neighborhood

Guess how long I’ve been a Realtor

by John Rice

N I N E T E E N

Y E A R S

That’s how long I’ve been a realtor. March 2005. It’s kind of hard for me to believe. One day I’m the new kid in town fresh with enthusiasm. Then all the sudden all this time passes. Now I’m the old dude with all the wisdom and experience that one only gains with time.

I was going to write about all the changes in real estate over the course of my career. I was going to say that while there have been changes in execution, pretty much everything is still the same. I even had some analogy about how whether you had a YETI or a Stanley Cup, what you put inside is the same and they both serve the same purpose.

But I will skip all that. Maybe next year.

So what am I going to say in this post? I am going to talk about how it feels having been a realtor for this long.

It’s been a great ride overall. Remember, I was the kid who was reading the real estate section of the Sunday newspaper. I would skip school once I got my driver’s license and cruise around neighborhoods looking at houses. I had no idea that one day I would be able to check out the inside of some of the houses that caught my eye.

I also had no idea the success this would bring. Pretty much everybody I told I was going into real estate said “Oh, you’ll do great at that!” I had no idea what they meant but I appreciated the encouragement. I had no idea that I would become one of the top producing realtors when at my peak. It was a lot of fun to reach that level. LOL, I don’t know if I want to do that again though. It was so much stress. I am much happier now and think I am a better realtor only being up to my shoulders with work instead of drowning in it.

Another feeling I have is gratitude. I am smart enough to realize none of this would have happened without my family, friends and clients.

My wife would keep dinner warm on the stove all those nights I had to work. Often I would have paperwork to do and she would bring a plate up to my office. I would not have been able to have gotten into real estate if she didn’t have a good job that covered all our expenses those early years.

My parents always encouraged me to do whatever I wanted to do. They also would watch my two sons when I had to rush out to show a house…..although, haha, they benefited as much from that as I did. My dad used to be an attorney. He’s probably given me a million dollars of legal advice for free.

Then there are my friends. Many of them would watch my sons too when I had to work. Many of them trusted me for their real estate needs when I was a newbie. A lot of them sent their friends, co-workers or family to me.

And my clients. Many of you have become friends. Ultimately I have you to thank because without you, none of this would have come to fruition.

I don’t think I have done anything to deserve all the wonderful things that have happened to me over my career. That’s probably what is the most humbling part of it all……that I am blessed by the goodness of others and not as a result of anything I have done.

And I am not done yet. Here’s to another 19 years!

Are Investors ruining the market?

by John Rice

Are real estate investors who buy single family homes ruining the market for other buyers and driving up rent?

Unpopular opinion, but I say no.

Sure, many of these investors might make terrible landlords. None of us like the robocalls we get asking to sell our houses to them…..but they are not ruining the market and driving up rent. I am by no means defending them or their actions. I am just saying that they are not the root of the problem.

I spent a couple weeks in Florida recently where I read an article saying how large scale investors were ruining the market. They were outbidding other buyers. They were reducing the number of homes available for owner-occupant buyers. They were raising the rent and making housing unaffordable.

This type of logic drives me crazy. Let me pick apart a few things here:

For every house for sale, that means there is both a Buyer and a Seller. If one Buyer is outbidding another, that means there are not enough houses for sale. This is a Supply and Demand issue. Also, the never mentioned seller who is about to become a buyer is happy with the terms they got.

Are they reducing the number of homes for sale? Yes, but isn’t the same true for anybody who buys an available home? Again, the issue is the imbalance between Supply and Demand.

Are they raising rent and making housing unaffordable? This one always amazes me. We have all just survived a crazy period of inflation where the cost of everything went up. Somehow most people single out housing, as if that shouldn’t have also been affected by inflation. Like we are shocked and appalled that housing costs, whether renting or buying, went crazy at the same time when everything else did too?

What this article seems to forget is the tenants. Where would they be if all the sudden there were no properties to rent? It isn’t like investors are buying these houses and keeping them empty. There is just as much demand for single family rental homes as there are for people wanting to buy them and live in them. If rent exceeds market demand, houses will sit vacant and investors will have to lower the rent to get a tenant. Again, Supply and Demand.

Are you seeing a theme here? Supply and Demand. There is a short supply of houses for sale for investors and owner-occupants. There is a short supply of houses for rent for those who cannot afford to buy or choose not to. Having more demand than supply is the problem here.

Some say that the issue is sellers just aren’t selling these days. Okay, true. But let’s think this through. We have far more people wanting to buy AND to rent houses. If all the sudden everybody decided to move, we would still have more people than houses because everybody living in their current house would also need another house. What’s that? Supply and Demand.

Building more homes is the only real solution to this. It is what the writers of the article I read should be encouraging if they honestly feel like everyone should be able to afford to buy or rent a home. The demand is there. The supply is the issue. Until there is a better balance, prices for buyers and tenants will not change.

Need a neighborhood with some character?

by John Rice

Let’s face it, most neighborhoods feel like exactly what they are….a field stripped of all the trees, subdivided in a way that maximizes the number of lots, then sold to builders who build pretty similar looking houses.

