how to pick a realtor

Time for the Santa Suit, Shorts & Sandals

by John Rice

I forget how many years it’s been since I accidentally started this tradition.

I had been doing Christmas cards for a few years. I really enjoyed them. I remember going to stores and trying to find funny ones.

Being known as the realtor that wore shorts and sandals year round had sort of become my trademark. I thought it would be fun to dress up as Santa since I was a pretty round shaped guy back then. Of course I had to have the shorts and sandals.

That first year it was just a picture of me dressed as such with a studio background. Everybody LOVED it.

I remember renting the costume from a place off of Southland Drive. When I picked it up, the store was very messy inside and smelled like a cat box. I was so happy to get out of there. My friend Shaun took the picture at his studio. I did not expect the costume to also smell like a cat box. Once we took the picture and I returned the costume, I rushed home to take a shower. I also smelled like a cat box.

Since the first year was such a success, I thought we would expand the concept a little. My friend Shaun and I went out in the country looking for just the right spot. The concept was me as Santa again, but this time I would be sitting on the back of the blue Mazda Miata I had back then. It had antlers and a nose on it just like Rudolph the Red Nosed Reindeer.

While we had the car parked and Shaun was getting his gear ready, an older man in a truck stopped to ask if we needed help. He though the car was broken down. He seems totally unfazed that I was wearing a Santa Suit, shorts and sandals and that my car looked like a reindeer. We said we were fine, thanked him, and he drove off.

After that one, my son Stuart started taking the pictures. Most were car themed after everybody loved the Miata one. Once we ran out of cool cars in the garage, we did one with my Dad’s motorcycle sidecar. My other son and dog were elves in that one.

My son Stuart was majoring in Digital Media at the time. He was really becoming a great photographer and learning a lot of skills in school. He had the idea to photoshop me into backgrounds. That’s the way we have done it ever since. Probably his most famous card was one where I was trapped in a snow globe. Ever since then, I have just told him to do whatever he wanted.

We always say we are going to start working on these sooner so we don’t have the pressure to get them done in time to hit the mailboxes. However we always wait until around the beginning of December. I usually put on the outfit, pose how he tells me to pose, then wait for the finished product.

Each year, we find it is getting harder and harder to come up with something better than the previous year. I think the one this year with the picture of Big Blue in downtown Lexington may be the peak. All I know is that I’ve only got 11 months to come up with something at least equally as good…….wait a minute, I mean my son only has 11 months to do that.

I hope everybody enjoys their Holiday!

What makes a good time to buy? It’s not what you think

by John Rice

In my nearly 20 years of being in this business, I have rarely seen anybody think it was a great time to buy a home.

Most of our perception of when was a great time to buy is retrospective.

2008-2010 was a fantastic time to be a buyer. Rates were really low, inventory was up, prices were down. But know what? Every buyer was scared to death to buy back then. Why, because like any time though history, there were reasons that made it scary. There will ALWAYS be reasons that make any moment in the future seem like a scary time to buy: Wars, recessions, politics, interest rates, employment stats, the price of gas. There will never ever be a time when all of those variables align to make you fell like it is the perfect time to buy a home.

Now I’m not just saying this because I’m a realtor. To most realtors, it is always a good time to buy. Interest rates going down? BUY and save money. Interest rates going up? BUY before they go higher. Inventory is up? BUY while you have options. Low inventory? BUY just to get in the market.

Know what I say? Buy when the time is right for you. It doesn’t matter what the market is like. It doesn’t matter what the interest rates are. Buying will always get you ahead because you will be buiding equity with every payment. You are investing in your furture though real estate, all while having a place to live that you can control. How will you know when you’re ready:

  1. When you can afford the payment and to maintain a home.
  2. When you know you will likely be able to stay in the home for at least the next 4-5 years.
  3. When your life is settled enough that the house you can afford will meet your needs for the next 5 years.

If you are at the point when all 3 of those conditions are met, it’s time to start shopping. Like I have been saying for nearly two decades: Buy a house on a decent lot, with a good floor plan, in one of the best neighborhoods in your price range. These three things will make your house desirable in any market when it is your turn to be the seller.

Buying a home will always be risky. Just be smart about it and minimize those risks though planning and good decisions.

