hamburg area seems to be equal to the southwest side of Lexington in terms of housing stock, good performing schools and retail/dining/entertainment.

I think all of this is a good thing.  I think there are a lot of factors driving all the change in the market, all happening at once.  We’ve got first time Millennials transforming downtown and several affordable north end neighborhoods.  Downsizing boomers are wanting smaller homes closer in town, selling their bigger houses on bigger lots to Gen Xers.  The market is good.  People are in a mood to move.  We’ve almost run out of room to build, so we are seeing more of an interest in renovating existing houses.

Who knows….maybe in another 30 years that Cumberland Hills house may be worth more than my old Kenwick house again?

Rinse, wash, repeat-The secret to my success

by John Rice

I’ve never really done things in a conventional way.

Before I got into real estate, I owned a lawn care business.  Believe it or not, I really like cutting grass.  It’s great to be outside and to take a look at the yard once you are done.

I was working at another lawn care company when I decided to go out on my own.  I had a $99 push mower from Wal-Mart that I would put in the back of my Dodge Colt.  My wife called it the Grass-Mobile since it had grass clippings everywhere.  It smelled like gasoline too.  I would see my past co-workers around town.  They all had a good laugh at my expense because I am sure I did look pretty silly driving around town with a mower hanging out the hatch of my car.

I did a great job and showed up on time.  I didn’t cuss or smoke and customers felt good about communicating with me.  My single female customers were not afraid of me.  The threshold for success was low in that business.

Before long, I was able to buy better equipment.  I also got a truck, then added a trailer.

I would see the same former co-workers around town and instead of laughing at me, they would ask me questions on how I did it.  I was always happy to tell them.  My attitude was that all I needed to be in business was a customer and to do a good job.  Rinse, wash, repeat.  I stepped out with not much and it grew organically.  They would look at me like I was crazy and say that they would need to start out where I was at that time.  I wished them luck and went on to my next yard.

Flash forward a bit to 2005.  I’ve just gotten my real estate license.  I joined the biggest firm at that time.  I was told I needed to do things like send people football schedules, flower seeds, and let them know when the time changes would be.  I’ve never understood why the realtor community bears the responsibility of letting the world know when to change their clocks forward of backwards?

I told them that I didn’t want to lick stamps all day.  I got into real estate to DO real estate, not to try to drum up work.  They thought I was crazy.

They said I needed to remind people I was a realtor.  I told them that if I had to remind people to use me again, I must not have done anything worth remembering and didn’t deserve to be used again.

So, slowly I built my real estate business based on word of mouth.  The only advertising I have ever done has been to promote two blog posts on Facebook.  I’ve spent $20.  That is why you’ve never seen me on the shopping carts at Kroger or seen my face as you drive around New Circle Road.  I had a client who referred his mother to me several years ago, a lady I have enjoyed becoming friends with, she said to me “Jimmy tells me you are a top realtor in town.  I’ve never heard of you.”

My proudest accomplishment is that 75% of my work is from past clients and referrals from past clients and friends.  That is the way I want it.  I want to do such a good job that people remember me and send their friends and family to me.

Over the years, I have had several agents approach me about how I did it.  I have always been happy to tell them.  My attitude was that all I needed to be in this business was a client and to do a good job. Rinse, wash, repeat.  I stepped out with not much and grew this organically.  They too look at me like I am crazy and want to be where I am overnight.  I usually wish them luck and move on.

 

Common mistakes sellers make

by John Rice

Besides thinking the people on HGTV really know a lot about real estate, below are the most common ways sellers shoot themselves in the foot.  Granted, we are in a hot market and buyers are easier to please these days, but there are 228 houses in Lexington in the $100-500k range that have been on the market for more than 60 days…..not EVERY house in town is selling in multiple offers the first day on the market.

Here goes:

1. When sellers don’t finish moving out. If you are no longer living in the house, get ALL of your stuff out. You know you are going to have to do it anyway, right? It will make your house look better. Better looking houses sell quicker. Time is money.

2. When you don’t paint because you think you are somehow doing the buyer a favor by leaving it up to them to paint. I hear this a lot: “I don’t know what color the buyer will like and most buyers always paint after they move in anyway.” I can tell you that bad paint keeps a buyer from making an offer. If it doesn’t look good, they don’t want it. Fresh neutral paint is the cheapest thing you can do you make your house easy for a buyer to say YES to.

3. Leaving a lot of room for negotiating. An over inflated price usually drives buyers away. I see all the time where a seller will list for far more than the house is worth and eventually sell it for a little less than it is worth. The best model is to price it right from the start. If a house has been on the market for a long time, buyers assume there is no risk of losing it so they make a low offer just to see what you will take.

4.  Not doing any obvious repairs.  As a seller, your goal is to make it easy for a buyer to say yes to your house.  You want them to be excited and fall in love.  If a buyer walks in and immediately sees work that needs done, they begin to subtract whatever they think it would cost to change it, and they usually overestimate the cost.  You want your buyer to be walking around your house falling in love with it rather than subtracting repair costs off your list price.

I hope this helps you when it is time to sell.  The worst thing that could happen if you did all of this is that you sell your house for top dollar in multiple offers the first day on the market.