Nothing wrong with that.

Often most neighborhoods are chosen by buyers based on location. What makes a location desirable might be a park, a school, shopping, proximity to their work, a road making for an easy commute.

If you are somebody who wants a neighborhood with a special vibe, here are a few that come to mind:

  1. Chilesburg-Sure, having Hamburg, Jacobson Park and the Interstate so close are nice. Buuuuut the layout of the streets, the neighborhood walking trail and several ponds are what makes this feel so special.
  2. Hartland-While nothing is super close to this part of the Tates Creek area, the beauty is that nothing is far away. Getting to Hamburg, The Summit, Fayette Mall, Downtown and UK are all pretty easy, which is one of my favorite things about the neighborhoods in this whole area. Hartland has such a special vibe that it could offer nothing more than the neighborhood feel and I would still want to live there. What makes it so special? The layout of the streets. It is one of the few neighborhoods in Lexington that doesn’t feel like it was designed to maximize the number of lots. Roads have gentle curves, all of the cul-de-sacs have landscaped medians. Even the entire main road has a landscaped median. All the tall trees that have grown over the past 40 or so years add to the ambiance as well.
  3. Willow Oak-This is one of my favorite neighborhoods in it’s price range. You sort of get it all here. Southend shopping, Shillito Park, great school district PLUS a little stone bridge surrounded by greenspace as the only way in and out. All the streets are lined with gigantic pin oaks.
  4. Chevy Chase & Ashland Park-You didn’t think I had forgotten about these two I hope. They are the most desirable and recognized neighborhoods in all of Lexington. They put the “Ohhhh” in their 40502 zip code. What creates the vibe? Well, you know its the trees, especially a street named Catalpa known for it’s leaves that turn a bright yellow in the fall.You know it’s for the variety of classic and beautifully maintained homes. But what really does it is the design of the neighborhood…..well, more so for Ashland Park. It was designed by some dudes who did a lot of well know landscape architecture projects across the country. They were the sons of the landscape architect credited for designing Central Park in New York City. I could google their names right now, insert it in this paragraph and impress you with the perception that I know everything. Just to be humble, I won’t.

There are others, but these are the ones that tend to come to mind the most.

I’ll pick choice #2

by John Rice

I’m sort of in the market for a car to replace one I’ve got. Truth be told, I’m always “Sort of” in the market for a car. I am always wanting to get a new one or get rid of one I have.

I test drove a car a few weeks ago in Cincinnati.

It was one of the worst experiences ever. It was extremely clear that the sales person had no interest in anything beyond getting me to do exactly whatever he wanted. Wouldn’t answer any of my questions. Just wanted to get whatever information out of me that would serve his purposes. He would say one thing and contradict himself minutes later. I left feeling more like a victim. (I’ve worked with a few sales people often enough that I have become friends with them. I really wish one of them had the car I am looking for. Two of them are still in the business and one of them is a teacher now. These guys were great to work with and made car shopping fun!)

This experience got me thinking about how I operate compared to the sales person at that dealership in Northern Cincinnati. I work for my clients. I am their advocate. I have a fiduciary duty to look out for their best interests. I should know enough about houses, neighborhoods, construction, market conditions, values of homes and pretty much anything that could help a client of mine make a wise, informed decision for one of the largest purchases they will ever make……even if this means doing so doesn’t serve my own best interest. I don’t want my clients to buy any house. I want them to buy the right house for them.

I showed a house early this morning to some first time buyers. Having lived in Lexington since 1986 and being a realtor since 2005, I was able to give them a lot of information they needed.

I’ve sold several houses in this neighborhood so I was able to tell them what my clients liked and disliked about it. Having listed several there, I was also able to tell them what feedback prospective buyers have given after showings.

There is an elementary school just down the road from this house. I was able to tell them exactly how far the pick up line will be from the house we were in. I have been on this street many times when school is dismissing.

I was able to tell them about a large annual event that a church up the street has and how it would impact the neighborhood one week a year.

The house we saw was one that is being flipped. I always look for signs of hidden issues. This house had cracking in the brick veneer. I didn’t see any signs of damage or repairs on the inside of the house so my hunch is that a home inspector would consider it on the moderate end of normal. While I am no home inspector, I’ve owned about 20 houses and of course, have been on hundreds of home inspections. The last thing I want to happen is for my people to buy a house, then have it fall apart after a home inspection (The sale fall apart, lol, not the house!) It is heartbreaking and expensive for them when that happens. I try to help them out by doing as much of an amateur home inspection as I can.

I wish that sales person I endured would realize that you have two choices when working in commissioned sales:

  1. Be selfish. Get what you want. Take, take, take. Make it all about you. Get your check.
  2. Put others first. Find out what others want. Give, give, give. Make it all about them. Then get your check.

By picking choice #2, you still make the same living, only you go to bed at night with a deep satisfaction from knowing you really helped somebody.

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.