Random Real Estate Thoughts

Can’t verses Won’t

by John Rice

I’m in the middle of the worst part of all real estate deals…………Negotiating repairs after the inspection. 

The seller’s realtor told me, in great length, why the seller WON’T do a couple of repairs we asked for.  I don’t know about you, but when I hear WON’T, it makes me want to dig in my heals and push back. 

One of the repairs was over an issue in the backyard.  They had a major landscape company come in and do a koi pond and patio.  I think the reason for the WON’T was because they just couldn’t emotionally bring themselves to “Undo” the work they have done.  That being the case, if their realtor had just said something like “I’m really sorry, but after putting so much of themselves into creating that wonderful space, the seller’s simply CAN’T bring themselves to makes the changes your client wants.”  Isn’t that much better than hearing WON’T??  I mean, the bottom line is that they aren’t going to budge on that one, but getting it in a pill that is a little easier to swallow leaves us not wanting to push back. 

So, CAN’T is sooo much better than WON’T, even if the results are the same.  WON’T always comes across as aggressive.  CAN’T at least has a chance of getting some sympathy from the other party.  I don’t remember if it was my dad that told me about CAN’T and WON’T or if it was my old mentor Susan Webb.  Both of them are pretty fantastic, so I guess all that matters is that I learned it.

Minimize negatives >accentuate positives

by John Rice

I woke up at 3:44 this morning thinking about the differences between how a buyer and a seller view a house, and what a seller needs to know.

A buyer is going to come in a house, stay for 20-30 minutes if they like it, and wander around all the rooms.  They view the house as a whole at this point.  They are trying to decide if they like the whole thing since they can’t cut and paste features.  This is the main difference.  When a buyer goes from room to room and all colors are different, that just seems random to them.  A seller sits in each room for longer periods of time and tends to view the house as different individual spaces.  Same thing for finishes.  When a buyer sees nickel door knobs, a gold light fixture, and maybe black cabinet hardware, it throws them off.  It has a confusing vibe for them, just as it would for you if I spent the next few paragraphs talking about the Olympics and how much more I like coffee from South America than I do from Kenya.

If you are a seller, the best thing you can do is to give your house that cohesive vibe.  Paint all the walls the same color.  Makes things match.  It sounds silly, but those things have a calming effect on people.  People want to feel calm/relaxed in their home and this is one way to make  a buyer feel that way.  If two houses are side by side and identical, the one with the cohesive vibe is going to sell before the one with every room a different color.

Now I don’t want to make this about updates.  I think HGTV and Tik Tok have us convinced that   white shaker cabinets and shiplap are all it takes to make ANY house sell.  I’ve been in  houses that are totally random, but have these upgrades.  You know what happens if the house has the random vibe?  All a buyer does is want to cut and paste those features to another house.  They say they really like this or that feature, but they don’t buy it. 

Often, real estate is more about minimizing negatives than accentuating positives.

When houses attack

by John Rice

You know what is wild about being a realtor for close to 20 years? The memories.

All the time when I’m driving around town, I will pass a house I have shown at some point and remember something about it or my clients. Occasionally I will be way out in the country on drives with friends and suddenly see a house I showed a long time ago.

My car club had a drive last weekend. A few of us decided to go through Midway on the way home. We went through a neighborhood where I had a listing 12 years ago. I will always remember that house.

Why?

Well, here is the story.

The seller was a friend from high school who was moving back to Lexington. I had already found him his new house and it was time to sell this one. He was out of the country the day it was going to hit the market. I had to run to the house to put a sign in the yard, a lockbox on the door and check on a few last minute items before showings started.

He just had new carpet installed and wanted me to take off my shoes, which I did before I stepped inside. Just then, a very loud alarm started going off. Not the kind that just beeps inside the house. This was like a severe weather siren attached to the outside of his house.

He had told me the alarm would be off.

I decide the best thing to do is turn the power off for the whole house. I run into the garage in search of the electrical panel. I flip the light switch, and it remained pitch black. The bulbs were burned out. I turn on the flashlight on my phone and take my first step into the garage. OUCH!!! Every step hurt like crazy but I was on a mission to get that darn alarm turned off. I turn all the power off for the house. The alarm did not stop. It had a battery backup. I run back, barefoot, into the house in search of the alarm’s back up battery. Meanwhile, I see neighbors starting to gather in the driveway. Ugh, the battery is in a metal box that needs a screw driver to open, so back in the garage to find one. FINALLY, the alarm is off!

