Proof Sellers Shouldn’t Do Their Own Marketing

by John Rice

I was reading the marketing remarks for a For Sale By Owner listings the other day. Like most FSBO marketing remarks, it was light on what matters to most buyers and heavy on the minor things the seller found fascinating about the home. This particular one went on and on about the different fruit bearing bushes. Not that I am saying that doesn’t matter. Just saying that feature might appeal greatly to 5% of the buyers and 95% will wonder how hard it is to maintain all that. You only have a buyer’s attention for so long. If you have loooooong marketing remarks, you need to keep them interesting. The moment people get bored they do what? That’s right, they move on.

While my wife and I were watching Doctor Who with one of our sons, I got to thinking about the time we were in the market for a Subaru Outback. A used one. We decided we wanted one with the 6 cylinder engine and leather seats. My wife wanted one with the big sunroof too. That meant a Limited one or the L.L. Bean Edition.

The 6 cylinder ones were hard to find. You could find a zillion 4 cylinder ones with the other features we wanted. Then one day I find a classified ad from our local paper. All it said was “2008 Subaru Outback. ‘Si Drive’. $23,000.” That was it. I often wondered how many calls this seller got on the car with that description. See, the “Si Drive” feature was ONLY available with the 6 Cylinder cars. The 6 cylinder cars only came in the Limited and L.L. Bean trim levels. So, I knew THIS was the one we were looking for.

We bought it. My wife loved it until the right rear wheel kept ripping off lug nuts even after replacing everything twice. We literally drove the wheels off that car, which shouldn’t happen with less than 65,000 miles on it. It is gone now, but it makes a good example of how not to sell your car. I am sure if that seller would have said “Leather, Sunroof, heated seats, L.L. Bean Package, 6 cylinder” rather than just “Si Drive”, he would have sold it sooner and for probably more money than I gave him.

LEXpert on Location-Pleasant Ridge Park Lexington Ky

by John Rice

You know, I’ve been doing these neighborhood video tours that I post on my Youtube channel for quite some time. It just dawned on me that I mention a lot of the amenities of the neighborhoods in the videos but rarely show them. A lot of that is time. I don’t want to turn a video into a movie length commitment for my viewers. Well, I am going to start doing super short videos about some of the features in/around my favorite neighborhoods. This is the first, and it is Pleasant Ridge Park out by Andover Forest, Timber Creek, The Home Place and Gleneagles.

The park has a lot of sentimental value for me. I remember going there with my kids long before we become 40509ers. Once we moved out this way, this was my kid’s bus stop. We also use to ride bikes to this park ALL the time.

Here it is:

Why Winter Can Be a Good Time to Sell

by John Rice

Let’s say you have an average house, in an average neighborhood. Heck, let’s say you have a below average house in a below average neighborhood. Wonder when the best time of the year is to sell? Winter.

Sure, there are fewer buyers, but there is also less competition. Remember, there are two sides of supply and demand. I have seen countless times where a house keeps being a buyer’s 2nd or 3rd choice all year then sells in the winter. See, those winter buyers don’t have a lot of choices. For a house that has always been the bridesmaid but never the bride to sell, it means all the other better choices have already sold. If you take that average or below average house off the market and put it back on in the spring, it will keep being rejected because there will always be a better choice for a buyer.

What about the above average house? Those are always a buyer’s first choice regardless of the time of year. They sell winter, spring, summer or fall.

If you are thinking about listing your house this winter, make sure it is on the market no later than early February. Most sellers wait until April to list their houses. They want those first few warmer weekends to get their house ready. Most buyers start entering the market as soon as grass comes out of dormancy. You want to be there to catch those late winter buyers because they never have as many choices.

Yes, your agent is WHY your house hasn’t sold

by John Rice

I got a call last night from a family that has two houses they have been trying to sell for nearly 6 of the best months the market has offered a seller in years. What gives?

Real estate is all about price, location and condition. Real estate marketing is about price, online presentation and making the house look attractive to buyers when they come see it.

