How I won in multiple offers

I was working with a client for several months who was buying in Nicholasville.  The market there is even worse than it is in Lexington for a sub $200k buyer since there are only about 8 neighborhoods to choose from.

A great house came on the market.  I scheduled a showing.

I just knew this would be the one.  I checked out the recent sales in the neighborhood to get an idea about what this house was worth.  I even prepared all the docs my buyer would need to sign so we would be ready to go.  All I needed to do was fill in the offer price and have her sign it from her phone.

We looked at the house.  It was a winner.  I call to tell the listing agent that I just sent an offer and was told that there was already one offer on the table and another one was coming.

We revised our offer to be slightly over the list price.  I asked all my usual questions that can help with getting an offer accepted……When would the seller like to close?  Do they need delayed possession?  Would they like the inspection type where the buyer either takes it or leaves it after the inspection?  Other than price, what would the seller’s ideal offer be?

The seller didn’t need anything special, so I knew this one would come down just to price.

A few hours later I get a call telling me that the third offer arrived and it had an escalation clause.  That made me pretty nervous.

I tell my buyer this and suggest we also do an escalation clause.  I tell her that the default setting for most agents is to offer $1000 more than the highest offer, so we better do more.  Otherwise all we would accomplish was knocking out the third buyer.

She agreed to a number we discussed and that she would pay that much higher than any offer up to certain price.  The list price was $192,900 and all the offers were higher than that.

I was a nervous wreck all day.  I really wanted to see my buyer get this house.  It was perfect for her and she had been waiting so long to get a house.

Finally, I get the call that she won the house.  Turns out all the offers were $194k, and the other offeror’s escalation clause was the predictable $1000 that I suspected.

It was sort of funny for me because it was the first time I had ever called to tell a buyer they had just bought a house and they didn’t yet know what they were paying for it.  I tried to make her guess, you know, like she was a contestant on The Price is Right, but she was so anxious that she said “JUST TELL ME THE PRICE!!”

 

Was this my biggest mistake?

The LEXpert.

That’s a name I’ve been called for a long time, even before I got my real estate license in 2005.

It began when somebody was impressed that I knew where just about any street was in Lexington.  Somebody mentioned a street and I knew what neighborhood it was in.  They said I was quite the LEXpert.

It’s stuck with me ever since.

So, when I left a nationally franchised real estate brokerage to start my own brokerage a couple of years ago, I needed to pick a name for my company.

Most real estate company names either sound like a law firm or a bank….there is even one that sounds like a landscape company and dry cleaner.

I wanted something that would convey what the client was getting, which was me.  So, I picked The LEXpert.

Only problem is people are thinking I only work in Lexington now.

I’ve always worked in Nicholasville, Winchester, Georgetown, Versailles, Paris, Richmond and Frankfort.  I occasionally even have people look in Lawrenceburg/Anderson County, Sheby County and Montgomery County/Mt. Sterling.

Maybe I should have named myself The BluegrassPERT?  Not sure if that would even fit on a sign unless it was so small you couldn’t read it from more than 3 feet away.

Now that almost all of my work comes from past clients or people who have been referred to me from past clients and/or friends, it doesn’t matter all that much.

I am not sure what I will do.  I occasionally think about changing the name of my brokerage.

I guess if this could possibly have been my biggest mistake, I am still in good shape.

The first house you buy is the most important one ever

First time buyers.  I’ve been working with a few of them lately.

Most first time buyers are thinking about finding a place they like.

I like to show them that their first house is so much more than that.

Every house you are ever going to own is impacted by that first one.

It is really the most important house you are ever going to purchase.

Why?

Because eventually you will sell that first house.  How well of an investment it turned out to be will impact how much money you have to put down on your next house.  It just keeps going until you are middle aged and in your forever home.  You know, the one you sell to help fund your retirement when you downsize to a cheaper home.

My dad called this compounding.  He was mainly referring to interest when he was teaching me this stuff in middle school, but it applies to real estate too.

It really reminds me more of bowling though.  To get a strike, you don’t knock down every pin with the ball.  You just hit one of them right and the pins begin to knock down the remaining pins.

“Local agents won’t show your house if listed with a Lexington agent” T or F?

Maita yardsign

I was heading to Mt. Sterling today to stick a sign in the yard of a new listing.  I took Route 60 all the way from my neighborhood in Lexington.  It was a beautiful day to put the top down, so I did.

As I am driving down there, I was thinking about how some sellers believe agents when they say stuff like this:  “If you list with a Lexington agent, none of the (insert small town surrounding Lexington here) agents will show your house.”  I guess in the old days when agents were the gate keepers of info, that might have been true for a very small percentage of selfish realtors.   Today, buyers are seeing the houses online and they tell their agents which ones they want to see.

Even now when I list houses outside of Lexington, many sellers ask me if that is true.  All I know is that I have never met an agent that would let where the listing agent was from stand between them and selling a house.  A few years ago, I even did a some research on a little town just outside of Lexington.  I wanted to see how many houses were listed by Lexington agents verses local agents, then compare the average days on market between the two.  Well, the Lexington agents actually sold their listings faster than the local ones.

So if you live outside of Lexington and would like your yard sign delivered in a 1990 Miata, have no fear.  Local agents will show your house because that is their job and their buyers will see it on every real estate website that exists.