John Rice

How to get a house in a tight market

by John Rice

Let’s just jump right in:

  1.  Obviously, the first step is to go see it as soon as it hits the market.  Many houses are selling immediately these days.  You wait until it is convenient to see and you will likely lose it.
  2. If it is a new listing, there is a higher change of there being multiple offers.  Don’t make a lower offer and see what the seller counters back with.  In between your offer and the seller’s response, odds are another offer will come in.  Seal the deal ASAP because nothing is settled until all parties sign a contract.
  3. If you find yourself in multiple offers, go in with your best terms.  Keep in mind that there is more to this than just price.  The closing date and when the seller has to be out are often just as important.  Remember, everybody moving out is going to be moving in somewhere too.  They have to coordinate their move just like you do.  I’ve seen sellers accept or counter a lower offer because the closing date and/or move out date were more favorable.
  4. Sellers get nervous about the home inspection.  I would only suggest doing this if the price is right or it is your dream house, but you could buy it totally “As-Is” or agree to limit what the seller might spend on repairs.  You could maybe just inspect the major systems too.   I’ve been on hundreds of inspections.  Most of the time the repair list amounts to no more than $1000 and is full of minor items that you would not walk away over……so in a super tight market for the house you really love, why risk losing it?  This is funny for me to write, because when the market was so terrible, I was suggesting sellers do anything they could to hang on to the few buyers in the market!
  5. You could raise the earnest money amount.  Personally, I don’t care how much the earnest money is.  The buyer gets it back for just about any reason short of giving you the middle finger and saying they just changed their mind.  Some agents and sellers get excited about the amount of earnest money though.
  6. Most people have a personal attachment to their home.  They want it to go to somebody they feel good about.  So yeah, we are back to the days of writing a personal letter to the seller and maybe including a picture of you/your family.  Everybody else will just be a name at the bottom of the offer.  You will be a person.

Of course, every situation is a little different.  Having an agent who can help determine the best course and to what extent you need to do all this will help the most.

BIGGEST factor in picking a house

by John Rice

A friend of mine called me last week.  Her son was about to buy a house sight unseen in a different state and she wanted to know what I thought.  While I did not have any specific knowledge or experience in a market that was a 10 hour drive from Lexington, what I chose to tell her should help insulate her son from making a bad decision.  It will do the same for you.

The biggest thing to think about is how a house fits in with the other homes in the neighborhood.  If almost all the houses have a 2 car garage and the one you want only has a 1 car, that is bad because buyers will view your house as inferior to others.  You don’t want a small lot when most are bigger.  A smaller house when most are bigger.

About the only way being different normally helps is if a house is better than most in the same neighborhood.  Like, having a 3 car garage when most have 2.  Having a bigger lot when most are smaller.  These things make the house superior to the rest and help with resale potential.  (When buying though you have to make sure you are not spending a lot more than the typical house in a neighborhood-these superior features do add some value but it is generally not a good idea to be the most expensive house in the neighborhood.)

Resale potential is about how appealing a house is in the market place…..not to be confused with resale value.  Values fluctuate.  Appeal is consistent.  In a hot market, all houses sell.  In a bad market, only the best sell.  When the market was in the toilet several years ago, the better houses kept more of their pre-crash value and sold faster than others.

Pick a good one.

7 reasons I love being a Realtor

by John Rice

The title pretty much says it all, so I’ll just get started.

 

  • I like helping people.  When I was in college and didn’t know what I wanted to do for a career yet, I remember thinking “I wish there was a job where you just did favors for people.”  I’ve been able to take that attitude and apply it to being a Realtor.  I get to help people plan, coordinate things, advise them, help them save money….even after we close, I still get to help because many of my clients are always asking me what they should do to improve their house, for contractor recommendations, etc.
  • I like houses and neighborhoods.  Ever since I got my driver’s license, I have been cruising around checking them out.  Now I get to do that and making a living at the same time….only I am much older and my car is much nicer now.
  • I like numbers.  My dad can tell you that the best thing he ever gave me was a calculator.  Even now, it is the most used app on my phone.  I get to crunch numbers to figure out what a house is worth for both my buyers and sellers.
  • I like being on the move.  It about killed me in school and jobs I’ve had where you sit in one room all day.  I like being all over town and seeing what is happening.
  • I like seeing the pictures my clients post on Facebook.  There is no greater pleasure than to see people enjoying the home that I helped get for them.  I’ve got to see bland rooms transformed into nurseries, kids grow and all the life that happens in a home.  I also get to see clients move on to bigger and better things in their lives too.  It is sad when they move out of town, but it is nice to know that I was able to help with the transition.
  • I like writing.  I had a newspaper with I was a kid.  That was before there were copiers at home.  Fortunately I had a circulation of about 4 neighbors so making each copy by hand was not that big of a deal.  I did the newsletter when I worked at UPS.  I’d post my favorite movie quotes, I’d ask my co-workers random questions and have their replies.  Everybody had a great time reading it.  That is when I learned you can get people to read stuff IF you make it fun for them.  That is why I try to be creative in my marketing remarks for listings.
  • And the last reason is because being a Realtor has allowed be who I am and enjoy doing what I do.