What to expect for the rest of 2023

by John Rice

In 2-3 months, you will be reading that sales have dropped significantly. The news media will have you believing the sky has fallen. They will compare the stats to the booming pandemic years and/or the best of times……as if that was normal. Headlines will read:

“Sales down 20% (compared to last month.)”

“Mortgage applications fell to lowest level (since 2022.)”

The reality will be that the market has just returned to normal, seasonal cycles.

I think sometimes we forget to look back far enough to see the bigger patterns. It probably doesn’t help that the media people are only following real estate long enough to write their article. It also doesn’t help that so many real estate agents haven’t been in the business long enough to see a balanced or even a bad market.

This is what a balanced market looks like: Some houses sell the first day on the market in multiple offers. Some houses don’t sell quickly and need one or more price reductions. March through August are peak sales months. After August the sales gradually slow down and start picking back up after the New Year.

So, for the rest of 2023, I think we will see fewer and fewer sales. Yes, the interest rates are high and that is what is returning us to a more balanced market. However, that is not the only reason we will see fewer sales. Part of it will be that we have returned to a more normal cycle of sales slowing down due to the time of year. I think prices will remain stable. We will see a whole lot of price reductions on listings that didn’t sell the first day on the market. This doesn’t mean that values are dropping. It just means the seller and/or their realtor were just too ambitious on the list price. We are returning to a market where buyers have some choices. When there are not 10 buyers fighting for ever single house, it means the loser houses that nobody wants will have to reduce the price to even attract one buyer.

Backup offers are a bad idea except for this 1 reason

by John Rice

Backup offers.

They seem appealing to buyers who missed a house they wanted.

However, they are 99% of the time, a bad thing to do.

Why?

  1. It ties you up. You have an accepted contract on a house contingent on the primary buyer’s contract falling apart. Should another house come on the market that you want to make an offer on, you have to rescind your offer IF you have verbiage in your contract that allows you to do so. If you don’t have that language in the contract, you are stuck. You are missing out on houses you could get right now in hopes that the sale of one you previously missed will fall apart. This is a recipe for never getting a house.
  2. You are really helping the seller more than yourself. Think about it from the seller’s perspective. You are putting them in a spot where they have two people wanting the house. If the primary buyer asks for repairs after a home inspection, the seller is just going to say “Look, I’ve got a backup contract. If you want this house you’ve gotta do what I want you to do. If not, walk away and I’ll just let the other buyer have it.”
  3. You are going to pay a premium. The seller has no reason to accept an offer less than the primary contract they already have. If you’re a seller with an accepted contract for $400k on your house, would you bother with an offer for $390k? This means you are most likely going to have to make an offer stronger than the offer they currently have with the primary buyer.

When is that one single time when it might make sense? If the house is 110% exactly what you want and you are not going to be happy with any other house. If that’s they case, make that backup offer. Pay too much for it. Give the seller all the power. Pray the sale with the primary buyer falls apart. Then wait and see what happens.

If the house is just a really nice one that you liked a lot, just keep looking. Another one always eventually comes on the market. Oh, and remember, the best way to not have to make a backup offer is to have been the strongest offer the seller got when it was on the market. Beat the other buyers when you have a chance. Be that primary buyer that another buyer hopes will not be able to close the deal.

When is the best time to sell?

by John Rice

I get asked this often.

If you’re really not into reading, I will go ahead and tell you. The best time to sell is when you are ready to put the house on the market.

Why wait? There are buyers out year round. Always have been. Always will be.

There are a few things to consider though.

The goal in any market is to get as many buyers as possible wanting your house. You do that by pricing it correctly and presenting it well. Usually the first few days on the market is your best shot of getting multiple offers. Once a listing grows stale, buyers are not afraid of losing it. They will pay top dollar for it if they are afraid somebody else will get it first. So, that means the first few days are the most critical to get right. Again, always has been. Always will be. That is why most realtors put their listings on the market on a Friday. Most people are off work on the weekend which means more showings. If your first weekend on the market is going to be a big UK home game, a big day for Keeneland, Mother’s Day or some other holiday when people will be traveling or have events with family/friends, it might be best to wait a week.

With so few houses for sale any more, you don’t have to worry as much about competing listings. I don’t worry about what time of the year is best and you shouldn’t either. If we ever get back to having a lot of inventory, my advice might change. Right now, any time is the best time.