I am going over tonight to look at these houses, but based on the current listings…….I am embarrassed for my whole industry. I am always amazed that I am still always amazed at just how poorly some realtors do their jobs. In this case, the current agent didn’t even bother to enter the name of the neighborhood. She entered “Rural” as the neighborhood. People looking for rural properties won’t want this one and people who might want this house think it is out in the country somewhere. Boo 😦

The house is currently overpriced. Many agents are so eager to get a listing that they are afraid to tell the truth to the seller. That just ends up wasting a seller’s time. In this case, these poor sellers have had an overpriced house on the market for the best part of the year and didn’t know it.

I won’t even go into how bad the pictures are. Okay, I will. Some of the pictures are so blurry I thought maybe my contacts had fallen off my eyes. And about all of them are just a corner of the rooms. There is nothing there to work with for a buyer. WHY would they want to come see a house that the presentation offers nothing to make them want to see it?

My plan for this house is similar to what I do for all of my listings. I like to see the house and tell the seller what they need to do to sell. If a room feels small or inhibits buyers from experiencing the space, then some furniture should be taken out or rearranged. If there are heavy curtains that block a lot of natural light, they need to come down…..there are just a ton of little things that can be done to make the house more attractive to buyers. My favorite suggestion for a seller was putting mulch and a fire pit where their kids sandbox had been. We didn’t have time to grow grass, so I suggested they buy a fire pit, two plastic lawn chairs and about 4 bags of mulch. All in all, I think they told me it cost less than $100. We had multiple offers the first day on the market and the buyer who got it wrote in their contract that the fire pit/lawn chairs stayed with the house. Yeah, $100 turned an eyesore into a unique feature. I love doing stuff like that!!!!

Once ready, the professional photographer comes in. People are sitting at a computer deciding if they will come see your house or not. The presentation is what gets you showings. I don’t want to sell the house online, my goal is just to sell somebody on coming to see it. For a fishing analogy, it is the bait.

I try to use the marketing remarks I write to tell what is unique or above average about the house. If the buyers don’t think it has anything different to offer than what they have already seen, they are more likely to not schedule an appointment. There is always something unique about any house, even if it is rough or just like every other one in the neighborhood. If there really isn’t much difference, I might drive around the neighborhood and try to find something special to write. Maybe most the houses don’t have a flat driveway and my listing does? The sun sets on the front of the house so you can sit on the patio after work without roasting? A lot of natural light? There is always something to talk about.

I can’t wait to see these houses tonight!!

Time for the accidental landlord to rejoice!!

by John Rice

Well, it is finally happening. The improving market means all those people who were forced into being landlords can now sell their house. I really felt bad for these sellers when the market was at it’s worst. They often had to move to take a job and left behind their home that wouldn’t sell. Renting was really their last option short of ruining their credit.

I have worked with many of these sellers this year. They have all been renting and want to sell. Most still have in the back of their head that they may have to rent again.

The first thing I always ask these sellers is if they really want to be a landlord. I tell them that it is almost always better to part with the house now or keep it forever. Renting for another few years can actually hurt them more in the long run. Things like a roof, furnace, air conditioner, water heater, wood windows, etc have a lifespan. The less of that lifespan you pass on to a future buyer the less your house is worth compared to the rest of your neighborhood. So, lets say you have a house that is 12-15 years old. You rent it another 3 years then decide to sell. By that time the roof and HVAC are old enough that it will be a stumbling block to buyers, so they offer less. Even worse, let’s say you have to replace one or both of those items? Your house isn’t going to be worth $5-10k more because that is how much you spent replacing those items! And if you aren’t too deep into a 30 year mortgage, you are not paying down enough in principal to offset the expense.

Nobody has told me they want to be a landlord. They all want out, especially the ones who no longer live here.

Once I have seen the house, I will make suggestions on what it will take to sell the place. I usually try to find that happy spot where we get the greatest return on every dollar the seller spends. Paint is the cheapest thing you can do when selling your house. Fresh paint always makes a house look it’s best. Carpet is a cheap item too. Think about it, when you walk in a room, the walls, ceiling and floors are most of what you see……they are ALL of what you see if the house will be vacant. A deep cleaning is a cheap way of making the house more appealing to buyers too. Often, changing out a few outdated features in the kitchen or bath go a long way. I also usually end up managing these type of projects since the sellers are not here to do it themselves. That is okay, because I enjoy watching a house go from looking like a worn out rental to something a buyer will be attracted too. And I have to say I totally enjoy seeing if my input turns out being fruitful for my sellers.