LEXpert’s top picks for around $350k

by John Rice

At the bottom of the market just a few years ago, it seemed like $350k was a HUGE budget.  It still gets you a very nice house, but most of the popular choices like Firebrook, Palomar, Hartland, Andover Forest and Chevy Chase are now well over $400k for a fairly updated home.

Here are a few neighborhoods that I always like to make sure my $350k buyers are aware of:

Dogwood Hills-This is an 80’s neighborhood with large traditional houses located out Harrodsburg Road across from Firebrook.  I’ve always described Dogwood Hills as upscale but not pretentious.  It just has a comfortable, cozy vibe to it that I have always found appealing.   You’ve got a great southwest Lexington location, there is a shopping center with a Kroger right next door, and you have a great city park in the back of the neighborhood.

Rabbit Run-This is a late 80s/early 90s neighborhood.  I am taking about Wellington Lane, part of Wellington Way, Meadowbrook Drive, Meadowbrook Court, Comanche Trail, Comanche Court, Blenheim Way and Blenheim Court.  Rabbit Run does have a section of medium sized houses on small lots.  There is also an adjoining neighborhood whose real name is Saint Stephen’s Green at Rabbit Run….but most people call it all Rabbit Run these days.  Now that I have cleared up all that, what do I like about it?  Like Dogwood Hills, it does have that cozy, comfortable upscale vibe to it.  I think it’s best feature is the location.  It is right in the middle of everything you want on the southwest end of Lexington.  Both Man O War and New Circle Road are minutes away.  You can sneak in the back way to get to Fayette Mall without ever being on Nicholasville Road.  You have all the great things that Harrodsburg Road offers very close, such as the YMCA, library, restaurants, gym, grocery stores…even a hardware store.

Lansdowne-This neighborhood has become very trendy.  $350k doesn’t go as far as it use to here.  What makes it special is that you get a mid-century neighborhood with large lots inside New Circle Road and close to UK, downtown and Chevy Chase.  You can also get to about anything on Nicholasville Road by taking one of the side streets like Zandale, Malabu or Reynolds Road.  A popular spot for many residents is the Signature Club.  It has a great swimming pool.  You can enjoy the club even if you are not a member and dine in “The Cellar.”  As if this location was not ideal enough, you are very close to The Lansdowne Shoppes which has several amazing businesses such as The Fresh Market (One of my favorite grocery stores-great sushi!)

Stonewall-This is my default suggestion when people tell me they want a safe neighborhood with good performing schools and they want a huge yard in south Lexington.  I guess it is my default because it is about the only neighborhood that meets all that criteria.  Stonewall is a 1960s neighborhood that use to be just outside of Lexington.  Just beyond Stonewall is a 70s neighborhood called Grasmere.  Some people think Grasmere is part of Stonewall, but it isn’t.  Grasmere has a similar feel to it, although the lots are a little smaller and the houses are about 10 years newer.  It is a little cheaper too.  When Stonewall won’t fit in your budget, look in Grasmere.  Stonewall is right off Clays Mill Road just outside of New Circle.  It is just a few minutes away from Rabbit Run, so you get all the same location perks.

LEXpert’s top picks for around $250k

by John Rice

Okay.  You want a 4 bedroom house in Lexington.  Nothing too old.  Maybe you have kids.  Maybe you don’t.  Either way you realize a house in this price range and size should be in a good performing school district to keep the resale potential up.

Here are a few neighborhoods I always suggest and why:

Andover Hills-I know, I know.  I am always talking about Andover Hills.  I lived there for several years and it has been my absolute favorite place I’ve ever lived.  You are close to Hamburg, but since you are on the southeast side of it, you do not have to pass through Hamburg EVERY time you go any place else in town.  Since I now live on the northeast side of Hamburg and must get past Hamburg to get anywhere, I am always aware of this.  Andover Hills has a nice vibe.  Upscale without being pretentious.  $250k is the low end for this neighborhood.  An added plus is having Andover Golf and Country Club so close for golfing and the pool if you wanted to join.  There are a lot of businesses that you use regularly that are very close too.

Chilesburg-This neighborhood would not have been on my list many years ago.  It has always been nice, but the school district change finally put all of Chilesburg in the elementary school that sits in the middle of it.  It is just a few minutes past Andover Hills, so it shares many of the same perks.  One cool thing Chilesburg has is a bunch of walking trails through the neighborhood.

Willow Oak-This is one neighborhood few people know exists.  It is tucked away behind Millpond Shopping Center on Boston Road.  If you’ve been out there and seen a park with a pool and a big pond, that belongs to this neighborhood.  There is only one way in and out, and it is across a picturesque bridge.  Anything you want in South Lexington is close, and you could walk to Starbucks.  The streets are lined with huge pin oaks.  This neighborhood has one of my highest “Good vibes per dollar” ratings ever.  You could spend twice as much elsewhere and not get as much neighborhood character.

Copperfield-This is one of the most desirable neighborhoods in this price range.  It is upscale in a classic sense like Andover Hills and has all the character that you find in Willow Oak.  It is also on the edge of the Dunbar High School district, which is one reason it is so popular.  The neighborhood has it’s own pool and clubhouse too.