Next thing I know, I am outside assuring the neighbors that all is well. Turns out the alarm is not monitored and it wasn’t the first time it has gone off. One of the neighbors told me they hoped the new owners would remove it.

By this time, the adrenaline is wearing off and I remember my feet are hurting. Remember all this has happened with me being barefoot since I was asked to remove my shoes.

I opened the garage door before I left to see what was all over the floor. I had no idea that my client had a hobby of doing something with metal. The whole garage floor was covered with metal shavings which as you can imagine are quite sharp.

This would have made one amazing video on Tik Tok had somebody recorded it.

How much do updates really add in value?

by John Rice

I often run across articles in the news about what specific updates give the most return for the money spent.

While I appreciate that somebody took the time to research this, I sort of roll my eyes as I read them.

For example, if your house is a hot mess but you put a brand new garage door on, trust me, your house didn’t grow in value by 87% of the cost of that new garage door.

Why doesn’t it work that way? Well, because the buyer is looking at the whole house, not each individual feature.

A few weeks ago I showed a house that looked absolutely fabulous online. The kitchen and flooring were brand new. It was a total WOW house…..online.

When I pulled in the driveway, I wasn’t sure I was at the same house. I had to check the address!

The exterior of the place was very rough. The original windows had peeling paint and cracked window glazing. The driveway was cracked up and probably hadn’t been recoated since the 80s.

It didn’t get better once I got inside. The lockbox was on the backdoor. The addition on the back that I had to walk through had 1970s paneling that clearly had water damage under that fresh coat of paint. The basement was pretty much lipstick on the world’s ugliest pig.

But oh that kitchen!!!!

Here is the thing. The buyer who sees that kitchen and is willing to pay the seller back for their investment is expecting the rest of the house to be equally as nice. The buyer who doesn’t mind the condition of the rest of the house isn’t going to want to reimburse the seller for that gorgeous kitchen.

I see that all the time having shown houses like this for the past 19 years.

For this house, the seller didn’t really get much of a return. I think they might have sold for almost as much had they not done the kitchen at all. It would have been wiser to have taken the money spent on the kitchen and spread it evenly across the whole house, rather than put all their eggs in that one basket.

When is the best time to sell your house?

by John Rice

I’m seeing a lot of buzz lately saying right around now is the best time of year to sell your house. Many realtors post these articles. I can’t blame them. We are always saying “Now” is a good time to do anything, lol.

I am in now way doubting the statistics. Numbers don’t like. The problem though is knowing what they mean.

Fact: There are more buyers out in the market in the spring. It’s always been this way so I don’t see the newsworthiness of it.

Fact: The likelihood of your house selling for top dollar is less dependent on when you list than it is on the condition of your house and how it fits in the market…..meaning, how do buyers rank your house compared to what is currently available to them in terms of condition, price, floor plan, lot and location.

I have sold plenty of houses in multiple offers the very first day on the market back in 2008-2010. That was when it was an extreme Buyer’s Market.

It is a simple formula really.

You do some prep work. Fix anything that is going to keep a buyer from saying yes to your house. You want them to leave their showing with a positive emotional response. If there is work to be done on your house, they leave with a logical response. They are thinking about what they need to do to your house and how much it is going to cost. If they even make an offer, it will be less since they are deducting the cost of those repairs. So, leave them with nothing to do but fall in love.

Price it right. I don’t mean use what zillow, a recent appraisal or an AVM says the house is worth. Do some real research. See what has recently sold in your neighborhood. See what is pending in your neighborhood. Pending sales, while you don’t know the actually sale price until it closes, can tell you what buyers are doing in real time.

The last step is the most important one. You see what other choices a buyer has maybe 15% below and 15% higher than the value of your house. Then you price your house so it is clearly one of their top choices. Why? Because after 19 years in this business, the one biggest thing I have learned is that every buyer wants the best house they can get for their budget. As long as you have one of those houses, it will sell quickly for top dollar in any market and in any time of the year.